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: | 811-23439 |
Exact name of registrant as specified in charter: | ETF Opportunities Trust |
Address of principal executive offices: | 8730 Stony Point Parkway, Suite 205 Richmond, VA 23235 |
Name and address of agent for service | The Corporation Trust Co., Corporation Trust Center, 1209 Orange St., Wilmington, DE 19801
With Copy to:
John H. Lively Practus, LLP 11300 Tomahawk Creek Parkway, Ste. 310 Leawood, KS 66211 |
Registrant's telephone number, including area code: | (804) 267-7400 |
Date of fiscal year end: | July 31 |
Date of reporting period: | January 31, 2023 |
American Conservative Values ETF | |
Item #1(a). Reports to Stockholders. | |
1(b). Not applicable. |
American Conservative Values ETF
SEMI-ANNUAL
REPORT
For the Six Months Ended January 31, 2023 (unaudited)
American Conservative Values ETF
Important Disclosure Statement (unaudited)
The American Conservative Values ETF’s (the “Fund”) summary prospectus and prospectus contain important information about the Fund’s investment objectives, potential risks, management fees, charges and expenses, and other information and should be read and considered carefully before investing. To obtain the Fund’s summary prospectus and/or prospectus containing this and other important information, please call 888-909-6030. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC is the distributor and Ridgeline Research LLC is the investment advisor.
The performance data quoted represents past performance and is not a guarantee of future results. Current performance of the Fund may be lower or higher than the performance data quoted. Investment returns 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. Information provided with respect to the Fund’s Performance Data, Portfolio Holdings, Sector Weightings, Number of Holdings and Expense Ratios are as of January 31, 2023 and are subject to change at any time. For most recent information, please call 888-909-6030.
1
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Portfolio Compositionas of January 31, 2023 (unaudited)
Holdings by Sector/Asset Class |
| Percentage of |
COMMON STOCKS: | | |
Software & Services | | 15.91% |
Healthcare | | 14.64% |
Information Technology | | 12.72% |
Consumer Discretionary | | 12.16% |
Financials | | 11.55% |
Industrials | | 8.27% |
Consumer Staples | | 8.15% |
Energy | | 4.99% |
Communication Services | | 4.28% |
Materials | | 2.78% |
Real Estate | | 2.23% |
Utilities | | 2.22% |
| | 99.90% |
See Notes to Financial Statements
2
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Schedule of InvestmentsJanuary 31, 2023 (unaudited)
| | Security Description |
| Number |
| Value |
99.90% | | COMMON STOCKS | | | | |
| | | | | | |
4.28% | | COMMUNICATION SERVICES | | | | |
| | Activision Blizzard, Inc. | | 363 | | $27,795 |
| | Charter Communications, Inc.(A) | | 1,185 | | 455,407 |
| | Electronic Arts, Inc. | | 136 | | 17,501 |
| | Fox Corp. - Class A | | 1,637 | | 55,560 |
| | Fox Corp. - Class B | | 1,549 | | 49,103 |
| | Live Nation Entertainment, Inc.(A) | | 435 | | 35,013 |
| | News Corp. - Class A | | 2,363 | | 47,874 |
| | News Corp. - Class B | | 2,148 | | 43,905 |
| | Omnicom Group, Inc. | | 1,571 | | 135,090 |
| | Paramount Global | | 6,930 | | 160,499 |
| | Take-Two Interactive Software(A) | | 239 | | 27,062 |
| | The Interpublic Group of Cos, Inc. | | 3,451 | | 125,823 |
| | T-Mobile US, Inc.(A) | | 2,871 | | 428,669 |
| | | | | | 1,609,301 |
| | | | | | |
12.16% | | CONSUMER DISCRETIONARY | | | | |
| | Advance Auto Parts, Inc. | | 98 | | 14,923 |
| | Aptiv PLC(A) | | 387 | | 43,766 |
| | AutoZone, Inc.(A) | | 2 | | 4,878 |
| | Bath & Body Works, Inc. | | 419 | | 19,278 |
| | Best Buy Co., Inc. | | 339 | | 30,076 |
| | Booking Holdings, Inc.(A) | | 149 | | 362,681 |
| | BorgWarner, Inc. | | 431 | | 20,378 |
| | Chipotle Mexican Grill, Inc.(A) | | 49 | | 80,673 |
| | DR Horton, Inc. | | 388 | | 38,292 |
| | Darden Restaurants, Inc. | | 197 | | 29,150 |
| | Dollar General Corp. | | 303 | | 70,781 |
| | Dollar Tree, Inc.(A) | | 113 | | 16,970 |
| | Domino’s Pizza, Inc. | | 49 | | 17,297 |
| | eBay, Inc. | | 802 | | 39,699 |
| | Etsy, Inc.(A) | | 583 | | 80,209 |
| | Expedia Group, Inc.(A) | | 1,671 | | 190,995 |
| | Ford Motor Co. | | 5,995 | | 80,992 |
| | Garmin Ltd. | | 673 | | 66,546 |
| | Genuine Parts Co. | | 243 | | 40,780 |
| | Hasbro, Inc. | | 100 | | 5,917 |
| | Hilton Worldwide Holdings, Inc. | | 387 | | 56,150 |
| | The Home Depot, Inc. | | 3,659 | | 1,186,138 |
See Notes to Financial Statements
3
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Schedule of Investments - continuedJanuary 31, 2023 (unaudited)
| | Security Description |
| Number |
| Value |
| | Las Vegas Sands Corp.(A) | | 581 | | $34,279 |
| | Lennar Corp. | | 288 | | 29,491 |
| | LKQ Corp. | | 288 | | 16,981 |
| | Marriott International, Inc. | | 922 | | 160,594 |
| | McDonald’s Corp. | | 1,098 | | 293,605 |
| | MGM Resorts International | | 1,210 | | 50,106 |
| | O’Reilly Automotive, Inc.(A) | | 98 | | 77,650 |
| | Pool Corp. | | 49 | | 18,895 |
| | PulteGroup, Inc. | | 148 | | 8,420 |
| | PVH Corp. | | 97 | | 8,720 |
| | Ralph Lauren Corp. | | 48 | | 5,945 |
| | Ross Stores, Inc. | | 486 | | 57,440 |
| | Royal Caribbean Cruises Ltd.(A) | | 243 | | 15,780 |
| | Tapestry, Inc. | | 292 | | 13,306 |
| | Target Corp. | | 717 | | 123,424 |
| | Tesla, Inc.(A) | | 4,814 | | 833,881 |
| | The TJX Cos, Inc. | | 1,775 | | 145,302 |
| | Tractor Supply Co. | | 148 | | 33,743 |
| | Ulta Beauty, Inc.(A) | | 49 | | 25,184 |
| | Under Armour, Inc. - Class A(A) | | 3,473 | | 43,030 |
| | Under Armour, Inc. - Class C(A) | | 3,938 | | 42,924 |
| | Wynn Resorts Ltd.(A) | | 143 | | 14,821 |
| | YUM! Brands, Inc. | | 156 | | 20,360 |
| | | | | | 4,570,450 |
| | | | | | |
8.15% | | CONSUMER STAPLES | | | | |
| | Altria Group, Inc. | | 2,269 | | 102,196 |
| | Archer-Daniels-Midland Co. | | 396 | | 32,809 |
| | Brown-Forman Corp. | | 299 | | 19,907 |
| | Church & Dwight Co., Inc. | | 243 | | 19,649 |
| | Colgate-Palmolive Co. | | 380 | | 28,321 |
| | Constellation Brands, Inc. | | 383 | | 88,672 |
| | Costco Wholesale Corp. | | 1,538 | | 786,133 |
| | The Estee Lauder Cos., Inc. | | 243 | | 67,330 |
| | General Mills, Inc. | | 582 | | 45,606 |
| | Kimberly-Clark Corp. | | 338 | | 43,943 |
| | The Kraft Heinz Co. | | 919 | | 37,247 |
| | Kroger Co. | | 338 | | 15,085 |
| | McCormick & Co., Inc. | | 194 | | 14,573 |
| | Mondelez International, Inc. | | 2,312 | | 151,297 |
| | Monster Beverage Corp.(A) | | 916 | | 95,337 |
See Notes to Financial Statements
4
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Schedule of Investments - continuedJanuary 31, 2023 (unaudited)
| | Security Description |
| Number |
| Value |
| | PepsiCo, Inc. | | 2,972 | | $508,271 |
| | Philip Morris International, Inc. | | 1,640 | | 170,954 |
| | Sysco Corp. | | 221 | | 17,119 |
| | The Clorox Co. | | 42 | | 6,077 |
| | The Hershey Co. | | 147 | | 33,016 |
| | The Procter & Gamble Co. | | 4,992 | | 710,761 |
| | Tyson Foods, Inc. | | 385 | | 25,314 |
| | Walgreens Boots Alliance, Inc. | | 1,256 | | 46,296 |
| | | | | | 3,065,913 |
4.99% | | ENERGY | | | | |
| | Baker Hughes Co. | | 1,011 | | 32,089 |
| | Chevron Corp. | | 2,504 | | 435,746 |
