10/29/2024 | Press release | Distributed by Public on 10/29/2024 14:58
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 811-22263
Exchange Traded Concepts Trust
(Exact name of registrant as specified in charter)
10900 Hefner Pointe Drive
Suite 400
Oklahoma City, OK 73120
(Address of principal executive offices) (Zip code)
J. Garrett Stevens
Exchange Traded Concepts Trust
10900 Hefner Pointe Drive
Suite 400
Oklahoma City, OK 73120
(Name and address of agent for service)
Copy to:
Chapman and Cutler LLP
320 South Canal Street
Chicago, IL 60606
Registrant's telephone number, including area code: 1-405-778-8377
Date of fiscal year end: August 31, 2024
Date of reporting period: August 31, 2024
Item 1. Reports to Stockholders.
(a) A copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the "Act") (17 CFR § 270.30e-1) is attached hereto.
This annual shareholder report contains important information about Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (the "Fund") for the period from September 1, 2023 to August 31, 2024.You can find additional information about the Fund at https://www.utrnetf.com/investor-materials. You can also request this information by contacting us at 833-835-6633.
(based on a hypothetical $10,000 investment)
Fund Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
|
$85
|
0.75%
|
How did the Fund perform in the last year?
After primarily being led by the "Magnificent Seven" for all of 2023 and the first half of 2024, U.S. Large Cap market breadth finally broadened out in June. As a result, with speculative investors returning and more short-term reversal opportunities occurring, Vesper's UTRN ETF has returned 14% at Net Asset Value (NAV) over the past three months, nearly doubling the return of the S&P 500. For the 12 month period ending August 31st, our performance is + 27%, basically even with the S&P 500.
Top performers this year include Corteva Inc (CTVA) +19%, Marvell Technology Inc (MRVL) +18% and Spotify Technology (SPOT) +12% in the weeks they were held. While the largest negative performers were Boeing Inc (BA) -11% and Apple Inc (AAPL) -7% in the weeks they were held.
How did the fund perform since inception?
Total Return Based on $10,000 Investment
Average Annual Total Returns as of August 31, 2024
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (NAV) - $17486
|
Vesper U.S. Large Cap Short-Term Reversal Index - $19041
|
S&P 500® Index - $21303
|
|
Sep/18
|
$10000
|
$10000
|
$10000
|
Aug/19
|
$10301
|
$10502
|
$10179
|
Aug/20
|
$12642
|
$13069
|
$12411
|
Aug/21
|
$16813
|
$17583
|
$16280
|
Aug/22
|
$13845
|
$14671
|
$14452
|
Aug/23
|
$13691
|
$14701
|
$16756
|
Aug/24
|
$17486
|
$19041
|
$21303
|
Fund/Index Name
|
1 Year
|
5 Years
|
Annualized Since Inception
|
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (NAV)
|
27.72%
|
11.16%
|
9.85%
|
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (Market Price)
|
27.21%
|
11.06%
|
9.78%
|
Vesper U.S. Large Cap Short-Term Reversal Index
|
29.52%
|
12.64%
|
11.43%
|
S&P 500®Index
|
27.14%
|
15.92%
|
13.55%
|
Since its inception on September 20, 2018. The line graph represents historical performance of a hypothetical investment of $10,000 in the Fund since inception. Returns shown are total returns, which assume the reinvestment of dividends and capital gains. The table and graph presented above do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund Shares.Past performance is not indicative of future performance.Call 833-835-6633 or visit https://www.utrnetf.com/investor-materials for current month-end performance.
Total Net Assets
|
Number of Holdings
|
Total Advisory Fees Paid
|
Portfolio Turnover Rate
|
|
$23,631,875
|
25
|
$215,966
|
4,697%
|
Value
|
Value
|
Consumer Discretionary
|
3.9%
|
Financials
|
4.1%
|
Industrials
|
8.0%
|
Utilities
|
15.8%
|
Consumer Staples
|
27.8%
|
Health Care
|
39.9%
|
Footnote | Description |
Footnote*
|
Percentages are calculated based on total net assets. |
Holding Name
|
Percentage of Total Net AssetsFootnote Reference(A)
|
||
PayPal Holdings
|
4.1%
|
||
Catalent
|
4.0%
|
||
Lamb Weston Holdings
|
4.0%
|
||
General Dynamics
|
4.0%
|
||
Elevance Health
|
4.0%
|
||
Molson Coors Beverage, Cl B
|
4.0%
|
||
Hologic
|
4.0%
|
||
Humana
|
4.0%
|
||
Vertex Pharmaceuticals
|
4.0%
|
||
GE HealthCare Technologies
|
4.0%
|
Footnote | Description |
Footnote(A)
|
Short-Term Investments, if any, are not shown in the top ten chart. |
There were no material changes during the reporting period.
There were no changes in or disagreements with accountants during the reporting period.
For additional information about the Fund; including its prospectus, financial information, holdings, and proxy voting information, call or visit:
833-835-6633
https://www.utrnetf.com/investor-materials
Rule 30e-1 of the Investment Company Act of 1940 permits funds to transmit only one copy of a proxy statement, annual report or semi-annual report to shareholders (who need not be related) with the same residential, commercial or electronic address, provided that the shareholders have consented in writing and the reports are addressed either to each shareholder individually or to the shareholders as a group. This process is known as "householding" and is designed to reduce the duplicate copies of materials that shareholders receive and to lower printing and mailing costs for funds.
