UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
| Investment Company Act file number: | 811-23439 |
| Exact name of registrant as specified in charter: | ETF Opportunities Trust |
| Address of principal executive offices: |
8730 Stony Point Parkway, Richmond, VA 23235 |
| Name and address of agent for service: |
The Corporation Trust Co., Corporation Trust Center, 1209 Orange St., Wilmington, DE 19801
With Copy to:
John H. Lively Practus, LLP 11300 Tomahawk Creek Parkway, Ste. 310 Leawood, KS 66211 |
| Registrant’s telephone number, including area code: | (804) 267-7400 |
| Date of fiscal year end: | March 31 |
| Date of reporting period: | September 30, 2022 |
| Item #1(a). Reports to Stockholders. | |
| 1(b). Not applicable. | |
|
Formidable ETF Formidable Fortress ETF (the “Formidable ETFs”) |
| Item 1. | Reports to Stockholders. | |
| (a) | ||
SEMI-ANNUAL
REPORT
For the Six Months Ended September 30, 2022 (unaudited)
Formidable ETF
Formidable Fortress ETF
1
SEMI-ANNUAL REPORT
Formidable ETF
To Formidable ETF (“Fund”) Investors,
The six-month period between April 1, 2022 and September 30, 2022 was one of the most challenging we have experienced in our investing careers. Inflation, we believe a large biproduct of pandemic-driven central bank and fiscal stimulus, is running rampant globally. Domestically, part of this stimulus is being aggressively removed by the Federal Reserve on two fronts: a shrinking balance sheet and higher interest rates. The result, from a market perspective, has been one of the worst years on record for bonds and significant multiple compression, albeit from extremely elevated levels, for equities, with the S&P 500® Index1 officially entering a bear market (20% decline from highs).
During this period, the Fund outperformed the S&P Midcap 400® Index2, declining 11.94% (at Market) versus a 17.5% decline for the Index. The Fund’s allocation added over 200 basis points3 of relative return, due primarily to the Fund’s hedging strategy. The contribution of Fund’s allocation among the various sectors of the Index was roughly flat, with an overweight in Consumer Staples the most additive but offset by an overweight in the lagging Materials sector.
Stock selection added to performance during this period. The best relative performance was in the Health Care sector, which added over 250 basis points. This was primarily due to our M&A sleeve, wherein we purchased a handful of biotechnology stocks trading for less than cash; one of these companies posted an outsized gain. The Real Estate sector was also additive, contributing over 200 basis points on a relative basis, due primarily to the acquisition of one of the Fund’s holdings. The Materials sector was the Fund’s worst on a relative basis, detracting over 75 basis points. The rise in real interest rates was particular problematic for the Fund’s precious metal holdings.
As we enter the last quarter of 2022, we have positioned the Fund in anticipation of what is often the second shoe to drop in a market decline: earnings. As mentioned, earnings multiples have declined toward longer term average levels. However, earnings expectations remain high despite the headwind of higher inflation, which often depresses corporate profit margins and earnings. This is congruent with the top-down portion of our process, which has flagged the sizable inversion in the yield curve between two-year and ten-year Treasuries and high yield spreads that remain only slightly elevated. Accordingly, we have increased the size of our cash position as well as our hedges, which remain focused on the high yield bond market.
1The S&P 500® Index is a broad-based Index of 500 stocks, which is widely recognized as representative of the equity market in general.
2The S&P Midcap 400® Index is a capitalization-weighted index which measures the performance of the mid-range sector of the U.S. stock market.
3A basis point is a standard measure for interest rates and other percentages in finance. One basis point equals 1/100th of 1%, or 0.01% (and . 0001 in decimal form).
2
SEMI-ANNUAL REPORT
Formidable ETF
Shareholder Letter - continuedSeptember 30, 2022
Again, we appreciate your investment in the Fund and look forward to providing you with future updates.
Sincerely,
Will Brown |
Adam Eagleston, CFA |
3
SEMI-ANNUAL REPORT
Formidable ETF
Shareholder Letter - continuedSeptember 30, 2022
DISCLOSURES
The above information is confidential. This information is current as of the date of this material and is subject to change at any time, based on market and other conditions. Although taken from reliable sources, Formidable cannot guarantee the accuracy of the information received from third parties.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Must be preceded or accompanied by a current prospectus.
Past performance is not a guarantee of future results.
