Form N-Q Exchange Listed Funds For: Jul 31

 

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

Washington, DC 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED 

 MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-22700

 

Exchange Listed Funds Trust

(Exact name of registrant as specified in charter)

 

10900 Hefner Pointe Drive 

Suite 207  

Oklahoma City, Oklahoma 73120

(Address of principal executive offices)  (Zip code)

 

UMB Fund Services 

235 W. Galena Street 

Milwaukee, Wisconsin 53212

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: (405) 778-8377

 

Date of fiscal year end: April 30

 

Date of reporting period: July 31, 2018

 

 

Item 1. Schedule of Investments.

 

Knowledge Leaders Developed World ETF

SCHEDULE OF INVESTMENTS

As of July 31, 2018 (Unaudited)

 

Number of Shares						Value
				Common Stocks – 99.6%
				Australia – 3.6%
	55,440			ALS Ltd.		$	307,045
	17,472			Altium Ltd.			264,969
	2,436			Blackmores Ltd.			268,161
	84,420			Boral Ltd.			417,339
	36,708			Carsales.Com Ltd.			380,405
	42,000			Computershare Ltd.			567,943
	4,620			CSL Ltd.			675,259
	73,332			DuluxGroup Ltd.			417,040
	108,696			Harvey Norman Holdings Ltd.			286,856
	25,452			Mineral Resources Ltd.			313,143
	46,200			Nufarm Ltd.			245,567
	121,228			Reliance Worldwide Corp. Ltd.			536,219
	23,856			Woolworths Group Ltd.			533,633
							5,213,579
				Austria – 0.2%
	1,848			Lenzing AG			234,604
				Belgium – 0.3%
	3,528			Solvay S.A.			484,001
				Canada – 2.2%
	28,560			CAE, Inc.			594,452
	6,132			George Weston Ltd.			509,681
	8,400			Loblaw Cos., Ltd.			443,742
	8,400			Methanex Corp.			579,742
	8,400			Open Text Corp.			312,323
	8,400			Ritchie Bros Auctioneers, Inc.			279,161
	2,772			Stantec, Inc.			72,323
	5,880			West Fraser Timber Co., Ltd.			364,903
							3,156,327
				Denmark – 1.8%
	168			AP Moller - Maersk A/S Class B			241,740
	6,048			Chr. Hansen Holding A/S			626,718
	3,696			Coloplast A/S Class B			403,427
	6,720			H. Lundbeck A/S			486,856
	2,772			Pandora A/S			197,215
	14,280			William Demant Holding A/S*			683,134
							2,639,090
				Finland – 1.4%
	7,980			Kone Oyj Class B			436,878
	10,752			Metso OYJ			393,766
	6,888			Nokian Renkaat Oyj			298,920
	33,600			Stora Enso Oyj Class R			555,699

 

 

Knowledge Leaders Developed World ETF

SCHEDULE OF INVESTMENTS - Continued

As of July 31, 2018 (Unaudited)

 

Number of Shares						Value
				COMMON STOCKS (Continued)
				FINLAND (Continued)
	16,128			Wartsila OYJ Abp		$	348,917
							2,034,180
				France – 3.2%
	3,948			Air Liquide S.A.			505,820
	7,896			Compagnie de Saint-Gobain S.A.			351,764
	2,436			Compagnie Generale des Etablissements Michelin			313,812
	5,124			Dassault Systemes			766,204
	2,268			Essilor International Cie Generale d’Optique S.A.			334,894
	1,428			Kering			761,899
	8,148			Legrand S.A.			599,090
	3,360			Pernod Ricard S.A.			542,332
	4,620			Sanofi			402,017
							4,577,832
				Germany – 3.6%
	4,620			BASF SE			444,127
	1,680			Continental AG			387,240
	12,936			Evonik Industries AG			479,047
	3,864			Fresenius Medical Care AG & Co. KGaA			377,690
	4,200			HeidelbergCement AG			356,870
	4,536			Merck KGaA			466,410
	536			Puma S.E.			269,046
	3,780			Siemens AG			534,096
	4,956			Symrise AG			448,129
	76,608			Telefonica Deutschland Holding AG			335,863
	7,644			United Internet AG			411,418
	3,864			Wirecard AG			722,242
							5,232,178
				Ireland – 0.3%
	3,570			Kingspan Group PLC (London)			166,248
	5,250			Kingspan Group PLC (Dublin)			243,990
							410,238
				Israel – 0.3%
	10,332			Teva Pharmaceutical Industries Ltd. - ADR			247,348
	9,324			Tower Semiconductor Ltd.*			192,541
							439,889
				Italy – 1.3%
	66,864			Davide Campari-Milano S.p.A			564,069
	15,372			Moncler S.p.A			678,432
	12,684			Salvatore Ferragamo S.p.A.			293,628
	20,496			Tenaris S.A.			374,829
							1,910,958

 

 

