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Hoya
Capital High Dividend Yield ETF (Ticker: RIET)
Hoya
Capital Housing ETF (Ticker: HOMZ)
Annual
Financial Statements and Additional Information
February 28,
2026
Form N-CSR ETF Series Solutions For: Feb 28
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22668
(Exact name of registrant as specified in charter)
615 East Michigan Street
Milwaukee,
WI 53202
(Address of principal executive offices) (Zip code)
Kristina R. Nelson
ETF Series Solutions
615 East Michigan Street
Milwaukee,
WI 53202
(Name and address of agent for service)
414-516-1645
Registrant’s telephone number, including area code
Date of fiscal year end: February 28
Date of reporting period:
Item 1. Reports to Stockholders.
| (a) |
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Annual Shareholder Report |
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WHAT WERE THE FUND COSTS FOR THE PAST YEAR? (based on a hypothetical $10,000 investment)
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Fund Name
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Costs of a $10,000 investment
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Costs paid as a percentage of a $10,000 investment
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Hoya Capital High Dividend Yield ETF
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$
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HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
Commercial real estate markets continued to feel the effects of elevated borrowing costs during the fiscal period, though conditions improved modestly as the Federal Reserve began easing benchmark interest rates in September 2025. Property-level fundamentals and rental rate trends remained relatively steady across most major property sectors, but higher financing costs and tighter credit conditions continued to weigh on valuations of commercial real estate assets and kept transaction and development activity below historical averages.
Among the classification tiers, the Large-Cap REIT category was the leading contributor to the Fund’s performance during the period, reflecting relatively stronger balance sheets and capital market access compared to smaller peers in a higher-rate environment. The leading detractor was the Small-Cap REIT category, which remained more sensitive to elevated financing costs and macroeconomic uncertainty given the typically higher degree of financial and operational leverage among smaller REITs. Among property sectors, Net Lease and Senior Housing were the leading contributors to performance, while Office and Commercial Financing were the leading detractors.
The Fund seeks to maintain consistent monthly distributions. A portion of these distributions may constitute a return of capital, which is primarily a function of the nature of the Fund’s holdings—particularly REITs, which frequently classify a portion of their dividends as return of capital—as well as the timing difference between the Fund’s monthly distributions and the generally quarterly dividend payments received from portfolio holdings. RIET ended the period with an SEC yield of 9.14% and has paid a distribution in each month since inception.
HOW DID THE FUND PERFORM SINCE INCEPTION?*
The $10,000 chart reflects a hypothetical $10,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including management fees and other expenses were deducted.
CUMULATIVE PERFORMANCE (Initial Investment of $10,000)
| Hoya Capital High Dividend Yield ETF | PAGE 1 | TSR-AR-26922B840 |
ANNUAL AVERAGE TOTAL RETURN (%)
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1 Year
|
Since Inception
(09/21/2021) |
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-
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Visit https://www.hoyaetfs.com/riet for more recent performance information.
| * |
KEY FUND STATISTICS (as of February 28, 2026)
|
Net Assets
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$
|
|
Number of Holdings
|
|
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Net Advisory Fee
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$
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Portfolio Turnover
|
|
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30-Day SEC Yield
|
9.14%
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30-Day SEC Yield Unsubsidized
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9.14%
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WHAT DID THE FUND INVEST IN? (as of February 28, 2026)
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Top 10 Issuers
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(% of Net Assets)
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Mount Vernon Liquid Assets Portfolio, LLC
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AGNC Investment Corp.
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Rithm Capital Corp.
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Chimera Investment Corp.
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Annaly Capital Management, Inc.
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Global Net Lease, Inc.
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Adamas Trust, Inc.
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Two Harbors Investment Corp.
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National Storage Affiliates Trust
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Realty Income Corp.
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Industry Breakdown (% of Net Assets)
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://www.hoyaetfs.com/riet .
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Hoya Capital Real Estate documents not be householded, please contact Hoya Capital Real Estate at 1-833-HOYA-CAP, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Hoya Capital Real Estate or your financial intermediary.
| Hoya Capital High Dividend Yield ETF | PAGE 2 | TSR-AR-26922B840 |
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Annual Shareholder Report |
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WHAT WERE THE FUND COSTS FOR THE PAST YEAR? (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
|
|
Hoya Capital Housing ETF
|
$
|
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
Residential real estate markets continued to feel the effects of elevated borrowing costs during the fiscal period, though conditions improved modestly as the Federal Reserve began easing benchmark interest rates in September 2025. Mortgage rates remained well above their 21st-century average, which weighed on affordability and suppressed transaction activity, particularly in the market for existing homes. Even so, housing fundamentals proved resilient as historically limited supply, steady household formation, and solid labor market conditions helped support home prices and rental demand. As borrowing costs stabilized later in the period, housing markets showed modest stabilization across several segments of the residential real estate ecosystem.
Of the four Housing Industry Business Segments, the leading contributor during the period was Home Building and Construction, supported by persistent supply shortages in the existing home market that shifted demand toward new construction. The leading detractor was Residential REITs & Real Estate Operators, as higher financing costs remained a headwind for publicly traded residential real estate companies and weighed on valuations. HOMZ’s diversified investment strategy, which includes exposure to approximately 100 companies across the U.S. housing industry—including rental operators, homebuilders, and home improvement firms—helped mitigate sector-specific risks.
The Fund seeks to maintain consistent monthly distributions. A portion of these distributions may constitute a return of capital, which is primarily a function of the nature of the Fund’s holdings—particularly REITs, which frequently classify a portion of their dividends as return of capital—as well as the timing difference between the Fund’s monthly distributions and the generally quarterly dividend payments received from portfolio holdings. HOMZ ended the period with an SEC yield of 2.69% and increased its distribution by 8.3% in January 2026.
HOW DID THE FUND PERFORM SINCE INCEPTION?*
The $10,000 chart reflects a hypothetical $10,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including management fees and other expenses were deducted.
CUMULATIVE PERFORMANCE (Initial Investment of $10,000)
| Hoya Capital Housing ETF | PAGE 1 | TSR-AR-26922A230 |
ANNUAL AVERAGE TOTAL RETURN (%)
|
|
1 Year
|
5 Year
|
Since Inception
(03/19/2019) |
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Visit https://www.hoyaetfs.com/homz for more recent performance information.
| * |
KEY FUND STATISTICS (as of February 28, 2026)
|
Net Assets
|
$
|
|
Number of Holdings
|
|
|
Net Advisory Fee
|
$
|
|
Portfolio Turnover
|
|
|
30-Day SEC Yield
|
2.69%
|
|
30-Day SEC Yield Unsubsidized
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2.69%
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WHAT DID THE FUND INVEST IN? (as of February 28, 2026)
|
Top 10 Issuers
|
(% of Net Assets)
|
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Lowe’s Companies, Inc.
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Home Depot, Inc.
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Tri Pointe Homes, Inc.
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Toll Brothers, Inc.
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Extra Space Storage, Inc.
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PulteGroup, Inc.
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Public Storage
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CubeSmart
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DR Horton, Inc.
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M/I Homes, Inc.
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Industry Breakdown (% of Net Assets)
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://www.hoyaetfs.com/homz .
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Hoya Capital Real Estate documents not be householded, please contact Hoya Capital Real Estate at 1-833-HOYA-CAP, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Hoya Capital Real Estate or your financial intermediary.
| Hoya Capital Housing ETF | PAGE 2 | TSR-AR-26922A230 |
| (b) | Not applicable. |
Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. The registrant has not made any substantive amendments to its code of ethics during the period covered by this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s Code of Ethics is filed herewith.
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that the registrant currently does not have an audit committee financial expert (ACFE) serving on its audit committee due to the recent death of the Trustee who had most recently served as the registrant’s ACFE. The Board is developing a plan to address the ACFE role.
Item 4. Principal Accountant Fees and Services.
The registrant has engaged its principal accountant to perform audit services, audit-related services, tax services and other services during the past two fiscal years. “Audit services” refer to performing an audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. “Audit-related services” refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit. “Tax services” refer to professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. There were no “other services” provided by the principal accountant. The following table details the aggregate fees billed or expected to be billed for each of the last two fiscal years for audit fees, audit-related fees, tax fees and other fees by the principal accountant.
| FYE 2/28/2026 | FYE 2/28/2025 | |
| (a) Audit Fees | $ 32,000 | $ 31,000 |
| (b) Audit-Related Fees | N/A | N/A |
| (c) Tax Fees | $ 9,000 | $ 9,000 |
| (d) All Other Fees | N/A | N/A |
(e)(1) The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre-approve all audit and non-audit services of the registrant, including services provided to any entity affiliated with the registrant.
(e)(2) The percentage of fees billed by Cohen & Company, Ltd. applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:
| FYE 2/28/2026 | FYE 2/28/2025 | |
| Audit-Related Fees | 0% | 0% |
| Tax Fees | 0% | 0% |
| All Other Fees | 0% | 0% |
(f) N/A.
(g) The following table indicates the non-audit fees billed or expected to be billed by the registrant’s accountant for services to the registrant and to the registrant’s investment adviser (and any other controlling entity, etc.—not sub-adviser) for the last two years.
| Non-Audit Related Fees | FYE 2/28/2026 | FYE 2/28/2025 |
| Registrant | N/A | N/A |
| Registrant’s Investment Adviser | N/A | N/A |
(h) The audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser is compatible with maintaining the principal accountant’s independence and has concluded that the provision of such non-audit services by the accountant has not compromised the accountant’s independence.
(i) The registrant has not been identified by the U.S. Securities and Exchange Commission as having filed an annual report issued by a registered public accounting firm branch or office that is located in a foreign jurisdiction where the Public Company Accounting Oversight Board is unable to inspect or completely investigate because of a position taken by an authority in that jurisdiction.