Formidable Asset Management is the advisor to the Formidable Funds, all of which are distributed by Foreside Fund Services, LLC
4
SEMI-ANNUAL REPORT
Formidable ETF
Portfolio Compositionas of September 30, 2022 (unaudited)
|
Holdings by Sector/Asset Class |
|
Percentage of |
|
|
Common Stocks: |
|
|
|
|
Materials |
|
13.85% |
|
|
Industrial |
|
12.60% |
|
|
Communication Services |
|
11.55% |
|
|
Healthcare |
|
8.42% |
|
|
Consumer Staples |
|
8.15% |
|
|
Energy |
|
7.00% |
|
|
Real Estate |
|
6.62% |
|
|
Utilities |
|
5.17% |
|
|
Consumer Discretionary |
|
5.04% |
|
|
Financial |
|
3.60% |
|
|
Information Technology |
|
1.25% |
|
|
Purchased Options: |
|
|
|
|
Put Options |
|
2.74% |
|
|
Total Investments |
|
85.99% |
|
|
|
|
|
|
|
Options Written: |
|
|
|
|
Call Options |
|
(0.24% |
) |
|
Put Options |
|
(0.08% |
) |
|
Total Options Written |
|
(0.32% |
) |
Formidable ETF
Schedule of InvestmentsSeptember 30, 2022 (unaudited)
See Notes to Financial Statements
5
SEMI-ANNUAL REPORT
|
|
Security Description |
|
Shares |
|
Fair Value |
|
|
83.25% |
COMMON STOCKS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.55% |
COMMUNICATION SERVICES |
|
|
|
|
|
|
|
Activision Blizzard, Inc. |
|
10,480 |
|
$779,083 |
|
|
|
Meta Platforms, Inc.*^ |
|
3,582 |
|
486,006 |
|
|
|
Radius Global Infrastructure, Inc.* |
|
47,139 |
|
444,049 |
|
|
|
Spok Holdings, Inc. |
|
71,560 |
|
546,718 |
|
|
|
Tegna, Inc. |
|
18,787 |
|
388,515 |
|
|
|
Twitter, Inc.*^ |
|
7,548 |
|
330,904 |
|
|
|
|
|
|
|
2,975,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.04% |
CONSUMER DISCRETIONARY |
|
|
|
|
|
|
|
PetMed Express, Inc. |
|
39,886 |
|
778,575 |
|
|
|
RCI Hospitaliy Holdings, Inc.^ |
|
7,968 |
|
520,629 |
|
|
|
|
|
|
|
1,299,204 |
|
|
|
|
|
|
|
|
|
|
8.15% |
CONSUMER STAPLES |
|
|
|
|
|
|
|
Altria Group, Inc. |
|
27,340 |
|
1,103,989 |
|
|
|
British American Tobacco PLC |
|
28,078 |
|
996,769 |
|
|
|
|
|
|
|
2,100,758 |
|
|
|
|
|
|
|
|
|
|
7.00% |
ENERGY |
|
|
|
|
|
|
|
Brigham Minerals, Inc. |
|
21,984 |
|
542,345 |
|
|
|
Energy Transfer LP^ |
|
47,271 |
|
521,399 |
|
|
|
Pioneer Natural Resources Co. |
|
1,189 |
|
257,454 |
|
|
|
The Williams Cos., Inc. |
|
16,810 |
|
481,270 |
|
|
|
|
|
|
|
1,802,468 |
|
|
|
|
|
|
|
|
|
|
3.60% |
FINANCIAL |
|
|
|
|
|
|
|
Genworth Financial, Inc.* |
|
264,679 |
|
926,377 |
|
|
|
|
|
|
|
|
|
|
8.42% |
HEALTH CARE |
|
|
|
|
|
|
|
BioAtla, Inc.*^ |
|
40,920 |
|
315,084 |
|
|
|
CytomX Therapeutics, Inc.* |
|
311,315 |
|
451,407 |
|
See Notes to Financial Statements
6
SEMI-ANNUAL REPORT
Formidable ETF
Schedule of Investments - continuedSeptember 30, 2022 (unaudited)