Knowledge Leaders Developed World ETF

SCHEDULE OF INVESTMENTS - Continued

As of July 31, 2018 (Unaudited)

 

Number of Shares						Value
				COMMON STOCKS (Continued)
				Japan – 34.9%‡
	8,400			ABC-MART, INC.		$	453,993
	42,000			Amada Holdings Co., Ltd.			419,475
	8,400			Asahi Intecc Co., Ltd.			320,046
	25,200			Asics Corp.			408,144
	16,800			ASKUL Corp.			499,768
	8,400			BANDAI NAMCO Holdings, Inc.			335,054
	8,400			Benesse Holdings, Inc.			305,038
	16,800			Brother Industries Ltd.			341,133
	16,800			Calbee, Inc.			555,297
	16,800			Canon, Inc.			542,841
	16,800			Capcom Co., Ltd.			434,333
	25,200			Casio Computer Co., Ltd.			410,845
	16,800			Coca-Cola Bottlers Japan Holdings, Inc.			604,074
	8,400			CyberAgent, Inc.			440,486
	33,600			Daicel Corp.			368,597
	16,800			Daiichi Sankyo Co., Ltd.			693,672
	16,800			Ebara Corp.			505,771
	8,400			Ezaki Glico Co., Ltd.			387,958
	16,800			Fuji Corp.			295,658
	84,000			Fuji Electric Co., Ltd.			616,830
	33,600			Fuji Media Holdings, Inc.			551,395
	84,000			Fujitsu Ltd.			570,606
	109,200			GungHo Online Entertainment, Inc.			232,174
	8,400			Hamamatsu Photonics K.K.			354,940
	8,400			Harmonic Drive Systems, Inc.			328,676
	16,800			Hitachi Chemical Co., Ltd.			331,378
	16,800			Hitachi High-Technologies Corp.			684,367
	16,800			House Foods Group, Inc.			529,784
	8,400			HOYA CORP.			502,769
	25,200			Isetan Mitsukoshi Holdings Ltd.			303,237
	16,800			Itochu Techno-Solutions Corp.			318,771
	8,400			Jafco Co., Ltd.			306,539
	16,800			Japan Airlines Co., Ltd.			618,781
	50,400			K’s Holdings Corp.			565,953
	16,800			Kansai Paint Co., Ltd.			385,106
	16,800			Koei Tecmo Holdings Co., Ltd.			343,684
	16,800			Komatsu Ltd.			491,813
	8,400			Konami Holdings Corp.			393,961
	8,400			Kyocera Corp.			486,861
	25,200			Kyowa Hakko Kirin Co., Ltd.			476,580
	8,400			Lawson, Inc.			503,520
	8,400			M3, Inc.			318,546
	16,800			Makita Corp.			751,903
	8,400			Matsumotokiyoshi Holdings Co., Ltd.			363,195

 

 

Knowledge Leaders Developed World ETF

SCHEDULE OF INVESTMENTS - Continued

As of July 31, 2018 (Unaudited)

 

Number of Shares						Value
				COMMON STOCKS (Continued)
				JAPAN (Continued)
	8,400			MISUMI Group, Inc.		$	213,264
	58,800			Mitsubishi Chemical Holdings Corp.			511,992
	16,800			Mitsubishi Heavy Industries Ltd.			628,387
	8,400			Mixi, Inc.			220,393
	8,400			Monotaro Co., Ltd.			420,975
	8,400			Morinaga & Co., Ltd.			388,708
	16,800			Nabtesco Corp.			518,528
	16,800			NEXON Co., Ltd.*			240,879
	25,200			NGK Insulators Ltd.			440,336
	16,800			NGK Spark Plug Co., Ltd.			481,758
	16,800			Nihon M&A Center, Inc.			446,639
	134,400			Nippon Light Metal Holdings Co., Ltd.			302,562
	8,400			Nippon Telegraph & Telephone Corp.			387,808
	25,200			Nippon Television Holdings, Inc.			404,992
	16,800			Nissan Chemical Corp.			749,652
	25,200			Nisshinbo Holdings, Inc.			275,998
	8,400			Nissin Foods Holdings Co., Ltd.			578,560
	8,400			Nitto Denko Corp.			606,475
	16,800			Nomura Research Institute Ltd.			804,431
	25,200			NSK Ltd.			273,522
	84,000			Oji Holdings Corp.			496,766
	8,400			Olympus Corp.			339,557
	16,800			Ono Pharmaceutical Co., Ltd.			395,387
	16,800			OSG Corp.			376,852
	16,800			Park24 Co., Ltd.			471,252
	16,800			Pigeon Corp.			805,932
	33,600			Renesas Electronics Corp.*			298,960
	16,800			Resorttrust, Inc.			307,064
	16,800			Rohto Pharmaceutical Co., Ltd.			502,769
	42,000			Sanwa Holdings Corp.			475,755
	8,400			Sawai Pharmaceutical Co., Ltd.			395,462
	8,400			SCSK Corp.			396,212
	25,200			Sega Sammy Holdings, Inc.			400,715
	16,800			Seiko Epson Corp.			302,112
	8,400			Seria Co., Ltd.			385,707
	16,800			Seven & I Holdings Co., Ltd.			683,616
	16,800			Shimadzu Corp.			477,256
	8,400			Shin-Etsu Chemical Co., Ltd.			845,703
	8,400			Shiseido Co., Ltd.			616,080
	33,600			Skylark Holdings Co., Ltd.			487,461
	8,400			Square Enix Holdings Co., Ltd.			396,212
	8,400			Start Today Co., Ltd.			336,555
	16,800			Subaru Corp.			488,362
	84,000			Sumitomo Chemical Co., Ltd.			481,008