(j) The registrant is not a foreign issuer.
Item 5. Audit Committee of Listed Registrants.
(a) The registrant is an issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934, (the “Act”) and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Act. The independent members of the committee are as follows: David A. Massart, Janet D. Olsen, and Michael A. Castino.
(b) Not applicable
Item 6. Investments.
| (a) | Schedule of Investments is included within the financial statements filed under Item 7 of this Form. |
| (b) | Not Applicable. |
Item 7. Financial Statements and Financial Highlights for Open-End Investment Companies.
| (a) |
TABLE
OF CONTENTS
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HOYA
CAPITAL HIGH DIVIDEND YIELD ETF
SCHEDULE
OF INVESTMENTS
February 28,
2026
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Shares |
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Value
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COMMON
STOCKS - 89.9% |
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Dividend
Champions - 12.1% |
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Apple
Hospitality REIT, Inc. |
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120,458 |
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$1,476,815
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Healthpeak
Properties, Inc. |
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79,334 |
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1,402,625
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Millrose
Properties, Inc. |
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46,416 |
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1,455,606
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Omega
Healthcare Investors, Inc. |
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31,423 |
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1,516,788
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Realty
Income Corp. |
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24,976 |
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1,673,392
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Starwood
Property Trust, Inc. |
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79,246 |
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1,411,372
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VICI
Properties, Inc. |
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49,109 |
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1,483,583
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WP
Carey, Inc. |
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21,085 |
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1,573,995
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11,994,176
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Large-Cap
REITs - 18.6% |
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AGNC
Investment Corp. |
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137,678 |
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1,543,370
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Alexandria
Real Estate Equities, Inc. |
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27,806 |
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1,502,636
|
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Annaly
Capital Management, Inc. |
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64,364 |
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1,495,819
|
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Blackstone
Mortgage Trust, Inc. - Class A |
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|
75,084 |
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1,442,364
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Broadstone
Net Lease, Inc. |
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77,340 |
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1,499,623
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EPR
Properties |
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27,290 |
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1,621,299
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Gaming
and Leisure Properties, Inc. |
|
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32,880 |
|
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1,608,161
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Lineage,
Inc. |
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|
41,259 |
|
|
1,671,815
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|
National
Storage Affiliates Trust |
|
|
49,126 |
|
|
1,720,392
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|
NNN
REIT, Inc. |
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34,561 |
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1,566,304
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Rithm
Capital Corp. |
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128,316 |
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1,289,576
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Sabra
Health Care REIT, Inc. |
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75,562 |
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1,552,799
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18,514,158
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Mid-Cap
REITs - 30.9%(a) |
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AH
Realty Trust, Inc. |
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180,592 |
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1,128,700
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Alexander’s,
Inc. |
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5,453 |
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1,279,383
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American
Assets Trust, Inc. |
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59,067 |
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1,152,988
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Americold
Realty Trust, Inc. |
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109,085 |
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1,460,648
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Apollo
Commercial Real Estate Finance, Inc. |
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113,909 |
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1,207,435
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Arbor
Realty Trust, Inc.(b) |
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132,900 |
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1,053,897
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ARMOUR
Residential REIT, Inc.(b) |
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68,165 |
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1,223,562
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BrightSpire
Capital, Inc. |
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205,132 |
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1,191,817
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Dynex
Capital, Inc. |
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83,938 |
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1,177,650
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Easterly
Government Properties, Inc. |
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53,183 |
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1,238,100
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Ellington
Financial, Inc.(b) |
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82,169 |
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1,020,539
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Franklin
BSP Realty Trust, Inc. |
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113,118 |
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1,032,767
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Getty
Realty Corporation |
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39,659 |
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1,301,608
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Global
Net Lease, Inc. |
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141,888 |
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1,336,585
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Highwoods
Properties, Inc. |
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41,491 |
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933,133
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Innovative
Industrial Properties, Inc.(b) |
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23,560 |
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1,247,738
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MFA
Financial, Inc. |
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123,614 |
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1,249,738
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Orchid
Island Capital, Inc.(b) |
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157,261 |
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1,170,022
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Park
Hotels & Resorts, Inc.(b) |
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107,942 |
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1,220,824
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PennyMac
Mortgage Investment Trust |
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89,368 |
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1,095,652 |
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RLJ
Lodging Trust |
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150,573
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1,207,595
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The
accompanying notes are an integral part of these financial statements.
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1 |
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HOYA
CAPITAL HIGH DIVIDEND YIELD ETF
SCHEDULE
OF INVESTMENTS
February
28, 2026(Continued)
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Shares |
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Value
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COMMON
STOCKS - (Continued) | ||||||
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Mid-Cap
REITs - (Continued) | ||||||
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Saul
Centers, Inc. |
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36,595 |
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$1,247,158
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SL
Green Realty Corp.(b) |
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25,769 |
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949,588
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TPG
RE Finance Trust, Inc. |
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128,527 |
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1,087,338
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Two
Harbors Investment Corp. |
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116,491 |
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1,203,352
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Universal
Health Realty Income Trust |
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27,957 |
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1,219,484
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30,637,301
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Small-Cap
REITs - 28.3%(a) |
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Adamas