|
|
Security Description |
|
Shares |
|
Fair Value |
|
|
|
F-Star Therapeutics, Inc.* |
|
62,478 |
|
$319,887 |
|
|
|
Mereo BioPharma Group PLC*^ |
|
281,818 |
|
242,674 |
|
|
|
Royalty Pharma PLC |
|
20,886 |
|
839,200 |
|
|
|
|
|
|
|
2,168,252 |
|
|
|
|
|
|
|
|
|
|
12.60% |
INDUSTRIAL |
|
|
|
|
|
|
|
Acacia Research Corp.* |
|
433,873 |
|
1,752,847 |
|
|
|
Flux Power Holdings, Inc.* |
|
385,818 |
|
987,694 |
|
|
|
Grupo Aeroportuario del Sureste |
|
2,573 |
|
504,745 |
|
|
|
|
|
|
|
3,245,286 |
|
|
|
|
|
|
|
|
|
|
1.25% |
INFORMATION TECHNOLOGY |
|
|
|
|
|
|
|
Silicon Motion Technology Corp. |
|
4,919 |
|
320,670 |
|
|
|
|
|
|
|
|
|
|
13.85% |
MATERIALS |
|
|
|
|
|
|
|
Lithium Americas Corp.*^ |
|
38,717 |
|
1,015,547 |
|
|
|
Rio Tinto PLC |
|
8,964 |
|
493,558 |
|
|
|
SilverCrest Metals, Inc.*^ |
|
117,834 |
|
651,622 |
|
|
|
Wheaton Precious Metals Corp.^ |
|
26,137 |
|
845,793 |
|
|
|
Yamana Gold, Inc.^ |
|
123,894 |
|
561,240 |
|
|
|
|
|
|
|
3,567,760 |
|
|
|
|
|
|
|
|
|
|
6.62% |
REAL ESTATE |
|
|
|
|
|
|
|
American Tower Corp.^ |
|
2,807 |
|
602,663 |
|
|
|
Iron Mountain, Inc. |
|
12,879 |
|
566,290 |
|
|
|
Sun Communities, Inc. |
|
3,955 |
|
535,230 |
|
|
|
|
|
|
|
1,704,183 |
|
|
|
|
|
|
|
|
|
|
5.17% |
UTILITIES |
|
|
|
|
|
|
|
Algonquin Power & Utilities Corp. |
|
37,312 |
|
407,074 |
|
|
|
Brookfield Infrastructure Partners LLP |
|
25,722 |
|
923,420 |
|
|
|
|
|
|
|
1,330,494 |
|
|
|
|
|
|
|
|
|
|
83.25% |
TOTAL COMMON STOCKS |
|
21,440,727 |
|
||
|
|
(Cost: $25,654,317) |
|
|
|
||
Formidable ETF
Schedule of Investments - continuedSeptember 30, 2022 (unaudited)
See Notes to Financial Statements
7
SEMI-ANNUAL REPORT
|
2.74% |
PURCHASED OPTIONS |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
2.74% |
PUT OPTIONS PURCHASED |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
Number |
|
Notional |
|
Exercise |
|
Expiration |
|
Value |
|
|
iShares iBoxx High Yield Group ETF^ |
1,135 |
|
$8,172,000 |
|
$72.00 |
|
10/21/2022 |
|
$195,220 |
|
|
iShares iBoxx High Yield Group ETF^ |
2,175 |
|
15,877,500 |
|
73.00 |
|
10/21/2022 |
|
511,125 |
|
|
|
|
|
|
|
|
|
|
|
706,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2.74% |
TOTAL PURCHASED OPTIONS |
|
706,345 |
|||||||
|
|
(Cost: $318,759) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85.99% |
TOTAL INVESTMENTS |
|||||||||
|
|
(Cost: $25,973,076) |
|
22,147,072 |
|||||||
|
14.01% |
Other assets, net of liabilities |
|
3,606,855 |
|||||||
|
100.00% |
NET ASSETS |
|
$25,753,927 |
|||||||
*Non-income producing
^All or a portion of the security is held as collateral for options written.
