N-CSRS 1 ea152702_ncsrs.htm N-CSRS

 

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: 811-23797

 

Emerge ETF Trust

 

(Exact name of registrant as specified in charter)

 

500 Pearl Street, Suite 740

Buffalo, NY 14202

 

(Address of principal executive offices) (Zip code)

 

Lisa Lake Langley

500 Pearl Street, Suite 740

Buffalo, NY 14202

 

(Name and address of agent for service)

 

Registrant's telephone number, including area code: (716) 970-4512

 

Date of fiscal year end: July 31

 

Date of reporting period: January 31, 2023

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

 

Item 1. Reports to Stockholders.

 

(a)Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1).

 

January 31, 2023

 

Semi-Annual Report

 

Emerge ETF Trust

 

 

Emerge EMPWR Sustainable Dividend Equity ETF (EMCA)

Emerge EMPWR Sustainable Emerging Markets Equity ETF (EMCH)

Emerge EMPWR Sustainable Global Core Equity ETF (EMZA)

Emerge EMPWR Sustainable Select Growth Equity ETF (EMGC)

Emerge EMPWR Unified Sustainable Equity ETF (EMPW)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Emerge ETF Trust

Table of Contents

 

Schedule of Investments:    
Emerge EMPWR Sustainable Dividend Equity ETF   1
Emerge EMPWR Sustainable Emerging Markets Equity ETF   3
Emerge EMPWR Sustainable Global Core Equity ETF   5
Emerge EMPWR Sustainable Select Growth Equity ETF   7
Emerge EMPWR Unified Sustainable Equity ETF   9
Statements of Assets and Liabilities   13
Statements of Operations   15
Statements of Changes in Net Assets   17
Financial Highlights   19
Notes to Financial Statements   22
Fees and Expenses   28
Board Consideration in Approval of Investment Management Agreement   29
Additional Information   31

 

This report is provided for the general information of shareholders and is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.

 

 

 

 

Emerge EMPWR Sustainable Dividend Equity ETF

Schedule of Investments

January 31, 2023 (Unaudited)

 

 

   Shares   Value 
Common Stocks – 99.9%        
Communication Services – 6.4%        
AT&T, Inc.   1,727   $35,179 
Verizon Communications, Inc.   849    35,293 
         70,472 
Consumer Discretionary – 6.6%          
Ford Motor Co.   2,877    38,868 
McDonald's Corp.   126    33,693 
         72,561 
Consumer Staples – 3.0%          
Coca-Cola Co. (The)   539    33,051 
Energy – 8.6%          
Chevron Corp.   251    43,679 
Valero Energy Corp.   360    50,411 
         94,090 
Financials – 19.3%          
Bank of America Corp.   987    35,019 
Citizens Financial Group, Inc.   811    35,132 
Huntington Bancshares, Inc.   2,348    35,619 
JPMorgan Chase & Co.   248    34,710 
Prudential Financial, Inc.   321    33,686 
US Bancorp   741    36,902 
         211,068 
Health Care – 18.0%          
AbbVie, Inc.   194    28,664 
CVS Health Corp.   360    31,759 
Johnson & Johnson   177    28,925 
Medtronic PLC   384    32,137 
Merck & Co., Inc.   364    39,097 
Organon & Co.   1,220    36,759 
         197,341 
Industrials – 8.1%          
Caterpillar, Inc.   182    45,917 
Cummins, Inc.   169    42,172 
         88,089 
Information Technology – 18.8%          
Broadcom, Inc.   62    36,271 
Cisco Systems, Inc.   745    36,259 
International Business Machines Corp.   232    31,257 
Juniper Networks, Inc.   968    31,266 
Oracle Corp.   414    36,623 
Texas Instruments, Inc.   195    34,556 
         206,232 
Materials – 7.7%          
Air Products and Chemicals, Inc.   138    44,230 
LyondellBasell Industries NV, Class A   410    39,643 
         83,873 
Utilities – 3.4%          
NextEra Energy, Inc.   498    37,166 
Total Common Stocks (Cost $1,018,905)        1,093,943 

 

See Notes to Financial Statements.1  

 

 

Emerge EMPWR Sustainable Dividend Equity ETF

Schedule of Investments (Continued)

January 31, 2023 (Unaudited)

 

 

   Value 
     
Total Investments – 99.9%     
(Cost $1,018,905)  $1,093,943 
Other Assets in Excess of Liabilities – 0.1%   1,254 
Net Assets – 100.0%  $1,095,197 

 

Summary of Investment Type    
     
   % of Net 
Sector  Assets 
Financials   19.3%
Information Technology   18.8%
Health Care   18.0%
Energy   8.6%
Industrials   8.1%
Materials   7.7%
Consumer Discretionary   6.6%
Communication Services   6.4%
Utilities   3.4%
Consumer Staples   3.0%
Total Investments   99.9%
Other Assets in Excess of Liabilities   0.1%
Net Assets   100.0%

 

See Notes to Financial Statements.2  

 

 

Emerge EMPWR Sustainable Emerging Markets Equity ETF

Schedule of Investments

January 31, 2023 (Unaudited)

 

 

   Shares   Value 
Common Stocks – 97.7%        
Argentina – 2.1%        
Banco BBVA Argentina SA, ADR   859   $3,994 
Grupo Financiero Galicia SA, ADR*   357    4,784 
Transportadora de Gas del Sur SA, Class B, ADR*   259    2,896 
         11,674 
Brazil – 11.7%          
Cia de Saneamento Basico do Estado de Sao Paulo, ADR   2,385    26,259 
Gerdau SA, ADR   924    6,006 
Itau Unibanco Holding SA, ADR   611    3,043 
Petroleo Brasileiro SA, ADR   2,130    24,708 
XP, Inc., Class A*   189    3,368 
         63,384 
Chile – 2.7%          
Sociedad Quimica y Minera de Chile SA, ADR   152    14,826 
China – 30.9%          
Alibaba Group Holding Ltd.*   1,800    24,709 
Anhui Conch Cement Co. Ltd., Class H   1,500    5,683 
Baidu, Inc., Class A*   1,700    28,714 
Bosideng International Holdings Ltd.   12,200    6,786 
China Meidong Auto Holdings Ltd.   2,000    4,950 
China Overseas Land & Investment Ltd.   3,500    9,444 
Ganfeng Lithium Group Co. Ltd., Class H, 144A   800    7,277 
JD.com, Inc., Class A   800    23,637 
Lenovo Group Ltd.   4,000    3,200 
Li Ning Co. Ltd.   500    4,924 
Meituan, Class B, 144A*   40    891 
Ping An Insurance Group Co. of China Ltd., Class H   505    3,911 
Postal Savings Bank of China Co. Ltd., Class H, 144A   24,000    16,319 
Tencent Holdings Ltd.   400    19,504 
Trip.com Group Ltd.*   100    3,689 
Yadea Group Holdings Ltd., 144A   2,000    4,557 
         168,195 
Hong Kong – 1.7%          
Hong Kong Exchanges & Clearing Ltd.   200    8,991 
India – 12.5%          
HDFC Bank Ltd., ADR    319    21,488 
ICICI Bank Ltd., ADR    857    17,851 
Infosys Ltd., ADR    1,094    20,567 
Wipro Ltd., ADR   1,093    5,345 
WNS Holdings Ltd., ADR*   34    2,881 
         68,132 
Indonesia – 0.4%          
Bank Central Asia TBK PT, ADR   170    2,363 
Mexico – 7.2%          
Grupo Aeroportuario del Centro Norte SAB de CV, ADR   108    7,889 
Grupo Financiero Banorte SAB de CV, Class O    993    8,240 
Wal-Mart de Mexico SAB de CV   5,914    23,137 
         39,266 
Portugal – 1.4%          
Jeronimo Martins SGPS SA   343    7,428 

 

See Notes to Financial Statements.3  

 

 

Emerge EMPWR Sustainable Emerging Markets Equity ETF

Schedule of Investments (Continued)

January 31, 2023 (Unaudited)

 

 

   Shares   Value 
Common Stocks (continued)        
South Africa – 6.1%        
Anglo American PLC   370   $15,790 
Astral Foods Ltd.   462    4,273 
Gold Fields Ltd., ADR   1,132    12,950 
         33,013 
South Korea – 2.9%          
Samsung Electronics Co. Ltd., GDR   13    16,023 
Taiwan – 9.7%          
Silicon Motion Technology Corp., ADR   184    11,794 
Taiwan Semiconductor Manufacturing Co. Ltd., ADR   264    24,481 
United Microelectronics Corp., ADR*   1,994    16,211 
         52,486 
Thailand – 1.8%          
Fabrinet*   74    9,743 
United States – 6.6%          
Globant SA*   55    8,920 
Tenaris SA, ADR   765    27,119 
         36,039 
Total Common Stocks (Cost $472,757)        531,563 
Total Investments – 97.7%          
(Cost $472,757)       $531,563 
Other Assets in Excess of Liabilities – 2.3%        12,237 
Net Assets – 100.0%       $543,800 

