EXCHANGE LISTED FUNDS TRUST

ETC Gavekal Asia Pacific Government Bond ETF (AGOV)

Semi-Annual Report

September 30, 2023

(Unaudited)

ETC Gavekal Asia Pacific Government Bond ETF
Schedule of Investments		1
Summary of Investments		3
Statement of Assets and Liabilities		4
Statement of Operations		5
Statements of Changes in Net Assets		6
Financial Highlights		7
Notes to Financial Statements		8
Disclosure of Fund Expenses		17
Board Consideration of Approval of Advisory and Sub-Advisory Agreements		18

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is available in the Fund’s prospectus, a copy of which may be obtained by visiting the Fund’s website at www.agovetf.com. Please read the Fund’s prospectus carefully before you invest.

There are risks involved with investing, including possible loss of principal, and there is no guarantee the Fund will achieve its investment objective. The Fund is classified as a non-diversified investment company under the Investment Company Act of 1940 (the “1940 Act”). Concentration in a particular industry or sector will subject the Fund to loss due to adverse occurrences that may affect that industry or sector.

Individual shares of the Fund may be purchased or sold in the secondary market throughout the regular trading day on the NYSE Arca, Inc. (the “Exchange”) through a brokerage account. However, shares are not individually redeemable directly from the Fund. The Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large blocks of shares (“Creation Units”).

Distributor: Foreside Fund Services, LLC

See accompanying Notes to Financial Statements.

See accompanying Notes to Financial Statements.

Security Type/Industry		Percent of Total Net Assets
Foreign Bonds
Sovereign		78.7	%
Supranational		18.2	%
Total Foreign Bonds		96.9	%
Short-Term Investments		2.1	%
Total Investments		99.0	%
Other Assets in Excess of Liabilities		1.0	%
Total Net Assets		100.0	%

See accompanying Notes to Financial Statements.

		ETC Gavekal Asia Pacific Government Bond ETF
Assets:
Investments, at value		$	35,672,367
Foreign currency, at value			6,011
Interest receivable			339,851
Dividends receivable			3,200
Foreign tax reclaim			98
Total Assets			36,021,527
Liabilities:
Advisory fee payable			14,876
Total Liabilities			14,876
Net Assets		$	36,006,651
Net Assets Consist of:
Paid-in capital		$	50,005,360
Distributable earnings (loss)			(13,998,709	)
Net Assets		$	36,006,651
Shares of Beneficial Interest Outstanding (unlimited number of shares authorized, no par value)			490,000
Net Asset Value, Offering and Redemption Price Per Share		$	73.48
Investments, at cost		$	48,932,329
Foreign currency, at cost		$	5,720

See accompanying Notes to Financial Statements.

		ETC Gavekal Asia Pacific Government Bond ETF
		For the Six Months Ended September 30, 2023 (Unaudited)
Investment Income:
Dividends		$	13,451
Interest*			595,185
Total Investment Income			608,636
Expenses:
Advisory fees			92,638
Total Expenses			92,638
Net Investment Income (Loss)			515,998
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Foreign currency transactions			(5,082	)
Net realized gain (loss)			(5,082	)
Net change in unrealized appreciation (depreciation) on:
Investments			(1,958,930	)
Foreign currency translations			(8,748	)
Net change in unrealized appreciation (depreciation)			(1,967,678	)
Net realized and unrealized gain (loss)			(1,972,760	)
Net Increase (Decrease) in Net Assets Resulting from Operations		$	(1,456,762	)
* Net of foreign withholding taxes		$	70,965

See accompanying Notes to Financial Statements.