 

 

Knowledge Leaders Developed World ETF

SCHEDULE OF INVESTMENTS - Continued

As of July 31, 2018 (Unaudited)

 

Number of Shares						Value
				COMMON STOCKS (Continued)
				JAPAN (Continued)
	25,200			Sumitomo Dainippon Pharma Co., Ltd.		$	486,936
	25,200			Sumitomo Electric Industries Ltd.			385,857
	84,000			Sumitomo Osaka Cement Co., Ltd.			399,214
	33,600			Sumitomo Rubber Industries Ltd.			554,097
	8,400			Suntory Beverage & Food Ltd.			356,816
	8,400			Suzuki Motor Corp.			491,588
	16,800			Tadano Ltd.			216,116
	25,200			Taiyo Nippon Sanso Corp.			384,956
	33,600			Takara Holdings, Inc.			391,109
	16,800			Takeda Pharmaceutical Co., Ltd.			701,626
	16,800			Terumo Corp.			919,993
	8,400			THK Co., Ltd.			226,997
	16,800			Toho Co., Ltd.			499,768
	16,800			Tokai Carbon Co., Ltd.			307,815
	16,800			Tokyo Gas Co., Ltd.			408,744
	16,800			Topcon Corp.			289,805
	8,400			TOTO Ltd.			390,959
	16,800			Toyo Suisan Kaisha Ltd.			606,325
	8,400			Toyobo Co., Ltd.			141,676
	8,400			Trend Micro, Inc.			494,515
	8,400			TV Asahi Holdings Corp.			167,715
	16,800			Yamaha Corp.			783,420
	8,400			Yaskawa Electric Corp.			275,398
	16,800			Yokogawa Electric Corp.			297,309
	25,200			Zensho Holdings Co., Ltd.			560,325
							50,451,245
				Netherlands – 1.4%
	3,612			ASML Holding N.V.			775,512
	6,216			Koninklijke DSM N.V.			662,864
	8,820			Wolters Kluwer N.V.			532,091
							1,970,467
				New Zealand – 0.2%
	66,730			Fletcher Building Ltd.			319,371
				Norway – 0.6%
	5,712			Bakkafrost P/F			351,597
	10,164			Salmar A.S.A.			519,222
							870,819
				Singapore – 0.2%
	151,200			Singapore Telecommunications Ltd.			356,536

 

 

Knowledge Leaders Developed World ETF

SCHEDULE OF INVESTMENTS - Continued

As of July 31, 2018 (Unaudited)

 

Number of Shares						Value
				COMMON STOCKS (Continued)
				SPAIN – 0.5%
	8,484			Amadeus IT Group S.A. Class A		$	724,650
				Sweden – 3.3%
	13,944			Atlas Copco AB Class A			399,599
	41,244			Dometic Group AB			401,337
	25,620			Elekta AB Class B			359,958
	13,944			Epiroc A.B. Class A*			167,076
	28,308			Getinge A.B. - B Shares			305,421
	19,488			Hennes & Mauritz AB - B Shares			303,414
	49,056			Husqvarna AB Class B			388,471
	22,680			Kindred Group PLC			293,097
	4,032			Millicom International Cellular S.A.			258,351
	30,828			Sandvik AB			564,349
	19,572			SKF AB Class B			402,731
	41,328			Svenska Cellulosa AB Class B			428,306
	23,268			Trelleborg AB Class B			484,609
							4,756,719
				Switzerland – 2.6%
	5,040			Cie Financiere Richemont S.A.			442,909
	1,260			Geberit AG			562,164
	6,804			LafargeHolcim Ltd.*			348,035
	7,812			Novartis AG			656,839
	6,384			Oriflame Holding AG			212,738
	1,764			Roche Holding AG			433,071
	252			SGS S.A.			658,255
	2,184			Sonova Holding AG			403,268
							3,717,279
				United Kingdom – 6.4%
	3,612			ASOS PLC*			287,599
	77,448			B&M European Value Retail S.A.			419,272
	12,936			Burberry Group PLC			357,533
	12,264			Coca-Cola HBC AG			439,827
	78,456			ConvaTec Group PLC			225,383
	7,224			Croda International PLC			487,071
	73,339			DS Smith PLC			484,861
	6,468			Fevertree Drinks PLC			292,288
	23,268			IMI PLC			379,081
	45,612			JD Sports Fashion PLC			279,952
	39,228			Just Eat PLC*			408,057
	88,200			Kingfisher PLC			343,271
	25,704			Mediclinic International PLC			172,632
	59,808			Merlin Entertainments PLC			308,949
	11,928			Mondi PLC			328,108