Trust, Inc. |
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158,142 |
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1,303,090
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Alpine
Income Property Trust, Inc. |
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67,680 |
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1,334,650
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Angel
Oak Mortgage REIT, Inc. |
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136,094 |
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1,167,687
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Ares
Commercial Real Estate Corp. |
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227,825 |
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1,143,682
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Braemar
Hotels & Resorts, Inc. |
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404,401 |
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1,176,807
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Brandywine
Realty Trust |
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327,255 |
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1,043,943
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BRT
Apartments Corp. |
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78,851 |
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1,156,744
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Chicago
Atlantic Real Estate Finance, Inc. |
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91,243 |
|
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1,108,602
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Chimera
Investment Corp. |
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92,809 |
|
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1,263,131
|
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Chiron
Real Estate, Inc. |
|
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35,264 |
|
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1,221,192
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Clipper
Realty, Inc. |
|
|
312,791 |
|
|
963,396
|
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Community
Healthcare Trust, Inc. |
|
|
75,432 |
|
|
1,289,133
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CTO
Realty Growth, Inc. |
|
|
64,664 |
|
|
1,259,655
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Gladstone
Commercial Corp. |
|
|
104,747 |
|
|
1,308,290
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Invesco
Mortgage Capital, Inc. |
|
|
145,540 |
|
|
1,226,902
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KKR
Real Estate Finance Trust, Inc. |
|
|
135,770 |
|
|
943,602
|
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Modiv
Industrial, Inc. |
|
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77,183 |
|
|
1,197,108
|
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Nexpoint
Real Estate Finance, Inc. |
|
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80,246 |
|
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1,164,369
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One
Liberty Properties, Inc. |
|
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54,801 |
|
|
1,287,275
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Ready
Capital Corp.(b) |
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458,428 |
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848,092
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Redwood
Trust, Inc. |
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221,584 |
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1,340,583
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Seven
Hills Realty Trust |
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128,962 |
|
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1,103,915
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Sunrise
Realty Trust, Inc. |
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116,729 |
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|
1,093,751
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TPG
Mortgage Investment Trust, Inc. |
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|
143,691 |
|
|
1,162,460
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28,108,059
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TOTAL
COMMON STOCKS
(Cost
$91,153,459) |
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|
|
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89,253,694
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PREFERRED
STOCKS - 9.5% |
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Preferreds
Issued by U.S. REITs - 9.5% |
|
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ACRES
Commercial Realty Corp., Series C, 9.59% (3 mo. Term SOFR + 5.93%), Perpetual |
|
|
12,515 |
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|
312,124
|
|
Adamas
Trust, Inc. |
|
|
|
|
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Series D,
8.00% to 10/15/2027 then 3 mo. LIBOR USD + 5.70%, Perpetual (c) |
|
|
14,310 |
|
|
325,982
|
|
Series E,
10.83% (3 mo. LIBOR USD + 6.43%), Perpetual (c) |
|
|
12,631 |
|
|
321,333 |
|
AGNC
Investment Corp. |
|
|
|
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Series C,
9.04% (3 mo. Term SOFR + 5.37%), Perpetual |
|
|
12,351 |
|
|
314,580
|
|
Series D,
8.27% (3 mo. Term SOFR + 4.59%), Perpetual |
|
|
12,809 |
|
|
319,456
|
|
Series E,
8.92% (3 mo. Term SOFR + 5.25%), Perpetual |
|
|
12,486 |
|
|
316,021
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
2 |
|
|
HOYA
CAPITAL HIGH DIVIDEND YIELD ETF
SCHEDULE
OF INVESTMENTS
February
28, 2026(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value
|
|
PREFERRED
STOCKS - (Continued) |
|
|
|
|
||
|
Preferreds
Issued by U.S. REITs - (Continued) |
|
|
|
|
||
|
Annaly
Capital Management, Inc. |
|
|
|
|
||
|
Series F,
8.92% (3 mo. Term SOFR + 5.25%), Perpetual |
|
|
12,327 |
|
|
$319,762
|
|
Series G,
8.10% (3 mo. Term SOFR + 4.43%), Perpetual |
|
|
12,491 |
|
|
315,897
|
|
Arbor
Realty Trust, Inc., Series D, 6.38%, Perpetual |
|
|
18,011 |
|
|
309,249
|
|
Chimera
Investment Corp. |
|
|
|
|
||
|
Series B,
9.74% (3 mo. Term SOFR + 6.05%), Perpetual |
|
|
12,951 |
|
|
306,162
|
|
Series C,
8.69% (3 mo. Term SOFR + 5.00%), Perpetual |
|
|
14,056 |
|
|
309,091
|
|
Series D,
9.29% (3 mo. Term SOFR + 5.60%), Perpetual |
|
|
13,009 |
|
|
307,533
|
|
Dynex
Capital, Inc., Series C, 9.39% (3 mo. Term SOFR + 5.72%), Perpetual |
|
|
12,208 |
|
|
317,042
|
|
Global
Net Lease, Inc. |
|
|
|
|
||
|
Series A,
7.25%, Perpetual |
|
|
14,214 |
|
|
329,765
|
|
Series D,
7.50%, Perpetual |
|
|
13,440 |
|
|
328,070
|
|
Granite
Point Mortgage Trust, Inc., Series A, 7.00% to 01/15/2027 then SOFR + 5.83%, Perpetual |
|
|
16,159 |
|
|
328,512
|
|
Hudson
Pacific Properties, Inc., Series C, 4.75%, Perpetual (b) |
|
|
21,406 |
|
|
295,617
|
|
Innovative
Industrial Properties, Inc., Series A, 9.00%, Perpetual |
|
|
12,670 |
|
|
288,116
|
|
KKR
Real Estate Finance Trust, Inc., Series A, 6.50%, Perpetual |
|
|
17,146 |
|
|
299,712
|
|
MFA
Financial, Inc., Series C, 9.28% (3 mo. Term SOFR + 5.61%), Perpetual |
|
|
13,249 |
|
|
302,872
|
|
Pebblebrook
Hotel Trust, Series G, 6.38%, Perpetual |
|
|
16,872 |
|
|
340,140
|
|
PennyMac
Mortgage Investment Trust, Series C, 6.75%, Perpetual |
|
|
16,546 |
|
|
313,712
|
|
Ready
Capital Corp., Series E, 6.50%, Perpetual |
|
|
22,334 |
|
|
259,074
|
|
Redwood
Trust, Inc., 10.00% to 04/15/2028 then 5 yr. CMT Rate + 6.28%, Perpetual |
|
|
13,112 |
|
|
327,970
|
|
Rithm
Capital Corp. |
|
|
|
|
||
|
Series A,
9.73% (3 mo. Term SOFR + 6.06%), Perpetual |
|
|
12,442 |
|
|
316,276
|
|
Series B,
9.57% (3 mo. Term SOFR + 5.90%), Perpetual |
|
|
12,515 |
|
|
313,876
|
|
Series C,
8.90% (3 mo. Term SOFR + 5.23%), Perpetual |
|
|
12,737 |
|
|
309,891
|
|
TPG
Mortgage Investment Trust, Inc., Series C, 10.40% (3 mo. Term SOFR + 6.74%), Perpetual |
|
|
12,375 |
|
|
310,365
|
|
Two
Harbors Investment Corp. |
|
|
|
|
||
|
Series B,
7.63% to 7/27/2027 then 3 mo. LIBOR USD + 5.35%, Perpetual (c) |
|
|
13,709 |
|
|
335,871
|
|
Series C,
8.94% (3 mo. Term SOFR + 5.27%), Perpetual |
|
|
13,204 |
|
|
326,139
|
|
TOTAL
PREFERRED STOCKS
(Cost
$9,109,279) |
|
|
|
|
9,420,210
| |
|
|
|
Units |
|
|
||
|
SHORT-TERM
INVESTMENTS |
|
|
|
|
||
|
INVESTMENTS
PURCHASED WITH PROCEEDS FROM SECURITIES LENDING - 7.0% |
|
|
|
|
||
|
Mount
Vernon Liquid Assets Portfolio, LLC, 3.78%(d) |
|
|
6,926,306 |
|
|
6,926,306
|
|
TOTAL
INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING
(Cost
$6,926,306) |
|
|
|
|
6,926,306
| |
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
3 |
|
|
HOYA
CAPITAL HIGH DIVIDEND YIELD ETF
SCHEDULE
OF INVESTMENTS
February
28, 2026(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value
|
|
MONEY
MARKET FUNDS - 0.4% |
|
|
|
|
||
|
First
American Government Obligations Fund - Class X, 3.60%(d) |
|
|
433,072 |
|
|
$433,072
|
|
TOTAL
MONEY MARKET FUNDS
(Cost
$433,072) |
|
|
|
|
433,072
| |
|
TOTAL
INVESTMENTS - 106.8%
(Cost
$107,622,116) |
|
|
|
|
$106,033,282
| |
|
Liabilities
in Excess of Other Assets - (6.8)% |
|
|
|
|
(6,772,348)
| |
|
TOTAL
NET ASSETS - 100.0% |
|
|
|
|
$99,260,934 | |
|
|
|
|
|
|
|
|
Percentages
are stated as a percent of net assets.
The
Fund’s security classifications are defined by the Fund’s Adviser.
CMT
- Constant Maturity Treasury
LIBOR
- London Interbank Offered Rate
LLC
- Limited Liability Company
REIT
- Real Estate Investment Trust
SOFR
- Secured Overnight Financing Rate
|
(a) |
To the extent that
the Fund invests more heavily in a particular industry or sector of the economy, its performance will be especially sensitive to developments
that significantly affect those industries or sectors. |
|
(b) |
All or a portion of
this security is on loan as of February 28, 2026. The fair value of these securities was $6,728,012. |
|
(c) |
Securities referencing
LIBOR are expected to transition to an alternative reference rate by the security’s next scheduled coupon reset date. |
|
(d) |
The rate shown represents
the 7-day annualized yield as of February 28, 2026. |
The
accompanying notes are an integral part of these financial statements.
|
|
|
4 |
|
|
HOYA
CAPITAL HOUSING ETF
SCHEDULE
OF INVESTMENTS
February 28,
2026
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value
|
|
COMMON
STOCKS - 99.7% |
|
|
|
|
||
|
Home
Building Products & Materials - 15.9% |
|
|
|
|
||
|
Beazer
Homes USA, Inc.(a) |
|
|
12,461 |
|
|
$318,752
|
|
Builders
FirstSource, Inc.(a) |
|
|
2,616 |
|
|
272,823
|
|
Cavco
Industries, Inc.(a) |
|
|
464 |
|
|
267,849
|
|
Century
Communities, Inc. |
|
|
4,357 |
|
|
292,921
|
|
Champion
Homes, Inc.(a) |
|
|
3,256 |
|
|
304,371
|
|
Dream
Finders Homes, Inc. - Class A(a) |
|
|
13,680 |
|
|
247,198
|
|
Eagle
Materials, Inc. |
|
|
1,267 |
|
|
283,555
|
|
Green
Brick Partners, Inc.(a) |
|
|
4,072 |
|
|
299,943
|
|
Installed
Building Products, Inc. |
|
|
1,027 |
|
|
336,609
|
|
Leggett
& Platt, Inc. |
|
|
28,764 |
|
|
335,963
|
|
Lennox
International, Inc. |
|
|
571 |
|
|
325,436
|
|
LGI
Homes, Inc.(a) |
|
|
5,394 |
|
|
279,949
|
|
Louisiana-Pacific
Corp. |
|
|
3,418 |
|
|
289,641
|
|
Millrose
Properties, Inc. |
|
|
8,718 |
|
|
273,396
|
|
Rayonier,
Inc. |
|
|
24,373 |
|
|
523,776
|
|
Simpson
Manufacturing Co., Inc. |
|
|
1,633 |
|
|
316,100
|
|
TopBuild
Corp.(a) |
|
|
617 |
|
|
276,601
|
|
Watsco,
Inc. |
|
|
789 |
|
|
329,273
|
|
Weyerhaeuser
Co. |
|
|
12,203 |
|
|
299,340
|
|
|
|
|
|
5,873,496
| ||
|
Home
Furnishings & Home Goods - 14.6% |
|
|
|
|
||
|
A.