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF: UTRN
Principal Listing Exchange: NYSE Arca
Annual Shareholder Report - August 31, 2024
VES-AR-TSR-2024-1
(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, principal financial officer, controller or principal accounting officer, or any person who performs a similar functions.
Item 3.Audit Committee Financial Expert.
(a) (1) The Registrant's Board of Trustees has determined that the Registrant has an audit committee financial expert serving on the audit committee.
(a) (2) The audit committee financial expert Timothy Jacoby is an independent trustee as defined in Form N-CSR Item 3 (a) (2).
Item 4. Principal Accountant Fees and Services.
Fees billed by Cohen & Company, Ltd (Cohen) related to the Registrant.
Cohen billed the Registrant aggregate fees for services rendered to the Registrant for the last two fiscal years as follows:
2024 | 2023 | |||||||||||||||||
All fees and services to the Trust that were pre- approved |
All fees and services to service affiliates that were pre- approved |
All other fees and services to service affiliates that did not require pre- approval |
All fees and services to the Trust that were pre- approved |
All fees and services to service affiliates that were pre- approved |
All other fees and services to service affiliates that did not require pre- approval |
|||||||||||||
(a) | Audit Fees | $ | 60,900 | N/A | N/A | $ | 60,900 | N/A | N/A | |||||||||
(b) | Audit-Related Fees | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||
(c) | Tax Fees | $ | 14,000 | (1) | N/A | N/A | $ | 14,000 | (1) | N/A | N/A | |||||||
(d) | All Other Fees | N/A | N/A | N/A | N/A | N/A | N/A |
Notes:
(1) | Tax fees include review of Federal Form 1120 RIC, State returns (if requested), and excise tax returns and review of dividend calculation, if requested. |
(e)(1) The Trust's Audit Committee has adopted, and the Board of Trustees has ratified, an Audit and Non-Audit Services Pre-Approval Policy (the "Policy"), which sets forth the procedures and the conditions pursuant to which services proposed to be performed by the independent auditor of the Trust may be pre-approved.
(e)(2) Percentage of fees billed applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:
2024 | 2023 | |||||||
Audit-Related Fees | 0 | % | 0 | % | ||||
Tax Fees | 0 | % | 0 | % | ||||
All Other Fees | 0 | % | 0 | % |
(f) Not Applicable.
(g) The aggregate non-audit fees and services billed by Cohen for the fiscal years 2024 and 2023 were $14,000 and $14,000, respectively.
(h) During the past fiscal year, Registrant's principal accountant provided certain non-audit services to Registrant's investment adviser or to entities controlling, controlled by, or under common control with Registrant's investment adviser that provide ongoing services to Registrant that were not subject to pre-approval pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. The Audit Committee of Registrant's Board of Trustees reviewed and considered these non-audit services provided by Registrant's principal accountant to Registrant's affiliates, including whether the provision of these non-audit services is compatible with maintaining the principal accountant's independence.
(i) Not applicable. The Registrant has not retained, for the preparation of the audit report on the financial statements included in the Form N-CSR, a registered public accounting firm that has a branch or office that is located in a foreign jurisdiction and that the Public Company Accounting Oversight Board (the "PCAOB") has determined that the PCAOB is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction.
(j) Not applicable. The Registrant is not a "foreign issuer," as defined in 17 CFR 240.3b-4.
Item 5. Audit Committee of Listed Registrants.
The Registrant has a separately-designated standing Audit Committee, which is composed of the Registrant's Independent Trustees: Timothy Jacoby, Stuart Strauss, Linda Petrone and Mark Zurack.
Item 6. Investments.
(a) The Schedule of Investments is included as part of the Financial Statements and Other Information filed under Item 7 of this form.
(b) Not applicable
Item 7. Financial Statements and Financial Highlights for Open-End Investment Companies.
Financial statements and financial highlights are filed herein.
EXCHANGE TRADED CONCEPTS TRUST
Vesper U.S. Large Cap Short-TermReversal Strategy ETF
Annual Financials and Other Information
August 31, 2024
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Table of Contents
Financial Statements (Form N-CSR Item 7) |
||
Schedule of Investments |
1 |
|
Statement of Assets and Liabilities |
2 |
|
Statement of Operations |
3 |
|
Statements of Changes in Net Assets |
4 |
|
Financial Highlights |
5 |
|
Notes to Financial Statements |
6 |
|
Report of Independent Registered Public Accounting Firm |
15 |
|
Notice to Shareholders |
16 |
For additional information about the Fund; including prospectus, financial information, holdings, and proxy voting information, call or visit: • 833-835-6633• https://www.utrnetf.com/investor-materials |
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Schedule of Investments
August 31, 2024
Description |
Shares |
Fair Value |
|||
COMMON STOCK†† - 99.5% |
|||||
Consumer Discretionary - 3.9% |
|||||
Yum! Brands |
6,879 |
$ |
928,115 |
||
Consumer Staples - 27.8% |
|||||
Hershey |
4,864 |
939,044 |
|||
J M Smucker |
8,139 |
933,380 |
|||
Kimberly-Clark |
6,504 |
940,869 |
|||
Lamb Weston Holdings |
15,301 |
947,438 |
|||
Molson Coors Beverage, Cl B |
17,488 |
943,827 |
|||
Mondelez International, Cl A |
13,097 |
940,496 |
|||
PepsiCo |
5,367 |
927,847 |
|||
6,572,901 |
|||||
Financials - 4.1% |
|||||
PayPal Holdings* |
13,246 |
959,408 |
|||
Health Care - 39.9% |
|||||
AbbVie |
4,781 |
938,558 |
|||
Catalent* |
15,613 |
951,768 |
|||
Elevance Health |
1,698 |
945,599 |
|||
GE HealthCare Technologies |
11,119 |
943,114 |
|||
Hologic* |
11,617 |
943,765 |
|||
Humana |
2,662 |
943,599 |
|||
IDEXX Laboratories* |
1,930 |
928,967 |
|||
Pfizer |
32,504 |
942,941 |
|||
Vertex Pharmaceuticals* |
1,902 |
943,183 |
|||
Zoetis, Cl A |
5,100 |
935,799 |
|||
9,417,293 |
|||||
Industrials - 8.0% |
|||||
General Dynamics |
3,161 |
946,277 |
|||
Republic Services, Cl A |
4,509 |
938,819 |
|||
1,885,096 |
|||||
Utilities - 15.8% |
|||||
Ameren |
11,350 |
936,488 |
|||
American Water Works |
6,554 |
938,009 |
|||
Dominion Energy |
16,642 |
930,288 |
|||
FirstEnergy |
21,357 |
937,999 |
|||
3,742,784 |
|||||
Total Common Stock |
|||||
(Cost $23,362,131) |
23,505,597 |
||||
Total Investments - 99.5% |
|||||
(Cost $23,362,131) |
$ |
23,505,597 |
Percentages are based on net assets of $23,631,875.
†† Industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting.
* Non-incomeproducing security.Cl - Class
As of August 31, 2024, all of the Fund's investments were considered Level 1, in accordance with the authoritative guidance on fair value measurements and disclosure under U.S. Generally Accepted Accounting Principles.
The accompanying notes are an integral part of the financial statements.
1
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Statement of Assets and Liabilities
August 31, 2024
Assets: |
||||
Investments, at Cost |
$ |
23,362,131 |
||
Investments, at Fair Value |
$ |
23,505,597 |
||
Cash and Cash Equivalents |
81,970 |
|||
Dividends Receivable |
62,060 |
|||
Total Assets |
23,649,627 |
|||
Liabilities: |
||||
Due to Custodian |
2,598 |
|||
Advisory Fees Payable |
15,154 |
|||
Total Liabilities |
17,752 |
|||
Net Assets |
$ |
23,631,875 |
||
Net Assets Consist of: |
||||
Paid-in Capital |
$ |
89,219,232 |
||
Total Distributable Earnings (Accumulated Losses) |
(65,587,357 |
) |
||
Net Assets |
$ |
23,631,875 |
||
Outstanding Shares of Beneficial Interest |
800,000 |
|||
Net Asset Value, Offering and Redemption Price Per Share |
$ |
29.54 |
The accompanying notes are an integral part of the financial statements.
2
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Statement of Operations
For the Year Ended August 31, 2024
Investment Income: |
||||
Dividend Income |
$ |
503,835 |
||
Interest Income |
13,924 |
|||
Less: Foreign Taxes Withheld |
(1,912 |
) |
||
Total Investment Income |
515,847 |
|||
Expenses: |
||||
Advisory Fees |
215,966 |
|||
Total Expenses |
215,966 |
|||
Net Investment Income (Loss) |
299,881 |
|||
Net Realized Gain (Loss) on: |
||||
Investments(1) |
4,127,919 |
|||
Net Realized Gain (Loss) |
4,127,919 |
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Investments |
678,291 |
|||
Net Change in Unrealized Appreciation (Depreciation) |
678,291 |
|||
Net Realized and Unrealized Gain (Loss) |
4,806,210 |
|||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ |
5,106,091 |
The accompanying notes are an integral part of the financial statements.
3
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Statements of Changes in Net Assets
Year Ended |
Year Ended |
|||||||
Operations: |
||||||||
Net Investment Income (Loss) |
$ |
299,881 |
$ |
737,891 |
||||
Net Realized Gain (Loss)(1) |
4,127,919 |
(4,911,777 |
) |
|||||
Net Change in Unrealized Appreciation (Depreciation) |
678,291 |
(279,772 |
) |
|||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
5,106,091 |
(4,453,658 |
) |
|||||
Distributions: |
(751,961 |
) |
(764,049 |
) |
||||
Capital Share Transactions: |
||||||||
Issued |
48,033,896 |
723,810,158 |
||||||
Redeemed |
(77,459,433 |
) |
(746,392,851 |
) |
||||
Increase (Decrease) in Net Assets from Capital Share Transactions |
(29,425,537 |
) |
(22,582,693 |
) |
||||
Total Increase (Decrease) in Net Assets |
(25,071,407 |
) |
(27,800,400 |
) |
||||
Net Assets: |
||||||||
Beginning of Year |
48,703,282 |
76,503,682 |
||||||
End of Year |
$ |
23,631,875 |
$ |
48,703,282 |
||||
Share Transactions: |
||||||||
Issued |
2,050,000 |
29,800,000 |
||||||
Redeemed |
(3,300,000 |
) |
(30,900,000 |
) |
||||
Net Increase (Decrease) in Shares Outstanding from Share Transactions |
(1,250,000 |
) |
(1,100,000 |
) |
The accompanying notes are an integral part of the financial statements.