| | ConocoPhillips | | 1,064 | | 129,670 |
| | EOG Resources, Inc. | | 531 | | 70,225 |
| | Exxon Mobil Corp. | | 6,331 | | 734,459 |
| | Halliburton Co. | | 961 | | 39,612 |
| | Hess Corp. | | 145 | | 21,773 |
| | Kinder Morgan, Inc. | | 2,218 | | 40,589 |
| | Marathon Petroleum Corp. | | 968 | | 124,407 |
| | Occidental Petroleum Corp. | | 969 | | 62,782 |
| | ONEOK, Inc. | | 431 | | 29,515 |
| | Pioneer Natural Resources Co. | | 97 | | 22,344 |
| | Schlumberger NV | | 1,829 | | 104,216 |
| | The Williams Cos., Inc. | | 914 | | 29,467 |
| | | | | | 1,876,894 |
| | | | | | |
11.55% | | FINANCIALS | | | | |
| | Aflac, Inc. | | 290 | | 21,315 |
| | The Allstate Corp. | | 126 | | 16,187 |
| | American International Group, Inc. | | 343 | | 21,684 |
| | Ameriprise Financial, Inc. | | 198 | | 69,324 |
| | Aon PLC | | 243 | | 77,439 |
| | Arthur J Gallagher & Co. | | 98 | | 19,181 |
| | Bank of New York Mellon Corp. | | 458 | | 23,161 |
| | Berkshire Hathaway, Inc. - Class B(A) | | 3,216 | | 1,001,848 |
| | Capital One Financial Corp. | | 488 | | 58,072 |
| | Cboe Global Markets, Inc. | | 100 | | 12,288 |
| | Chubb Ltd. | | 723 | | 164,475 |
| | Cincinnati Financial Corp. | | 197 | | 22,291 |
| | Citigroup, Inc. | | 3,549 | | 185,329 |
| | Citizens Financial Group, Inc. | | 818 | | 35,436 |
See Notes to Financial Statements
5
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Schedule of Investments - continuedJanuary 31, 2023 (unaudited)
| | Security Description |
| Number |
| Value |
| | CME Group, Inc. | | 529 | | $93,453 |
| | Discover Financial Services | | 1,076 | | 125,602 |
| | Fifth Third BanCorp | | 1,351 | | 49,028 |
| | First Republic Bank | | 291 | | 40,996 |
| | Franklin Resources, Inc. | | 286 | | 8,923 |
| | Hartford Financial Services Group | | 340 | | 26,387 |
| | Huntington Bancshares, Inc. | | 1,497 | | 22,710 |
| | Intercontinental Exchange, Inc. | | 819 | | 88,083 |
| | Invesco Ltd. | | 150 | | 2,777 |
| | KeyCorp | | 1,014 | | 19,459 |
| | Loews Corp. | | 233 | | 14,325 |
| | MarketAxess Holdings, Inc. | | 49 | | 17,829 |
| | Marsh & McLennan Cos., Inc. | | 625 | | 109,319 |
| | MetLife, Inc. | | 1,686 | | 123,112 |
| | Moody’s Corp. | | 284 | | 91,661 |
| | Morgan Stanley | | 2,935 | | 285,664 |
| | MSCI, Inc. | | 51 | | 27,110 |
| | Northern Trust Corp. | | 385 | | 37,333 |
| | PNC Financial Services Group | | 877 | | 145,082 |
| | Principal Financial Group, Inc. | | 195 | | 18,047 |
| | Prudential Financial, Inc. | | 198 | | 20,778 |
| | Raymond James Financial, Inc. | | 291 | | 32,816 |
| | Regions Financial Corp. | | 1,734 | | 40,818 |
| | Rocket Cos., Inc. | | 3,547 | | 33,377 |
| | S&P Global, Inc. | | 658 | | 246,711 |
| | State Street Corp. | | 579 | | 52,880 |
| | Synchrony Financial | | 99 | | 3,636 |
| | T Rowe Price Group, Inc. | | 340 | | 39,600 |
| | The Charles Schwab Corp. | | 3,082 | | 238,608 |
| | The Travelers Cos., Inc. | | 105 | | 20,068 |
| | Truist Financial Corp. | | 2,312 | | 114,190 |
| | US Bancorp | | 2,772 | | 138,046 |
| | Wells Fargo & Co. | | 5,267 | | 246,864 |
| | Willis Towers Watson plc | | 148 | | 37,620 |
| | | | | | 4,340,942 |
| | | | | | |
14.64% | | HEALTHCARE | | | | |
| | Abbott Laboratories | | 2,391 | | 264,325 |
| | AbbVie, Inc. | | 2,461 | | 363,613 |
| | Agilent Technologies, Inc. | | 243 | | 36,955 |
| | AmerisourceBergen Corp. | | 291 | | 49,167 |
See Notes to Financial Statements
6
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Schedule of Investments - continuedJanuary 31, 2023 (unaudited)
| | Security Description |
| Number |
| Value |
| | Amgen, Inc. | | 1,207 | | $304,647 |
| | Becton Dickinson and Co. | | 340 | | 85,755 |
| | Biogen, Inc.(A) | | 69 | | 20,072 |
| | Boston Scientific Corp.(A) | | 1,782 | | 82,417 |
| | Bristol-Myers Squibb Co. | | 3,274 | | 237,856 |
| | Cardinal Health, Inc. | | 285 | | 22,016 |
| | Centene Corp. (A) | | 528 | | 40,255 |
| | Cigna Corp. | | 943 | | 298,620 |
| | The Cooper Cos., Inc. | | 49 | | 17,098 |
| | CVS Health Corp. | | 1,691 | | 149,180 |
| | Danaher Corp. | | 1,101 | | 291,082 |
| | Dexcom, Inc.(A) | | 392 | | 41,979 |
| | Edwards Lifesciences Corp.(A) | | 679 | | 52,079 |
| | Elevance Health, Inc. | | 845 | | 422,492 |
| | Eli Lilly and Co. | | 1,410 | | 485,251 |
| | Embecta Corp.(A) | | 65 | | 1,715 |
| | GE Healthcare Technologies (A) | | 448 | | 31,145 |
| | Gilead Sciences, Inc. | | 542 | | 45,495 |
| | HCA Healthcare, Inc. | | 142 | | 36,220 |
| | Hologic, Inc.(A) | | 145 | | 11,799 |
| | Humana, Inc. | | 335 | | 171,420 |
| | IDEXX Laboratories, Inc. | | 51 | | 24,506 |
| | Illumina, Inc.(A) | | 194 | | 41,555 |
| | Incyte Corp.(A) | | 150 | | 12,771 |
| | Intuitive Surgical, Inc.(A) | | 447 | | 109,823 |
| | IQVIA Holdings, Inc.(A) | | 193 | | 44,276 |
| | Laboratory Corporation of America | | 98 | | 24,708 |
| | McKesson Corp. | | 243 | | 92,019 |
| | Medtronic PLC | | 1,762 | | 147,462 |
| | Merck & Co., Inc. | | 3,613 | | 388,072 |
| | Mettler-Toledo International, Inc.(A) | | 1 | | 1,533 |
| | Regeneron Pharmaceuticals, Inc.(A) | | 150 | | 113,771 |
| | ResMed, Inc. | | 99 | | 22,609 |
| | Stryker Corp. | | 434 | | 110,154 |
| | Thermo Fisher Scientific, Inc. | | 523 | | 298,283 |
| | Veeva Systems, Inc.(A) | | 90 | | 15,350 |
| | Vertex Pharmaceuticals, Inc.(A) | | 529 | | 170,920 |
| | Zimmer Biomet Holdings, Inc. | | 155 | | 19,738 |
| | Zoetis, Inc. | | 1,840 | | 304,502 |
| | | | | | 5,504,705 |
| | | | | | |
See Notes to Financial Statements
7
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Schedule of Investments - continuedJanuary 31, 2023 (unaudited)
| | Security Description |
| Number |
| Value |
8.27% | | INDUSTRIALS | | | | |
| | 3M Co. | | 375 | | $43,155 |
| | American Airlines Group, Inc.(A) | | 2,506 | | 40,447 |
| | AMETEK, Inc. | | 191 | | 27,680 |
| | The Boeing Co.(A) | | 659 | | 140,367 |
| | Canadian Pacific Railway Ltd. | | 142 | | 11,204 |
| | Carrier Global Corp. | | 531 | | 24,176 |
| | Caterpillar, Inc. | | 723 | | 182,406 |
| | CH Robinson Worldwide, Inc. | | 150 | | 15,025 |
| | Cintas Corp. | | 98 | | 43,487 |
| | Copart, Inc.(A) | | 574 | | 38,234 |
| | CSX Corp. | | 2,888 | | 89,297 |
| | Cummins, Inc. | | 243 | | 60,638 |
| | Deere & Co. | | 386 | | 163,216 |
| | Eaton Corp. plc | | 532 | | 86,296 |
| | Emerson Electric Co. | | 866 | | 78,131 |
| | Equifax, Inc. | | 146 | | 32,441 |
| | Expeditors International of | | 196 | | 21,197 |
| | Fastenal Co. | | 726 | | 36,699 |
| | FedEx Corp. | | 291 | | 56,413 |
| | Fortive Corp. | | 342 | | 23,266 |
| | General Dynamics Corp. | | 139 | | 32,395 |
| | General Electric Co. | | 1,347 | | 108,407 |
| | Honeywell International, Inc. | | 1,098 | | 228,911 |
| | Illinois Tool Works, Inc. | | 291 | | 68,688 |
| | Ingersoll Rand, Inc. | | 388 | | 21,728 |
| | Jacobs Solutions, Inc. | | 143 | | 17,668 |
| | JB Hunt Transport Services, Inc. | | 49 | | 9,263 |
| | Johnson Controls International | | 1,258 | | 87,519 |
| | L3Harris Technologies, Inc. | | 290 | | 62,298 |
| | Lockheed Martin Corp. | | 334 | | 154,729 |
| | Norfolk Southern Corp. | | 111 | | 27,285 |
| | Northrop Grumman Corp. | | 195 | | 87,368 |
| | Old Dominion Freight Line, Inc. | | 99 | | 32,991 |
| | Otis Worldwide Corp. | | 286 | | 23,518 |