 

 

Knowledge Leaders Developed World ETF

SCHEDULE OF INVESTMENTS - Continued

As of July 31, 2018 (Unaudited)

 

Number of Shares						Value
				COMMON STOCKS (Continued)
				UNITED KINGDOM (Continued)
	3,948			nVent Electric PLC*		$	108,175
	3,780			Reckitt Benckiser Group PLC			337,024
	43,596			Sage Group PLC			355,704
	4,956			Shire PLC			282,860
	17,304			Smith & Nephew PLC			299,734
	20,328			Smiths Group PLC			430,378
	5,712			Spirax-Sarco Engineering PLC			520,369
	10,332			Unilever PLC			590,234
	152,712			Vodafone Group PLC			372,595
	7,560			Whitbread PLC			388,244
	20,412			WPP PLC			319,163
							9,218,364
				United States – 31.3%‡
	6,216			Activision Blizzard, Inc.			456,379
	3,696			Adobe Systems, Inc.*			904,337
	2,016			Advance Auto Parts, Inc.			284,720
	6,804			Agilent Technologies, Inc.			449,336
	3,108			Albemarle Corp.			292,774
	2,100			Alexion Pharmaceuticals, Inc.*			279,216
	1,428			Allergan PLC			262,881
	5,712			Amdocs Ltd.			386,017
	1,848			Amgen, Inc.			363,224
	4,956			Amphenol Corp. Class A			463,436
	4,872			Analog Devices, Inc.			468,394
	4,872			Apergy Corp.*			199,752
	2,604			Apple, Inc.			495,515
	6,048			AT&T, Inc.			193,355
	3,612			Autodesk, Inc.*			463,925
	1,680			Becton, Dickinson and Co.			420,622
	252			Booking Holdings, Inc.*			511,237
	9,912			BorgWarner, Inc.			456,150
	4,872			Bristol-Myers Squibb Co.			286,230
	4,872			Broadridge Financial Solutions, Inc.			550,439
	9,240			Brown-Forman Corp. Class B			491,753
	11,172			CA, Inc.			493,914
	8,568			CBRE Group, Inc. Class A*			426,686
	4,788			Celanese Corp. Class A			565,511
	2,940			Celgene Corp.*			264,865
	11,424			Check Point Software Technologies Ltd.*			1,287,142
	2,856			Cintas Corp.			583,995
	11,676			Cisco Systems, Inc.			493,778
	11,340			Conagra Brands, Inc.			416,291
	1,428			Cooper Companies, Inc.			371,994

 

 

Knowledge Leaders Developed World ETF

SCHEDULE OF INVESTMENTS - Continued

As of July 31, 2018 (Unaudited)

 

Number of Shares						Value
				COMMON STOCKS (Continued)
				UNITED STATES (Continued)
	15,036			Coty, Inc. Class A		$	201,633
	2,184			Cummins, Inc.			311,897
	4,704			Danaher Corp.			482,536
	5,628			DENTSPLY SIRONA, Inc.			270,763
	4,368			Dollar General Corp.			428,719
	4,368			Dollar Tree, Inc.*			398,711
	3,864			Dover Corp.			320,635
	4,200			Eaton Corp. PLC			349,314
	7,896			eBay, Inc.*			264,121
	2,688			Edwards Lifesciences Corp.*			382,906
	4,200			Eli Lilly and Co.			415,002
	7,308			Emerson Electric Co.			528,222
	3,192			Equifax, Inc.			400,596
	3,948			Estee Lauder Co., Inc. Class A			532,743
	2,604			Expedia, Inc.			348,519
	3,276			F5 Networks, Inc.*			561,441
	2,604			Facebook, Inc. Class A*			449,398
	6,972			Fastenal Co.			396,916
	10,920			Gap, Inc.			329,456
	4,200			Gilead Sciences, Inc.			326,886
	3,192			Hasbro, Inc.			317,955
	5,544			Henry Schein, Inc.*			440,249
	2,856			Honeywell International, Inc.			455,960
	11,340			Hormel Foods Corp.			407,900
	1,428			Illumina, Inc.*			463,186
	4,368			Ingersoll-Rand PLC			430,292
	9,240			Intel Corp.			444,444
	2,856			Intuit, Inc.			583,310
	13,188			Juniper Networks, Inc.			347,372
	6,132			Kohl’s Corp.			452,971
	2,520			Lam Research Corp.			480,413
	12,096			LKQ Corp.*			405,458
	4,368			Lowe’s Companies, Inc.			433,917
	9,408			Macy’s, Inc.			373,780
	5,460			Microchip Technology, Inc.			510,128
	6,468			Micron Technology, Inc.*			341,446
	4,620			Molson Coors Brewing Co. Class B			309,540
	6,300			Monster Beverage Corp.*			378,126
	9,408			Newell Brands, Inc.			246,396
	1,680			NVIDIA Corp.			411,365
	1,344			O’Reilly Automotive, Inc.*			411,264
	7,980			Oracle Corp.			380,486
	4,788			Owens Corning			297,909
	1,596			Palo Alto Networks, Inc.*			316,423