O. Smith Corp. |
|
|
4,234 |
|
|
330,252
|
|
American
Woodmark Corp.(a) |
|
|
5,395 |
|
|
270,289
|
|
Carrier
Global Corp. |
|
|
5,259 |
|
|
338,680
|
|
Floor
& Decor Holdings, Inc. - Class A(a) |
|
|
4,555 |
|
|
314,705
|
|
Fortune
Brands Home & Security, Inc. |
|
|
5,857 |
|
|
318,269
|
|
Hayward
Holdings, Inc.(a) |
|
|
17,726 |
|
|
283,616
|
|
La-Z-Boy,
Inc. |
|
|
7,308 |
|
|
261,042
|
|
Masco
Corp. |
|
|
4,429 |
|
|
317,205
|
|
Masterbrand,
Inc.(a) |
|
|
27,155 |
|
|
274,809
|
|
Mohawk
Industries, Inc.(a) |
|
|
2,508 |
|
|
314,177
|
|
Owens
Corning |
|
|
2,645 |
|
|
322,875
|
|
RH(a) |
|
|
1,801 |
|
|
298,444
|
|
Sherwin-Williams
Co. |
|
|
818 |
|
|
296,599
|
|
Somnigroup
International, Inc. |
|
|
3,155 |
|
|
282,404
|
|
Trex
Company, Inc.(a) |
|
|
8,877 |
|
|
367,685
|
|
Wayfair,
Inc. - Class A(a) |
|
|
2,624 |
|
|
200,290
|
|
Whirlpool
Corp. |
|
|
3,756 |
|
|
257,023
|
|
Williams-Sonoma,
Inc. |
|
|
1,549 |
|
|
318,552
|
|
|
|
|
|
5,366,916
| ||
|
Home
Improvement Retailers - 6.4% |
|
|
|
|
||
|
Home
Depot, Inc. |
|
|
3,097 |
|
|
1,179,090
|
|
Lowe’s
Companies, Inc. |
|
|
4,537 |
|
|
1,200,354
|
|
|
|
|
|
2,379,444
| ||
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
5 |
|
|
HOYA
CAPITAL HOUSING ETF
SCHEDULE
OF INVESTMENTS
February
28, 2026(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value
|
|
COMMON
STOCKS - (Continued) | ||||||
|
Homebuilders
- 16.0% |
|
|
|
|
||
|
DR
Horton, Inc. |
|
|
3,623 |
|
|
$581,093
|
|
KB
Home |
|
|
8,621 |
|
|
548,123
|
|
Lennar
Corp. - Class A |
|
|
4,317 |
|
|
493,692
|
|
M/I
Homes, Inc.(a) |
|
|
4,068 |
|
|
578,307
|
|
Meritage
Homes Corp. |
|
|
7,563 |
|
|
570,401
|
|
NVR,
Inc.(a) |
|
|
72 |
|
|
541,281
|
|
PulteGroup,
Inc. |
|
|
4,418 |
|
|
606,150
|
|
Taylor
Morrison Home Corp.(a) |
|
|
8,750 |
|
|
576,537
|
|
Toll
Brothers, Inc. |
|
|
4,038 |
|
|
634,935
|
|
Tri
Pointe Homes, Inc.(a) |
|
|
16,286 |
|
|
754,042
|
|
|
|
|
|
5,884,561
| ||
|
Mortgage
Lenders & Servicers - 10.5% |
|
|
|
|
||
|
AGNC
Investment Corp. |
|
|
22,982 |
|
|
257,628
|
|
Annaly
Capital Management, Inc. |
|
|
10,744 |
|
|
249,691
|
|
Arbor
Realty Trust, Inc. |
|
|
27,728 |
|
|
219,883
|
|
Chimera
Investment Corp. |
|
|
19,365 |
|
|
263,558
|
|
Citizens
Financial Group, Inc. |
|
|
4,518 |
|
|
271,938
|
|
Ellington
Financial, Inc. |
|
|
17,144 |
|
|
212,929
|
|
Essent
Group Ltd. |
|
|
3,781 |
|
|
230,036
|
|
MFA
Financial, Inc. |
|
|
25,791 |
|
|
260,747
|
|
PennyMac
Mortgage Investment Trust |
|
|
18,646 |
|
|
228,600
|
|
PNC
Financial Services Group, Inc. |
|
|
1,263 |
|
|
268,198
|
|
Rithm
Capital Corp. |
|
|
21,419 |
|
|
215,261
|
|
Starwood
Property Trust, Inc. |
|
|
13,228 |
|
|
235,591
|
|
Truist
Financial Corp. |
|
|
5,195 |
|
|
256,165
|
|
Two
Harbors Investment Corp. |
|
|
24,305 |
|
|
251,071
|
|
UWM
Holdings Corp. |
|
|
45,871 |
|
|
202,291
|
|
Wells
Fargo & Co. |
|
|
2,843 |
|
|
231,562
|
|
|
|
|
|
3,855,149
| ||
|
Property,
Title & Mortgage Insurance - 5.0% |
|
|
|
|
||
|
Allstate
Corp. |
|
|
1,102 |
|
|
236,401
|
|
F&G
Annuities & Life, Inc. |
|
|
241 |
|
|
5,459
|
|
Fidelity
National Financial, Inc. |
|
|
4,002 |
|
|
211,626
|
|
First
American Financial Corp. |
|
|
3,660 |
|
|
256,603
|
|
MGIC
Investment Corp. |
|
|
8,352 |
|
|
221,578
|
|
Old
Republic International Corp. |
|
|
5,155 |
|
|
220,995
|
|
Radian
Group, Inc. |
|
|
6,684 |
|
|
230,732
|
|
Stewart
Information Services Corp. |
|
|
3,171 |
|
|
225,109
|
|
Travelers
Companies, Inc. |
|
|
815 |
|
|
251,541
|
|
|
|
|
|
1,860,044
| ||
|
Real
Estate Technology, Brokerage & Services - 3.3% |
|
|
|
|
||
|
Appfolio,
Inc. - Class A(a) |
|
|
1,033 |
|
|
183,626
|
|
Compass,
Inc. - Class A(a) |
|
|
48,732 |
|
|
475,137
|
|
CoStar
Group, Inc.(a) |
|
|
3,514 |
|
|
156,830 |
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
6 |
|
|
HOYA
CAPITAL HOUSING ETF
SCHEDULE
OF INVESTMENTS
February
28, 2026(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value
|
|
COMMON
STOCKS - (Continued) | ||||||
|
Real
Estate Technology, Brokerage & Services - (Continued) | ||||||
|
Rocket
Cos., Inc. - Class A |
|
|
13,547 |
|
|
$246,420
|
|
Zillow
Group, Inc. - Class C(a) |
|
|
3,320 |
|
|
148,138
|
|
|
|
|
|
1,210,151
| ||
|
Residential
REITs & Real Estate Operators - 28.0%(b) |
|
|
|
|
||
|
American
Homes 4 Rent - Class A |
|
|
16,406 |
|
|
492,180
|
|
AvalonBay
Communities, Inc. |
|
|
2,942 |
|
|
521,411
|
|
Camden
Property Trust |
|
|
5,052 |
|
|
547,334
|
|
Centerspace |
|
|
7,970 |
|
|
501,313
|
|
CubeSmart |
|
|
14,656 |
|
|
602,948
|
|
Equity
LifeStyle Properties, Inc. |
|
|
8,437 |
|
|
566,629
|
|
Equity
Residential |
|
|
8,779 |
|
|
554,921
|
|
Essex
Property Trust, Inc. |
|
|
2,035 |
|
|
519,149
|
|
Extra
Space Storage, Inc. |
|
|
4,043 |
|
|
610,614
|
|
Independence
Realty Trust, Inc. |
|
|
31,379 |
|
|
519,950
|
|
Invitation
Homes, Inc. |
|
|
18,856 |
|
|
496,667
|
|
Mid-America
Apartment Communities, Inc. |
|
|
3,979 |
|
|
532,629
|
|
NexPoint
Residential Trust, Inc. |
|
|
16,801 |
|
|
473,620
|
|
Public
Storage |
|
|
1,972 |
|
|
605,522
|
|
Sun
Communities, Inc. |
|
|
4,145 |
|
|
565,627
|
|
UDR,
Inc. |
|
|
14,936 |
|
|
560,100
|
|
UMH
Properties, Inc. |
|
|
34,857 |
|
|
525,643
|
|
Ventas,
Inc. |
|
|
6,709 |
|
|
578,047
|
|
Welltower,
Inc. |
|
|
2,658 |
|
|
550,525
|
|
|
|
|
|
10,324,829
| ||
|
TOTAL
COMMON STOCKS
(Cost
$33,541,257) |
|
|
|
|
36,754,590
| |
|
SHORT-TERM
INVESTMENTS |
|
|
|
|
||
|
MONEY
MARKET FUNDS - 0.2% |
|
|
|
|
||
|
First
American Government Obligations Fund - Class X, 3.60%(c) |
|
|
77,845 |
|
|
77,845
|
|
TOTAL
MONEY MARKET FUNDS
(Cost
$77,845) |
|
|
|
|
77,845
| |
|
TOTAL
INVESTMENTS - 99.9%
(Cost
$33,619,102) |
|
|
|
|
$36,832,435
| |
|
Other
Assets in Excess of Liabilities - 0.1% |
|
|
|
|
22,171
| |
|
TOTAL
NET ASSETS - 100.0% |
|
|
|
|
$36,854,606 | |
|
|
|
|
|
|
|
|
Percentages
are stated as a percent of net assets.
The
Fund’s security classifications are defined by the Fund’s Adviser.
REIT
- Real Estate Investment Trust
|
(a) |
Non-income producing
security. |
|
(b) |
To the extent that
the Fund invests more heavily in a particular industry or sector of the economy, its performance will be especially sensitive to developments
that significantly affect those industries or sectors. |
|
(c) |
The rate shown represents
the 7-day annualized yield as of February 28, 2026. |
The
accompanying notes are an integral part of these financial statements.
|
|
|
7 |
|
|
HOYA
CAPITAL ETFs
STATEMENTS
OF ASSETS AND LIABILITIES
February 28,
2026
|
|
|
|
|
|
|
|
|
|
|
|
Hoya
Capital High
Dividend
Yield ETF |
|
|
Hoya
Capital
Housing
ETF |
|
ASSETS: |
|
|
|
|
||
|
Investments,
at value |
|
|
$106,033,282 |
|
|
$36,832,435
|
|
Dividends
receivable |
|
|
190,531 |
|
|
30,790
|
|
Security
lending income receivable |
|
|
1,331 |
|
|
—
|
|
Total
assets |
|
|
106,225,144 |
|
|
36,863,225
|
|
LIABILITIES: |
|
|
|
|
||
|
Payable
upon return of securities loaned |
|
|
6,926,306 |
|
|
— |
|
Payable
to Adviser |
|
|
37,904 |
|
|
8,619
|
|
Total
liabilities |
|
|
6,964,210 |
|
|
8,619
|
|
NET
ASSETS |
|
|
$99,260,934 |
|
|
$36,854,606
|
|
Net
Assets Consists of: |
|
|
|
|
||
|
Paid-in
capital |
|
|
$106,280,233 |
|
|
$35,332,798 |
|
Total
distributable earnings/(accumulated losses) |
|
|
(7,019,299) |
|
|
1,521,808 |
|
Total
net assets |
|
|
$99,260,934 |
|
|
$36,854,606
|
|
Net
assets |
|
|
$99,260,934 |
|
|
$36,854,606
|
|
Shares
issued and outstanding(a) |
|
|
10,360,000 |
|
|
775,000 |
|
Net
asset value per share |
|
|
$9.58 |
|
|
$47.55
|
|
Cost: |
|
|
|
|
||
|
Investments,
at cost |
|
|
$107,622,116 |
|
|
$33,619,102 |
|
Loaned
Securities: |
|
|
|
|
||
|
at
value (included in investments) |
|
|
$6,728,012 |
|
|
$— |
|
|
|
|
|
|
|
|
|
(a) |
Unlimited shares authorized
without par value. |
The
accompanying notes are an integral part of these financial statements.