| | PACCAR, Inc. | | 436 | | 47,659 |
| | Parker-Hannifin Corp. | | 147 | | 47,922 |
| | Quanta Services, Inc. | | 49 | | 7,457 |
| | Raytheon Technologies Corp. | | 1,928 | | 192,511 |
| | Republic Services, Inc. | | 148 | | 18,473 |
See Notes to Financial Statements
8
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Schedule of Investments - continuedJanuary 31, 2023 (unaudited)
| | Security Description |
| Number |
| Value |
| | Rockwell Automation, Inc. | | 49 | | $13,819 |
| | Southwest Airlines Co. | | 966 | | 34,554 |
| | Trane Technologies plc | | 240 | | 42,989 |
| | TransDigm Group, Inc. | | 49 | | 35,170 |
| | Union Pacific Corp. | | 861 | | 175,808 |
| | United Airlines Holdings, Inc.(A) | | 338 | | 16,548 |
| | United Parcel Service, Inc. | | 858 | | 158,927 |
| | Westinghouse Air Brake | | 191 | | 19,828 |
| | Waste Management, Inc. | | 534 | | 82,626 |
| | WW Grainger, Inc. | | 49 | | 28,885 |
| | Xylem, Inc. | | 99 | | 10,297 |
| | | | | | 3,110,016 |
| | | | | | |
12.72% | | INFORMATION TECHNOLOGY | | | | |
| | Advanced Micro Devices, Inc. (A) | | 3,204 | | 240,781 |
| | Amphenol Corp. | | 768 | | 61,263 |
| | Analog Devices, Inc. | | 481 | | 82,477 |
| | Applied Materials, Inc. | | 1,556 | | 173,478 |
| | Arista Networks, Inc. (A) | | 1,536 | | 193,567 |
| | Broadcom, Inc. | | 479 | | 280,220 |
| | CDW Corp. | | 148 | | 29,012 |
| | Cisco Systems, Inc. | | 28,192 | | 1,372,105 |
| | Corning, Inc. | | 920 | | 31,841 |
| | Hewlett Packard Enterprise Co. | | 1,643 | | 26,502 |
| | HP, Inc. | | 2,250 | | 65,565 |
| | Intel Corp. | | 5,273 | | 149,015 |
| | Keysight Technologies, Inc.(A) | | 194 | | 34,794 |
| | KLA Corp. | | 148 | | 58,087 |
| | Lam Research Corp. | | 194 | | 97,019 |
| | Microchip Technology, Inc. | | 484 | | 37,568 |
| | Micron Technology, Inc. | | 1,720 | | 103,716 |
| | Motorola Solutions, Inc. | | 197 | | 50,631 |
| | NVIDIA Corp. | | 4,129 | | 806,683 |
| | QUALCOMM, Inc. | | 1,765 | | 235,116 |
| | Roper Technologies Inc. | | 149 | | 63,586 |
| | Seagate Technology Holdings plc | | 235 | | 15,928 |
| | ServiceNow, Inc.(A) | | 351 | | 159,751 |
| | TE Connectivity Ltd. | | 486 | | 61,795 |
| | Texas Instruments, Inc. | | 1,477 | | 261,739 |
| | Zebra Technologies Corp.(A) | | 285 | | 90,111 |
| | | | | | 4,782,350 |
See Notes to Financial Statements
9
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Schedule of Investments - continuedJanuary 31, 2023 (unaudited)
| | Security Description |
| Number |
| Value |
2.78% | | MATERIALS | | | | |
| | Air Products and Chemicals, Inc. | | 294 | | $94,230 |
| | Albemarle Corp. | | 49 | | 13,791 |
| | Amcor plc | | 2,172 | | 26,194 |
| | Ball Corp. | | 484 | | 28,188 |
| | Celanese Corp. | | 50 | | 6,160 |
| | Corteva, Inc. | | 968 | | 62,388 |
| | Dow, Inc. | | 383 | | 22,731 |
| | DuPont de Nemours, Inc. | | 320 | | 23,664 |
| | Ecolab, Inc. | | 342 | | 52,952 |
| | FMC Corp. | | 50 | | 6,657 |
| | Freeport-McMoRan, Inc. | | 2,317 | | 103,385 |
| | International Flavors & Fragrances, Inc. | | 97 | | 10,909 |
| | International Paper Co. | | 677 | | 28,312 |
| | Linde plc | | 817 | | 270,378 |
| | LyondellBasell Industries NV | | 287 | | 27,750 |
| | The Mosaic Co. | | 385 | | 19,073 |
| | Newmont Corp. | | 916 | | 48,484 |
| | Nucor Corp. | | 334 | | 56,453 |
| | Packaging Corp. of America | | 99 | | 14,127 |
| | PPG Industries, Inc. | | 291 | | 37,929 |
| | The Sherwin-Williams Co. | | 292 | | 69,084 |
| | Sylvamo Corp. | | 57 | | 2,709 |
| | Vulcan Materials Co. | | 49 | | 8,983 |
| | Westrock Co. | | 243 | | 9,535 |
| | | | | | 1,044,066 |
| | | | | | |
2.23% | | REAL ESTATE | | | | |
| | Alexandria Real Estate Equities | | 99 | | 15,913 |
| | American Tower Corp. | | 531 | | 118,620 |
| | AvalonBay Communities, Inc. | | 148 | | 26,261 |
| | CBRE Group, Inc.(A) | | 579 | | 49,510 |
| | Crown Castle International Corp. | | 534 | | 79,091 |
| | Digital Realty Trust, Inc. | | 339 | | 38,856 |
| | Equinix, Inc. | | 149 | | 109,981 |
| | Equity Residential | | 436 | | 27,751 |
| | Extra Space Storage, Inc. | | 50 | | 7,892 |
| | Host Hotels & Resorts, Inc. | | 572 | | 10,782 |
| | Mid-America Apartment Communities | | 50 | | 8,336 |
| | Prologis, Inc. | | 1,059 | | 136,908 |
| | Public Storage | | 242 | | 73,650 |
See Notes to Financial Statements
10
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Schedule of Investments - continuedJanuary 31, 2023 (unaudited)
| | Security Description |
| Number |
| Value |
| | Realty Income Corp. | | 229 | | $15,533 |
| | SBA Communications Corp. | | 41 | | 12,199 |
| | Simon Property Group, Inc. | | 239 | | 30,702 |
| | Ventas, Inc. | | 285 | | 14,766 |
| | Welltower, Inc. | | 484 | | 36,319 |
| | Weyerhaeuser Co. | | 769 | | 26,477 |
| | | | | | 839,547 |
| | | | | | |
15.91% | | SOFTWARE & SERVICES | | | | |
| | Accenture PLC | | 1,294 | | 361,091 |
| | Adobe, Inc.(A) | | 1,485 | | 549,955 |
| | ANSYS, Inc.(A) | | 98 | | 26,103 |
| | Autodesk, Inc.(A) | | 526 | | 113,174 |
| | Automatic Data Processing, Inc. | | 678 | | 153,099 |
| | Broadridge Financial Solutions | | 147 | | 22,103 |
| | Cadence Design Systems, Inc.(A) | | 820 | | 149,921 |
| | Cognizant Technology Solutions | | 819 | | 54,668 |
| | Fidelity National Information | | 817 | | 61,308 |
| | Fiserv, Inc.(A) | | 727 | | 77,556 |
| | Fortinet, Inc.(A) | | 955 | | 49,985 |
| | Gartner, Inc.(A) | | 192 | | 64,923 |
| | Global Payments, Inc. | | 342 | | 38,550 |
| | International Business Machine | | 235 | | 31,662 |
| | Intuit, Inc. | | 531 | | 224,438 |
| | Mastercard, Inc. | | 2,670 | | 989,502 |
| | Microsoft Corp. | | 9,348 | | 2,316,528 |
| | Oracle Corp. | | 3,385 | | 299,437 |
| | Paychex, Inc. | | 484 | | 56,076 |
| | Paycom Software, Inc.(A) | | 49 | | 15,873 |
| | Synopsys, Inc.(A) | | 244 | | 86,315 |
| | Tyler Technologies, Inc.(A) | | 44 | | 14,202 |
| | VeriSign, Inc.(A) | | 1,028 | | 224,155 |
| | | | | | 5,980,624 |
| | | | | | |
2.22% | | UTILITIES | | | | |
| | The AES Corp. | | 285 | | 7,812 |
| | Ameren Corp. | | 37 | | 3,214 |
| | American Electric Power Co., Inc. | | 202 | | 18,980 |
| | American Water Works Co., Inc. | | 99 | | 15,493 |
| | CenterPoint Energy, Inc. | | 482 | | 14,518 |
| | Consolidated Edison, Inc. | | 47 | | 4,480 |
See Notes to Financial Statements
11
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Schedule of Investments - continuedJanuary 31, 2023 (unaudited)
| | Security Description |
| Number |
| Value |
| | Constellation Energy Corp. | | 195 | | $16,645 |
| | Dominion Energy, Inc. | | 269 | | 17,119 |
| | DTE Energy Co. | | 198 | | 23,041 |
| | Duke Energy Corp. | | 613 | | 62,802 |
| | Edison International | | 377 | | 25,975 |
| | Eversource Energy | | 387 | | 31,862 |
| | Exelon Corp. | | 460 | | 19,407 |
| | FirstEnergy Corp. | | 630 | | 25,798 |
| | NextEra Energy, Inc. | | 4,427 | | 330,387 |
| | Public Service Enterprise Group | | 531 | | 32,885 |
| | Sempra Energy | | 111 | | 17,797 |
| | The Southern Co. | | 1,443 | | 97,662 |
| | WEC Energy Group, Inc. | | 294 | | 27,633 |
| | Xcel Energy, Inc. | | 580 | | 39,887 |
| | | | | | 833,397 |
| | | | | | |
99.90% | | TOTAL COMMON STOCKS | | | | |
| | (Cost: $36,694,701) | | 37,558,205 | ||
| | | | | | |
99.90% | | TOTAL INVESTMENTS | | | | |
| | (Cost: $36,694,701) | | 37,558,205 | ||