 

*Non Income Producing

 

ADR :American Depositary Receipt

GDR :Global Depositary Receipt

144A :Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

 

Summary of Investment Type

 

   % of Net 
Sector  Assets 
Information Technology   21.9%
Financials   17.3%
Consumer Discretionary   13.6%
Materials   11.5%
Energy   10.1%
Communication Services    8.9%
Consumer Staples    6.4%
Utilities   4.8%
Real Estate   1.7%
Industrials   1.5%
Total Investments   97.7%
Other Assets in Excess of Liabilities   2.3%
Net Assets   100.0%

 

See Notes to Financial Statements.4  

 

 

Emerge EMPWR Sustainable Global Core Equity ETF
Schedule of Investments
January 31, 2023 (Unaudited)

 

 

   Shares   Value 
Common Stocks – 98.6%        
Communication Services – 6.9%        
Alphabet, Inc., Class A*   194   $19,175 
Verizon Communications, Inc.   393    16,337 
         35,512 
Consumer Discretionary – 15.1%          
Amazon.com, Inc.*   117    12,066 
eBay, Inc.   165    8,168 
Home Depot, Inc. (The)   42    13,615 
MercadoLibre, Inc.*   15    17,726 
TJX Cos., Inc. (The)   169    13,834 
Ulta Beauty, Inc.*   23    11,821 
         77,230 
Consumer Staples – 9.8%          
Colgate-Palmolive Co.   185    13,788 
Kroger Co. (The)   352    15,710 
Unilever PLC, ADR   408    20,849 
         50,347 
Financials – 9.8%          
Aon PLC, Class A   36    11,473 
Chubb Ltd.   59    13,422 
HDFC Bank Ltd., ADR   198    13,337 
PNC Financial Services Group, Inc. (The)   73    12,076 
         50,308 
Health Care – 9.1%          
AbbVie, Inc.   85    12,559 
AstraZeneca PLC, ADR   156    10,198 
Danaher Corp.   59    15,598 
Novartis AG, ADR   91    8,246 
         46,601 
Industrials – 13.9%          
Emerson Electric Co.   182    16,420 
Expeditors International of Washington, Inc.   103    11,140 
Kubota Corp., ADR   110    8,208 
TransUnion   124    8,897 
United Parcel Service, Inc., Class B   94    17,412 
Vestas Wind Systems A/S, ADR   944    9,147 
         71,224 
Information Technology – 24.2%          
Analog Devices, Inc.   114    19,548 
Apple, Inc.   156    22,509 
Automatic Data Processing, Inc.   91    20,549 
Microsoft Corp.   81    20,073 
PayPal Holdings, Inc.*   209    17,031 
Visa, Inc., Class A   106    24,402 
         124,112 
Materials – 5.4%          
Ecolab, Inc.   60    9,290 
Linde PLC   56    18,532 
         27,822 

 

See Notes to Financial Statements.5  

 

 

Emerge EMPWR Sustainable Global Core Equity ETF
Schedule of Investments (Continued)
January 31, 2023 (Unaudited)

 

 

    Shares     Value  
Common Stocks (continued)            
Real Estate – 3.2%            
Digital Realty Trust, Inc.     76     $ 8,711‌  
Healthpeak Properties, Inc.     286       7,859‌  
              16,570‌  
Utilities – 1.2%                
Orsted AS, ADR     213       6,286‌  
Total Common Stocks (Cost $490,314)             506,012‌  
                 
Total Investments – 98.6%                
(Cost $490,314)           $ 506,012‌  
Other Assets in Excess of Liabilities – 1.4%             7,201‌  
Net Assets – 100.0%           $ 513,213‌  

 

*Non Income Producing

 

ADR : American Depositary Receipt

 

Summary of Investment Type

 

   % of Net 
Sector  Assets 
Information Technology   24.2%
Consumer Discretionary   15.1%
Industrials   13.9%
Consumer Staples   9.8%
Financials   9.8%
Health Care   9.1%
Communication Services   6.9%
Materials   5.4%
Real Estate   3.2%
Utilities   1.2%
Total Investments   98.6%
Other Assets in Excess of Liabilities   1.4%
Net Assets   100.0%

 

See Notes to Financial Statements.6  

 

 

Emerge EMPWR Sustainable Select Growth Equity ETF
Schedule of Investments
January 31, 2022 (Unaudited)

 

 

   Shares   Value 
Common Stocks – 100.1%        
Communication Services – 3.0%        
Alphabet, Inc., Class C*   154   $15,380 
Consumer Discretionary – 12.4%          
Amazon.com, Inc.*   117    12,066 
Lowe's Cos., Inc.   88    18,326 
Target Corp.   102    17,558 
TJX Cos., Inc. (The)   180    14,735 
        62,685 
Consumer Staples – 5.7%          
John B Sanfilippo & Son, Inc.   154    13,015 
Walmart, Inc.   112    16,113 
        29,128 
Energy – 4.0%          
Cheniere Energy Partners LP   374    20,409 
Financials – 9.9%          
City Holding Co.   197    18,674 
MSCI, Inc., Class A   35    18,604 
PNC Financial Services Group, Inc. (The)   77    12,738 
        50,016 
Health Care – 16.5%          
Amgen, Inc.   62    15,649 
Danaher Corp.   56    14,805 
Merit Medical Systems, Inc.*   234    16,696 
ResMed, Inc.   82    18,726 
US Physical Therapy, Inc.   181    17,946 
        83,822 
Industrials – 12.9%          
CACI International, Inc., Class A*   70    21,566 
Nordson Corp.   65    15,815 
Norfolk Southern Corp.   59    14,503 
WW Grainger, Inc.   23    13,558 
        65,442 
Information Technology – 19.3%          
Absolute Software Corp.   603    7,001 
Atlassian Corp., Class A*   80    12,929 
DocuSign, Inc.*   115    6,974 
Fair Isaac Corp.*   21    13,985 
MongoDB, Inc.*   58    12,424 
Texas Instruments, Inc.   71    12,582 
Trimble, Inc.*   253    14,689 
VeriSign, Inc.*   79    17,226 
        97,810 
Materials – 6.2%          
Labrador Iron Ore Royalty Corp.   725    21,177 
Sherwin-Williams Co. (The)   43    10,174 
        31,351 
Real Estate – 7.5%          
Crown Castle, Inc.   55    8,146 
Innovative Industrial Properties, Inc.   88    7,901 
National Storage Affiliates Trust   173    7,058 

 

See Notes to Financial Statements.7  

 

 

Emerge EMPWR Sustainable Select Growth Equity ETF
Schedule of Investments (Continued)
January 31, 2022 (Unaudited)

 

 

   Shares   Value 
Common Stocks (continued)        
Real Estate (continued)        
Realty Income Corp.   219   $14,855 
        37,960 
Utilities – 2.7%          
Chesapeake Utilities Corp.   107    13,491 
Total Common Stocks (Cost $483,147)        507,494 
           
Total Investments – 100.1%          
(Cost $483,147)       $507,494 
Liabilities in Excess of Other Assets – (0.1)%        (402)
Net Assets – 100.0%       $507,092 

 

*Non Income Producing Summary of Investment Type

 

Summary of Investment Type

 

Sector  % of Net
Assets		 
Information Technology   19.3%
Health Care   16.5%
Industrials   12.9%
Consumer Discretionary   12.4%
Financials   9.9%
Real Estate   7.5%
Materials   6.2%
Consumer Staples   5.7%
Energy   4.0%
Communication Services   3.0%
Utilities   2.7%
Total Investments   100.1%
Liabilities in Excess of Other Assets    (0.1)%
Net Assets   100.0%

 

See Notes to Financial Statements.8  

 

 

Emerge EMPWR Unified Sustainable Equity ETF
Schedule of Investments

January 31, 2023 (Unaudited)

 

 