|
|
|
8 |
|
|
HOYA
CAPITAL ETFs
STATEMENTS
OF OPERATIONS
For
the Year Ended February 28, 2026
|
|
|
|
|
|
|
|
|
|
|
|
Hoya
Capital High
Dividend
Yield ETF |
|
|
Hoya
Capital
Housing
ETF |
|
INVESTMENT
INCOME: |
|
|
|
|
||
|
Dividend
income |
|
|
$5,511,209 |
|
|
$814,427
|
|
Securities
lending income |
|
|
4,111 |
|
|
—
|
|
Total
investment income |
|
|
5,515,320 |
|
|
814,427
|
|
EXPENSES: |
|
|
|
|
||
|
Investment
advisory fee |
|
|
460,362 |
|
|
106,218
|
|
Total
expenses |
|
|
460,362 |
|
|
106,218
|
|
Net
investment income (loss) |
|
|
5,054,958 |
|
|
708,209
|
|
REALIZED
AND UNREALIZED GAIN (LOSS) |
|
|
|
|
||
|
Net
realized gain (loss) from: |
|
|
|
|
||
|
Investments |
|
|
(898,821) |
|
|
292,702
|
|
In-kind
redemptions |
|
|
695,041 |
|
|
2,477,401
|
|
Net
realized gain (loss) |
|
|
(203,780) |
|
|
2,770,103
|
|
Net
change in unrealized appreciation (depreciation) on: |
|
|
|
|
||
|
Investments |
|
|
(2,337,511) |
|
|
(1,798,452)
|
|
Net
change in unrealized appreciation (depreciation) |
|
|
(2,337,511) |
|
|
(1,798,452)
|
|
Net
realized and unrealized gain (loss) |
|
|
(2,541,291) |
|
|
971,651
|
|
NET
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
|
|
$2,513,667 |
|
|
$1,679,860 |
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
9 |
|
|
HOYA
CAPITAL ETFs
STATEMENTS
OF CHANGES IN NET ASSETS
|
|
|
|
|
|
|
| ||||||
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
Hoya
Capital Housing ETF | ||||||
|
|
|
|
Year
Ended February 28, |
|
|
Year
Ended February 28, | ||||||
|
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025
|
|
OPERATIONS: |
|
|
|
|
|
|
|
|
||||
|
Net
investment income (loss) |
|
|
$5,054,958 |
|
|
$4,266,700 |
|
|
$708,209 |
|
|
$786,022
|
|
Net
realized gain (loss) |
|
|
(203,780) |
|
|
(1,172,036) |
|
|
2,770,103 |
|
|
2,368,651
|
|
Net
change in unrealized appreciation (depreciation) |
|
|
(2,337,511) |
|
|
6,070,573 |
|
|
(1,798,452) |
|
|
1,531,904
|
|
Net
increase (decrease) in net assets from operations |
|
|
2,513,667 |
|
|
9,165,237 |
|
|
1,679,860 |
|
|
4,686,577
|
|
DISTRIBUTIONS
TO SHAREHOLDERS: |
|
|
|
|
|
|
|
|
||||
|
From
earnings |
|
|
(5,054,958) |
|
|
(4,266,700) |
|
|
(700,610) |
|
|
(786,022)
|
|
From
return of capital |
|
|
(4,879,287) |
|
|
(3,103,400) |
|
|
(209,811) |
|
|
(146,984)
|
|
Total
distributions to shareholders |
|
|
(9,934,245) |
|
|
(7,370,100) |
|
|
(910,421) |
|
|
(933,006)
|
|
CAPITAL
TRANSACTIONS: |
|
|
|
|
|
|
|
|
||||
|
Shares
sold |
|
|
28,283,950 |
|
|
43,817,652 |
|
|
4,532,123 |
|
|
3,599,103
|
|
Shares
redeemed |
|
|
(6,704,284) |
|
|
(14,333,987) |
|
|
(7,815,836) |
|
|
(8,306,950)
|
|
ETF
transaction fees (See Note 6) |
|
|
— |
|
|
27 |
|
|
— |
|
|
—
|
|
Net
increase (decrease) in net assets from capital transactions |
|
|
21,579,666 |
|
|
29,483,692 |
|
|
(3,283,713) |
|
|
(4,707,847)
|
|
Net
increase (decrease) in net assets |
|
|
14,159,088 |
|
|
31,278,829 |
|
|
(2,514,274) |
|
|
(954,276)
|
|
NET
ASSETS: |
|
|
|
|
|
|
|
|
||||
|
Beginning
of the year |
|
|
85,101,846 |
|
|
53,823,017 |
|
|
39,368,880 |
|
|
40,323,156
|
|
End
of the year |
|
|
$99,260,934 |
|
|
$85,101,846 |
|
|
$36,854,606 |
|
|
$39,368,880
|
|
SHARES
TRANSACTIONS |
|
|
|
|
|
|
|
|
||||
|
Shares
sold |
|
|
2,930,000 |
|
|
4,200,000 |
|
|
100,000 |
|
|
75,000
|
|
Shares
redeemed |
|
|
(700,000) |
|
|
(1,420,000) |
|
|
(175,000) |
|
|
(175,000)
|
|
Total
increase (decrease) in shares outstanding |
|
|
2,230,000 |
|
|
2,780,000 |
|
|
(75,000) |
|
|
(100,000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
10 |
|
|
HOYA
CAPITAL HIGH DIVIDEND YIELD ETF
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
Year
Ended February 28, |
|
|
Year
Ended
February 29,
2024 |
|
|
Year
Ended
February 28,
2023 |
|
|
Period
Ended
February 28,
2022(a)
| |||
|
|
|
|
2026 |
|
|
2025
|
| ||||||||
|
PER
SHARE DATA: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Net
asset value, beginning of period |
|
|
$10.47 |
|
|
$10.06 |
|
|
$11.28 |
|
|
$14.26 |
|
|
$14.92
|
|
INVESTMENT
OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Net
investment income (loss)(b) |
|
|
0.52 |
|
|
0.59 |
|
|
0.61 |
|
|
0.62 |
|
|
0.23
|
|
Net
realized and unrealized gain (loss) on investments(c) |
|
|
(0.38) |
|
|
0.85 |
|
|
(0.80) |
|
|
(2.59) |
|
|
(0.41)
|
|
Total
from investment operations |
|
|
0.14 |
|
|
1.44 |
|
|
(0.19) |
|
|
(1.97) |
|
|
(0.18)
|
|
LESS
DISTRIBUTIONS FROM: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Net
investment income |
|
|
(0.53) |
|
|
(0.60) |
|
|
(0.61) |
|
|
(0.62) |
|
|
(0.30)
|
|
Net
realized gains |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.01)
|
|
Return
of capital |
|
|
(0.50) |
|
|
(0.43) |
|
|
(0.42) |
|
|
(0.39) |
|
|
(0.17)
|
|
Total
distributions |
|
|
(1.03) |
|
|
(1.03) |
|
|
(1.03) |
|
|
(1.01) |
|
|
(0.48)
|
|
ETF
transaction fees per share |
|
|
— |
|
|
0.00(d) |
|
|
— |
|
|
— |
|
|
—
|
|
Net
asset value, end of period |
|
|
$9.58 |
|
|
$10.47 |
|
|
$10.06 |
|
|
$11.28 |
|
|
$14.26
|
|
Total
return(e) |
|
|
1.93% |
|
|
14.82% |
|
|
−1.33% |
|
|
−14.20% |
|
|
−1.35%
|
|
SUPPLEMENTAL
DATA AND RATIOS: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Net
assets, end of period (in thousands) |
|
|
$99,261 |
|
|
$85,102 |
|
|
$53,823 |
|
|
$32,385 |
|
|
$21,821
|
|
Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Before
expense reimbursement/recoupment(f) |
|
|
0.50% |
|
|
0.50% |
|
|
0.50% |
|
|
0.50% |
|
|
0.50%
|
|
After
expense reimbursement/recoupment(f) |
|
|
0.50% |
|
|
0.50% |
|
|
0.50% |
|
|
0.36% |
|
|
0.25%
|
|
Ratio
of net investment income (loss) to average net assets(f) |
|
|
5.49% |
|
|
5.68% |
|
|
5.94% |
|
|
5.06% |
|
|
3.42%
|
|
Portfolio
turnover rate(e)(g) |
|
|
36% |
|
|
36% |
|
|
34% |
|
|
33% |
|
|
7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Inception date of
the Fund was September 21, 2021. |
|
(b) |
Net investment income
per share has been calculated based on average shares outstanding during the periods. |
|
(c) |
Realized and unrealized
gains and losses per share in the caption are balancing amounts necessary to reconcile the change in net asset value per share for the
periods, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the periods. |
|
(d) |
Amount represents
less than $0.005 per share. |
|
(e) |
Not annualized for
periods less than one year. |
|
(f) |
Annualized for periods
less than one year. |
|
(g) |
Portfolio turnover
rate excludes in-kind transactions. |
The
accompanying notes are an integral part of these financial statements.