0.10% | | Other assets, net of liabilities | | 39,364 | ||
100.00% | | NET ASSETS | | $37,597,569 |
(A)Non-income producing
See Notes to Financial Statements
12
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Statement of Assets and LiabilitiesJanuary 31, 2023 (unaudited)
ASSETS | | | |
Investments at fair value (cost of $36,694,701) (Note 1) | | $37,558,205 | |
Cash | | 26,982 | |
Receivable for capital stock sold | | 775,177 | |
Dividends receivable | | 32,006 | |
TOTAL ASSETS | | 38,392,370 | |
| | | |
LIABILITIES | | | |
Payable for securities purchased | | 772,116 | |
Accrued advisory fees | | 22,685 | |
TOTAL LIABILITIES | | 794,801 | |
| | | |
NET ASSETS | | $37,597,569 | |
| | | |
Net Assets Consist of: | | | |
Paid-in capital | | $37,883,935 | |
Distributable earnings (accumulated deficit) | | (286,366 | ) |
Net Assets | | $37,597,569 | |
| | | |
NET ASSET VALUE PER SHARE | | | |
Net Assets | | $37,597,569 | |
Shares Outstanding (unlimited number of shares of beneficial interest authorized without par value) | | 1,200,000 | |
Net Asset Value and Offering Price Per Share | | $31.33 | |
See Notes to Financial Statements
13
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Statement of OperationsSix Months Ended January 31, 2023 (unaudited)
INVESTMENT INCOME | | | |
Dividend income (net of foreign tax withheld of $6) | | $292,330 | |
Total investment income | | 292,330 | |
| | | |
EXPENSES | | | |
Investment advisory fees (Note 2) | | 125,081 | |
Total expenses | | 125,081 | |
Net investment income (loss) | | 167,249 | |
| | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | | | |
Net realized gain (loss) on investments | | (821,924 | ) |
Change in unrealized appreciation (depreciation) of investments | | 1,332,630 | |
Net realized and unrealized gain (loss) on investments | | 510,706 | |
| | | |
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | | $677,955 | |
See Notes to Financial Statements
14
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Statements of Changes in Net Assets
| | Six months ended |
| Year ended | |
Increase (decrease) in Net Assets | | | | | |
OPERATIONS | | | | | |
Net investment income (loss) | | $167,249 | | $233,998 | |
Net realized gain (loss) on investments | | (821,924 | ) | (257,375 | ) |
Change in unrealized appreciation (depreciation) of investments | | 1,332,630 |
| (1,853,190 | ) |
Increase (decrease) in net assets | | 677,955 |
| (1,876,567 | ) |
| | | | | |
DISTRIBUTIONS TO SHAREHOLDERS | | | | | |
Distributions to shareholders | | (165,229 | ) | (238,343 | ) |
Decrease in net assets from distributions | | (165,229 | ) | (238,343 | ) |
| | | | | |
CAPITAL STOCK TRANSACTIONS (NOTE 5) | | | | | |
Proceeds from shares issued | | 4,547,993 | | 21,646,524 | |
Shares redeemed | | — |
| (960,231 | ) |
Increase (decrease) in net assets from capital stock transactions | | 4,547,993 |
| 20,686,293 | |
| | | | | |
NET ASSETS | | | | | |
Increase (decrease) during period | | 5,060,719 | | 18,571,383 | |
Beginning of period | | 32,536,850 |
| 13,965,467 | |
End of period | | $37,597,569 |
| $32,536,850 | |
See Notes to Financial Statements
15
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Financial HighlightsSelected Per Share Data Throughout Each Period
| | Six months |
| Year ended |
| October 28, | |
Net asset value, beginning | | $30.99 |
| $32.55 |
| $25.00 | |
| | | | | | | |
Investment activities | | | | | | | |
Net investment income (loss)(1) | | 0.15 | | 0.25 | | 0.19 | |
Net realized and unrealized gain (loss) on investments | | 0.34 |
| (1.58 | ) | 7.53 | |
Total from investment activities | | 0.49 |
| (1.33 | ) | 7.72 | |
Distributions | | | | | | | |
Net investment income | | (0.15 | ) | (0.21 | ) | (0.17 | ) |
Net realized gain | | — |
| (0.02 | ) | — | |
Total distributions | | (0.15 | ) | (0.23 | ) | (0.17 | ) |
| | | | | | | |
Net asset value, end of period | | $31.33 |
| $30.99 |
| $32.55 | |
| | | | | | | |
Total Return(3) | | 1.63 | % | (4.06 | %) | 30.96 | % |
Ratios/Supplemental Data | | | | | | | |
Ratios to average net assets(4) | | | | | | | |
Expenses | | 0.75 | % | 0.75 | % | 0.75 | % |
Net investment income (loss) | | 1.00 | % | 0.77 | % | 0.82 | % |
Portfolio turnover rate(5) | | 10.46 | % | 3.70 | % | 6.04 | % |
Net assets, end of period (000’s) | | $37,598 | | $32,537 | | $13,965 | |
(1)Per share amounts caluculated using the average shares outstanding during the period.
(2)Commencement of Operations.
(3)Total return is for the period indicated and has not been annualized.
(4)Ratios to average net assets has been annualized.
(5)Portfolio turnover rate is for the period indicated, excludes the effect of securities received or delivered from processing in-kind creations or redemptions and has not been annualized.
16
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial StatementsJanuary 31, 2023 (unaudited)
NOTE 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The American Conservative Values ETF (the “Fund”) is a diversified series of ETF Opportunities Trust, a Delaware statutory trust (the “Trust”) which was organized on March 18, 2019 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company. The offering of the Fund’s shares is registered under the Securities Act of 1933, as amended. The Fund commenced operations on October 28, 2020.
The Fund’s objective is to seek to achieve long-term capital appreciation with capital preservation as a secondary objective.
The following is a summary of significant accounting policies consistently followed by the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 “Financial Services – Investment Companies”.
Security Valuation
The Fund records investments at fair value. Generally, the Fund’s domestic securities (including underlying ETFs which hold portfolio securities primarily listed on foreign (non-U.S.) exchanges) are valued each day at the last quoted sales price on each security’s primary exchange. Securities traded or dealt in upon one or more securities exchanges for which market quotations are readily available and not subject to restrictions against resale shall be valued at the last quoted sales price on the primary exchange or, in the absence of a sale on the primary exchange, at the last quoted bid price. Securities primarily traded in the NASDAQ National Market System for which market quotations are readily available shall be valued using the NASDAQ Official Closing Price. If market quotations are not readily available, securities will be valued at their fair market value as determined in good faith under procedures set by the Trust’s Board of Trustees (the “Board”). Although the Board is ultimately responsible for fair value determinations under Rule 2a-5 of the 1940 Act, the Board has delegated day-to-day responsibility for oversight of the valuation of the Fund’s assets to Ridgeline Research LLC (the “Advisor”) as the Valuation Designee pursuant to the Fund’s policies and procedures. Securities that are not traded or dealt in any securities exchange (whether domestic or foreign) and for which over-the-counter market quotations are readily available generally shall be valued at the last sale price or, in the absence of a sale, at the mean between the current bid and ask price on such over-the-counter market.