See Notes to Financial Statements
8
SEMI-ANNUAL REPORT
Formidable ETF
Schedule of Investments - continuedSeptember 30, 2022 (unaudited)
|
(0.32%) |
OPTIONS WRITTEN |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.24%) |
CALL OPTIONS |
|
|
|
|
|
|
|
|||
|
|
Description |
Number |
|
Notional |
|
Exercise |
|
Expiration |
|
Value |
|
|
|
American Tower Corp. REIT |
10 |
|
$(270,000 |
) |
$270.00 |
|
10/21/2022 |
|
$(160 |
) |
|
|
Yamana Gold, Inc. |
275 |
|
(137,500 |
) |
5.00 |
|
10/21/2022 |
|
(2,200 |
) |
|
|
BioAtla, Inc. |
125 |
|
(125,000 |
) |
10.00 |
|
10/21/2022 |
|
(10,625 |
) |
|
|
BioAtla, Inc. |
175 |
|
(218,750 |
) |
12.50 |
|
10/21/2022 |
|
(9,625 |
) |
|
|
Energy Transfer LP |
150 |
|
(210,000 |
) |
14.00 |
|
10/21/2022 |
|
(300 |
) |
|
|
Lithium Americas Corp. |
45 |
|
(180,000 |
) |
40.00 |
|
10/21/2022 |
|
(225 |
) |
|
|
Lithium Americas Corp. |
100 |
|
(375,000 |
) |
37.50 |
|
10/21/2022 |
|
(1,000 |
) |
|
|
Meta Platforms, Inc. |
10 |
|
(180,000 |
) |
180.00 |
|
10/21/2022 |
|
(110 |
) |
|
|
Mereo Biopharma Group PLC |
443 |
|
(110,750 |
) |
2.50 |
|
10/21/2022 |
|
(2,215 |
) |
|
|
RCI Hospitality Holdings |
30 |
|
(240,000 |
) |
80.00 |
|
10/21/2022 |
|
(675 |
) |
|
|
Silvercrest Metal, Inc. |
350 |
|
(246,750 |
) |
705.00 |
|
10/21/2022 |
|
(1,750 |
) |
|
|
Twitter, Inc. |
25 |
|
(117,500 |
) |
47.00 |
|
10/21/2022 |
|
(4,000 |
) |
|
|
Wheaton Precious Metals |
75 |
|
(270,000 |
) |
36.00 |
|
10/21/2022 |
|
(3,000 |
) |
|
|
Wheaton Precious Metals |
50 |
|
(187,500 |
) |
37.50 |
|
10/21/2022 |
|
(800 |
) |
|
|
Yamana Gold, Inc. |
250 |
|
(125,000 |
) |
5.00 |
|
11/18/2022 |
|
(5,250 |
) |
|
|
Cytomx Therapeutics, Inc. |
1,000 |
|
(250,000 |
) |
2.50 |
|
11/18/2022 |
|
(5,000 |
) |
|
|
Energy Transfer LP |
50 |
|
(65,000 |
) |
13.00 |
|
11/18/2022 |
|
(650 |
) |
|
|
Lithium Americas Corp. |
50 |
|
(187,500 |
) |
37.50 |
|
11/18/2022 |
|
(2,250 |
) |
|
|
Mereo Biopharma Group PLC |
1,131 |
|
(282,750 |
) |
2.50 |
|
11/18/2022 |
|
(8,483 |
) |
|
|
Silvercrest Metal, Inc. |
175 |
|
(131,250 |
) |
7.50 |
|
11/18/2022 |
|
(1,925 |
) |
|
(0.24%) |
TOTAL CALL OPTIONS WRITTEN |
|
$(60,243 |
) |
|||||||
|
|
(Premiums received: $(76,613)) |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Formidable ETF
Schedule of Investments - continuedSeptember 30, 2022 (unaudited)
See Notes to Financial Statements
9
SEMI-ANNUAL REPORT
|
(0.08%) |
PUT OPTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
Number |
|
Notional |
|
Exercise |
|
Expiration |
|
Value |
|
|
|
iShares iBoxx High Yield Group ETF^ |
625 |
|
$(4,250,000 |
) |
$68.00 |
|
10/21/2022 |
|
$(21,250 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.08%) |
TOTAL PUT OPTIONS WRITTEN |
|
(21,250 |
) |
|||||||
|
|
(Premiums received: $(10,607)) |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.32%) |
TOTAL OPTIONS WRITTEN |
|
$(81,493 |
) |
|||||||
|
|
(Premiums received: $(87,220)) |
|
|
|
|||||||
10
SEMI-ANNUAL REPORT
Formidable Fortress ETF
To Formidable Fortress ETF (“Fund”) Investors,
The six-month period between April 1, 2022 and September 30, 2022 was one of the most challenging we have experienced in our investing careers. Inflation, we believe a large biproduct of pandemic-driven central bank and fiscal stimulus, is running rampant globally. Domestically, part of this stimulus is being aggressively removed by the Federal Reserve on two fronts: a shrinking balance sheet and higher interest rates. The result, from a market perspective, has been one of the worst years on record for bonds and significant multiple compression, albeit from extremely elevated levels, for equities, with the S&P 500® Index1 (“Index”) officially entering a bear market (20% decline from highs).