|
|
|
11 |
|
|
HOYA
CAPITAL HOUSING ETF
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
Year
Ended February 28, |
|
|
Year
Ended
February 29,
2024 |
|
|
Year
Ended February 28, | ||||||
|
|
|
|
2026 |
|
|
2025 |
|
|
2023 |
|
|
2022
| |||
|
PER
SHARE DATA: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Net
asset value, beginning of year |
|
|
$46.32 |
|
|
$42.45 |
|
|
$35.07 |
|
|
$39.64 |
|
|
$35.07
|
|
INVESTMENT
OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Net
investment income (loss)(a) |
|
|
0.91 |
|
|
0.83 |
|
|
0.72 |
|
|
0.63 |
|
|
0.42
|
|
Net
realized and unrealized gain (loss) on investments(b) |
|
|
1.49 |
|
|
4.04 |
|
|
7.55 |
|
|
(4.46) |
|
|
4.71
|
|
Total
from investment operations |
|
|
2.40 |
|
|
4.87 |
|
|
8.27 |
|
|
(3.83) |
|
|
5.13
|
|
LESS
DISTRIBUTIONS FROM: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Net
investment income |
|
|
(0.91) |
|
|
(0.84) |
|
|
(0.72) |
|
|
(0.64) |
|
|
(0.42)
|
|
Net
realized gains |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.01)
|
|
Return
of capital |
|
|
(0.26) |
|
|
(0.16) |
|
|
(0.17) |
|
|
(0.10) |
|
|
(0.13)
|
|
Total
distributions |
|
|
(1.17) |
|
|
(1.00) |
|
|
(0.89) |
|
|
(0.74) |
|
|
(0.56)
|
|
Net
asset value, end of year |
|
|
$47.55 |
|
|
$46.32 |
|
|
$42.45 |
|
|
$35.07 |
|
|
$39.64
|
|
Total
return |
|
|
5.36% |
|
|
11.51% |
|
|
23.94% |
|
|
−9.62% |
|
|
14.60%
|
|
SUPPLEMENTAL
DATA AND RATIOS: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Net
assets, end of year (in thousands) |
|
|
$36,855 |
|
|
$39,369 |
|
|
$40,323 |
|
|
$35,069 |
|
|
$63,423
|
|
Ratio
of expenses to average net assets |
|
|
0.30% |
|
|
0.30% |
|
|
0.30% |
|
|
0.30% |
|
|
0.30%
|
|
Ratio
of net investment income (loss) to average net assets |
|
|
2.00% |
|
|
1.81% |
|
|
1.92% |
|
|
1.80% |
|
|
1.03%
|
|
Portfolio
turnover rate(c) |
|
|
12% |
|
|
20% |
|
|
18% |
|
|
18% |
|
|
13% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Net investment income
per share has been calculated based on average shares outstanding during the years. |
|
(b) |
Realized and unrealized
gains and losses per share in the caption are balancing amounts necessary to reconcile the change in net asset value per share for the
periods, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the periods. |
|
(c) |
Portfolio turnover
rate excludes in-kind transactions. |
The
accompanying notes are an integral part of these financial statements.
|
|
|
12 |
|
|
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February 28,
2026
NOTE
1 – ORGANIZATION
Hoya
Capital High Dividend Yield ETF and Hoya Capital Housing ETF (individually each a “Fund” or collectively the “Funds”)
are each a diversified series of ETF Series Solutions (“ESS” or the “Trust”), an open-end management investment
company consisting of multiple investment series, organized as a Delaware statutory trust on February 9, 2012. The Trust is registered
with the U.S. Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (the “1940
Act”), as an open-end management investment company and the offering of the Funds’ shares is registered under the Securities
Act of 1933, as amended (the “Securities Act”). The investment objective of the Hoya Capital High Dividend Yield ETF is to
track the performance, before fees and expenses, of the Hoya Capital High Dividend Yield Index (the “Index”). The investment
objective of the Hoya Capital Housing ETF is to track the performance, before fees and expenses, of the Hoya Capital Housing 100™
Index (the “Index”). Hoya Capital High Dividend Yield ETF commenced operations on September 21, 2021 and Hoya Capital
Housing ETF commenced operations on March 19, 2019.
The
end of the reporting period for the Funds is February 28, 2026. The current fiscal period is the period from March 1, 2025 through
February 28, 2026.
NOTE
2 – SIGNIFICANT ACCOUNTING POLICIES
The
Funds are investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting
Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 Financial Services – Investment
Companies.
The
following is a summary of significant accounting policies consistently followed by the Funds. These policies are in conformity with accounting
principles generally accepted in the United States of America (“U.S. GAAP”).
|
A. |
Security Valuation.
All equity securities, including domestic and foreign common stocks, preferred stocks and exchange traded funds that are traded on a national
securities exchange, except those listed on the Nasdaq Global Market®, Nasdaq Global Select Market® and
the Nasdaq Capital Market® exchanges (collectively, “Nasdaq”) are valued at the last reported sale price on
the exchange on which the security is principally traded. Securities traded on Nasdaq will be valued at the Nasdaq Official Closing Price
(“NOCP”). If, on a particular day, an exchange-traded or Nasdaq security does not trade, then the mean between the most recent
quoted bid and asked prices will be used. All equity securities that are not traded on a listed exchange are valued at the last sale price
in the over-the-counter market. If a non-exchange traded security does not trade on a particular day, then the mean between the last quoted
closing bid and asked price will be used. Prices denominated in foreign currencies are converted to U.S. dollar equivalents at the current
exchange rate, which approximates fair value. |
Investments
in mutual funds, including money market funds, are valued at their net asset value (“NAV”) per share.
Units
of Mount Vernon Liquid Assets Portfolio are not traded on an exchange and are valued at the investment company’s NAV per share as
provided by the underlying fund’s administrator.
Securities
for which quotations are not readily available are valued at their respective fair values in accordance with pricing procedures adopted
by the Fund’s Board of Trustees (the “Board”). When a security is “fair valued,” consideration is given
to the facts and circumstances relevant to the particular situation, including a review of various factors set forth in the pricing procedures
adopted by the Board. The use of fair value pricing by the Funds may cause the NAV of their shares to differ significantly from the NAV
that would be calculated without regard to such considerations.
As
described above, the Funds utilize various methods to measure the fair value of their investments on a recurring basis. U.S. GAAP establishes
a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
|
Level 1 – |
Unadjusted quoted prices in active markets
for identical assets or liabilities that the Fund has the ability to access. |
|
|
|
13 |
|
|
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February
28, 2026(Continued)
|
Level 2 – |
Observable inputs other than quoted prices
included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices
for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield
curves, default rates and similar data. |
|
Level 3 – |
Unobservable inputs for the asset or liability,
to the extent relevant observable inputs are not available; representing the Funds’ own assumptions about the assumptions a market
participant would use in valuing the asset or liability, and would be based on the best information available. |
The
availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example,
the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics
particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the
market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value
is greatest for instruments categorized in Level 3.
The
inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes,
the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest
level input that is significant to the fair value measurement in its entirety.
The
following is a summary of the inputs used to value the Funds’ investments as of the end of the current fiscal period:
Hoya
Capital High Dividend Yield ETF
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total
|
|
Common
Stocks |
|
|
$89,253,694 |
|
|
$— |
|
|
$— |
|
|
$89,253,694
|
|
Preferred
Stocks |
|
|
9,420,210 |
|
|
— |
|
|
— |
|
|
9,420,210
|
|
Investments
Purchased with Proceeds from Securities Lending^^ |
|
|
— |
|
|
— |
|
|
— |
|
|
6,926,306
|
|
Money
Market Funds |
|
|
433,072 |
|
|
— |
|
|
— |
|
|
433,072
|
|
Total
Investments |
|
|
$99,106,976 |
|
|
$— |
|
|
$— |
|
|
$106,033,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hoya
Capital Housing ETF
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total
|
|
Common
Stocks |
|
|
$36,754,590 |
|
|
$— |
|
|
$— |
|
|
$36,754,590
|
|
Money
Market Funds |
|
|
77,845 |
|
|
— |
|
|
— |
|
|
77,845
|
|
Total
Investments |
|
|
$36,832,435 |
|
|
$— |
|
|
$— |
|
|
$36,832,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
^^ |
Certain investments that are measured at fair
value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.
The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts listed
in the Schedule of Investments. |
Refer
to the Schedule of Investments for further disaggregation of investment categories.
|
B. |
Federal Income
Taxes. The Funds’ policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended,
applicable to regulated investment companies and to distribute substantially all of their net investment income and net capital gains
to shareholders. Therefore, no federal income tax provision is required. Each Fund plans to file U.S. Federal and applicable state and
local tax returns. |
Each
Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management
has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded
related to uncertain tax positions. Management is not aware
|
|
|
14 |
|
|
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February
28, 2026(Continued)
of
any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the
next 12 months. Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ
from U.S. GAAP. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits on uncertain tax positions as
income tax expense in the Statement of Operations. During the current fiscal period, the Funds did not incur any interest or penalties.
|
C. |
Security Transactions
and Investment Income. Investment securities transactions are accounted for on the trade date. Gains and losses realized on sales
of securities are determined on a specific identification basis. Dividend income is recorded on the ex-dividend date. Non-cash dividends
included in dividend income or separately disclosed, if any, are recorded at the fair value of the security received. Interest income
is recorded on an accrual basis. Withholding taxes on foreign dividends, if any, have been provided for in accordance with the Funds’
understanding of the applicable tax rules and regulations. |
Distributions
received from investments in Real Estate Investment Trusts (“REITs”) may be characterized as ordinary income, net capital
gain, or a return of capital. The proper characterization of REIT distributions is generally not known until after the end of each calendar
year. As such, the Funds must use estimates in reporting the character of income and distributions received during the current calendar
year for financial statement purposes. The actual character of distributions to the Funds’ shareholders will be reflected on the
Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions
received by the Funds’ shareholders may represent a return of capital.
|
D. |
Distributions
to Shareholders. Distributions to shareholders from net investment income, if any, are declared and paid monthly by the Funds.