   Shares   Value 
Common Stocks – 99.0%        
Communication Services – 7.5%        
Alphabet, Inc., Class A*   89   $8,797 
AT&T, Inc.   296    6,029 
Baidu, Inc., Class A*   500    8,445 
Tencent Holdings Ltd.   100    4,876 
Verizon Communications, Inc.   259    10,767 
         38,914 
Consumer Discretionary – 11.4%          
Alibaba Group Holding Ltd.*   511    7,014 
Amazon.com, Inc.*   89    9,179 
Ford Motor Co.   471    6,363 
Home Depot, Inc. (The)   11    3,566 
JD.com, Inc., Class A   229    6,766 
Lowe's Cos., Inc.   19    3,957 
McDonald's Corp.   21    5,615 
Meituan, Class B, 144A*   10    223 
MercadoLibre, Inc.*   4    4,727 
Target Corp.   23    3,959 
TJX Cos., Inc. (The)   96    7,859 
         59,228 
Consumer Staples – 5.7%          
Coca-Cola Co. (The)   86    5,274 
Colgate-Palmolive Co.   50    3,727 
John B Sanfilippo & Son, Inc.   43    3,634 
Kroger Co. (The)   87    3,883 
Unilever PLC, ADR   102    5,212 
Wal-Mart de Mexico SAB de CV   965    3,775 
Walmart, Inc.   29    4,172 
         29,677 
Energy – 7.0%          
Cheniere Energy Partners LP   93    5,075 
Chevron Corp.   40    6,961 
Petroleo Brasileiro SA, ADR   668    7,749 
Tenaris SA, ADR   235    8,331 
Valero Energy Corp.   58    8,121 
         36,237 
Financials – 14.2%          
Bank of America Corp.   161    5,712 
Chubb Ltd.   16    3,640 
Citizens Financial Group, Inc.   146    6,325 
City Holding Co.   40    3,792 
HDFC Bank Ltd., ADR   165    11,114 
Huntington Bancshares, Inc.   380    5,765 
ICICI Bank Ltd., ADR   321    6,686 
JPMorgan Chase & Co.   39    5,458 
MSCI, Inc., Class A   9    4,784 
PNC Financial Services Group, Inc. (The)   21    3,474 
Postal Savings Bank of China Co Ltd., Class H, 144A   8,000    5,440 
Prudential Financial, Inc.   56    5,877 

 

See Notes to Financial Statements.9  

 

 

Emerge EMPWR Unified Sustainable Equity ETF

Schedule of Investments (Continued)

January 31, 2023 (Unaudited)

 

 

   Shares   Value 
Common Stocks (continued)        
Financials (continued)        
US Bancorp   120   $5,976 
         74,043 
Health Care – 12.0%          
AbbVie, Inc.   57    8,422 
Amgen, Inc.   13    3,281 
CVS Health Corp.   59    5,205 
Danaher Corp.   32    8,460 
Johnson & Johnson   30    4,903 
Medtronic PLC   70    5,858 
Merck & Co., Inc.   59    6,337 
Merit Medical Systems, Inc.*   60    4,281 
Organon & Co.   198    5,966 
ResMed, Inc.   22    5,024 
US Physical Therapy, Inc.   47    4,660 
         62,397 
Industrials – 7.3%          
CACI International, Inc., Class A*   18    5,546 
Caterpillar, Inc.   25    6,307 
Cummins, Inc.   21    5,240 
Emerson Electric Co.   55    4,962 
Nordson Corp.   17    4,136 
Norfolk Southern Corp.   16    3,933 
United Parcel Service, Inc., Class B   25    4,631 
WW Grainger, Inc.   6    3,537 
         38,292 
Information Technology – 21.3%          
Analog Devices, Inc.   33    5,659 
Apple, Inc.   39    5,627 
Atlassian Corp., Class A*   21    3,394 
Automatic Data Processing, Inc.   21    4,742 
Broadcom, Inc.   8    4,680 
Cisco Systems, Inc.   110    5,354 
Fair Isaac Corp.*   5    3,330 
Infosys Ltd., ADR   354    6,655 
International Business Machines Corp   36    4,850 
Juniper Networks, Inc.   157    5,071 
Microsoft Corp.   22    5,452 
Oracle Corp.   67    5,927 
PayPal Holdings, Inc.*   60    4,889 
Samsung Electronics Co. Ltd., GDR   4    4,930 
Silicon Motion Technology Corp., ADR   69    4,423 
Taiwan Semiconductor Manufacturing Co. Ltd., ADR   84    7,789 
Texas Instruments, Inc.   46    8,152 
Trimble, Inc.*   65    3,774 
United Microelectronics Corp., ADR*   702    5,707 
VeriSign, Inc.*   20    4,361 
Visa, Inc., Class A   27    6,216 
         110,982 

 

See Notes to Financial Statements.10  

 

 

Emerge EMPWR Unified Sustainable Equity ETF

Schedule of Investments (Continued)

January 31, 2023 (Unaudited)

 

 

   Shares   Value 
Common Stocks (continued)        
Materials – 8.3%        
Air Products and Chemicals, Inc.   19   $6,089 
Anglo American PLC   127    5,420 
Gold Fields Ltd., ADR   411    4,702 
Labrador Iron Ore Royalty Corp.   189    5,521 
Linde PLC   16    5,295 
LyondellBasell Industries NV, Class A   68    6,575 
Sherwin-Williams Co. (The)   12    2,839 
Sociedad Quimica y Minera de Chile SA, ADR   71    6,925 
         43,366 
Real Estate – 0.8%          
Realty Income Corp.   60    4,070 
Utilities – 3.5%          
Chesapeake Utilities Corp.   32    4,035 
Cia de Saneamento Basico do Estado de Sao Paulo, ADR   728    8,015 
NextEra Energy, Inc.   80    5,970 
         18,020 
Total Common Stocks (Cost $479,308)        515,226 
Total Investments – 99.0%          
(Cost $479,308)       $515,226 
Other Assets in Excess of Liabilities – 1.0%        5,011 
Net Assets – 100.0%       $520,237 

 

*Non Income Producing

 

ADR: American Depositary Receipt
GDR: Global Depositary Receipt
144A:Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

 

Summary of Investment Type

 

   % of Net 
Sector  Assets 
Information Technology   21.3%
Financials   14.2%
Health Care   12.0%
Consumer Discretionary   11.4%
Materials   8.3%
Communication Services   7.5%
Industrials   7.3%
Energy   7.0%
Consumer Staples   5.7%
Utilities   3.5%
Real Estate   0.8%
Total Investments   99.0%
Other Assets in Excess of Liabilities   1.0%
Net Assets   100.0%

 

See Notes to Financial Statements.11  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Emerge ETF Trust

Statements of Assets and Liabilities

January 31, 2023 (Unaudited)

 

 

       Emerge         
   Emerge   EMPWR   Emerge   Emerge   
   EMPWR    Sustainable   EMPWR   EMPWR   
    Sustainable    Emerging    Sustainable    Sustainable  
   Dividend    Markets    Global Core   Select Growth 
   Equity ETF    Equity ETF    Equity ETF    Equity ETF   
Assets                
Investments, at fair value  $1,093,943   $531,563   $506,012   $507,494 
Cash   497    12,710    7,133    — 
Receivables:                    
Dividends   2,563    79    599    350 
Prepaid expenses   326    195    192    188 
Foreign tax reclaim   —    8    —    — 
Total assets   1,097,329    544,555    513,936    508,032 
                     
Liabilities                    
Due to custodian   —    9    —    280 
Payables:                    
Investment advisory fees   1,474    354    335    282 
Accrued expenses and other liabilities   658    392    388    378 
Total liabilities   2,132    755    723    940 
Net Assets  $1,095,197   $543,800   $513,213   $507,092 
                     
Net Assets Consist of                    
Paid-in capital  $1,016,175   $500,000   $500,000   $500,000 
Distributable earnings (loss)   79,022    43,800    13,213    7,092 
Net Assets  $1,095,197   $543,800   $513,213   $507,092 
Number of Common Shares outstanding   40,000    20,000    20,000    20,000 
Net Asset Value, offering and redemption price per share  $27.38   $27.19   $25.66   $25.35 
Investments, at cost  $1,018,905   $472,757   $490,314   $483,147 

 

See Notes to Financial Statements.13  

 

 

Emerge ETF Trust

Statements of Assets and Liabilities (Continued)

January 31, 2023 (Unaudited)

 

   Emerge 
   EMPWR 
   Unified 
   Sustainable 
   Equity ETF 
Assets    
Investments, at fair value  $ 515,226 
Cash   4,891 
Receivables:     
Dividends   737 
Prepaid expenses   203 
Total assets   521,057 
Liabilities     
Payables:     
Investment advisory fees   411 
Accrued expenses and other liabilities   409 
Total liabilities   820 
Net Assets  $520,237 
      
Net Assets Consist of     
Paid-in capital  $ 505,000 
Distributable earnings (loss)   15,237 
Net Assets  $520,237 
Number of Common Shares outstanding   20,057 
Net Asset Value, offering and redemption price per share  $25.94 
Investments, at cost  $479,308 

 

See Notes to Financial Statements.14  

 

 

Emerge ETF Trust

Statements of Operations

Period Ended January 31, 2023 (Unaudited)

 

   Emerge
EMPWR
Sustainable
Dividend
Equity ET (1)		   Emerge
EMPWR
Sustainable
Emerging
Markets
Equity ET (1)		   Emerge
EMPWR
Sustainable
Global Core
Equity ET (1)		   Emerge
EMPWR
Sustainable
Select Growth
Equity ETF(2)		 
Investment Income                
Dividend income*  $11,113   $5,382   $2,778   $3,673 
Non-cash dividend income   —    967    —    — 
                     