17
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial Statements - continuedJanuary 31, 2023 (unaudited)
The Fund has a policy that contemplates the use of fair value pricing to determine the net asset value (“NAV”) per share of the Fund when market prices are unavailable as well as under special circumstances, such as: (i) if the primary market for a portfolio security suspends or limits trading or price movements of the security; and (ii) when an event occurs after the close of the exchange on which a portfolio security is principally traded that is likely to have changed the value of the security. Since most of the Fund’s investments are traded on U.S. securities exchanges, it is anticipated that the use of fair value pricing will be limited.
When the Fund uses fair value pricing to determine the NAV per share of the Fund, securities will not be priced on the basis of quotations from the primary market in which they are traded, but rather may be priced by another method that the Valuation Designee believes accurately reflects fair value. Any method used will be approved by the Board and results will be monitored to evaluate accuracy. The Fund’s policy is intended to result in a calculation of the Fund’s NAV that fairly reflects security values as of the time of pricing.
The Fund has adopted fair valuation accounting standards that establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs used to develop the measurements of fair value. These inputs are summarized in the three broad levels listed below.
Various inputs are used in determining the value of the Fund’s investments. GAAP established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
18
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial Statements - continuedJanuary 31, 2023 (unaudited)
The following is a summary of the level of inputs used to value the Fund’s investments as of January 31, 2023:
| | Level 1 |
| Level 2 |
| Level 3 |
| Total | |
Common Stocks | | $37,558,205 |
| $— |
| $— |
| $37,558,205 | |
| | $37,558,205 |
| $— |
| $— |
| $37,558,205 | |
Refer to the Fund’s Schedule of Investments for a listing of the securities by type and sector.
There were no transfers into or out of any levels during the six months ended January 31, 2023. The Fund held no Level 3 securities at any time during the six months ended January 31, 2023.
Security Transactions and Income
Security transactions are accounted for on the trade date. The cost of securities sold is determined generally on specific identification basis. Realized gains and losses from security transactions are determined on the basis of identified cost for book and tax purposes. Dividends are recorded on the ex-dividend date. Interest income is recorded on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules.
Accounting Estimates
In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of investment income and expenses during the reporting period. Actual results could differ from those estimates.
Federal Income Taxes
The Fund has complied and intends to continue to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. The Fund also
19
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial Statements - continuedJanuary 31, 2023 (unaudited)
intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. Therefore, no federal income tax or excise provision is required.
Management has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken in the Fund’s tax returns. The Fund has no examinations in progress and management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Interest and penalties, if any, associated with any federal or state income tax obligations are recorded as income tax expense as incurred.
Reclassification of Capital Accounts
GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. For the six months ended January 31, 2023, there were no such reclassifications.
Dividends and Distributions
Dividends from net investment income, if any, are declared and paid quarterly by the Fund. The Fund distributes its net realized capital gains, if any, to shareholders annually. The Fund may also pay a special distribution at the end of a calendar year to comply with federal tax requirements. All distributions are recorded on the ex-dividend date.
Creation Units
The Fund issues and redeems shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of at least 25,000 shares known as “Creation Units.” Purchasers of Creation Units (“Authorized Participants”) will be required to pay Citibank, N.A. (the “Custodian”) a fixed transaction fee (“Creation Transaction Fee”) in connection with creation orders that is intended to offset the transfer and other transaction costs associated with the issuance of Creation Units. The standard Creation Transaction Fee will be the same regardless of the number of Creation Units purchased by an investor on the applicable Business Day. The Creation Transaction Fee charged by the Custodian for each creation order is $1,500. Authorized Participants wishing to redeem shares will be required to pay to the Custodian a fixed transaction fee (“Redemption Transaction Fee”) to offset the transfer and other transaction costs associated with the redemption of Creation Units. The standard Redemption
20
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial Statements - continuedJanuary 31, 2023 (unaudited)
Transaction Fee will be the same regardless of the number of Creation Units redeemed by an investor on the applicable Business Day. The Redemption Transaction Fee charged by the Custodian for each redemption order is $1,500.
Except when aggregated in Creation Units, shares are not redeemable securities. Shares of the Fund 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 (“DTC”) participant and, in each case, must have executed an agreement with the Fund’s principal underwriter (the “Distributor”) with respect to creations and redemptions of Creation Units (“Participation Agreement”). Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the Fund. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees. The following table discloses the Creation Unit breakdown based on the NAV as of January 31, 2023:
| | Creation Unit |
| Creation |
| Value | |
American Conservative Values ETF | | 25,000 | | $1,500 | | $783,250 | |
To the extent contemplated by a participant agreement, in the event an Authorized Participant has submitted a redemption request in proper form but is unable to transfer all or part of the shares comprising a Creation Unit to be redeemed to the Distributor, on behalf of the Fund, by the time as set forth in a participant agreement, the Distributor may nonetheless accept the redemption request in reliance on the undertaking by the Authorized Participant to deliver the missing shares as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral equal to a percentage of the value of the missing shares as specified in the participant agreement. A participant agreement may permit the Fund to use such collateral to purchase the missing shares, and could subject an Authorized Participant to liability for any shortfall between the cost of the Fund acquiring such shares and the value of the collateral. Amounts are disclosed as Segregated Cash Balance from Authorized Participants for Deposit Securities and Collateral Payable upon Return of Deposit Securities on the Statement of Assets and Liabilities, when applicable.
21
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial Statements - continuedJanuary 31, 2023 (unaudited)
Officers and Trustees Indemnification
Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects that risk of loss to be remote.
NOTE 2 – INVESTMENT ADVISORY AND DISTRIBUTION AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The Advisor currently provides investment advisory services pursuant to an investment advisory agreement (the “Advisory Agreement”). Under the terms of the Advisory Agreement, the Advisor manages the investment portfolio of the Fund, subject to the policies adopted by the Trust’s Board of Trustees. Under the Advisory Agreement, the Advisor, at its own expense and without reimbursement from the Trust, furnishes office space and all necessary office facilities, equipment and executive personnel necessary for managing the assets of the Fund. Under the Advisory Agreement, the Advisor assumes and pays all ordinary expenses of the Fund, except the fee paid to the Advisor pursuant to the Investment Advisory Agreement, distribution fees or expenses under a 12b-1 plan (if any), interest expenses, taxes, acquired fund fees and expenses, brokerage commissions and any other portfolio transaction related expenses and fees arising out of transactions effected on behalf of the Fund, credit facility fees and expenses, including interest expenses, and litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business.
For its services with respect to the Fund, the Advisor is entitled to receive an annual advisory fee, calculated daily and payable monthly as a percentage of the Fund’s average daily net assets, at the rate of 0.75%.
The Advisor has retained Vident Investment Advisory, LLC (the “Sub-Advisor”), to serve as sub-advisor for the Fund. Pursuant to an Investment Sub-Advisory Agreement between the Advisor and the Sub-Advisor (the “Sub-Advisory Agreement”), the Sub-Advisor is responsible for trading portfolio securities on behalf of the Fund, including selecting broker-dealers to execute purchase and sale transactions as instructed by the Advisor, subject to the supervision of the Advisor and the Board.
22
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial Statements - continuedJanuary 31, 2023 (unaudited)
For the services it provides to the Fund, the Sub-Advisor is compensated by the Advisor from the advisory fees paid by the Fund to the Advisor. Fees to the Sub-Advisor are calculated daily and paid monthly, based on the daily net assets of the Fund at the following rate: 0.05% on the first $250 million in net assets; 0.04% on the next $250 million in net assets; and 0.03% on any net assets in excess of $500 million (subject to a minimum of $30,000 per year).
Commonwealth Fund Services, Inc. (“CFS”) acts as the Fund’s administrator. As administrator, CFS supervises all aspects of the operations of the Fund except those performed by the Advisor and the Sub-Advisor. For its services, fees to CFS are computed daily and paid monthly based on the average daily net assets of the Fund, subject to a minimum of $25,000 per year. The Advisor pays these fees.
Certain officers of the Trust are also officers and/or directors of CFS. Additionally, Practus, LLP serves as legal counsel to the Trust. John H. Lively, Secretary of the Trust, is Managing Partner of Practus, LLP. J. Stephen King, Jr., Assistant Secretary of the Trust, is a partner of Practus, LLP. Gino E. Malaspina, Assistant Secretary of the Trust, serves as Counsel of Practus, LLP. Tom Carter, Vice President of the Trust, is President of the Advisor. Neither the officers and/or directors of CFS, Mr. Lively, Mr. King, Mr. Malaspina or Mr. Carter receive any special compensation from the Trust or the Fund for serving as officers of the Trust.
Custodian and Transfer Agent
Citibank, N.A. serves as the Fund’s Custodian and Transfer Agent pursuant to a Global Custodial and Agency Services Agreement. For its services, Citibank, N.A. is entitled to a fee. The Advisor pays these fees monthly.