4
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Financial Highlights
Selected Per Share Data & Ratios
For a Share Outstanding Throughout each Year
Years Ended August 31, |
||||||||||||||||||||
2024 |
2023 |
2022 |
2021 |
2020 |
||||||||||||||||
Net Asset Value, beginning of year |
$ |
23.76 |
$ |
24.29 |
$ |
36.83 |
$ |
30.23 |
$ |
25.56 |
||||||||||
Investment Activities |
||||||||||||||||||||
Net investment income (loss)* |
0.26 |
0.26 |
0.36 |
0.33 |
0.33 |
|||||||||||||||
Net realized and unrealized gain (loss) |
6.17 |
(0.53 |
) |
(5.35 |
) |
8.95 |
5.36 |
|||||||||||||
Total from investment activities |
6.43 |
(0.27 |
) |
(4.99 |
) |
9.28 |
5.69 |
|||||||||||||
Distributions to shareholders from: |
||||||||||||||||||||
Net investment income |
(0.65 |
) |
(0.26 |
) |
(0.32 |
) |
(0.32 |
) |
(0.17 |
) |
||||||||||
Net realized capital gains |
- |
- |
(7.23 |
) |
(2.36 |
) |
(0.85 |
) |
||||||||||||
Total distributions |
(0.65 |
) |
(0.26 |
) |
(7.55 |
) |
(2.68 |
) |
(1.02 |
) |
||||||||||
Net Asset Value, end of year |
$ |
29.54 |
$ |
23.76 |
$ |
24.29 |
$ |
36.83 |
$ |
30.23 |
||||||||||
Net Asset Value, Total Return (%)(1) |
27.72 |
(1.11 |
) |
(17.65 |
) |
33.00 |
22.72 |
|||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||
Expenses (%) |
0.75 |
0.75 |
0.75 |
0.75 |
0.75 |
|||||||||||||||
Net investment income (loss) (%) |
1.04 |
1.08 |
1.24 |
1.04 |
1.25 |
|||||||||||||||
Supplemental Data |
||||||||||||||||||||
Net Assets end of year (000) |
$ |
23,632 |
$ |
48,703 |
$ |
76,504 |
$ |
77,335 |
$ |
46,862 |
||||||||||
Portfolio turnover(%)(2) |
4,697 |
4,667 |
4,774 |
4,720 |
4,835 |
* Per share data calculated using average shares method.
(1) Total return is for the period indicated and has not been annualized for periods less than one year. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemption of Fund shares.
(2) Portfolio turnover is for the period indicated and periods of less than one year have not been annualized. Excludes the effect of securities received or delivered from processing in-kindcreations or redemptions, if any.
Amounts designated as "-" are $0.
The accompanying notes are an integral part of the financial statements.
5
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Notes to Financial Statements
August 31, 2024
1. ORGANIZATION
Exchange Traded Concepts Trust (the "Trust") is a Delaware statutory trust formed on July 17, 2009. The Trust is registered with the Commission under the Investment Company Act of 1940 (the "1940 Act") as an open-endmanagement investment company with multiple investment portfolios. The financial statements herein are those of Vesper U.S. Large Cap Short-TermReversal Strategy ETF (the "Fund"). The Fund seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Vesper U.S. Large Cap Short-TermReversal Index (the "Index"). Exchange Traded Concepts, LLC (the "Adviser"), an Oklahoma limited liability company, serves as the investment adviser for the Fund. The Fund is classified as "diversified" under the 1940 Act. The Fund commenced operations on September 20, 2018.
Shares of the Fund are listed and traded on the NYSE Arca, Inc. (the "Exchange"). Market prices for shares of the Fund may be different from their net asset value ("NAV"). The Fund issues and redeems shares on a continuous basis to certain institutional investors (typically market makers or other broker-dealers) at NAV only in large blocks of shares, called "Creation Units." Creation Units are available for purchase and redemption on each business day and are offered and redeemed on an in-kindbasis, together with a specified cash amount, or for an all cash amount. Once created, shares trade in a secondary market at market prices that change throughout the day in share amounts less than a Creation Unit.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Trust, are in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") for investment companies. The accompanying financial statements have been prepared in accordance with U.S. GAAP on the accrual basis of accounting. Management has reviewed Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946, Financial Services - Investment Companies("ASC 946"), and concluded that the Fund meets the criteria of an "investment company," and therefore, the Fund prepares its financial statements in accordance with investment company accounting as outlined in ASC 946.
Use of Estimates and Indemnifications- The Fund is an investment company in conformity with U.S. GAAP. Therefore, the Fund follows the accounting and reporting guidelines for investment companies. 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
In the normal course of business, the Trust, on behalf of the Fund, enters into contracts that contain a variety of representations which provide general indemnifications. The Fund's maximum exposure under these arrangements cannot be known; however, the Fund expects any risk of loss to be remote.
Security Valuation - The Fund records its investments at fair value. Securities 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 ("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 (or at approximately 4:00 pm Eastern Time if a security's primary exchange is normally open at that time), or, if there is no such reported sale, at the most recent quoted bid price for long positions and at the most recent quoted ask price for short positions. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-partypricing agents. Such values generally reflect the last reported sales price if the security is actively traded.
6
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Notes to Financial Statements
August 31, 2024 (Continued)
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
The third-partypricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-suppliedvaluations, or other methodologies designed to identify the fair value for such securities. Debt obligations with remaining maturities of sixty days or less when acquired will be valued at their market value. If a market value is not available from a pricing vendor or from an independent broker, the security shall be fair valued according to the Trust's fair value procedures. Prices for most securities held in the Fund are provided daily by recognized independent pricing agents. If a security price cannot be obtained from an independent, third-partypricing agent, the Fund seeks to obtain a bid price from at least one independent broker.