Expenses                    
Investment advisory fees   2,797    1,666    1,647    1,606 
Other expenses   658    392    388    378 
Total expenses   3,455    2,058    2,035    1,984 
Less fees waived (see Note 3):                    
Waiver   (326)   (195)   (192)   (187)
Net expenses   3,129    1,863    1,843    1,797 
Net investment income (loss)   7,984    4,486    935    1,876 
                     
Realized and Unrealized Gain (Loss)                    
Net realized gain (loss) from:                    
Investments   1,835    (14,171)   (2,417)   (17,034)
Foreign currency transactions   —    (1,726)   —    9 
Net realized gain (loss)   1,835    (15,897)   (2,417)   (17,025)
Net change in unrealized appreciation (depreciation) on:                    
Investments   75,038    58,806    15,698    24,347 
Net unrealized gain (loss)   75,038    58,806    15,698    24,347 
Net realized and unrealized gain (loss)   76,873    42,909    13,281    7,322 
Net Increase (Decrease) in Net Assets Resulting from Operations  $84,857   $47,395   $14,216   $9,198 
* Withholding tax  $—   $459   $—   $279 

 

(1)For the period September 8, 2022 (commencement of operations) through January 31, 2023.
(2)For the period September 9, 2022 (commencement of operations) through January 31, 2023.

 

See Notes to Financial Statements.15  

 

 

Emerge ETF Trust

Statements of Operations (Continued)

Period Ended January 31, 2023 (Unaudited)

 

   Emerge
EMPWR
Unified
Sustainable
Equity ETF(1)		 
Investment Income    
Dividend income*  $4,927 
      
Expenses     
Investment advisory fees   1,735 
Other expenses   408 
Total expenses   2,143 
Less fees waived (see Note 3):     
Waiver   (203)
Net expenses   1,940 
Net investment income (loss)   2,987 
      
Realized and Unrealized Gain (Loss)     
Net realized gain (loss) from:     
Investments   (20,891)
Foreign currency transactions   (254)
Net realized gain (loss)   (21,145)
Net change in unrealized appreciation (depreciation) on:    
Investments   35,918 
Net unrealized gain (loss)   35,918 
Net realized and unrealized gain (loss)   14,773 
Net Increase (Decrease) in Net Assets Resulting from Operations  $17,760 
* Withholding tax  $182 

 

(1) For the period September 9, 2022 (commencement of operations) through January 31, 2023.

 

See Notes to Financial Statements.16  

 

 

Emerge ETF Trust

Statements of Changes in Net Assets

 

 

   Emerge EMPWR Sustainable Dividend Equity ETF   Emerge EMPWR Sustainable Emerging Markets Equity ETF   Emerge EMPWR Sustainable Global Core Equity ETF   Emerge EMPWR Sustainable Select Growth Equity ETF 
   For the period September 8, 2022(1) to January 31, 2023 (Unaudited)   For the period September 8, 2022(1) to January 31, 2023 (Unaudited)   For the period September 8, 2022(1) to January 31, 2023 (Unaudited)   For the period September 9, 2022(1) to January 31, 2023 (Unaudited) 
Increase (Decrease) in Net Assets from Operations                
Net investment income (loss)  $7,984   $4,486   $935   $1,876 
Net realized gain (loss)   1,835    (15,897)   (2,417)   (17,025)
Net change in net unrealized appreciation (depreciation)   75,038    58,806    15,698    24,347 
Net increase (decrease) in net assets resulting from operations   84,857    47,395    14,216    9,198 
                     
Distributions   (5,835)   (3,595)   (1,003)   (2,106)
                     
Fund Shares Transactions                    
Proceeds from shares sold   1,016,175    500,000    500,000    500,000 
Value of shares redeemed   —    —    —    — 
Net increase (decrease) in net assets resulting from fund share transactions   1,016,175    500,000    500,000    500,000 
Total net increase (decrease) in net assets   1,095,197    543,800    513,213    507,092 
                     
Net Assets                    
Beginning of period   —    —    —    — 
End of period  $1,095,197   $543,800   $513,213   $507,092 
                     
Changes in Shares Outstanding                    
Shares outstanding, beginning of period   —    —    —    — 
Shares sold   40,000    20,000    20,000    20,000 
Shares redeemed   —    —    —    — 
Shares outstanding, end of period   40,000    20,000    20,000    20,000 

 

(1) Commencement of operations.

 

See Notes to Financial Statements.17  

 

 

Emerge ETF Trust

Statements of Changes in Net Assets (Continued)

 

 

 

   Emerge
EMPWR
Unified
Sustainable
Equity ETF		 
   For the period
September 9,
2022(1) to
January 31,
2023		 
   (Unaudited) 
Increase (Decrease) in Net Assets from Operations     
Net investment income (loss)  $2,987 
Net realized gain (loss)   (21,145)
Net change in net unrealized appreciation (depreciation)   35,918 
Net increase (decrease) in net assets resulting from operations   17,760 
      
Distributions   (2,523)
      
Fund Shares Transactions    
Proceeds from shares sold   600,002 
Value of shares redeemed   (95,002)
Net increase (decrease) in net assets resulting from fund share transactions   505,000 
Total net increase (decrease) in net assets   520,237 
      
Net Assets    
Beginning of period   — 
End of period  $520,237 
      
Changes in Shares Outstanding    
Shares outstanding, beginning of period   — 
Shares sold   24,000 
Shares redeemed   (3,943)
Shares outstanding, end of period   20,057 

 

(1) Commencement of operations.

 

See Notes to Financial Statements.18  

 

 

Emerge ETF Trust

Financial Highlights

 

 

    Period Ended 
    January 31,  
Emerge EMPWR Sustainable Dividend Equity ETF   2023(a) 
Selected Per Share Data   (Unaudited) 
Net Asset Value, beginning of period   $       25.00 
Income (loss) from investment operations:     
Net investment income (loss)(b)    0.25 
Net realized and unrealized gain (loss)    2.28 
Total from investment operations    2.53 
Less distributions from:    
Net investment income    (0.15)
Total distributions    (0.15)
Net Asset Value, end of period   $27.38 
Total Return (%)    10.13(c)
Ratios to Average Net Assets and Supplemental Data      
Net Assets, end of period ($ millions) $1 
Ratio of expenses before fee waiver (%)    1.05(d)
Ratio of expenses after fee waiver (%)    0.95(d)
Ratio of net investment income (loss) (%)    2.43(d)
Portfolio turnover rate (%)(e)    19(c)

 

   Period Ended 
   January 31, 
Emerge EMPWR Sustainable Emerging Markets Equity ETF  2023(a) 
Selected Per Share Data  (Unaudited) 
Net Asset Value, beginning of period  $        25.00 
Income (loss) from investment operations:     
Net investment income (loss)(b)   0.22 
Net realized and unrealized gain (loss)   2.15 
Total from investment operations   2.37 
Less distributions from:     
Net investment income   (0.18)
Total distributions   (0.18)
Net Asset Value, end of period  $27.19 
Total Return (%)   9.56(c)
Ratios to Average Net Assets and Supplemental Data     
Net Assets, end of period ($ millions)  $1 
Ratio of expenses before fee waiver (%)   1.05(d)
Ratio of expenses after fee waiver (%)   0.95(d)
Ratio of net investment income (loss) (%)   2.29(d)
Portfolio turnover rate (%)(e)   74(c)

 

(a)For the period September 8, 2022 (commencement of operations) through January 31, 2023.

(b)Per share numbers have been calculated using the average shares method.

(c)Not annualized.

(d)Annualized.

(e)Excludes the impact of in-kind transactions related to the processing of capital share transactions in Creation Units.