During this period, the Fund outperformed the S&P 500® Index, declining 10.61% (at market) versus a 19.49% decline for the Index. The Fund’s allocation added fewer than 50 basis points2 to relative returns, due primarily to the Fund’s hedging strategy. The contribution of Fund’s allocation among the various sectors of the Index was slightly negative, with an underweight in Energy the largest detractor; an underweight to Information Technology added modestly to returns.
Stock selection was the primary reason for the Fund’s outperformance during this period, adding over 800 basis points. Selection was positive in every sector in which the Fund was invested during the period, which we attribute to the Fund’s bias toward higher quality companies. The best relative performance was in the Information Technology sector, which added almost 200 basis points; the Fund’s holdings suffered a double-digit decline, but within the Index the sector fell nearly 25%. Similarly, the Fund’s Communication Services holdings declined less than those in the Index; the sector was the worst performer in the Index during the period.
As we enter the last quarter of 2022, we have positioned the Fund in anticipation of what is often the second shoe to drop in a market decline: earnings. As mentioned, earnings multiples have declined toward longer term average levels. However, earnings expectations remain high despite the headwind of higher inflation, which often depresses corporate profit margins and earnings. Against this backdrop, we believe the Fund’s emphasis on what we believe are higher quality companies with relatively lower levels of debt may help provide protection. Additionally, we have increased the size of our cash position as well as our hedges, which are comprised of dynamic put spreads3 on the Index.
1S&P 500® Index is a market-capitalization-weighted index of the 500 largest publicly traded companies in the U.S.
2A basis point is a standard measure for interest rates and other percentages in finance. One basis point equals 1/100th of 1%, or 0.01% (and . 0001 in decimal form).
3A put spread is an options trading strategy where investors buy and sell the same amount of put options at the same time to hedge their positions.
11
SEMI-ANNUAL REPORT
Formidable Fortress ETF
Shareholder Letter - continuedSeptember 30, 2022
Again, we appreciate your investment in the Fund and look forward to providing you with future updates.
Sincerely,
|
Will Brown |
Adam Eagleston, CFA |
12
SEMI-ANNUAL REPORT
Formidable Fortress ETF
Shareholder Letter - continuedSeptember 30, 2022
DISCLOSURES
The above information is confidential. This information is current as of the date of this material and is subject to change at any time, based on market and other conditions. Although taken from reliable sources, Formidable cannot guarantee the accuracy of the information received from third parties.
Investing involves risk; Principal loss is possible. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Please see the prospectus, copies of which may be obtained by calling (833) 600-5704.
Must be preceded or accompanied by a current prospectus.
Past performance is not a guarantee of future results.