Rule 2a-5under the 1940 Act establishes requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund's investment adviser to perform fair-valuedeterminations, subject to board oversight and certain other conditions. The rule also defines when market quotations are "readily available" for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. Rule 31a-4under the 1940 Act sets forth recordkeeping requirements associated with fair-valuedeterminations.
Pursuant to the requirements of Rule 2a-5, the Trust's Board of Trustees (the "Board") (i) has designated the Adviser as the Board's valuation designee to perform fair-valuedeterminations for the Fund through the Adviser's Valuation Committee and (ii) approved the Adviser's Valuation Procedures.
Some of the more common reasons that may necessitate that a security be valued using fair value procedures include: the security's trading has been halted or suspended; the security has been de-listedfrom a national exchange; the security's primary trading market is temporarily closed at a time when, under normal conditions, it would be open; the security has not been traded for an extended period of time; the security's primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government-imposedrestrictions. In addition, the Fund may fair value its securities if an event that may materially affect the value of the Fund's securities that traded outside of the United States (a ''Significant Event'') has occurred between the time of the security's last close and the time that the Fund calculates its net asset value. A Significant Event may relate to a single issuer or to an entire market sector. Events that may be Significant Events include, but are not limited to government actions, natural disasters, armed conflict, acts of terrorism and significant market fluctuations. If the Adviser becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Fund calculates its net asset value, it may request that a Committee meeting be called. When a security is valued in accordance with the fair value procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee.
In accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP, the Fund discloses fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
• Level 1 - Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Fund has the ability to access at the measurement date;7
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Notes to Financial Statements
August 31, 2024 (Continued)
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
The valuation techniques used by the Fund to measure fair value during the year ended August 31, 2024 maximized the use of observable inputs and minimized the use of unobservable inputs. Investments are classified within the level of the lowest significant input considered in determining fair value.
Federal Income Taxes- It is the Fund's intention to qualify as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended. Accordingly, no provisions for Federal income taxes have been made in the financial statements.
The Fund's policy is to classify interest and penalties associated with underpayment of federal and state income taxes, if any, as income tax expense on its Statement of Operations. As of August 31, 2024, the Fund did not have any interest or penalties associated with the underpayment of any income taxes. Current tax years remain open and subject to examination by tax jurisdictions. The Fund has reviewed all major jurisdictions and concluded that there is no impact on the Fund's net assets and no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken on its tax returns.
Foreign Taxes -The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains earned.
Security Transactions and Investment Income- Security transactions are accounted for on trade date. Costs used in determining realized gains and losses on the sale of investment securities are based on specific identification. Dividend income is recorded on the ex-dividenddate. Interest income is recognized on the accrual basis. Withholding taxes and reclaims on foreign dividends, if any, have been provided for in accordance with the Fund's understanding of the applicable country's tax rules and rates.
Cash and Cash Equivalents - Idle cash may be swept into various overnight demand deposits and is classified as Cash and Cash equivalents on the Statement of Assets and Liabilities, if any. The Fund maintains cash in bank deposit accounts which, at times, may exceed United States federally insured limits. Amounts swept overnight are available on the next business day.
Dividends and Distributions to Shareholders- The Fund pays out dividends from its net investment income and distributes its net capital gains, if any, to investors at least annually. All distributions are recorded on ex-dividenddate.
Creation Units- The Fund issues and redeems shares at NAV and only in Creation Units or multiples thereof. Purchasers of Creation Units ("Authorized Participants") at NAV must pay a standard creation transaction fee of $250 per transaction, regardless of the number of Creation Units created in a given transaction. An Authorized Participant who holds Creation Units and wishes to redeem at NAV would also pay a standard minimum redemption transaction fee of $250 per transaction to the custodian on the date of such redemption, regardless of the number of Creation Units redeemed in a given transaction. The Fund may charge, either in lieu of or in addition to the fixed creation transaction fee, a variable fee for creations and redemptions in order to cover certain non-standardbrokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades resulting from such transactions. In all cases, such fees will be limited in accordance with the requirements of the Commission applicable to management investment companies offering redeemable securities.
8
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Notes to Financial Statements
August 31, 2024 (Continued)
2. SIGNIFICANT ACCOUNTING POLICIES (concluded)
The Adviser may retain all or a portion of the transaction fee to the extent the Adviser bears the expenses that otherwise would be borne by the Trust in connection with the purchase or redemption of a Creation Unit, which the transaction fee is designed to cover.
Except when aggregated in Creation Units, shares are not redeemable securities of the Fund. Shares of the Fund may only be purchased or redeemed by certain Authorized Participants. An Authorized Participant is either (i) a broker-dealeror 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 Authorized Participant Agreement with the Fund's distributor. 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 and sell shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.
To the extent contemplated by an Authorized 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 SEI Investments Distribution Co. (the "Distributor"), on behalf of the Fund, by the time as set forth in the Authorized 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 Authorized Participant Agreement. An Authorized 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.