 

See Notes to Financial Statements.19  

 

 

Emerge ETF Trust

Financial Highlights (Continued)

 

 

   Period Ended 
   January 31, 
Emerge EMPWR Sustainable Global Core Equity ETF  2023(a) 
Selected Per Share Data  (Unaudited) 
Net Asset Value, beginning of period  $          25.00 
Income (loss) from investment operations:     
Net investment income (loss)(b)   0.05 
Net realized and unrealized gain (loss)   0.66 
Total from investment operations   0.71 
Less distributions from:     
Net investment income   (0.05)
Total distributions   (0.05)
Net Asset Value, end of period  $25.66 
Total Return (%)   2.85(c)
      
Ratios to Average Net Assets and Supplemental Data     
Net Assets, end of period ($ millions)  $1 
Ratio of expenses before fee waiver (%)   1.05(d)
Ratio of expenses after fee waiver (%)   0.95(d)
Ratio of net investment income (loss) (%)   0.48(d)
Portfolio turnover rate (%)(e)   16(c)

 

   Period Ended 
   January 31, 
Emerge EMPWR Sustainable Select Growth Equity ETF  2023(f) 
Selected Per Share Data  (Unaudited) 
Net Asset Value, beginning of period  $           25.00 
Income (loss) from investment operations:     
Net investment income (loss)(b)   0.09 
Net realized and unrealized gain (loss)   0.37 
Total from investment operations   0.46 
Less distributions from:     
Net investment income   (0.11)
Total distributions   (0.11)
Net Asset Value, end of period  $25.35 
Total Return (%)   1.84(c)
Ratios to Average Net Assets and Supplemental Data     
Net Assets, end of period ($ millions)  $1 
Ratio of expenses before fee waiver (%)   1.07(d)
Ratio of expenses after fee waiver (%)   0.97(d)
Ratio of net investment income (loss) (%)   1.01(d)
Portfolio turnover rate (%)(e)   97(c)

 

(a)For the period September 8, 2022 (commencement of operations) through January 31, 2023.

(b)Per share numbers have been calculated using the average shares method.

(c)Not annualized.

(d)Annualized.

(e)Excludes the impact of in-kind transactions related to the processing of capital share transactions in Creation Units.

(f)For the period September 9, 2022 (commencement of operations) through January 31, 2023.

 

See Notes to Financial Statements.20  

 

 

Emerge ETF Trust
Financial Highlights (Continued)

 

 

 

Emerge EMPWR Unified Sustainable Equity ETF
Selected Per Share Data		  Period Ended
January 31,
2023(a)
 (Unaudited) 		 
Net Asset Value, beginning of period  $25.00 
Income (loss) from investment operations:     
Net investment income (loss)(b)   0.14 
Net realized and unrealized gain (loss)   0.92 
Total from investment operations   1.06 
Less distributions from:     
Net investment income   (0.12)
Total distributions   (0.12)
Net Asset Value, end of period  $25.94 
Total Return (%)   4.26(c)
Ratios to Average Net Assets and Supplemental Data     
Net Assets, end of period ($ millions)  $1 
Ratio of expenses before fee waiver (%)   1.06(d)
Ratio of expenses after fee waiver (%)   0.96(d)
Ratio of net investment income (loss) (%)   1.48(d)
Portfolio turnover rate (%)(e)   96(c)

 

(a)For the period September 9, 2022 (commencement of operations) through January 31, 2023.
(b)Per share numbers have been calculated using the average shares method.
(c)Not annualized.
(d)Annualized.
(e)Excludes the impact of in-kind transactions related to the processing of capital share transactions in Creation Units.

 

See Notes to Financial Statements.21  

 

 

Emerge ETF Trust

Notes to Financial Statements

January 31, 2023 (Unaudited)

 

 

1. Organization

 

Emerge ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end registered management investment company organized on October 28, 2021, as a Delaware Statutory Trust.

 

As of January 31, 2023, the Trust consists of five investment series of exchange-traded funds (“ETFs”) (each a “Fund” and collectively, the “Funds”) in operation and trading. These financial statements report on the Funds listed below:

 

Emerge EMPWR Sustainable Dividend Equity ETF

Emerge EMPWR Sustainable Emerging Markets Equity ETF

Emerge EMPWR Sustainable Global Core Equity ETF

Emerge EMPWR Sustainable Select Growth Equity ETF

Emerge EMPWR Unified Sustainable Equity ETF

 

Emerge Capital Management, Inc. (the “Adviser”) serves as investment adviser to the Funds and has overall responsibility for the general management and administration of the Funds, subject to the oversight of the Trust’s Board of Trustees (the “Board”).

 

Shares of each Fund will be listed and traded on the Cboe Exchange, Inc. Market prices for the Shares may be different from their net asset value (“NAV”). Each Fund will issue and redeem Shares (“Shares” or “Fund Shares”) on a continuous basis at NAV only in large blocks of Shares called “Creation Units.” Creation Unit transactions are conducted in exchange for the deposit or delivery of a designated basket of in-kind securities and/or cash. Once created, Shares generally will trade in the secondary market in amounts less than a Creation Unit and at market prices that change throughout the day. Except when aggregated in Creation Units, Shares are not redeemable securities of the Funds. Shares of the Funds 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 (“NSCC”) or (ii) a participant in the Depository Trust Company and, in each case, must have executed a Participant Agreement with the Fund’s distributor, ALPS Distributors, Inc. (the “Distributor”). Most retail investors will not qualify as Authorized Participants or have the resources to buy or redeem whole Creation Units. Therefore, they will be unable to purchase or redeem shares directly from the Fund. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.

 

The investment objective of each Fund is to seek long-term growth of capital, except for Emerge EMPWR Sustainable Dividend Equity ETF. The investment objectives of Emerge EMPWR Sustainable Dividend Equity ETF is to seek long-term total return and current income.

 

2. Significant Accounting Policies

 

The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts and disclosures of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 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 Topic 946 Financial Services – Investment Companies including Accounting Standards Update 2013-08. The following is a summary of significant accounting policies followed by the Funds.

 

Investment Valuation

 

Each 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.

 

Investments in open-ended investment companies are valued at their NAV each business day and are categorized as Level 1.

 

The Funds have procedures, approved by the Board, to determine the fair value of individual securities and other assets for which market prices are not readily available (such as certain restricted or unlisted securities and private placements) or which may not be reliably priced (such as in the case of trade suspensions or halts, price movement limits set by certain foreign markets, and thinly traded or illiquid securities). The Board has designated the Adviser as the valuation designee pursuant to Rule 2a-5 under the 1940 Act to perform fair value determinations relating to any or all Fund investments. The application of fair value pricing procedures represents a good faith determination based upon specifically applied procedures. There can be no assurance that a Fund could obtain the fair value assigned to a security if the Fund was able to sell the security at approximately the time at which the Fund determines its NAV per share. These securities are either categorized as Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used. The Board oversees the Adviser in its role as valuation designee in accordance with the requirements of Rule 2a-5 under the 1940 Act.

 

22

 

 

Emerge ETF Trust

Notes to Financial Statements (Continued)

January 31, 2023 (Unaudited)

 

 

Equity securities are valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) or over-the-counter market on which they trade. Securities for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation. Equity securities are generally categorized as Level 1 securities in the fair value hierarchy.

 

Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:

 

•Level 1 – Quoted prices in active markets for identical assets that the funds have the ability to access.

 

•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 each 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.

 

The following is a summary of the valuations as of January 31, 2023 for each Fund based upon the three levels defined above:

 

Emerge EMPWR Sustainable Dividend Equity ETF                
Assets  Level 1   Level 2   Level 3   Total 
Common Stocks  $1,093,943   $—   $—   $1,093,943 
TOTAL  $1,093,943   $—   $—   $1,093,943 
                     
Emerge EMPWR Sustainable Emerging Markets Equity ETF                    
Assets   Level 1    Level 2    Level 3    Total 
Common Stocks  $531,563   $—   $—   $531,563 
TOTAL  $531,563   $—   $—   $531,563 
                     
Emerge EMPWR Sustainable Global Core Equity ETF                    
Assets   Level 1    Level 2    Level 3    Total 
Common Stocks  $506,012   $—   $—   $506,012 
TOTAL  $506,012   $—   $—   $506,012 
                     
Emerge EMPWR Sustainable Select Growth Equity ETF                    
Assets   Level 1    Level 2    Level 3    Total 
Common Stocks  $507,494   $—   $—   $507,494 
TOTAL  $507,494   $—   $—   $507,494 
                     
Emerge EMPWR Unified Sustainable Equity ETF                    
Assets   Level 1    Level 2    Level 3    Total 
Common Stocks  $515,226   $—   $—   $515,226 
TOTAL  $515,226   $—   $—   $515,226 

 

Cash

 

Cash includes non-interest bearing non-restricted cash on deposit with a major financial institution which may exceed federally insured limits.

 

Investment Transactions and Related Income

 

For financial reporting purposes, investment transactions are reported on the 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. Dividend income is recorded on the ex-dividend date. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount based on effective yield. Gains or losses realized on sales of securities are determined using the specific identification method by comparing the identified cost of the security lot sold with the net sales proceeds. Dividend income on the Statements of Operations is shown net of any foreign taxes withheld on income from foreign securities, which are provided for in accordance with each Fund’s understanding of the applicable tax rules and regulations.