Distributions to shareholders from net realized gains on securities are declared and paid by the Funds on, at least, an annual basis.
Distributions are recorded on the ex-dividend date. |
|
E. |
Use of Estimates.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements,
as well as the reported amounts of revenues and expenses during the current fiscal period. Actual results could differ from those estimates.
|
|
F. |
Share Valuation.
The NAV per share of each Fund is calculated by dividing the sum of the value of the securities held by each Fund, plus cash and other
assets, minus all liabilities (including estimated accrued expenses) by the total number of outstanding shares of each Fund, rounded to
the nearest cent. The Funds’ shares will not be priced on the days on which the New York Stock Exchange (“NYSE”) is
closed for trading. The offering and redemption price per share of each Fund is equal to each Fund’s NAV per share. |
|
G. |
Guarantees
and Indemnifications. In the normal course of business, the Funds enter into contracts with service providers that contain general
indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that
may be against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote. |
|
H. |
Reclassifications
of Capital Accounts. U.S. GAAP requires that certain components of net assets relating to permanent differences be reclassified
between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. |
These
differences are primarily due to differing book and tax treatments for in-kind transactions. For the fiscal year ended February 28,
2026, the following table shows the reclassifications made:
|
|
|
|
|
|
|
|
|
|
|
|
Distributable
Earnings
(Accumulated
Losses) |
|
|
Paid-In
Capital
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$(421,116) |
|
|
$421,116
|
|
Hoya
Capital Housing ETF |
|
|
(2,504,516) |
|
|
2,504,516 |
|
|
|
|
|
|
|
|
|
|
|
15 |
|
|
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February
28, 2026(Continued)
|
I. |
Segment Reporting.
Each Fund operates as a single segment entity. Each Fund’s income, expenses, assets, and performance are regularly monitored
and assessed by the President of the Adviser, who serves as the chief operating decision maker, using the information presented in the
financial statements and financial highlights. |
|
J. |
Subsequent
Events. In preparing these financial statements, management has evaluated events and transactions for potential recognition or
disclosure through the date the financial statements were issued. There were no events or transactions that occurred during the period
subsequent to the end of the current fiscal period that materially impacted the amounts or disclosures in the Funds’ financial statements.
|
NOTE
3 – COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
Hoya
Capital Real Estate, LLC (the “Adviser”), serves as the investment adviser to the Funds. An affiliate of the Adviser, Hoya
Capital Index Innovations (the “Index Provider”), serves as index provider to the Funds. Pursuant to an Investment Advisory
Agreement (“Advisory Agreement”) between the Trust, on behalf of the Funds, and the Adviser, the Adviser provides investment
advice to the Funds and oversees the day-to-day operations of the Funds, subject to the direction and control of the Board and the officers
of the Trust. Under the Advisory Agreement, the Adviser is also responsible for arranging, in consultation with Penserra Capital Management,
LLC, (the “Sub-Adviser”), transfer agency, custody, fund administration and accounting, and other non-distribution related
services necessary for the Funds to operate. Under the Advisory Agreement, the Adviser has agreed to pay all expenses of the Funds, except
for: the fee paid to the Adviser pursuant to the Advisory Agreement, interest charges on any borrowings, dividends and other expenses
on securities sold short, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities
and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, extraordinary expenses and distribution
(12b-1) fees and expenses. For the services it provides to the Funds, the Funds pay the Adviser a unified management fee, which is calculated
daily and paid monthly, at the annual rates of each Fund’s average daily net assets listed below. The Adviser is responsible for
paying the Sub-Adviser.
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
0.50%
|
|
Hoya
Capital Housing ETF |
|
|
0.30% |
|
|
|
|
|
U.S.
Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services” or “Administrator”),
acts as the Funds’ Administrator and, in that capacity, performs various administrative and accounting services for the Funds. The
Administrator prepares various federal and state regulatory filings, reports and returns for the Funds, including regulatory compliance
monitoring and financial reporting; prepares reports and materials to be supplied to the Board; monitors the activities of the Funds’
Custodian, transfer agent, and fund accountant. Fund Services also serves as the transfer agent and fund accountant to the Funds. U.S.
Bank N.A. (the “Custodian”), an affiliate of Fund Services, serves as the Funds’ Custodian.
All
officers of the Trust are affiliated with the Administrator and Custodian.
NOTE
4 – SECURITIES LENDING
Hoya
Capital High Dividend Yield ETF may lend up to 331∕3 percent of the value of the securities in its portfolio to brokers, dealers
and financial institutions (but not individuals) under terms of participation in a securities lending program administered by the Securities
Lending Agent. Under the terms of the securities lending agreement, the Fund may lend securities to certain broker-dealers and banks in
exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S.
securities loaned, marked to market daily. The market value of the loaned securities is determined daily at the close of business of the
Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund receives compensation in the form
of fees and earns interest on the cash collateral. The amount of fees depends on a number of factors including the type of security and
length of the loan. The Fund continues to receive interest payments or dividends on the securities loaned during the borrowing period.
Gain or loss in the fair value of securities loaned, that may occur during the term of the loan, will be for the account of the Fund.
The Fund has the right, under the terms of the securities lending agreement, to recall the securities from the borrower on demand.
|
|
|
16 |
|
|
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February
28, 2026(Continued)
The
securities lending agreement provides that, in the event of a borrower’s material default, the Securities Lending Agent shall take
all actions the Securities Lending Agent deems appropriate to liquidate the collateral, purchase replacement securities at the Securities
Lending Agent’s expense, or pay the Fund an amount equal to the market value of the loaned securities, subject to certain limitations
which are set forth in detail in the securities lending agreement between the Fund and the Securities Lending Agent.
As
of the end of the current fiscal period, Hoya Capital High Dividend Yield ETF loaned securities and received cash collateral for the loans.
The
cash collateral is invested by the Securities Lending Agent in accordance with approved investment guidelines. Those guidelines require
the cash collateral to be invested in readily marketable, high quality, short-term obligations; however, such investments are subject
to risk of payment delays or default on the part of the issuer or counterparty or otherwise may not generate sufficient interest to support
the costs associated with securities lending. The Fund could also experience delays in recovering securities and possible loss of income
or value if the borrower fails to return the borrowed securities, although the Fund is indemnified from this risk by contract with the
Securities Lending Agent. The Fund manages credit exposure arising from these lending transactions by, in appropriate circumstances, entering
into master netting agreements and collateral agreements with third party borrowers that provide the Fund, in the event of default (such
as bankruptcy or a borrower’s failure to pay or perform), the right to net a third party borrower’s rights and obligations
under such agreement and liquidate and set off collateral against the net amount owed by the counterparty.
As
of the end of the current fiscal period, the value of the securities on loan and payable for collateral due to broker were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Value
of
Securities
on
Loan |
|
|
Collateral
Received*
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$6,728,012 |
|
|
$6,926,306 |
|
|
|
|
|
|
|
|
|
* |
The cash collateral received was invested in
the Mount Vernon Liquid Assets Portfolio, LLC as shown on the Schedules of Investments, a short-term investment portfolio with an overnight
and continuous maturity. The investment objective is to seek to maximize current income to the extent consistent with the preservation
of capital and liquidity and maintain a stable NAV of $1.00 per unit. |
The
interest income earned by the Fund on the investment of cash collateral received from the borrowers for the securities loaned to them
(“Securities lending income”) is reflected in the Fund’s Statement of Operations. Net Fees and interest income earned
on collateral investments and recognized by the Fund during the current fiscal period were as follows:
|
|
|
|
|
|
|
|
|
Net
Fees and
Interest
Earned |
|
Hoya
Capital High Dividend Yield ETF |
|
|
$4,111 |
|
|
|
|
|
NOTE
5 – PURCHASES AND SALES OF SECURITIES
During
the current fiscal period, purchases and sales of securities by the Funds, excluding short-term securities and in-kind transactions were
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases |
|
|
Sales
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$32,491,566 |
|
|
$33,729,606
|
|
Hoya
Capital Housing ETF |
|
|
6,986,272 |
|
|
4,169,204 |
|
|
|
|
|
|
|
|
During
the current fiscal period, there were no purchases or sales of U.S. Government securities.
|
|
|
17 |
|
|
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February
28, 2026(Continued)
During
the current fiscal period, in-kind transactions associated with creations and redemptions were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
In-Kind
Purchases |
|
|
In-Kind
Sales
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$27,691,651 |
|
|
$6,562,231
|
|
Hoya
Capital Housing ETF |
|
|
2,269,444 |
|
|
7,744,175 |
|
|
|
|
|
|
|
|
NOTE
6 – INCOME TAX INFORMATION
The
components of distributable earnings (accumulated losses) and cost basis of investments for federal income tax purposes at February 28,
2026 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Hoya
Capital
High
Dividend
Yield
ETF |
|
|
Hoya
Capital
Housing
ETF |
|
Tax
cost of investments |
|
|
$110,569,342 |
|
|
$33,763,456 |
|
Gross
tax unrealized appreciation |
|
|
9,595,838 |
|
|
7,180,073 |
|
Gross
tax unrealized depreciation |
|
|
(14,131,898) |
|
|
(4,111,094) |
|
Net
tax unrealized appreciation (depreciation) |
|
|
(4,536,060) |
|
|
3,068,979 |
|
Undistributed
ordinary income |
|
|
— |
|
|
— |
|
Undistributed
long-term capital gains |
|
|
— |
|
|
— |
|
Other
accumulated gain (loss) |
|
|
(2,483,239) |
|
|
(1,547,171) |
|
Distributable
earnings (accumulated losses) |
|
|
$(7,019,299) |
|
|
$1,521,808 |
|
|
|
|
|
|
|
|
The
difference between the cost basis for financial statement and federal income tax purposes is primarily due to timing differences in recognizing
wash sales.