 

 

Knowledge Leaders Developed World ETF

SCHEDULE OF INVESTMENTS - Continued

As of July 31, 2018 (Unaudited)

 

Number of Shares						Value
				COMMON STOCKS (Continued)
				UNITED STATES (Continued)
	3,360			Parker-Hannifin Corp.		$	568,008
	7,224			PayPal Holdings, Inc.*			593,379
	3,948			Pentair PLC			176,278
	6,300			Perrigo Co. PLC			507,276
	3,780			PPG Industries, Inc.			418,295
	2,688			PVH Corp.			412,662
	3,612			Qorvo, Inc.*			295,317
	5,376			QUALCOMM, Inc.			344,548
	3,696			Red Hat, Inc.*			521,986
	3,024			Rockwell Automation, Inc.			567,181
	2,520			Rockwell Collins, Inc.			350,255
	3,276			Seagate Technology PLC			172,383
	7,560			SEI Investments Co.			453,146
	2,436			Snap-on, Inc.			413,121
	5,880			Southwest Airlines Co.			341,981
	3,612			Splunk, Inc.*			347,113
	2,604			Stanley Black & Decker, Inc.			389,220
	3,108			Stryker Corp.			507,381
	6,300			Synopsys, Inc.*			563,409
	6,636			Tapestry, Inc.			312,688
	8,400			Textron, Inc.			573,468
	2,100			Thermo Fisher Scientific, Inc.			492,513
	4,956			Tractor Supply Co.			386,766
	10,164			UGI Corp.			540,115
	2,940			Universal Display Corp.			283,122
	2,940			Varian Medical Systems, Inc.*			339,423
	3,360			Vmware, Inc. Class A*			485,822
	840			W.W. Grainger, Inc.			291,110
	3,864			Wabtec Corp.			426,277
	5,460			Walgreens Boots Alliance, Inc.			369,205
	6,132			Xilinx, Inc.			441,933
	7,560			Xylem, Inc.			578,794
	2,856			Zimmer Biomet Holdings, Inc.			358,485
	5,460			Zoetis, Inc. Class A			472,181
							45,219,413
				Total Common Stocks (Cost $125,381,379)			143,937,739

 

 

Knowledge Leaders Developed World ETF

SCHEDULE OF INVESTMENTS - Concluded

As of July 31, 2018 (Unaudited)

 

Number of Shares						Value
				Short-Term Investments – 0.1%
	88,189			JP Morgan U.S. Government Money Market Fund - Institutional Shares, 1.78%#		$	88,189
				Total Short-Term Investments (Cost $88,189)			88,189
				Total Investments – 99.7% (Cost $125,469,568)			144,025,928
				Other Assets in Excess of Liabilities – 0.3%			442,191
				Total Net Assets – 100.0%		$	144,468,119

 

^* Non-income producing security.  

^‡Please see Note 3 for more information about geographic investment and other risks.  

^#The rate is the annualized seven-day yield at period end.

 

See accompanying Notes to Schedule of Investments.

 

 

Exchange Listed Funds Trust 

NOTES TO SCHEDULE OF INVESTMENTS

July 31, 2018 (Unaudited)

 

Note 1 – Organization

Exchange Listed Funds Trust (the “Trust”) was organized on April 4, 2012 as a Delaware Statutory Trust and is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest (“Shares”) in one or more series representing interests in separate portfolios of securities. The Trust has registered its Shares in several separate series. The Schedule of Investments herein are for the Knowledge Leaders Developed World ETF (the “Developed World ETF” or the “Fund”). The Fund is a passively managed exchange-traded fund (“ETF”). The assets of each series in the Trust are segregated and a shareholder’s interest is limited to the Fund in which Shares are held.

 

The investment objective of the Fund is to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Knowledge Leaders Developed World Index (the “Developed World Index”). The Fund is classified as a “non-diversified” fund. This means that the Fund may invest more of its assets in securities of a single issuer than that of a diversified fund. As a result, the performance of that issuer can have substantial impact on the share price. The Fund commenced operations on July 7, 2015.