Fund Accountant
Citi Fund Services, Ohio, Inc. serves as the Fund’s Fund Accountant pursuant to a Services Agreement. The Advisor pays these fees monthly.
Distributor
Foreside Fund Services, LLC serves as the Fund’s principal underwriter pursuant to an ETF Distribution Agreement. The Advisor pays the fees for these services monthly.
23
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial Statements - continuedJanuary 31, 2023 (unaudited)
NOTE 3 – INVESTMENTS
The costs of purchases and proceeds from the sales of securities other than in-kind transactions and short-term notes for the six months ended January 31, 2023 were as follows:
Purchases | Sales |
$3,571,089 | $3,458,948 |
The costs of purchases and proceeds from the sales of in-kind transactions associated with creations and redemptions for the six months ended January 31, 2023 were as follows:
Purchases | Sales | Realized Gain |
$4,517,407 | $— | $— |
NOTE 4 – DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL
Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.
The tax character of distributions during the six months ended January 31, 2023 and for the year ended July 31, 2022 were as follows:
| | Six months ended |
| Year ended | |
Distributions paid from: | | | | | |
Ordinary income | | $165,229 | | $237,754 | |
Realized gain | | — |
| 589 | |
| | $165,229 |
| $238,343 | |
As of January 31, 2023, the components of distributable earnings (deficit) on a tax basis were as follows:
Accumulated undistributed net investment income (loss) | | $20,001 | |
Accumulated net realized gain (loss) on investments | | (1,169,871 | ) |
Net unrealized appreciation (depreciation) on investments | | 863,504 | |
| | $(286,366 | ) |
24
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial Statements - continuedJanuary 31, 2023 (unaudited)
Cost of securities for Federal Income tax purpose and the related tax-based net unrealized appreciation (depreciation) consists of:
Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Total Unrealized Appreciation (Depreciation) |
$36,694,701 | $3,751,844 | $(2,888,340) | $863,504 |
NOTE 5 – TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Shares of the Fund are listed for trading on the NYSE Arca, Inc. (the “Exchange”), and trade at market prices rather than at NAV. Shares of the Fund may trade at a price that is greater than, at, or less than NAV. The Fund will issue and redeem shares at NAV only in large blocks of 25,000 shares (each block of shares is called a “Creation Unit”). Creation Units are issued and redeemed for cash and/or in-kind for securities. Individual shares may only be purchased and sold in secondary market transactions through brokers. Except when aggregated in Creation Units, the shares are not redeemable securities of the Fund.
All orders to create Creation Units must be placed with the Fund’s distributor or transfer agent either (1) through the Continuous Net Settlement System of the NSCC (“Clearing Process”), a clearing agency that is registered with the Securities and Exchange Commission (“SEC”), by a “Participating Party,” i.e., a broker-dealer or other participant in the Clearing Process; or (2) outside the Clearing Process by a DTC Participant. In each case, the Participating Party or the DTC Participant must have executed an agreement with the Distributor with respect to creations and redemptions of Creation Units (“Participation Agreement”); such parties are collectively referred to as “APs” or “Authorized Participants.” Investors should contact the Distributor for the names of Authorized Participants. All Fund shares, whether created through or outside the Clearing Process, will be entered on the records of DTC for the account of a DTC Participant.
Shares of beneficial interest transactions for the Fund were:
| | Six months ended |
| Year ended | |
Shares sold | | 150,000 | | 650,000 | |
Shares reinvested | | — | | — | |
Shares redeemed | | — |
| (29,000 | ) |
Net increase (decrease) | | 150,000 |
| 621,000 | |
25
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial Statements - continuedJanuary 31, 2023 (unaudited)
NOTE 6 – SECTOR RISK
If the Fund has significant investments in the securities of issuers in industries within a particular sector, any development affecting that sector will have a greater impact on the value of the net assets of the Fund than would be the case if the Fund did not have significant investments in that sector. In addition, this may increase the risk of loss of an investment in the Fund and increase the volatility of the Fund’s NAV per share. From time to time, circumstances may affect a particular sector and the companies within such sector. For instance, economic or market factors, regulation or deregulation, and technological or other developments may negatively impact all companies in a particular sector and therefore the value of the Fund’s portfolio will be adversely affected. As of January 31, 2023, the Fund had 15.91% of the value of its net assets invested in securities within the Software & Services sector.
NOTE 7 – RISKS OF INVESTING IN THE FUND
As with all funds, a shareholder is subject to the risk that an investment in the Fund could lose money. The principal risks affecting shareholders’ investments in the Fund are set forth below. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the FDIC or any government agency.
ETF Structure Risks. The Fund is structured as an ETF and as a result is subject to special risks, including:
•Not Individually Redeemable. Shares of the Fund (“Shares”) are not individually redeemable and may be redeemed by the Fund at NAV only in large blocks known as “Creation Units.” You may incur brokerage costs purchasing enough Shares to constitute a Creation Unit.
•Trading Issues. Although it is expected that Shares will remain listed for trading on the Exchange, trading in Shares on the Exchange may be halted due to market conditions or for reasons that, in the view of the Exchange, make trading in Shares inadvisable, such as extraordinary market volatility. There can be no assurance that Shares will continue to meet the listing requirements of the Exchange or will trade with any volume. There is no guarantee that an active secondary market will develop for Shares of the Fund. In stressed market conditions, the liquidity of shares of the Fund may begin to mirror the liquidity of the Fund’s underlying portfolio holdings, which can be significantly less
26
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial Statements - continuedJanuary 31, 2023 (unaudited)
liquid than shares of the Fund. This adverse effect on liquidity for the Fund’s Shares in turn could lead to differences between the market price of the Fund’s shares and the underlying value of those Shares.
•Market Price Variance Risk. The market prices of Shares will fluctuate in response to changes in NAV and supply and demand for Shares and will include a “bid-ask spread” charged by the exchange specialists, market makers or other participants that trade the particular security. There may be times when the market price and the NAV vary significantly. This means that Shares may trade at a discount to NAV. The market price of Shares may deviate from the value of the Fund’s underlying portfolio holdings, particularly in times of market stress, with the result that investors may pay significantly more or receive significantly less than the underlying value of the Shares of the Fund bought or sold.
•Authorized Participants (“APs”), Market Makers, and Liquidity Providers Concentration Risk. The Fund has a limited number of financial institutions that may act as 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 of the Fund 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.
•Costs of Buying or Selling Shares: Shares of the Fund. Due to the costs of buying or selling shares of the Fund, including brokerage commissions imposed by brokers and bid/ask spreads, frequent trading of shares of the Fund may significantly reduce investment results and an investment in shares of the Fund may not be advisable for investors who anticipate regularly making small investments.
Active Management Risk. The Advisor’s investment decisions about individual securities impact the Fund’s ability to achieve its investment objective. The Advisor’s judgments about the attractiveness and potential appreciation of particular investments in which the Fund invests may prove to be incorrect and there is no guarantee that the Advisor’s investment strategy will produce the desired results.
27
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial Statements - continuedJanuary 31, 2023 (unaudited)
Fund Investor Sourced Research and Opinion Risk. Company favorability ratings are collected from shareholders of the Fund, who may not be professional investors, may have no financial expertise, and may not do any research on companies prior to participation (referred to herein as “Fund Investor sourced research and opinion.” Fund Investor sourced research and opinion depends, to a large extent, on active participation of a sufficient number of shareholders. Investment decisions made using Shareholder Sourced Research may be influenced by cognitive and emotional biases, resulting in investment choices that underperform the market generally. Although the Advisor employs measures to detect irregularities in Fund Investor sourced research and opinion, there is no assurance these measures will be successful and, as a result, the integrity of the data could be compromised or could be subject to manipulation. The Advisor may be unable to collect Fund Investor sourced research and opinion for a period of time because of technical issues, failures of the Internet, cybersecurity breaches, or adverse claims on intellectual property, among other reasons.
Market Risk. Overall stock market risks may affect the value of individual securities in which the Fund invests. Factors such as domestic economic growth and market conditions, interest rate levels, and political events affect the securities markets. When the value of the Fund’s investments goes down, your investment in the Fund decreases in value and you could lose money.
Large Capitalization Securities Risk. Investments in large capitalization securities as a group could fall out of favor with the market, causing the Fund to underperform investments that focus on small capitalization securities. Larger, more established companies may be slow to respond to challenges and may grow more slowly than smaller companies.
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 industries, sectors or companies in which the Fund invests. Common stocks are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change.
Non-Financial Risk. Because the Fund assigns weights to securities of issuers for nonfinancial reasons, the Fund may underperform the broader equity market or other funds that do not take into consideration such non-financial factors when selecting investments.
28
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial Statements - continuedJanuary 31, 2023 (unaudited)
Portfolio Turnover Risk. Portfolio turnover refers to the rate at which the securities held by the Fund are replaced. The higher the rate, the higher the transactional and brokerage costs associated with the turnover, which may reduce the Fund’s return unless the securities traded can be bought and sold without corresponding commission costs. Active trading of securities may also increase the Fund’s realized capital gains or losses, which may affect the taxes you pay as the Fund shareholder.