		ETC Gavekal Asia Pacific Government Bond ETF
		For the Six Months Ended September 30, 2023 (Unaudited)				Year Ended March 31, 2023
From Investment Activities:
Operations:
Net investment income (loss)		$	515,998			$	988,961
Net realized gain (loss)			(5,082	)			(1,883,048	)
Change in net unrealized appreciation (depreciation)			(1,967,678	)			(2,226,952	)
Net Increase (Decrease) in Net Assets Resulting from Operations			(1,456,762	)			(3,121,039	)
Distributions to Shareholders			—				(913,999	)
Capital Share Transactions:
Proceeds from shares issued			—				—
Cost of shares redeemed			—				(8,390,326	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions			—				(8,390,326	)
Total Increase (Decrease) in Net Assets			(1,456,762	)			(12,425,364	)
Net Assets:
Beginning of period			37,463,413				49,888,777
End of period		$	36,006,651			$	37,463,413
Change in Shares Outstanding:
Shares outstanding, beginning of period			490,000				595,000
Shares issued			—				—
Shares redeemed			—				(105,000	)
Shares outstanding, end of period			490,000				490,000

See accompanying Notes to Financial Statements.

ETC Gavekal Asia Pacific Government Bond ETF Selected Per Share Data		For the Six Months Ended September 30, 2023 (Unaudited)				Year Ended March 31, 2023				For the period July 22, 2021(1) through March 31, 2022
Net Asset Value, beginning of period		$	76.46			$	83.85			$	100.00
Investment Activities
Net investment income (loss)(2)			1.05				1.77				1.62
Net realized and unrealized gain (loss)			(4.03	)			(7.42	)			(17.02	)
Total from investment activities			(2.98	)			(5.65	)			(15.40	)
Distributions to shareholders from:
Net investment income			—				(1.74	)			(0.75	)
Total distributions			—				(1.74	)			(0.75	)
Net Asset Value, end of period		$	73.48			$	76.46			$	83.85
Total Return (%)			(3.89	)(3)			(6.82	)			(15.52	)(3)
Total Return at Market Price (%)			(5.17	)(3)			(4.46	)			(16.18	)(3)
Ratios to Average Net Assets
Expenses (%)			0.50	​(4)			0.50				0.50	​(4)
Net investment income (loss) (%)			2.79	​(4)			2.21				2.46	​(4)
Supplemental Data
Net Assets at end of period (000’s)		$	36,007			$	37,463			$	49,889
Portfolio turnover (%)(5)			—	​(3)			23				20	​(3)

​(1)   Commencement of operations.

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

​(3)   Not annualized for periods less than one year.

​(4)   Annualized for periods less than one year.

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

See accompanying Notes to Financial Statements.

Note 1 – Organization

Exchange Listed Funds Trust (the “Trust”) was organized on April 4, 2012 as a Delaware statutory trust and is registered with the Securities and Exchange Commission (“SEC”) under the 1940 Act as an open-end management investment company. The Agreement and Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest (“Shares”) in one or more series representing interests in separate portfolios of securities. The Trust has registered its Shares in multiple separate series. The assets of each series in the Trust are segregated and a shareholder’s interest is limited to the series in which Shares are held. The financial statements herein are for the ETC Gavekal Asia Pacific Government Bond ETF (the “Fund”).

The Fund is an actively managed exchange-traded fund (“ETF”). Unlike index ETFs, actively managed ETFs do not seek to track the performance of a specified index. Instead, the Fund uses an active investment strategy in seeking to meet its investment objective.

The Fund employs a “multi-manager” approach whereby portions of the Fund’s assets are allocated among sub-advisers. Exchange Traded Concepts, LLC (the “Adviser”) is responsible for the management of the Fund and supervision of the Fund’s sub-advisers, Gavekal Capital Limited (“Gavekal”) and System 2 Advisors, L.P. (“S2”) (each, a “Sub-Adviser,” and together, the “Sub-Advisers”). Each Sub-Adviser manages its allocated portion of the Fund’s assets to correspond with its distinct investment style and strategy in a manner consistent with the Fund’s investment objective, strategies, and restrictions.

The Fund’s investment objective is to seek to provide absolute positive returns, which the Fund seeks to achieve by investing in local currency bonds issued by national governments (i.e., sovereign bonds) and instrumentalities or political sub-divisions in the Asia-Pacific region and in supranational bonds. The Fund commenced operations on July 22, 2021.

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

Note 2 – Basis of Presentation and Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Trust in the preparation of the financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The Trust is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies.”