 

Under the Trust’s organizational documents, its officers and Board of Trustees (the “Board”) are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust may enter into contracts with vendors and others that provide for general indemnifications. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust.

 

Note 2 – Basis of Presentation and Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Trust in the preparation of the Schedule of Investments. These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The Trust is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies.” The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and income and expenses during the reporting period. Management believes the estimates and security valuations are appropriate; however, actual results may differ from those estimates, and the security valuations reflected in the financial statements may differ from the value the Fund ultimately realizes upon sale of the securities.

 

(a) Valuation of Investments

The Fund’s investments are valued using procedures approved by the Board and are generally valued using market valuations (Market Approach). A market valuation generally means a valuation (i) obtained from an exchange, a pricing service, or a major market maker (or dealer) or (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service, or a major market maker (or dealer). A price obtained from a pricing service based on such pricing service’s valuation matrix may be considered a market valuation. Any assets or liabilities denominated in currencies other than the U.S. dollar are converted into U.S. dollars at the current market rates on the date of valuation as quoted by one or more sources.

 

In the event that current market valuations are not readily available or such valuations do not reflect current fair market value, the Trust’s procedures require the Fund’s Valuation Committee, in accordance with the Fund’s Board-approved valuation guidelines, to determine a security’s fair value. In determining such value, the Valuation Committee may consider, among other things, (i) price comparisons among multiple sources, (ii) a review of corporate actions and news events, and (iii) a review of relevant financial indicators (e.g., movement in interest rates or market indices). Fair value pricing involves subjective judgments and it is possible that the fair value determination for a security is materially different than the value that could be realized upon the sale of the security. In addition, fair value pricing could result in a difference between the prices used to calculate the Fund’s Net Asset Value (“NAV”) and the prices used by the Fund’s Index. This may result in a difference between the Fund’s performance and the performance of the Fund’s Index. With respect to securities that are primarily listed on foreign exchanges, the value of the Fund’s portfolio securities may change on days when the investors will not be able to purchase or sell their Shares.

 

 

Exchange Listed Funds Trust

NOTES TO SCHEDULE OF INVESTMENTS - Continued 

July 31, 2018 (Unaudited) 

 

The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (1) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (2) the Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:

 

●

Level 1 – Quoted prices in active markets for identical assets

 

●

Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

 

●

Level 3 – Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

Pursuant to the valuation procedures noted previously, equity securities and short-term investments are generally categorized as Level 1 in the fair value hierarchy (unless there is a fair valuation event, in which case affected securities are generally categorized as Level 2).

 

The following is a summary of the valuations as of July 31, 2018 for the Fund based upon the three levels defined above:

 

Developed World ETF		Level 1				Level 2				Level 3*				Total
Investments
Common Stocks(1)		$	143,937,739			$	—			$	—			$	143,937,739
Short-Term Investments			88,189				—				—				88,189
Total		$	144,025,928			$	—			$	—			$	144,025,928

 

^*The Fund did not hold any Level 3 securities at period end.

 

⁽¹⁾For a detailed break-out of common stocks by country classification, please refer to the Schedule of Investments.

 

Transfers are recognized at the end of the reporting period. There were no transfers between Levels at period end.

 

(b) Investment Transactions

For financial reporting purposes, investment transactions are reported on trade date. However, for daily NAV determination, portfolio securities transactions are reflected no later than in the first calculation on the first business day following trade date.

 

 

Exchange Listed Funds Trust 

NOTES TO SCHEDULE OF INVESTMENTS - Continued

July 31, 2018 (Unaudited) 

 

Note 3 – Principal Risks

As with any investment, the investor could lose all or part of their investment in the Fund and the Fund’s performance could trail that of other investments. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s NAV, trading price, yield, total return and ability to meet its investment objective. A more complete description of principal risks is included in the Fund’s prospectus.

 

Authorized Participants, Market Makers and Liquidity Providers Concentration Risk: Only a limited number of institutional investors (known as “Authorized Participants”) are authorized to purchase and redeem shares directly from the Fund. In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace. To the extent either of the following events occur, Fund shares may trade at a material discount to NAV and possibly face delisting: (i) Authorized Participants exit the business or otherwise become unable to process creation and/or redemption orders and no other Authorized Participants step forward to perform these services, or (ii) market makers and/or liquidity providers exit the business or significantly reduce their business activities and no other entities step forward to perform their functions.

 

Common Stock Risk: Common stock holds the lowest priority in the capital structure of a company, and therefore takes the largest share of the company’s risk and its accompanying volatility. The value of the common stock held by the Fund may fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate, or facts relating to specific companies in which the Fund invests.

 

Concentration Risk: Because the Fund’s assets will be concentrated in an industry or group of industries to the extent the Index concentrates in a particular industry or industries, the Fund is subject to loss due to adverse occurrences that may affect that industry or group of industries.