Market Turbulence Resulting From COVID-19. An outbreak of an infectious respiratory illness caused by a novel coronavirus known as COVID-19 has negatively affected the worldwide economy, as well as the economies of individual countries, the financial health of individual companies and the market in general in significant and unforeseen ways. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund. Any such impact could adversely affect the Fund’s performance, the performance of the securities in which the Fund invests and may lead to losses on your investment in the Fund.
Cyber Security Risk. Failures or breaches of the electronic systems of the Advisor and the Fund’s other service providers, market makers, Authorized Participants (participants authorized to redeem Creation Units of a particular ETF) or the issuers of securities in which the Fund invests have the ability to cause disruptions and negatively impact the Fund’s business operations, potentially resulting in financial losses to the Fund and its shareholders. While the Fund has established business continuity plans and risk management systems seeking to address system breaches or failures, there are inherent limitations in such plans and systems. Furthermore, the Fund cannot control the cyber security plans and systems of the Fund’s service providers, market makers, Authorized Participants or issuers of securities in which the Fund invests.
Operational Risk. The Fund is exposed to operational risk arising from a number of factors, including but not limited to human error, processing and communication errors, errors of the Fund’s service providers, counterparties or other third parties, failed or inadequate processes and technology or systems failures. The Fund and the Advisor seek to reduce these operational risks through controls and procedures. However, these measures do not address every possible risk and may be inadequate for those risks that they are intended to address.
29
SEMI-ANNUAL REPORT | JANUARY 31, 2023
American Conservative Values ETF
Notes to Financial Statements - continuedJanuary 31, 2023 (unaudited)
NOTE 8 – SUBSEQUENT EVENTS
Management has evaluated all transactions and events subsequent to the date of the Statement of Assets and Liabilities through the date on which these financial statements were issued. Except as already included in the notes to these financial statements, no additional items require disclosure.
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SEMI-ANNUAL REPORT | JANUARY 31, 2023
ETF opportunities Trust (the “Trust”)
Supplemental Information (unaudited)
Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to securities held in the Fund’s portfolio is available, without charge and upon request, by calling 888-909-6030 or on the SEC’s website at https://www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve months ended June 30 is available on or through the SEC’s website at https://www.sec.gov.
Quarterly Portfolio Holdings
The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on “Form N-PORT”. These filings are available, without charge and upon request, by calling 888-909-6030 or on the SEC’s website at https://www.sec.gov.
Fund’s Liquidity Risk Management Program
The Fund has adopted and implemented a written liquidity risk management program as required by Rule 22e-4 under the 1940 Act. The program is reasonably designed to assess and manage the Fund’s liquidity risk, taking into consideration the Fund’s investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed conditions; its short and long-term cash flow projections; and its cash holdings. The Fund’s Board of Trustees approved the appointment of the Advisor as the Fund’s Liquidity Risk Management Administrator. The Advisor has appointed representatives from their compliance, trading, and portfolio management departments to assist in the program’s administration and oversight and for reporting to the Board on at least an annual basis regarding the program’s operation and effectiveness. The Liquidity Risk Management Administrator performed an assessment of the Fund’s liquidity risk profile, considering information gathered and its actual experience in administering the program and presented a written report to the Board of Trustees for consideration during the period covered by this semi-annual report. The report concluded that (i) the Fund did not experience significant liquidity challenges during the covered period; (ii) the Fund’s investment strategies remain appropriate for an open-end fund; and (iii) the Fund’s liquidity risk management program is reasonably designed to assess and manage its liquidity risk.
31
SEMI-ANNUAL REPORT | JANUARY 31, 2023
ETF opportunities Trust (the “Trust”)
Supplemental Information (unaudited) - continued
Approval of Investment Advisory Agreements
This semi-annual report pertains only to the American Conservative Values ETF; however, the disclosure below pertains to that fund and the American Conservative Values Small-Cap ETF, a fund that has not commenced operations. Once the American Conservative Values Small-Cap ETF commences operations, this disclosure will be provided again in the next financial report that is prepared and applicable to that fund.
At a meeting held on September 27-28, 2022 (the “Meeting”), the Board of Trustees (the “Board”) of the ETF Opportunities Trust (the “Trust”) considered the approval of the continuation of the Investment Advisory Agreement (the “Ridgeline Advisory Agreement”) between the Trust and Ridgeline Research LLC (“Ridgeline”) and the Investment Sub-Advisory Agreement (the “Sub-Advisory Agreement”) between Ridgeline and Vident Investment Advisory, LLC (“Vident”), each with respect to the American Conservative Values ETF (“ACVF”) and the American Conservative Values Small-Cap ETF (“ACVSCF” together with ACVF, the “ACV Funds”). The Board discussed the arrangements between Ridgeline and the Trust and Ridgeline and Vident with respect to the ACV Funds. The Board reflected on its discussions with the representatives from Ridgeline earlier in the Meeting regarding the manner in which the ACV Funds were managed and the roles and responsibilities of Ridgeline and Vident under the Ridgeline Advisory Agreement and the Sub-Advisory Agreement (collectively, the “Ridgeline Advisory Agreements”).
The Trustees reviewed a memorandum from counsel to the Trust (“Trust Counsel”) that addressed the Trustees’ duties when considering the continuation of the Ridgeline Advisory Agreements and the responses of Ridgeline and Vident to requests for information from Trust Counsel on behalf of the Board. A copy of this memorandum had been provided to the Trustees in advance of the Meeting. The Trustees also reviewed the responses of Ridgeline and Vident to requests for information from Counsel on behalf of the Board and noted that the responses included a copy of financial information for Ridgeline and Vident, an expense comparison analysis for the ACV Funds and comparable mutual funds and ETFs, and the Ridgeline Advisory Agreements. The Trustees discussed the types of information and factors that should be considered by the Board in order to make an informed decision regarding the approval of the Ridgeline Advisory Agreements, including the following material factors: (i) the nature, extent, and quality of the services to be provided by Ridgeline and Vident; (ii) the investment performance of the ACVF and Ridgeline; (iii) the costs of the services to be provided and profits to be realized by Ridgeline and Vident from the relationship with the ACV Funds; (iv) the extent to which economies
32
SEMI-ANNUAL REPORT | JANUARY 31, 2023
ETF opportunities Trust (the “Trust”)
Supplemental Information (unaudited) - continued
of scale would be realized if the ACV Funds grows and whether advisory fee levels reflect those economies of scale for the benefit of their investors; and (v) possible conflicts of interest and other benefits.
In assessing these factors and reaching its decisions, the Board took into consideration information specifically prepared or presented at this Meeting. The Board requested or was provided with information and reports relevant to the approval of the Ridgeline Advisory Agreements, including: (i) information regarding the services and support to be provided by Ridgeline and Vident to the ACV Funds and their shareholders; (ii) presentations by management of Ridgeline and Vident addressing the investment philosophy, investment strategy, personnel and operations to be utilized in managing the ACV Funds; (iii) information pertaining to the compliance structure of Ridgeline and Vident; (iv) disclosure information contained in the ACV Funds’ registration statement and Ridgeline’s and Vident’s Form ADV and/or the policies and procedures of Ridgeline and Vident; and (v) the memorandum from Trust Counsel that summarized the fiduciary duties and responsibilities of the Board in reviewing and approving the Ridgeline Advisory Agreements, including the material factors set forth above and the types of information included in each factor that should be considered by the Board in order to make an informed decision.
The Board considered that it also requested and received various informational materials including, without limitation: (i) documents containing information about Ridgeline and Vident, including financial information, information on personnel and the services to be provided by Ridgeline and Vident to the ACV Funds, each firm’s compliance program, information on any current legal matters, and other general information; (ii) projected expenses of the ACV Funds and comparative expense and performance information for other ETFs with strategies similar to the ACV Funds prepared by an independent third party; (iii) the anticipated effect of size on the ACV Funds’ performance and expenses; and (iv) benefits anticipated to be realized by Ridgeline and Vident from their relationship with the ACV Funds.
The Board did not identify any particular information that was most relevant to its consideration to approve the Ridgeline Advisory Agreements and each Trustee may have afforded different weight to the various factors. In deciding whether to approve the Ridgeline Advisory Agreements, the Trustees considered numerous factors, including:
The nature, extent, and quality of the services to be provided by Ridgeline and Vident.
In this regard, the Board considered the responsibilities of Ridgeline and Vident under their respective Ridgeline Advisory Agreements. The Board reviewed the services to be provided by each of Ridgeline and Vident to the ACV Funds,
33
SEMI-ANNUAL REPORT | JANUARY 31, 2023
ETF opportunities Trust (the “Trust”)
Supplemental Information (unaudited) - continued
including, without limitation, Ridgeline’s process for formulating investment recommendations and the processes of both Ridgeline and Vident for assuring compliance with the ACV Funds’ investment objectives and limitations; Vident’s processes for trade execution and broker-dealer selection for portfolio transactions; the coordination of services by Ridgeline for the ACV Funds among the service providers; and the anticipated efforts of Ridgeline to promote the ACV Funds and grow their assets. The Board considered: the staffing, personnel, and methods of operating of Ridgeline and Vident; the education and experience of their personnel; and information provided regarding their compliance programs, policies and procedures. The Board considered the methods to be utilized by Ridgeline in supervising Vident as a sub-adviser to the ACV Funds and the relationship between and Ridgeline and Vident. After reviewing the foregoing and further information from Ridgeline and Vident, the Board concluded that the quality, extent, and nature of the services to be provided by Ridgeline and Vident was satisfactory and adequate for the ACV Funds.