 

23

 

 

Emerge ETF Trust
Notes to Financial Statements (Continued)
January 31, 2023 (Unaudited)

 

 

Income Tax Information and Distributions to Shareholders

 

It is the Funds’ policy to comply with all requirements of the Internal Revenue Code of 1986, as amended (“the Code”). Each Fund intends to qualify for and to elect treatment as a separate Regulated Investment Company (“RIC”) under Subchapter M of the Code. It is each Fund’s policy is to pay out dividends from net investment income annually Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, will be declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, will be available to offset future net capital gains. Each Fund may occasionally be required to make supplemental distributions at some other time during the year. Each Fund reserves the right to declare special distributions if, in its reasonable discretion, such action is necessary or advisable to preserve the status of each Fund as a RIC or to avoid imposition of income or excise taxes on undistributed income. Dividends and distributions to shareholders, if any, will be recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains will be determined in accordance with Federal income tax regulations which may differ from U.S. GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, (e.g., return of capital and distribution reclassifications), such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences (e.g., wash sales and straddles) do not require a reclassification. Dividends and distributions, which exceed earnings and profits for the full year for tax purposes, will be reported as a tax return of capital.

 

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed each Fund’s tax positions expected to be taken on foreign, federal and state income tax returns for all open tax years and has concluded that no provision for income tax is required in any Fund’s financial statement.

 

Each Fund will recognize interest and penalties, if any, related to uncertain tax positions as income tax expense on the Statement of Operations.

 

Foreign Taxes

 

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, capital gains on investments, certain foreign currency transactions or other corporate events. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on capital gains from sales of investments and foreign currency transactions are included in their respective net realized gain (loss) categories. Receivables and payables related to foreign taxes, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.

 

Foreign Currency Translations

 

The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the prevailing exchange rates on the respective dates of the transactions.

 

Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the acquisition and disposition of foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed, but is included with net realized and unrealized gain/appreciation and loss/depreciation on investments.

 

3. Investment Advisory Agreement and Other Agreements

 

The Adviser serves as the investment adviser to the Funds. Pursuant to an Investment Management Agreement (“Advisory Agreement”) between the Trust, on behalf of the Funds, and the Adviser, the Adviser provides management services to the Funds and oversees the day-to-day operations of the Funds, subject to the direction and control of the Board of Trustees (the “Board”) and the officers of the Trust. The Adviser administers the Fund’s business affairs, provides office facilities and equipment and certain clerical, bookkeeping and administrative services.

 

Catherine Avery Investment Management LLC d/b/a CAIM LLC, Channing Global Advisors, LLC, and Zevin Asset Management, LLC (each, a “Sub-Adviser,” and collectively, the “Sub-Advisers”) serve as sub-advisers to the Funds as indicated below:

 

Emerge EMPWR Sustainable Dividend Equity ETF - Catherine Avery Investment Management LLC d/b/a CAIM LLC
Emerge EMPWR Sustainable Emerging Markets Equity ETF - Channing Global Advisors, LLC

Emerge EMPWR Sustainable Global Core Equity ETF - Zevin Asset Management, LLC
Emerge EMPWR Unified Sustainable Equity ETF – Sub-Advisers

 

Pursuant to an Investment Sub-Advisory Agreement between the Adviser and each Sub-Adviser, each Sub-Adviser shall provide investment advice and make recommendations to the Adviser on a non-discretionary basis, and the Adviser shall be responsible for trading portfolio securities on behalf of the Funds, including selecting broker-dealers to execute purchase and sale transactions. For their services, the Sub-Advisers are paid a fee by the Adviser.

 

24

 

 

Emerge ETF Trust

Notes to Financial Statements (Continued)

January 31, 2023 (Unaudited)

 

 

For its investment advisory services to the Funds below, the Adviser was entitled to receive a management fee based on each Fund’s average daily net assets, computed and accrued daily and payable monthly, at an annual rate equal to:

 

   Management 
Fund  Fee 
Emerge EMPWR Sustainable Dividend Equity ETF   0.85%
Emerge EMPWR Sustainable Emerging Markets Equity ETF   0.85%
Emerge EMPWR Sustainable Global Core Equity ETF   0.85%
Emerge EMPWR Sustainable Select Growth Equity ETF   0.85%
Emerge EMPWR Unified Sustainable Equity ETF   0.85%

 

The Adviser has entered into an Expense Limitation Agreement to limit each Fund’s total operating expenses (excluding (i) payments under the Fund’s Rule 12b-1 plan (if any); (ii) brokerage expenses (including any costs incidental to transactions in portfolio securities, instruments and other investments); (iii) taxes; (iv) interest expenses (including borrowing costs and dividend expenses on securities sold short and overdraft charges); (v) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Fund’s Trustees and officers with respect thereto); (vi) acquired fund fees and expenses; and (vii) other non-routine or extraordinary expenses) so that such expenses do not exceed 0.95% of the Fund’s average daily net assets through at least September 8, 2023. While the Adviser or a Fund may discontinue the Expense Limitation Agreement after the contractual period, it may only be terminated during its term with the approval of the Board. For the period ended January 31, 2023, the Adviser waived expenses of the Funds as follows:

 

   Expenses 
Fund  Waived 
Emerge EMPWR Sustainable Dividend Equity ETF  $326 
Emerge EMPWR Sustainable Emerging Markets Equity ETF   195 
Emerge EMPWR Sustainable Global Core Equity ETF   192 
Emerge EMPWR Sustainable Select Growth Equity ETF   187 
Emerge EMPWR Unified Sustainable Equity ETF   203 

 

The Adviser pursuant to the Expense Limitation Agreement may recapture operating expenses waived or reimbursed under this arrangement for a period of three years following the date on which such waiver or reimbursement occurred; provided that such recapture may not cause a Fund’s total operating expenses to exceed 0.95% of the average daily net assets of the Fund (or any lower expense limitation or limitations to which the Fund and the Adviser may otherwise agree). As of January 31, 2023, the Adviser may potentially recapture the following amounts from the Funds listed below:

 

   Expires July 31, 
Fund  2026 
Emerge EMPWR Sustainable Dividend Equity ETF  $       326 
Emerge EMPWR Sustainable Emerging Markets Equity ETF   195 
Emerge EMPWR Sustainable Global Core Equity ETF   192 
Emerge EMPWR Sustainable Select Growth Equity ETF   187 
Emerge EMPWR Unified Sustainable Equity ETF   203 

 

The Board has adopted a distribution plan, sometimes known as a Rule 12b-1 plan, that allows the Funds to pay distribution fees of up to 0.25% per year, to those who sell and distribute Fund shares and provide other services to shareholders. The Board, however, has determined not to authorize payment of a Rule 12b-1 plan fee at this time for any Fund.

 

The Bank of New York Mellon (“BNY Mellon”) serves as the Funds’ custodian (the “Custodian”), administrator, transfer agent, and fund accountant. Pursuant to a Fund Administration and Accounting Agreement between the Trust and BNY Mellon, BNY Mellon provides necessary administrative, legal, tax, accounting services and financial reporting for the maintenance and operations of the Trust and the Funds.

 

ALPS Distributors, Inc. serves as the distributor of Creation Units for the Funds. Shares are continuously offered for sale by the Funds through the Distributor only in Creation Units, as described under “Organization” above. Shares in less than Creation Units are not distributed by the Distributor. The Distributor is a broker-dealer registered under the Securities Exchange Act of 1934, as amended, and a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”). Fees for these services are paid by the Adviser.

 

25

 

 

Emerge ETF Trust

Notes to Financial Statements (Continued)

January 31, 2023 (Unaudited)

 

 

Pursuant to an agreement between the Trust, on behalf of the Funds, and Compliance4, LLC, an employee of Compliance4 serves as Chief Compliance Officer and Anti-Money Laundering Compliance Officer of the Trust. As of August 30, 2022, certain Officers and a Trustee of the Trust were also officers or employees of the Adviser.

 

4. Investment Transactions

 

Purchases and sales of securities, other than short-term securities, U.S. Government Securities and in-kind transactions were as follows:

 

Fund  Purchases   Sales 
Emerge EMPWR Sustainable Dividend Equity ETF  $165,106   $132,246 
Emerge EMPWR Sustainable Emerging Markets Equity ETF   561,182    299,690 
Emerge EMPWR Sustainable Global Core Equity ETF   95,689    65,439 
Emerge EMPWR Sustainable Select Growth Equity ETF   413,426    383,871 
Emerge EMPWR Unified Sustainable Equity ETF   472,132    399,816 

 

Securities received and delivered in-kind through subscriptions and redemptions were as follows:

 

Fund  Purchases   Sales 
Emerge EMPWR Sustainable Dividend Equity ETF  $984,210   $— 
Emerge EMPWR Sustainable Emerging Markets Equity ETF   225,418    — 
Emerge EMPWR Sustainable Global Core Equity ETF   462,558    — 
Emerge EMPWR Sustainable Select Growth Equity ETF   471,319    — 
Emerge EMPWR Unified Sustainable Equity ETF   428,088    — 

 

5. Fund Share Transactions

 

The Funds issue and redeem Shares at NAV only in large blocks of Shares (each block of Shares is called a “Creation Unit”). Creation Units are issued and redeemed primarily in-kind for securities but may include or be entirely comprised of cash. Individual Shares may only be purchased and sold in secondary market transactions through brokers. Except when aggregated in Creation Units in transactions with Authorized Participants, the Shares are not redeemable securities of the Fund.