3. SERVICE PROVIDERS
Investment Advisory and Administrative Services
The Adviser is an Oklahoma limited liability company located at 10900 Hefner Pointe Drive, Suite 400, Oklahoma City, Oklahoma 73120, its principal place of business, and 295 Madison Avenue, New York, New York 10017. The Adviser serves as investment adviser to the Fund pursuant to an investment advisory agreement with the Trust (the "Advisory Agreement"). Under the Advisory Agreement, the Adviser provides investment advisory services to the Fund and is responsible for the day-to-daymanagement of the Fund, including, among other things, implementing changes to the Fund's portfolio in connection with any rebalancing or reconstitution of the Index, trading portfolio securities on behalf of the Fund, and selecting broker-dealersto execute purchase and sale transactions, subject to the oversight of the Board. For the services it provides, the Fund pays the Adviser a fee, which is calculated daily and paid monthly, at an annual rate of 0.75% of the average daily net assets of the Fund.
ETC Platform Services, LLC ("ETC Platform Services"), a direct wholly-ownedsubsidiary of the Adviser, administers the Fund's business affairs and provides office facilities and equipment, certain clerical, bookkeeping and administrative services, paying agent services under the Fund's unitary fee arrangement (as described below), and its officers and employees to serve as officers or Trustees of the Trust. ETC Platform Services also arranges
9
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Notes to Financial Statements
August 31, 2024 (Continued)
3. SERVICE PROVIDERS (concluded)
for transfer agency, custody, fund administration and accounting, and other non- distribution related services necessary for the Fund to operate. For these services it provides to the Fund, ETC Platform Services is paid a fee calculated daily and paid monthly based on a percentage of the Fund's average daily net assets.
Under the Advisory Agreement, the Adviser has agreed to pay all expenses incurred by the Fund (including the fee charged by ETC Platform Services) except for the advisory fee, interest, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, extraordinary expenses, and distribution fees and expenses paid by the Fund under any distribution plan adopted pursuant to Rule 12b-1under the 1940 Act ("Excluded Expenses").
Vesper Capital Management, LLC is the sponsor of the Fund's Index and the Fund (the "Sponsor"). In connection with an arrangement between the Adviser and the Sponsor, the Sponsor has agreed to assume the obligation of the Adviser to pay all expenses of the Fund (except Excluded Expenses) and, to the extent applicable, pay the Adviser a minimum fee. For its services, the Sponsor is entitled to a fee from the Adviser, which is calculated daily and paid monthly, based on a percentage of the average daily net assets of the Fund. The Sponsor does not make investment decisions, provide investment advice, or otherwise act in the capacity of an investment adviser to the Fund.
A Trustee and certain officers of the Trust are affiliated with the Adviser and receive no compensation from the Trust for serving as officers and/or Trustee.
Distribution Arrangement
The Distributor serves as the Fund's underwriter and distributor of shares pursuant to a distribution agreement (the "Distribution Agreement"). Under the Distribution Agreement, the Distributor, as agent, receives orders to purchase shares in Creation Units and transmits such orders to the Fund's custodian and transfer agent. The Distributor has no obligation to sell any specific quantity of Fund shares. The Distributor bears the following costs and expenses relating to the distribution of shares: (i) the expenses of maintaining its registration or qualification as a dealer or broker under federal or state laws; (ii) filing fees; and (iii) all other expenses incurred in connection with the distribution services, that are not reimbursed by the Adviser, as contemplated in the Distribution Agreement. The Distributor does not maintain any secondary market in Fund shares.
The Fund has adopted a Distribution and Service Plan (the "Plan") pursuant to Rule 12b-1under the 1940 Act. In accordance with the Plan, the Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year for certain distribution-relatedactivities. For the year ended August 31, 2024, no fees were charged by the Distributor under the Plan and the Plan will only be implemented with approval of the Board.
Administrator, Custodian and Transfer Agent
SEI Investments Global Funds Services serves as the Fund's administrator pursuant to an administration agreement. Brown Brothers Harriman & Co. serves as the Fund's custodian and transfer agent pursuant to a custodian agreement and transfer agency services agreement. The Adviser pays these fees.
An officer of the Trust is affiliated with the administrator and receives no compensation from the Trust for serving as an officer.
10
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Notes to Financial Statements
August 31, 2024 (Continued)
4. INVESTMENT TRANSACTIONS
For the year ended August 31, 2024, the purchases and sales of investments in securities, excluding in-kindtransactions, long-termU.S. Government and short-termsecurities were:
Purchases |
Sales and |
|||||
$ |
1,350,667,582 |
$ |
1,352,691,005 |
For the year ended August 31, 2024, there were no purchases or sales of long-termU.S. Government securities by the Fund.
For the year ended August 31, 2024, in-kindtransactions associated with creations and redemptions were:
Purchases |
Sales |
Net Realized |
||||||
$ |
47,996,870 |
$ |
75,764,669 |
$ |
2,196,572 |
5. TAX INFORMATION
The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with Federal income tax regulations, which may differ from U.S. GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to paid-incapital, or distributable earnings (accumulated losses), as appropriate, in the period that the differences arise.
Accordingly, the following permanent differences which are primarily attributable to redemption in kind transactions, have been reclassified within the components of net assets for the year ended August 31, 2024.