The investment performance of the ACVF Fund and Ridgeline.
The Board reviewed ACVF’s performance under Ridgeline’s management. They discussed the reports prepared by Broadridge Financial Solutions (“Broadridge”) and reviewed the performance of the ACVF as compared to the S&P 500 Index, noting that ACVF had outperformed its benchmark for the 1-year period ended June 30, 2022, and ranked in the 50th percentile in the Broadridge-created peer group over the year ended July 31, 2022.
The Board noted that ACVSCF had not yet commenced operations. The Trustees considered that Ridgeline does not manage any separate accounts with strategies similar to those of the ACV Funds.
After a detailed discussion of the ACVF’s performance, the Board concluded that the overall performance of the ACVF was in line with the Fund’s investment strategy and warranted the approval of the advisory agreement.
The costs of services to be provided and profits to be realized by Ridgeline and Vident from the relationship with the ACV Funds.
In this regard, the Board considered the financial condition of Ridgeline and the level of commitment to the ACV Funds by Ridgeline. The Board also considered the projected assets and proposed expenses of the ACV Funds, including the nature and frequency of advisory payments. The Board noted the information on profitability provided by Ridgeline and Vident. The Trustees considered Funds’ unitary fee structure, and compared the unitary fee of the ACV Funds to the fees
34
SEMI-ANNUAL REPORT | JANUARY 31, 2023
ETF opportunities Trust (the “Trust”)
Supplemental Information (unaudited) - continued
of a peer group of other ETFs selected by Broadridge using Morningstar data as being comparable to the ACV Funds in terms of the type of fund, the style of investment management, anticipated assets and the nature of the investment strategy and markets invested in, among other factors. The Trustees noted that the ACVF’s gross and net expense ratio and gross and net advisory fee were each higher than the median of its peer group and the peer group’s Morningstar category, while ACVSCF’s gross and net expense ratio and gross and net advisory fee were each lower than the median of its peer group and the peer group’s Morningstar category. The Board noted that Ridgeline does not manage separate accounts with strategies similar to the ACV Funds. The Trustees also considered the split of the advisory fees paid to Ridgeline versus those paid to Vident and the respective services provided by each to the ACV Funds. The Board also considered that Vident represented that its proposed fee for sub-advising the ACV Funds is consistent with the range of fees charged to other clients. After further consideration, the Board concluded that the projected profitability and fees to be paid to Ridgeline (who in turn will pay Vident) were within an acceptable range in light of the services to be rendered by Ridgeline and Vident.
The extent to which economies of scale would be realized as the ACV Funds grow and whether advisory fee levels reflect these economies of scale for the benefit of the ACV Funds’ investors.
The Trustees considered that it was not anticipated that, under the current fee structure, the ACV Funds would achieve economies of scale. They noted that the unitary fee structure of the ACV Funds limits shareholders’ exposure to fee increases.
Possible conflicts of interest and other benefits.
In evaluating the possibility for conflicts of interest, the Board considered such matters as: the experience and ability of the advisory and sub-advisory personnel assigned to the ACV Funds; the basis of decisions to buy or sell securities for the ACV Funds; the substance and administration of the Code of Ethics and other relevant policies of Ridgeline and Vident. The Board noted that Ridgeline and Vident have each represented that it does not anticipate utilizing soft dollars or commission recapture with regard to the ACV Funds. The Board also considered potential benefits for Ridgeline and Vident in managing the ACV Funds. Following further consideration and discussion, the Board concluded that the standards and practices of Ridgeline and Vident relating to the identification and mitigation of potential conflicts of interest, as well as the benefits to be derived by each of Ridgeline and Vident from managing the ACV Funds were satisfactory.
35
SEMI-ANNUAL REPORT | JANUARY 31, 2023
ETF opportunities Trust (the “Trust”)
Supplemental Information (unaudited) - continued
After additional consideration of the factors delineated in the memorandum provided by Counsel and further discussion and careful review by the Trustees, the Board determined that the compensation payable under the Ridgeline Advisory Agreement and the Sub-Advisory Agreement was fair, reasonable and within a range of what could have been negotiated at arms-length in light of all the surrounding circumstances, and they approved the Ridgeline Advisory Agreements.
36
SEMI-ANNUAL REPORT | JANUARY 31, 2023
AMERICAN CONSERVATIVE VALUES ETF
Fund Expenses (unaudited)
Fund Expenses Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares, and (2) other Fund expenses. This 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 mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period, August 1, 2022 and held for the six months ended January 31, 2023.
Actual Expenses Example
The first line of the table below provides information about actual account values and actual 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 table below 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 on purchases and sales of Fund shares. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
37
SEMI-ANNUAL REPORT | JANUARY 31, 2023
AMERICAN CONSERVATIVE VALUES ETF
Fund Expenses (unaudited) - continued
| Beginning | Ending | Annualized | Expenses |
American Conservative | $1,000.00 | $1,008.22 | 0.75% | $3.80 |
Hypothetical** | $1,000.00 | $1,021.42 | 0.75% | $3.82 |
*Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value for the period, multiplied by 184 days in the most recent fiscal period divided by 365 days in the current year.
**5% return before expenses
38
SEMI-ANNUAL REPORT | JANUARY 31, 2023
AMERICAN CONSERVATIVE VALUES ETF
Privacy Notice
The following is a description of the Fund’s policies regarding disclosure of nonpublic personal information that you provide to the Fund or that the Fund collects from other sources. In the event that you hold shares of the Fund through a broker-dealer or other financial intermediary, the privacy policy of your financial intermediary would govern how your nonpublic personal information would be shared with unaffiliated third parties.
Categories of Information the Fund Collects. The Fund collects the following nonpublic personal information about you:
•Information the Fund receives from you on or in applications or other forms, correspondence, or conversations (such as your name, address, phone number, social security number, assets, income and date of birth); and
•Information about your transactions with the Fund, its affiliates, or others (such as your account number and balance, payment history, parties to transactions, cost basis information, and other financial information).
Categories of Information the Fund Discloses. The Fund does not disclose any non-public personal information about their current or former shareholders to unaffiliated third parties, except as required or permitted by law. The Fund is permitted by law to disclose all of the information it collects, as described above, to their service providers (such as the Fund’s custodian, administrator and transfer agent) to process your transactions and otherwise provide services to you.
Confidentiality and Security. The Fund restricts access to your nonpublic personal information to those persons who require such information to provide products or services to you. The Fund maintains physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information.
The Fund’s Privacy Notice is not part of this semi-annual report.
Investment Advisor:
Ridgeline Research LLC
14961 Finegan Farm Drive
Darnestown, Maryland 20874
Distributor:
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, Maine 04101
Independent Registered Public Accounting Firm:
Cohen & Company, Ltd.
1350 Euclid Avenue, Suite 800
Cleveland, Ohio 44115
Fund Administration:
Commonwealth Fund Services, Inc.
8730 Stony Point Parkway, Suite 205
Richmond, Virginia 23235
Fund Accountant, Transfer Agent and Custodian:
Citi Fund Services Ohio, Inc. and Citibank, N.A.
4400 Easton Commons, Suite 200
Columbus, Ohio 43219
Legal Counsel:
Practus LLP
11300 Tomahawk Creek Parkway, Suite 310
Leawood, Kansas 66211
ITEM 2. | CODE OF ETHICS. |
Not applicable when filing a semi-annual report to shareholders.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable when filing a semi-annual report to shareholders.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable when filing a semi-annual report to shareholders.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable when filing a semi-annual report to shareholders.
ITEM 6. | SCHEDULE OF INVESTMENTS. |
(a) Schedule filed under Item 1 of the Form.
(b) Not applicable.
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
Not applicable.
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a- 15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d- 15(b)).
(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 13. | EXHIBITS. |
(a)(1) Code of ethics
Not applicable when filing a semi-annual report to shareholders.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Solicitations to purchase securities under Rule 23c-1 under the Act: Not applicable.
(a)(4) Change in registrant’s independent public account: Not applicable.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
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: ETF Opportunities Trust
By (Signature and Title)*: | /s/ Karen Shupe |
Karen Shupe Principal Executive Officer
| |
Date: April 10, 2023 |
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/ Karen Shupe |
Karen Shupe Principal Executive Officer
| |
Date: April 10, 2023 | |
By (Signature and Title)*: | /s/ Ann MacDonald |
Ann MacDonald Principal Financial Officer | |
Date: April 10, 2023 |
* Print the name and title of each signing officer under his or her signature.