 

Currency Exchange Rate Risk: The Fund may invest a relatively large percentage of its assets in securities denominated in non-U.S. currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Fund’s investment and the value of your Shares. Because the Fund’s net asset value (“NAV”) is determined in U.S. dollars, the Fund’s NAV could decline if the currency of the non-U.S. market in which the Fund invests depreciates against the U.S. dollar, even if the value of the Fund’s holdings, measured in the foreign currency, increases. Currency exchange rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.

 

Early Close/Trading Halt Risk: An exchange or market may close or issue trading halts on specific securities, or the ability to buy or sell certain securities or financial instruments may be restricted, which may result in the Fund being unable to buy or sell certain securities or financial instruments. In such circumstances, the Fund may be unable to rebalance its portfolio, may be unable to accurately price its investments and/or may incur substantial trading losses.

 

Foreign Securities Risk: Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities. For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to expropriation, nationalization or adverse political or economic developments. Foreign securities may have relatively low market liquidity and decreased publicly available information about issuers. Investments in non-U.S. securities also may be subject to withholding or other taxes and may be subject to additional trading, settlement, custodial, and operational risks. Non-U.S. issuers may also be subject to inconsistent and potentially less stringent accounting, auditing, financial reporting and investor protection standards than U.S. issuers. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.

 

 

Exchange Listed Funds Trust 

NOTES TO SCHEDULE OF INVESTMENTS - Continued

July 31, 2018 (Unaudited) 

 

Geographic Investment Risk: To the extent the Fund invests a significant portion of its assets in the securities of companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region. As of July 31, 2018, a significant portion of the Fund’s assets was invested in securities of U.S. and Japanese issuers.

 

Investing in the United States Risk: Certain changes in the U.S. economy, such as when the U.S. economy weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has exposure.

 

Investing in Japan Risk: The growth of Japan’s economy has historically lagged that of its Asian neighbors and other major developed economies. The Japanese economy is heavily dependent on international trade and has been adversely affected by trade tariffs, other protectionist measures, competition from emerging economies and the economic conditions of its trading partners.

 

Geopolitical Risk: Some countries and regions in which the Fund invests have experienced security concerns, war or threats of war and aggression, terrorism, economic uncertainty, natural and environmental disasters and/or systemic market dislocations that have led, and in the future may lead, to increased short-term market volatility and may have adverse long-term effects on the U.S. and world economies and markets generally, each of which may negatively impact the Fund’s investments.

 

Index Tracking Risk: The Fund’s return may not match or achieve a high degree of correlation with the return of the index.

 

Industry Concentration Risk: Because the Fund’s assets will be concentrated in an industry or group of industries to the extent the Index concentrates in a particular industry or group of industries, the Fund is subject to loss due to adverse occurrences that may affect that industry or group of industries.

 

Issuer-Specific Risk: Fund performance depends on the performance of individual securities to which the Fund has exposure. Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value of the Fund.

 

Large Capitalization Risk: Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies.

Liquidity Risk: The Fund may invest in instruments that may be less liquid than other types of investments. Investments that are less liquid or that trade less frequently can be more difficult or costly to buy, or to sell, compared to other more liquid or active investments. A lack of liquidity could have a negative effect on the Fund’s ability to achieve its investment objective and may result in losses to Fund shareholders.

 

Market Risk: The market price of a security or instrument could decline, sometimes rapidly or unpredictably, due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic or political conditions throughout the world, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The market value of a security may also decline because of factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry.

 

 

Exchange Listed Funds Trust 

NOTES TO SCHEDULE OF INVESTMENTS - Continued

July 31, 2018 (Unaudited) 

 

Non-Diversification Risk: The Fund is non-diversified, meaning that, as compared to a diversified fund, it can invest a greater percentage of its assets in securities issued by or representing a small number of issuers. As a result, the performance of these issuers can have a substantial impact on the Fund’s performance.

 

Operational Risk: The Fund and its service providers may experience disruptions that arise from human error, processing and communications errors, counterparty or third-party errors, technology or systems failures, any of which may have an adverse impact on the Fund.

 

Passive Investment Risk: The Fund is not actively managed and therefore the Fund would not sell shares of an equity security due to current or projected underperformance of a security, industry or sector, unless that security is removed from a Fund’s Index or the selling of shares is otherwise required upon a rebalancing of the Index.

 

Portfolio Turnover Risk: In seeking to replicate the Index, which is adjusted and rebalanced semi-annually, the Fund may incur relatively high portfolio turnover. High portfolio turnover may result in increased transaction costs and may lower Fund performance.

 

Premium/Discount Risk: Although it is expected that the market price of the Fund’s Shares typically will approximate its NAV, there may be times when the market price and the NAV differ and the Fund’s Shares may trade at a premium or discount to the NAV.