Paid-in Capital |
Distributable |
|||||
$ |
2,136,123 |
$ |
(2,136,123) |
The tax character of dividends paid during the year ended August 31, 2024 and year ended August 31, 2023 were as follows:
Ordinary |
Long-Term |
Totals |
||||||||
2024 |
$ |
751,961 |
$ |
- |
$ |
751,961 |
||||
2023 |
764,049 |
- |
764,049 |
11
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Notes to Financial Statements
August 31, 2024 (Continued)
5. TAX INFORMATION (concluded)
As of August 31, 2024, the components of Distributable Earnings (Accumulated Losses) on a tax basis were as follows:
Undistributed Ordinary Income |
$ |
191,504 |
||||||
Capital Loss Carryforwards |
(65,859,725 |
) |
||||||
Unrealized Appreciation (Depreciation) |
80,864 |
|||||||
Total Distributable Earnings (Accumulated Losses) |
$ |
(65,587,357 |
) |
The Fund is permitted to utilize capital losses that are carried forward and will retain their character as either short-termor long-termcapital losses. As of August 31, 2024, the Fund has the following capital loss carryforwards to off-setcapital gains for an unlimited period:
Non-Expiring |
Non-Expiring |
Total |
||||||
$ |
65,859,725 |
$ |
- |
$ |
65,859,725 |
During the year ended August 31, 2024, the Fund utilized capital loss carryforwards to offset capital gains amounting to:
Short-Term |
Long-Term |
Total |
||||||
$ |
1,216,766 |
$ |
- |
$ |
1,216,766 |
The Federal tax cost and aggregate gross unrealized appreciation and depreciation on investments, held by the Fund at August 31, 2024, were as follows:
Federal |
Aggregated |
Aggregated |
Net Unrealized |
|||||||||
$ |
23,424,733 |
$ |
173,160 |
$ |
(92,296 |
) |
$ |
80,864 |
6. PRINCIPAL RISKS OF INVESTING IN THE FUND
As with all exchange traded funds ("ETFs"), a shareholder of the Fund is subject to the risk that his or her investment could lose money. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund's NAV, trading price, yield, total return and ability to meet its investment objective. Additional principal risks are disclosed in the Fund's prospectus. Please refer to the Fund's prospectus for a complete description of the principal risks of investing in the Fund.
Index Tracking Risk: The Fund's return may not match or achieve a high degree of correlation with the return of the Index. To the extent the Fund utilizes a sampling approach, it may experience tracking error to a greater extent than if the Fund sought to replicate the Index.
12
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Notes to Financial Statements
August 31, 2024 (Continued)
6. PRINCIPAL RISKS OF INVESTING IN THE FUND (concluded)
Limited Authorized Participants, Market Makers and Liquidity Providers Concentration Risk: Because the Fund is an ETF, only a limited number of institutional investors (known as "Authorized Participants") are authorized to purchase and redeem shares directly from the Fund. 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 occurs, the risk of which is higher during periods of market stress, shares of the Fund may trade at a material discount to NAV, possibly face delisting, and may experience wider bid-askspreads: (i) Authorized Participants exit the business or otherwise become unable to process creation and/or redemption orders and no other Authorized Participants 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.
Market Risk: The market price of an investment could decline, sometimes rapidly or unpredictably, due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic or political conditions throughout the world, changes in the general outlook for corporate earnings, changes in interest or currency rates, or adverse investor sentiment generally. The market value of an investment also may decline because of factors that affect a particular industry or industries such as labor shortages, increased production costs, and competitive conditions. Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the market generally and on specific investments. For example, in recent years, the COVID-19pandemic, the large expansion of government deficits and debt as a result of government actions to mitigate the effects of the pandemic, Russia's invasion of Ukraine, and the rise of inflation have resulted in extreme volatility in the global economy and in global financial markets. Economies and financial markets throughout the world are becoming increasingly interconnected. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to countries experiencing economic and financial difficulties, the value and liquidity of the Fund's investments may be negatively affected.
Methodology Risk: The Fund seeks to track the performance of the Index, which selects stocks of companies utilizing a methodology that relies on Chow's Ratio, a proprietary algorithm. The Index is the first practical application of Chow's Ratio. No assurance can be given that stocks of companies chosen for the Index will outperform stocks of other companies. Moreover, there is no guarantee that the Index methodology will generate or produce the intended results, and stocks of companies selected for the Index may underperform stocks of companies that have been excluded from the Index.
Portfolio Turnover Risk: The Fund may trade all or a significant portion of the securities in its portfolio in connection with the weekly rebalances and reconstitutions of its Index. A high portfolio turnover rate increases transaction costs, which may increase the Fund's expenses. Frequent trading may also cause adverse tax consequences for investors in the Fund due to an increase in short-termcapital gains.
Sector Focus Risk: The Fund may invest a significant portion of its assets in one or more sectors and thus will be more susceptible to the risks affecting those sectors.
7. OTHER
At August 31, 2024, the records of the Trust reflected that 100% of the Fund's total shares outstanding were held by three Authorized Participants, in the form of Creation Units. However, the individual shares comprising such Creation Units are listed and traded on the Exchange and have been purchased and sold by persons other than Authorized Participants.
13
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Notes to Financial Statements
August 31, 2024 (Concluded)
8. RECENT MARKET EVENTS
Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the market generally and on specific securities. Periods of market volatility may occur in response to such events and other economic, political, and global macro factors.
Governments and central banks, including the Federal Reserve in the United States, took extraordinary and unprecedented actions to support local and global economies and the financial markets in response to the COVID-19pandemic, including by keeping interest rates at historically low levels for an extended period. The Federal Reserve concluded its market support activities in 2022 and began to raise interest rates in an effort to fight inflation. However, the Federal Reserve has recently lowered interest rates and may continue to do so. This and other government intervention into the economy and financial markets to address the pandemic, inflation, or Other significant events in the future may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results.