Formidable Asset Management is the advisor to the Formidable Funds, all of which are distributed by Foreside Fund Services, LLC
13
SEMI-ANNUAL REPORT
Formidable Fortress ETF
Portfolio Compositionas of September 30, 2022 (unaudited)
|
Holdings by Sector/Asset Class |
|
Percentage of |
|
|
Common Stocks: |
|
|
|
|
Health Care |
|
20.65% |
|
|
Industrial |
|
18.23% |
|
|
Information Technology |
|
15.55% |
|
|
Financial |
|
12.38% |
|
|
Communications Services |
|
8.88% |
|
|
Real Estate |
|
7.18% |
|
|
Consumer Discretionary |
|
6.10% |
|
|
Consumer Staples |
|
4.95% |
|
|
Purchased Options: |
|
|
|
|
Put Options |
|
1.65% |
|
|
Total Investments |
|
95.57% |
|
|
|
|
|
|
|
Options Written: |
|
|
|
|
Put Options |
|
(0.85% |
) |
|
Call Options |
|
(0.13% |
) |
|
Total Options Written |
|
(0.98% |
) |
See Notes to Financial Statements
14
SEMI-ANNUAL REPORT
Formidable Fortress ETF
Schedule of InvestmentsSeptember 30, 2022 (unaudited)
|
|
Security Description |
|
Shares |
|
Fair Value |
|
|
93.92% |
COMMON STOCKS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.88% |
COMMUNICATIONS SERVICES |
|
|
|
|
|
|
|
Activision Blizzard, Inc.^ |
|
18,728 |
|
$1,392,240 |
|
|
|
Take-Two Interactive Software, Inc.*^ |
|
5,940 |
|
647,460 |
|
|
|
|
|
|
|
2,039,700 |
|
|
|
|
|
|
|
|
|
|
6.10% |
CONSUMER DISCRETIONARY |
|
|
|
|
|
|
|
Garmin Ltd. |
|
5,939 |
|
476,961 |
|
|
|
Gentex Corp. |
|
16,002 |
|
381,488 |
|
|
|
Ollie’s Bargain Outlet Holdings, Inc.*^ |
|
10,525 |
|
543,090 |
|
|
|
|
|
|
|
1,401,539 |
|
|
|
|
|
|
|
|
|
|
4.95% |
CONSUMER STAPLES |
|
|
|
|
|
|
|
Monster Beverage Corp.* |
|
13090 |
|
1,138,306 |
|
|
|
|
|
|
|
|
|
|
12.38% |
FINANCIAL |
|
|
|
|
|
|
|
Erie Indemnity Co. |
|
2,977 |
|
661,817 |
|
|
|
First American Financial Corp. |
|
8,093 |
|
373,087 |
|
|
|
Houlihan Lokey, Inc.^ |
|
5,830 |
|
439,465 |
|
|
|
MarketAxess Holdings, Inc.^ |
|
1,732 |
|
385,353 |
|
|
|
The Progressive Corp.^ |
|
8,470 |
|
984,299 |
|
|
|
|
|
|
|
2,844,021 |
|
|
|
|
|
|
|
|
|
|
20.65% |
HEALTH CARE |
|
|
|
|
|
|
|
ABIOMED, Inc.*^ |
|
1,865 |
|
458,156 |
|
|
|
Bio-Rad Laboratories, Inc.*^ |
|
933 |
|
389,192 |
|
|
|
Chemed Corp. |
|
971 |
|
423,900 |
|
|
|
Regeneron Pharmaceuticals, Inc.*^ |
|
1,823 |
|
1,255,810 |
|
|
|
United Therapeutics Corp.* |
|
2,167 |
|
453,726 |
|
|
|
Vertex Pharmaceuticals, Inc.*^ |
|
4,506 |
|
1,304,667 |
|
|
|
West Pharmaceutical Services, Inc. |
|
1,870 |
|
460,170 |
|
|
|
|
|
|
|
4,745,621 |
|
|
|
|
|
|
|
|
|
Formidable Fortress ETF
Schedule of Investments - continuedSeptember 30, 2022 (unaudited)
See Notes to Financial Statements
15
SEMI-ANNUAL REPORT
|
|
Security Description |
|
Shares |
|
Fair Value |
|
|
18.23% |
INDUSTRIAL |
|
|
|
|
|
|
|
A.O. Smith Corp. |
|
8,166 |
|
$396,704 |
|
|
|
Expeditors International of Washington, Inc.^ |
|
7,917 |
|
699,150 |
|
|
|
Fastenal Co. |
|
7,428 |
|
341,985 |
|
|
|
Graco, Inc. |
|
7,247 |
|
434,458 |
|
|
|
Landstar System, Inc.^ |
|
3,165 |
|
456,931 |
|
|
|
Robert Half International, Inc.^ |
|
9,581 |
|
732,947 |
|
|
|
Snap-on, Inc. |
|
3,803 |
|
765,734 |
|
|
|
Stanley Black & Decker, Inc. |
|
4,792 |
|
360,406 |
|
|
|
|
|
|
|
4,188,315 |
|
|
|
|
|
|
|
|
|
|
15.55% |
INFORMATION TECHNOLOGY |
|
|
|
|
|
|
|
Amdocs Ltd. |