 

Fund Shares are listed and traded on the Exchange on each day that the Exchange is open for business (“Business Day”). Each Fund’s Shares may only be purchased and sold on the Exchange through a broker-dealer. Because each Fund’s Shares trade at market prices rather than at their NAV, Shares may trade at a price equal to the NAV, greater than NAV (premium) or less than NAV (discount).

 

6. Federal Income Taxes

 

At January 31, 2023, gross unrealized appreciation and depreciation of investments owned by each Fund, based on cost for federal income tax purposes were as follows:

 

               Net 
       Gross   Gross   Unrealized 
       Unrealized   Unrealized   Appreciation 
Fund  Tax Cost   Appreciation   Depreciation   (Depreciation) 
Emerge EMPWR Sustainable Dividend Equity ETF  $1,018,905   $85,139   $(10,101)  $75,038 
Emerge EMPWR Sustainable Emerging Markets Equity ETF   472,757    69,192    (10,386)   58,806 
Emerge EMPWR Sustainable Global Core Equity ETF   490,314    30,264    (14,566)   15,698 
Emerge EMPWR Sustainable Select Growth Equity ETF   483,147    32,702    (8,355)   24,347 
Emerge EMPWR Unified Sustainable Equity ETF   479,308    41,497    (5,579)   35,918 

 

The tax character of current year distributions will be determined at the end of the current fiscal year.

 

26

 

 

Emerge ETF Trust

Notes to Financial Statements (Continued)

January 31, 2023 (Unaudited)

 

 

7. Subsequent Events

 

Management has evaluated subsequent events through the date of issuance of these financial statements and has determined that there are no subsequent events that require adjustment to, or disclosure in, the financial statement.

 

27

 

 

Emerge ETF Trust

Fees and Expenses (Unaudited)

 

 

 

As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions paid on purchases and sales of fund shares, and (2) ongoing costs, including advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

 

The examples in the tables are based on an investment of $1,000 invested at the beginning of the period and held for the entire period (unless otherwise noted below).

 

Actual expenses

 

The first line in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.

 

Hypothetical example for comparison purposes

 

The second line in the following tables provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses (which is not the Fund’s actual return). The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

 

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only, and do not reflect any transactional costs. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

   Beginning
Account Value
August 1,
2022		   Ending
Account Value
January 31,
2023		   Annualized
Expense
Ratio		   Expenses
Paid
During the
Period
Per $1,000		 
Emerge EMPWR Sustainable Dividend Equity ETF                    
Actual  $1,000.00   $1,038.70    0.95%  $3.85(1)
Hypothetical (5% return before expenses)  $1,000.00   $1,020.42    0.95%  $4.84(2)
Emerge EMPWR Sustainable Emerging Markets Equity ETF                    
Actual  $1,000.00   $1,095.00    0.95%  $3.95(1)
Hypothetical (5% return before expenses)  $1,000.00   $1,020.42    0.95%  $4.84(2)
Emerge EMPWR Sustainable Global Core Equity ETF                    
Actual  $1,000.00   $1,052.00    0.95%  $3.87(1)
Hypothetical (5% return before expenses)  $1,000.00   $1,020.42    0.95%  $4.84(2)
Emerge EMPWR Sustainable Select Growth Equity ETF                    
Actual  $1,000.00   $1,068.70    0.95%  $3.90(1)
Hypothetical (5% return before expenses)  $1,000.00   $1,020.42    0.95%  $4.84(2)
Emerge EMPWR Unified Sustainable Equity ETF                    
Actual  $1,000.00   $1,056.20    0.95%  $3.88(1)
Hypothetical (5% return before expenses)  $1,000.00   $1,020.42    0.95%  $4.84(2)

 

(1)Expenses are equal to each Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 145 (the number of days in the period September 9, 2022 to January 31, 2023), then divided by 365.

 

(2)Expenses (hypothetical expenses as if the Fund had been in existence from August 1, 2022) are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 (the number of days in the most recent six-month period), then divided by 365.

 

28

 

 

Emerge ETF Trust

Board Consideration in Approval of Investment Management Agreement

(Unaudited)

 

 

Emerge EMPWR Sustainable Dividend Equity ETF, Emerge EMPWR Sustainable Emerging Markets Equity ETF, Emerge EMPWR Sustainable Global Core Equity ETF, Emerge EMPWR Sustainable Select Growth Equity ETF, and Emerge EMPWR Unified Sustainable Equity ETF

 

At a meeting held on August 31, 2022, the Board of Trustees (the “Board” or the “Trustees”) of the Emerge ETF Trust (the “Trust”), including the Trustees who are not “interested persons” (as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”)) of the Trust (the “Independent Trustees”), voting separately, reviewed and unanimously approved (i) each proposed Investment Management Agreement (collectively, the “IMA”) between Emerge Capital Management Inc. (“Emerge Capital”) and the Trust, on behalf of Emerge EMPWR Sustainable Dividend Equity ETF. Emerge EMPWR Sustainable Select Growth Equity ETF, Emerge EMPWR Sustainable Global Core Equity ETF, Emerge EMPWR Sustainable Emerging Markets Equity ETF and Emerge EMPWR Unified Sustainable Equity ETF (each, a “Fund,” and collectively, the “Funds”); and (ii) each Investment Sub-Advisory Agreement (each, a “Sub-Advisory Agreement,” and collectively, the “Sub-Advisory Agreements”) between Emerge Capital and each of the following proposed sub-advisers (each, a “Sub-Adviser”): Catherine Avery Investment Management LLC; Channing Global Advisors, LLC; Grace Capital; and Zevin Asset Management.

 

In considering approval of the IMA and each Sub-Advisory Agreement, the Board, including the Independent Trustees, reviewed the materials provided to the Board in advance of the meeting and other information from counsel and from Emerge Capital and each Sub-Adviser, including: (i) a copy of the form of IMA and each form of Sub-Advisory Agreement; (ii) information describing the nature, quality and extent of the services that Emerge Capital expected to provide to the Funds and that each Sub-Adviser expected to provide to its corresponding Fund; (iii) information concerning the financial condition, business, operations, portfolio management teams, and compliance program of Emerge Capital and each Sub-Adviser; (iv) information describing each Fund’s proposed investment advisory fee and operating expenses; (v) a copy of the current Form ADV for Emerge Capital and each Sub-Adviser; and (vi) a memorandum from counsel regarding the responsibilities of the Trustees in considering investment advisory arrangements under the 1940 Act. The Board also considered presentations made by, and discussions held with, representatives of Emerge Capital. The Board also received information from two separate third-party data providers comparing the proposed advisory fees and expense ratios of each Fund to the advisory fees and expense ratios of a universe of peers (with respect to each Fund, a “Peer Group,” and collectively, the “Peer Groups”). It was noted that one Peer Group for each Fund included both management fees and expense ratios (the “Primary Peer Group”), while the second Peer Group for each Fund included only management fees (the “Secondary Peer Group”). It was further noted that the Secondary Peer Group was not available for the Emerge EMPWR Unified Sustainable Equity ETF.

 

During its review of this information, the Board focused on and analyzed the factors that the Board deemed relevant, including: (i) the nature, extent and quality of the services expected to be provided to each Fund by Emerge Capital and its corresponding Sub-Adviser; (ii) Emerge Capital’s and each Sub-Adviser’s personnel and operations; (iii) the Funds’ proposed expense levels; (iv) any “fall-out” benefits to Emerge Capital and the Sub-Advisers (i.e., the ancillary benefits realized by Emerge Capital or a Sub-Adviser from its relationship with the Trust); (v) the effect of asset growth on a Fund’s expenses; and (vi) possible conflicts of interest.

 

The Board, including the Independent Trustees, considered the following in respect of the Funds:

 

(a) The nature, extent and quality of services expected to be provided to each Fund by Emerge Capital and its corresponding Sub-Adviser, including personnel and operations of Emerge Capital and the Sub-Adviser.

 

The Board reviewed the services that Emerge Capital and each Sub-Adviser was expected to provide to the Funds. The Board noted the responsibilities that Emerge Capital would have as each Fund’s investment adviser, including: the responsibility for the management and investment of the Fund’s portfolio; executing portfolio security and other asset trades; monitoring compliance with the Fund’s investment objective, policies and limitations; the responsibility for quarterly reporting to the Board; the oversight of general portfolio compliance with relevant law; and the implementation of Board directives as they relate to the Funds. The Board also noted that each Sub-Adviser would provide investment advice and make recommendations to Emerge Capital on a non-discretionary basis.