 

Sampling Risk: The Fund’s use of a representative sampling approach will result in its holding a smaller number of securities than are in the Index. As a result, an adverse development respecting an issuer of securities held by the Fund could result in a greater decline in the NAV than would be the case if the Fund held all of the securities in the Index. Conversely, a positive development relating to an issuer of securities in the Index that is not held by the Fund could cause the Fund to underperform the Index. To the extent the assets in the Fund are smaller, these risks will be greater.

 

Sector Focus Risk: The Fund may invest a significant portion of its assets in one or more sectors and thus will be more susceptible to the risks affecting those sectors. While the Fund’s sector exposure is expected to vary over time based on the composition of the Index, the Fund anticipates that it may be subject to some or all of the risks described below. The list below is not a comprehensive list of the sectors to which the Fund may have exposure over time and should not be relied on as such.

 

Consumer Discretionary Sector Risk: Consumer discretionary companies are companies that provide non-essential goods and services, such as retailers, media companies and consumer services. These companies manufacture products and provide discretionary services directly to the consumer, and the success of these companies is tied closely to the performance of the overall domestic and international economy, interest rates, competition and consumer confidence.

 

Consumer Staples Sector Risk: Companies in the consumer staples sector are subject to government regulation affecting the permissibility of using various food additives and production methods, which regulations could affect company profitability. Tobacco companies may be adversely affected by the adoption of proposed legislation and/or by litigation. Also, the success of food and soft drinks may be strongly affected by fads, marketing campaigns and other factors affecting supply and demand.

 

Health Care Sector Risk: The health care sector may be affected by government regulations and government healthcare programs, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care companies are heavily dependent on patent protection, and the expiration of a patent may adversely affect their profitability. Health care companies are subject to competitive forces that may result in price discounting, and may be thinly capitalized and susceptible to product obsolescence.

 

 

Exchange Listed Funds Trust 

NOTES TO SCHEDULE OF INVESTMENTS - Concluded

July 31, 2018 (Unaudited)

 

Industrials Sector Risk: The industrials sector can be significantly affected by, among other things, worldwide economy growth, supply and demand for specific products and services and for industrial sector products in general, product obsolescence, rapid technological developments, international political and economic developments, claims for environmental damage or product liability, tax policies, and government regulation.

 

Information Technology Sector Risk: Information technology companies may be smaller and less experienced companies, with limited product lines, markets or financial resources and fewer experienced management or marketing personnel. Information technology company stocks, especially those which are Internet related, have experienced extreme price and volume fluctuations that are often unrelated to their operating performance.

 

Materials Sector Risk: Companies in the materials sector could be affected by, among other things, commodity prices, government regulation, inflation expectations, resource availability, and economic cycles.

 

Small- and Mid-Capitalization Risk: The small and mid-capitalization companies in which the Fund invests may be more vulnerable to adverse business or economic events than larger, more established companies, and may underperform other segments of the market or the equity market as a whole. Securities of small- and mid-capitalization companies generally trade in lower volumes, are often more vulnerable to market volatility, and are subject to greater and more unpredictable price changes than larger capitalization stocks or the stock market as a whole.

 

Trading Risk: Shares may trade on NYSE Arca, Inc. (the “Exchange”) above or below their NAV. The NAV of Shares will fluctuate with changes in the market value of the Fund’s holdings. In addition, although the Shares are currently listed on the Exchange, there can be no assurance that an active trading market for Shares will develop or be maintained. Trading in Fund Shares may be halted due to market conditions or for reasons that, in the view of the Exchange, make trading in Shares inadvisable.

 

Note 4 – Events Subsequent to the Fiscal Period End

In preparing these financial statements, management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. Management has determined there are no material events that would require disclosure in the Fund’s financial statements through this date. 

 

 

Item 2. Controls and Procedures.

 

(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

Certifications pursuant to Rule 30a-2(a) are attached hereto.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)	Exchange Listed Funds Trust
By (Signature and Title)	/s/ J. Garrett Stevens
	J. Garrett Stevens, President and Principal Executive Officer
Date	September 25, 2018

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)	/s/ J. Garrett Stevens
	J. Garrett Stevens, President and Principal Executive Officer
Date	September 25, 2018
By (Signature and Title)	/s/ Christopher W. Roleke
	Christopher W. Roleke, Principal Financial Officer
Date	September 25, 2018

 

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO Section 302 of the Sarbanes-Oxley Act of 2002

 

I, J. Garrett Stevens, certify that:

 

1.

I have reviewed this report on Form N-Q of Exchange Listed Funds Trust (the “registrant”);

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the first fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

September 25, 2018		/s/ J. Garrett Stevens
Date		J. Garrett Stevens
		President and Principal Executive Officer

 

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO Section 302 of the Sarbanes-Oxley Act of 2002

 

I, Christopher W. Roleke, certify that:

 

1.

I have reviewed this report on Form N-Q of Exchange Listed Funds Trust (the “registrant”);

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the first fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

September 25, 2018		/s/ Christopher W. Roleke
Date		Christopher W. Roleke
		Principal Financial Officer

 

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