|
11,452 |
|
909,861 |
|
|
|
Automatic Data Processing, Inc.^ |
|
4,499 |
|
1,017,629 |
|
|
|
Cisco Sysems, Inc.^ |
|
19,224 |
|
768,960 |
|
|
|
Jack Henry & Associates, Inc. |
|
2,416 |
|
440,364 |
|
|
|
Maximus, Inc. |
|
7,532 |
|
435,877 |
|
|
|
|
|
|
|
3,572,691 |
|
|
|
|
|
|
|
|
|
|
7.18% |
REAL ESTATE |
|
|
|
|
|
|
|
Gaming and Leisure Properties |
|
16,114 |
|
712,883 |
|
|
|
Public Storage |
|
3,197 |
|
936,114 |
|
|
|
|
|
|
|
1,648,997 |
|
|
|
|
|
|
|
|
|
|
93.92% |
TOTAL COMMON STOCKS |
|
21,579,190 |
|
||
|
|
(Cost: $23,944,651) |
|
|
|
|
|
See Notes to Financial Statements
16
SEMI-ANNUAL REPORT
Formidable Fortress ETF
Schedule of Investments - continuedSeptember 30, 2022 (unaudited)
|
1.65% |
PURCHASED OPTIONS |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.65% |
PUT OPTIONS PURCHASED |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
Number |
|
Notional |
|
Exercise |
|
Expiration |
|
Value |
|
|
|
SPDR S&P 500 ETF Trust |
50 |
|
$1,900,000 |
|
$380.00 |
|
10/21/2022 |
|
$115,450 |
|
|
|
SPDR S&P 500 ETF Trust |
180 |
|
6,480,000 |
|
360.00 |
|
11/18/2022 |
|
262,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.65% |
TOTAL PURCHASE OPTIONS |
|
378,070 |
|
|||||||
|
|
(Cost: $248,422) |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95.57% |
TOTAL INVESTMENTS |
|
|
|
|||||||
|
|
(Cost: $24,193,073) |
|
21,957,260 |
|
|||||||
|
4.43% |
Other assets, net of liabilities |
|
1,019,612 |
|
|||||||
|
100.00% |
NET ASSETS |
|
$22,976,872 |
|
|||||||
*Non-income producing
^All or a portion of the security is held as collateal for options written
Formidable Fortress ETF
Schedule of Investments - continuedSeptember 30, 2022 (unaudited)
See Notes to Financial Statements
17
SEMI-ANNUAL REPORT
|
(0.98%) |
OPTIONS WRITTEN |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.13%) |
CALL OPTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
Number |
|
Notional |
|
Exercise |
|
Expiration |
|
|
|
|
|
Abiomed, Inc. |
6 |
|
$(180,000 |
) |
$300.00 |
|
10/21/2022 |
|
$(660 |
) |
|
|
Automatic Data Processing, Inc. |
15 |
|
(405,000 |
) |
270.00 |
|
11/18/2022 |
|
(750 |
) |
|
|
Activision Blizzard, Inc. |
35 |
|
(315,000 |
) |
90.00 |
|
10/21/2022 |
|
(105 |
) |
|
|
Bio-Rad Laboratories, Inc. |
3 |
|
(174,000 |
) |
580.00 |
|
10/21/2022 |
|
(1,440 |
) |
|
|
Cisco Sysems, Inc. |
60 |
|
(315,000 |
) |
52.50 |
|
10/21/2022 |
|
(120 |
) |
|
|
Expeditors International of Washington, Inc. |
25 |
|
(275,000 |
) |
110.00 |
|
11/18/2022 |
|
(563 |
) |
|
|
Houlihan Lokey, Inc. |
20 |
|
(190,000 |
) |
95.00 |
|
11/18/2022 |
|
(2,600 |
) |
|
|
Landstar System, Inc. |
10 |
|
(165,000 |
) |
165.00 |
|
11/18/2022 |
|
(2,325 |
) |
|
|
MarketAxess Holdings, Inc. |
5 |
|
(140,000 |
) |
280.00 |
|
11/18/2022 |
|
(1,650 |
) |
|
|
Ollie’s Bargain Outlet Holdings, Inc. |
30 |
|
(232,500 |
) |
77.50 |
|
10/21/2022 |
|
(2,250 |
) |
|
|
Ollie’s Bargain Outlet Holdings, Inc. |
15 |
|
(97,500 |
) |
65.00 |
|
11/18/2022 |
|
(900 |
) |
|
|
The Progressive Corp. |
30 |
|
(435,000 |
) |
145.00 |
|
11/18/2022 |
|
(1,950 |
) |
|
|
Regeneron Pharmaceuticals, Inc. |
5 |
|
(375,000 |
) |
720.00 |
|
10/21/2022 |
|
(6,950 |
) |
|
|
Robert Half International, Inc. |
||||||||||