A
regulated investment company may elect for any taxable year to treat any portion of any qualified late year loss as arising on the first
day of the next taxable year. Qualified late year losses are certain capital and ordinary losses which occur during the portion of the
Funds’ taxable year subsequent to October 31 and December 31, respectively. For the taxable year ended February 28, 2026, the
Funds did not elect to defer any post-October capital losses or late-year losses.
As
of February 28, 2026, the Funds had the following capital loss carryforwards with an indefinite expiration:
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term |
|
|
Long-Term
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$423,745 |
|
|
$2,059,495 |
|
Hoya
Capital Housing ETF |
|
|
28,694 |
|
|
1,518,477 |
|
|
|
|
|
|
|
|
The
tax character of distributions paid by the Funds during the year ended February 28, 2026 were as follows:
|
|
|
|
|
|
|
|
|
Fund |
|
|
Ordinary
Income |
|
|
Return
of
Capital
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$5,054,958 |
|
|
$4,879,287 |
|
Hoya
Capital Housing ETF |
|
|
$700,610 |
|
|
$209,811 |
|
|
|
|
|
|
|
|
The
tax character of distributions paid by the Funds during the year ended February 28, 2025 were as follows:
|
|
|
|
|
|
|
|
|
Fund |
|
|
Ordinary
Income |
|
|
Return
of
Capital
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$4,266,700 |
|
|
$3,103,400 |
|
Hoya
Capital Housing ETF |
|
|
$786,022 |
|
|
$146,984 |
|
|
|
|
|
|
|
|
|
|
|
18 |
|
|
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February
28, 2026(Continued)
NOTE
7 – SHARE TRANSACTIONS
Shares
of the Funds are listed and trade on the New York Stock Exchange Arca, Inc. (“NYSE Arca”). Market prices for the shares may
be different from their NAV. The Funds issue and redeem shares on a continuous basis at NAV generally in large blocks of shares, called
“Creation Units.” Creation Units are issued and redeemed principally in-kind for securities included in a specified universe.
Once created, shares generally trade in the secondary market at market prices that change throughout the day. Except when aggregated in
Creation Units, shares are not redeemable securities of the Funds. Creation Units may only be purchased or redeemed by certain financial
institutions (“Authorized Participants”). An Authorized Participant is either (i) a broker-dealer or other participant in
the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository
Trust Company participant and, in each case, must have executed a Participation Agreement with the Distributor. Most retail investors
do not qualify as Authorized Participants nor have the resources to buy and sell whole Creation Units. Therefore, they are unable to purchase
or redeem shares directly from the Funds. Rather, most retail investors may purchase shares in the secondary market with the assistance
of a broker and are subject to customary brokerage commissions or fees.
The
Funds currently offer one class of shares, which has no front-end sales load, no deferred sales charge, and no redemption fee. A fixed
transaction fee is imposed for the transfer and other transaction costs associated with the purchase or sale of Creation Units. The standard
fixed transaction fee for the Funds is $300, payable to the Custodian. The fixed transaction fee may be waived on certain orders if the
Funds’ Custodian has determined to waive some or all of the costs associated with the order or another party, such as the Adviser,
has agreed to pay such fee. In addition, a variable fee, payable to the Funds, may be charged on all cash transactions or substitutes
for Creation Units of up to a maximum of 2% as a percentage of the value of the Creation Units subject to the transaction. Variable fees
are imposed to compensate the Funds for the transaction costs associated with the cash transaction fees. Variable fees received by the
Funds, if any, are displayed in the Capital Shares Transactions section of the Statements of Changes in Net Assets. The Funds may issue
an unlimited number of shares of beneficial interest, with no par value. All shares of the Funds have equal rights and privileges.
NOTE
8 – RISKS
Concentration
Risk. The Funds’ investments will be concentrated in an industry or group of industries to the
extent the Indexes are so concentrated, and the Indexes are expected to be concentrated in housing and real estate-related industries.
When the Funds focus their investments in a particular industry or sector, they thereby present a more concentrated risk and their performance
will be especially sensitive to developments that significantly affect that industry or group of industries. In addition, the value of
shares may change at different rates compared to the value of shares of a fund with investments in a more diversified mix of industries.
An industry may have above-average performance during particular periods, but may also move up and down more than the broader market.
The several industries that constitute a sector may all react in the same way to economic, political or regulatory events. The Funds’
performance could also be affected if the sectors, industries, or sub-sectors do not perform as expected. Alternatively, the lack of exposure
to one or more sectors or industries may adversely affect performance.
Construction
and Housing Risk. The construction and housing industry can be significantly affected by the national,
regional and local real estate markets. This industry is also sensitive to interest rate fluctuations which can cause changes in the availability
of mortgage capital and directly affect the purchasing power of potential homebuyers. The building industry can be significantly affected
by changes in government spending, consumer confidence, demographic patterns and the level of new and existing home sales.
|
|
|
19 |
|
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HOYA
CAPITAL ETFs
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Shareholders of Hoya Capital ETFs and
Board
of Trustees of ETF Series Solutions
Opinion
on the Financial Statements
We
have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Hoya Capital ETFs comprising
the funds listed below (the “Funds”), each a series of ETF Series Solutions, as of February 28, 2026, the related
statements of operations and changes in net assets, and the financial highlights for each of the periods indicated below, 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 each of the Funds as of February 28, 2026, the results of their operations, the changes
in net assets, and the financial highlights for each of the periods indicated below in conformity
with accounting principles generally accepted in the United States of America.
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Fund
Name |
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Statements
of
Operations |
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Statements
of
Changes
in Net Assets |
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Financial
Highlights |
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Hoya
Capital High Dividend Yield ETF |
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For
the year ended February 28, 2026 |
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For
the years ended February 28, 2026 and 2025 |
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For
the years ended February 28, 2026 and 2025, February 29, 2024, February 28, 2023, and for the period from September 21,
2021 (commencement of operations) to February 28, 2022 |
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Hoya
Capital Housing ETF |
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For
the year ended February 28, 2026 |
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For
the years ended February 28, 2026 and 2025 |
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For
the years ended February 28, 2026 and 2025, February 29, 2024, and February 28, 2023 and 2022 |
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Basis
for Opinion
These
financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’
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 Funds 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 audits 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 February 28,
2026, by correspondence with the custodian and securities lending agent. 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 Funds’ auditor since 2019.
COHEN
& COMPANY, LTD.
Philadelphia,
Pennsylvania
April
28, 2026
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HOYA
CAPITAL ETFs
FEDERAL
TAX INFORMATION (Unaudited)
For
the fiscal year ended February 28, 2026, certain dividends paid by the Funds may be subject to the maximum tax rate of 23.8%, as provided
for by the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The
percentage of dividends declared from ordinary income designated as qualified dividend income was as follows:
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Hoya
Capital High Dividend Yield ETF |
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3.18%
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Hoya
Capital Housing ETF |
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48.85% |
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For
corporate shareholders, the percentage of ordinary income distributions qualifying for the corporate dividends received deduction for
the fiscal year ended February 28, 2026 was as follows:
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Hoya
Capital High Dividend Yield ETF |
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5.10%
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Hoya
Capital Housing ETF |
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44.67% |
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The
percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue
Section 871(k)(2)(C) for each Fund was as follows:
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Hoya
Capital High Dividend Yield ETF |
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0.00%
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Hoya
Capital Housing ETF |
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0.00% |
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21 |
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HOYA
CAPITAL ETFs
ADDITIONAL
INFORMATION (Unaudited)
Changes
in and Disagreements with Accountants
There
were no changes in or disagreements with accountants during the period covered by this report.
Proxy
Disclosure
There
were no matters submitted to a vote of shareholders during the period covered by this report.
Remuneration
Paid to Directors, Officers, and Others
All
fund expenses, including Trustee compensation is paid by the Investment Adviser pursuant to the Investment Advisory Agreement. Additional
information related to those fees is available in the Funds’ Statement of Additional Information.
Statement
Regarding Basis for Approval of Investment Advisory Contract
Not
applicable.
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| (b) | Financial Highlights are included within the financial statements filed under Item 7 of this Form. |
Item 8. Changes in and Disagreements with Accountants for Open-End Investment Companies.
See Item 7(a).
Item 9. Proxy Disclosure for Open-End Investment Companies.
See Item 7(a).
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Investment Companies.
See Item 7(a).
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
See Item 7(a).
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 15. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.
Item 16. Controls and Procedures.
| (a) | The Registrant’s President (principal executive officer) and Treasurer (principal financial officer) have reviewed the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a -15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider. |
| (b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable to open-end investment companies.
Item 18. Recovery of Erroneously Awarded Compensation.
(a) Not Applicable.
(b) Not Applicable.
Item 19. Exhibits.
(2) Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the registrant’s securities are listed. Not Applicable.
(4) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.
(5) Change in the registrant’s independent public accountant. Not applicable to open-end investment companies and ETFs.
| (b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished 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) | ETF Series Solutions |
| By (Signature and Title)* | /s/ Kristina R. Nelson | ||
| Kristina R. Nelson, President (principal executive officer) |
| Date | 5/7/2026 |
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/ Kristina R. Nelson | ||
| Kristina R. Nelson, President (principal executive officer) |
| Date | 5/7/2026 |
| By (Signature and Title)* | /s/ Kristen M. Weitzel | ||
| Kristen M. Weitzel, Treasurer (principal financial officer) |
| Date | 5/7/2026 |
* Print the name and title of each signing officer under his or her signature.
ATTACHMENTS / EXHIBITS
CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
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