 

The Board considered Emerge Capital’s and each Sub-Adviser’s experience in managing other portfolios. Based on its consideration and review of the foregoing information, the Board determined that the Funds were likely to benefit from the nature, quality and extent of these services, as well as Emerge Capital’s and each Sub-Adviser’s ability to render such services, based on Emerge Capital’s and each Sub-Adviser’s experience, personnel, operations and resources.

 

(b) Comparison of services expected to be provided and fees to be paid, and the cost of the services to be provided and profits to be realized by Emerge Capital and each Sub-Adviser from their relationships with the Funds; “fall-out” benefits.

 

The Board compared both the services to be provided to the Funds by Emerge Capital and each Sub-Adviser and the related fees to those of other investment companies within the Funds’ Peer Groups. In particular, the Board compared each Fund’s proposed advisory fee and projected expense ratio to other investment companies included in its Peer Groups.

 

29

 

 

Emerge ETF Trust

Board Consideration in Approval of Investment Management Agreement

(Unaudited) (Continued)

 

 

With respect to the Emerge EMPWR Sustainable Dividend Equity ETF, the Board noted that the Fund’s proposed management fee was equal to the highest management fee of its Primary Peer Group, and above the average but below the highest management fee of its Secondary Peer Group. The Board further noted that the Fund’s projected expense ratio was the highest expense ratio of its Primary Peer Group. With respect to the Emerge EMPWR Sustainable Select Growth Equity ETF, the Board noted that the Fund’s proposed management fee was below the highest management fee of its Primary Peer Group, and above the average but below the highest management fee of its Secondary Peer Group. The Board further noted that the Fund’s projected expense ratio was equal to the highest expense ratio of its Primary Peer Group. With respect to the Emerge EMPWR Sustainable Global Core Equity ETF, the Board noted that the Fund’s proposed management fee was below the highest management fee of its Primary Peer Group and Secondary Peer Group, and only slightly above the average management fee of its Secondary Peer Group. With respect to the Emerge EMPWR Sustainable Emerging Markets Equity ETF, the Board noted that the Fund’s proposed management fee was below the highest management fee of its Primary Peer Group and below the average management fee of its Secondary Peer Group. The Board further noted that the Fund’s projected expense ratio was equal to the highest expense ratio of its Primary Peer Group With respect to the Emerge EMPWR Unified Sustainable Equity ETF, the Board noted that the Fund’s proposed management fee and projected expense ratio were below the highest management fee and expense ratio of its Primary Peer Group.

 

While some of the Funds’ expense ratios were the highest in their Peer Groups, the Board noted that they were not unreasonably disproportionate to the other expense ratios in the Peer Groups and also considered that Emerge Capital proposed to enter into an Expense Limitation Agreement for each Fund whereby Emerge Capital would waive advisory fees and/or reimburse expenses to keep each Fund’s expenses from exceeding certain levels. After comparing each Fund’s proposed fees with those of other funds in its Peer Groups, and in light of the nature, quality and extent of services proposed to be provided by Emerge Capital and each Sub-Adviser, and the costs expected to be incurred by Emerge Capital in providing those services, the Board concluded that the level of fees proposed to be paid to Emerge Capital and each Sub-Adviser with respect to the Funds was fair and reasonable.

 

The Board considered that Emerge Capital and each Sub-Adviser may experience certain “fall-out” benefits based on the potential success of the Funds, but that such benefits are not presently quantifiable. The Board noted that the Trust’s service providers are not affiliated with Emerge Capital or any Sub-Adviser, so that such services do not give rise to “fall-out” benefits for Emerge Capital or any Sub-Adviser.

 

(c) The extent to which economies of scale would be realized as the Funds grow, and whether fee levels would reflect such economies of scale.

 

The Board discussed potential economies of scale. Because the Trust is newly formed, the Funds had not commenced operations, and the eventual amount of Fund assets was uncertain, Emerge Capital was not able to provide the Board with specific estimates on anticipated asset levels, although Emerge Capital did discuss levels at which it believed economies of scale could be realized. The Board recognized the uncertainty in launching new investment products and estimating future asset levels.

 

(d) Investment performance of the Funds, Emerge Capital and each Sub-Adviser.

 

Because the Funds are newly formed and had not commenced operations, the Board did not consider the investment performance of the Funds. The Board considered the performance of Emerge Capital and each Sub-Adviser in managing other discretionary investment management accounts.

 

Conclusion

 

No single factor was determinative to the decision of the Board. Based on the foregoing and such other matters as were deemed relevant, the Board concluded that the proposed advisory fees and projected total expense ratios for the Funds were reasonable in relation to the services to be provided by Emerge Capital and each Sub-Adviser to the Funds, as well as the costs to be incurred and benefits to be gained by Emerge Capital and each Sub-Adviser in providing such services. The Board also found the proposed advisory fees to be reasonable in comparison to the fees charged by advisers to other similar funds. As a result, the Board, including the Independent Trustees, concluded that the initial approval of the IMA and each Sub-Advisory Agreement was in the best interests of the Funds.

 

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Emerge ETF Trust

Additional Information (Unaudited)

 

 

 

Proxy Voting Policies and Procedures

 

The Funds’ policies and procedures for voting proxies for portfolio securities and information about how each Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 are available on our Web site at www.emergecm.com or on the SEC’s Web site — www.sec.gov. To obtain a written copy of the Funds’ policies and procedures without charge, upon request, call us toll free at (877) 836-3743.

 

Portfolio Holdings Information

 

The Funds are required to file their complete schedule of portfolio holdings with the SEC for their first and third fiscal quarters on Form N-PORT. Copies of the filings are available without charge, upon request on the SEC’s website at www.sec.gov and are available by calling the Trust at (877) 836-3743.

 

Discount & Premium Information

 

Information regarding how often shares of each Fund traded on the Cboe Exchange, Inc., as applicable, at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund can be found at www.emergecm.com.

 

This report must be preceded or accompanied by a prospectus.

 

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Investment Adviser Investment Sub-Adviser Investment Sub-Adviser
Emerge Capital Management Inc. Catherine Avery Investment Zevin Asset Management, LLC
500 Pearl Street, Suite 740 Management LLC d/b/a CAIM LLC 2 Oliver Street, Suite 806
Buffalo, New York 14202 595 Bay Isles Road, Suite 210 Boston, Massachusetts 02109
  LongBoat Key, Florida 34228  

 

    Custodian, Administrator &
Investment Sub-Adviser Fund Compliance Transfer Agent
Channing Global Advisors, LLC Compliance4, LLC The Bank of New York Mellon
801 Brickell Ave, Suite 800 9 Terison Drive, Suite 100 240 Greenwich Street
Miami, Florida 33131 Falmouth, ME 04105 New York, NY 10036

 

  Independent Registered Public  
Distributor Accounting Firm Legal Counsel
ALPS Distributors, Inc. KPMG, LLP Stradley Ronon Stevens & Young,
1290 Broadway, Suite 1000 1601 Market Street LLP
Denver, Colorado 80203 Philadelphia, PA 19103 2005 Market Street
    Suite 2600
    Philadelphia, PA 19103

 

Emerge ETF Trust

500 Pearl Street, Suite 740

Buffalo, New York 14202

 

 

 

 

(b)Not applicable

 

Item 2. Code of Ethics.

 

Not Applicable for the semi-annual reporting period.

 

Item 3. Audit Committee Financial Expert.

 

Not Applicable for the semi-annual reporting period.

 

Item 4. Principal Accountant Fees and Services.

 

Not Applicable for the semi-annual reporting period.

 

Item 5. Audit Committee of Listed Registrants.

 

Not Applicable for the semi-annual reporting period.

 

Item 6. Investments.

 

(a)Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

 

(b)Not applicable.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

 

Not applicable.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

Not applicable.

 

 

 

 

Item 10. Submission of Matters to a Vote of Security Holders.

 

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

 

Item 11. Controls and Procedures.

 

(a)The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 13. Exhibits.

 

(a)(1)Not applicable.

 

(a)(2)Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

(a)(2)(1)Not Applicable.

 

(a)(2)(2)Not Applicable.

 

  (b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

 

 

 

SIGNATURES

 

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

 

(Registrant)Emerge ETF Trust  

 

By (Signature and Title)* /s/ Lisa Lake Langley  
  Lisa Lake Langley, President  
  (principal executive officer)  

 

Date      April 7, 2023                   

 

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

 

By (Signature and Title)* /s/ Lisa Lake Langley  
  Lisa Lake Langley, President  
  (principal executive officer)  

 

Date      April 7, 2023                   

 

By (Signature and Title)* /s/ Desmond Alvares  
  Desmond Alvares, Treasurer  
  (principal financial officer)  

 

Date      April 7, 2023                   

 

* Print the name and title of each signing officer under his or her signature.