9. SUBSEQUENT EVENTS
The Fund has evaluated the need for additional disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no additional disclosures and/or adjustments were required to the financial statements.
14
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Report of Independent Registered Public Accounting Firm
To the Shareholders of Vesper U.S. Large Cap Short-TermReversal Strategy ETF and
Board of Trustees of Exchange Traded Concepts Trust
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vesper U.S. Large Cap Short-TermReversal Strategy ETF (the "Fund"), a series of Exchange Traded Concepts Trust, as of August 31, 2024, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, 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, 2024, the results of its operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, 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 audits. 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 conducted our audits 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.
Our audits 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 procedures included confirmation of securities owned as of August 31, 2024, by correspondence with the custodian. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies advised by Exchange Traded Concepts, LLC since 2012.
COHEN & COMPANY, LTD.
Cleveland, Ohio
October 23, 2024
15
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF
Notice to Shareholders
(Unaudited)
For shareholders that do not have an August 31, 2024 tax year end, this notice is for informational purposes only. For shareholders with an August 31, 2024 tax year end, please consult your tax advisor as to the pertinence of this notice.
For the fiscal year ended August 31, 2024, the Fund is designating the following items with regard to distributions paid during the year.
Long-Term |
Ordinary |
Total |
Qualifying |
Qualifying |
Qualifying |
U.S. |
Foreign |
Short-Term |
||||||||
0.00% |
100.00% |
100.00% |
0.00% |
0.00% |
9.12% |
0.00% |
0.00% |
0.00% |
(1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and are reflected as a percentage ordinary income distributions (the total of short-termcapital gain and net investment income distributions).
(2) The percentage in this column represents the amount of "Qualifying Dividend Income" as created by the Jobs and Growth Relief Reconciliation Act of 2003 and it's reflected as a percentage of ordinary income distributions (the total of short-termcapital gain and net investment income distributions). It is the intention of the Fund to designate the maximum amount permitted by law.
(3) The percentage of this column represents that amount of ordinary dividend income that qualified for 20% Business Income Deduction.
(4) U.S. Government Interest represents the amount of interest that was derived from U.S. Government obligations and distributed during the fiscal year. This amount is reflected as a percentage of total ordinary income distributions (the total of short term capital gain and net investment income distributions). Generally, interest from direct U.S. Government obligations is exempt from state income tax. However, for shareholders who are residents of California, Connecticut and New York, the statutory threshold requirements were not satisfied to permit exemption of these amounts from state income.
(5) The percentage in this column represents the amount of "Interest Related Dividend" is reflected as a percentage of ordinary income distribution. Interest related dividends is exempted from U.S. withholding tax when paid to foreign investors.
(6) The percentage of this column represents the amount of "Short Term Capital Gain Dividend" is reflected as a percentage of short term capital gain distribution that is exempted from U.S. withholding tax when paid to foreign investors.
The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2024. Complete information will be computed and reported in conjunction with your 2024 Form 1099-DIV.
16
10900 Hefner Pointe Drive, Suite 400
Oklahoma City, OK 73120
Investment Adviser:
Exchange Traded Concepts, LLC
10900 Hefner Pointe Drive, Suite 400
Oklahoma City, OK 73120
Distributor:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, PA 19456
Administrator:
SEI Investments Global Funds Services
One Freedom Valley Drive
Oaks, PA 19456
Legal Counsel:
Chapman and Cutler LLP
320 South Canal Street
Chicago, IL 60606
Independent Registered Public Accounting Firm:
Cohen & Company, Ltd.
1350 Euclid Avenue, Suite 800
Cleveland, OH 44115
This information must be preceded or accompanied by a current prospectus for the Fund.
For additional information about the Fund; including prospectus, financial information, holdings, and proxy voting information, call or visit: • 833-835-6633• https://www.utrnetf.com/investor-materials |
VES-AR-001-0600
Item 8. Changes in and Disagreements with Accountants for Open-End Investment Companies.
There were no changes in or disagreements with accountants during the period covered by this report.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
There were no matters submitted to a vote of shareholders during the period covered by this report.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Investment Companies.
Remuneration was paid by the company during the period covered by the report to Trustees on the company's Board of Trustees.The Board of Trustees expensed $20,081 to each Fund in the Trust for the period covered by the report.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
The disclosure regarding the Approval of Advisory Agreement, if applicable, is included as part of the financial statements included above in Item 7.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end management investment companies.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end management investment companies.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end management investment companies.
Item 15. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees during the period covered by this report.
Item 16. 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 (the "1940 Act") are effective based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing date of this report. |
(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 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable to open-end management investment companies.
Item 18. Recovery of Erroneously Awarded Compensation.
(a) Not Applicable
(b) Not Applicable
Item 19. Exhibits.
(a) (1) Code of Ethics attached hereto.
(a)(2) Not applicable.
(3) A separate certification for the principal executive officer and the principal financial officer of the Registrant, as required by Rule 30a-2(a) under the Act (17 CFR § 270.30a-2(a)), are filed herewith.
(4) Not applicable to open-end management investment companies.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Exchange Traded Concepts Trust |
By (Signature and Title) | /s/ J. Garrett Stevens |
J. Garrett Stevens, Principal Executive Officer |
Date: October 29, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ J. Garrett Stevens |
J. Garrett Stevens, Principal Executive Officer | |
Date: October 29, 2024 | |
By (Signature and Title) | /s/ Christopher W. Roleke |
Christopher W. Roleke, Principal Financial Officer |
Date: October 29, 2024