(a) Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and income and expenses during the reporting period. Management believes the estimates and security valuations are appropriate; however, actual results may differ from those estimates, and the security valuations reflected in the financial statements may differ from the value the Fund ultimately realizes upon sale of the securities.

(b) Valuation of Investments

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

In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund’s investment adviser to perform fair-value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are

“readily available” for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair-value determinations.

Pursuant to the requirements of Rule 2a-5, the Board (i) designated the Adviser as the Board’s valuation designee to perform fair-value determinations for the Fund through the Adviser’s Valuation Committee and (ii) the Adviser’s Valuation Procedures.

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

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

•      Level 1 – Quoted prices in active markets for identical assets.

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

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

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

Pursuant to the valuation procedures noted previously, open-end investment companies are valued at their NAV each business day and are categorized as Level 1, Foreign Government Bonds are valued at prices supplied by independent pricing services approved by the Valuation Committee. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. If the pricing services are unable to provide valuations, securities are valued at the mean between the bid and ask quotations or evaluated prices, as applicable, obtained from broker dealers. These securities are generally categorized as Level 2.

The following is a summary of the valuations as of September 30, 2023 for the Fund based upon the three levels defined above:

ETC Gavekal Asia Pacific Government Bond ETF		Level 1			Level 2			Level 3				Total
Investments
Foreign Bonds(a)		$	—		$	34,907,038		$	—	​(b)		$	34,907,038
Short-Term Investments			765,329			—			—				765,329
Total		$	765,329		$	34,907,038		$	—			$	35,672,367

​(a)   See Schedule of Investments for additional detailed categorizations.

​(b)   A reconciliation of Level 3 investments and disclosures of significant unobservable inputs are presented when the Fund has a significant amount of Level 3 investments at the beginning and/or end of the period in relation to Net Assets. Management has concluded that Level 3 investments are not material in relation to Net Assets.

pandemic, Russia’s invasion of Ukraine, and the rise of inflation have resulted in extreme volatility in the global economy and in global financial markets. Economies and financial markets throughout the world are becoming increasingly interconnected. As a result, whether or not the Fund invests insecurities of issuers located in or with significant exposure to countries experiencing economic and financial difficulties, the value and liquidity of the Fund’s investments may be negatively affected.

Non-Diversification Risk. The Fund is non-diversified under the 1940 Act, meaning that, as compared to a diversified fund, it can invest a greater percentage of its assets in securities issued by or representing a small number of issuers. As a result, the performance of these issuers can have a substantial impact on the Fund’s performance.

Trading Risk. Shares of the Fund may trade on the Exchange above (premium) or below (discount) their NAV. The NAV of shares of the Fund will fluctuate with changes in the market value of the Fund’s holdings. The market prices of the Fund’s shares will fluctuate continuously throughout trading hours based on market supply and demand and may deviate significantly from the value of the Fund’s holdings, particularly in times of market stress, with the result that investors may pay more or receive less than the underlying value of the Fund shares bought or sold. When buying or selling shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase shares of the Fund (bid) and the lowest price a seller is willing to accept for shares of the Fund (ask), which is known as the bid-ask spread. In addition, although the Fund’s shares are currently listed on the Exchange, there can be no assurance that an active trading market for shares will develop or be maintained. Trading in Fund shares may be halted due to market conditions or for reasons that, in the view of the Exchange, make trading in shares of the Fund inadvisable. In stressed market conditions, the market for the Fund’s shares may become less liquid in response to deteriorating liquidity in the markets for the Fund’s underlying portfolio holdings. In such a circumstance, the Fund’s shares could trade at a premium or discount to their NAV.

Note 7 – Federal Income Taxes

As of the tax year ended March 31, 2023, the components of distributable earnings (loss) on a tax basis were as follows:

Fund		Accumulated Capital and Other Losses*			Undistributed Ordinary Income			Undistributed Long-Term Capital Gains (Losses)			Unrealized Appreciation (Depreciation) on Investments				Distributable Earnings (Loss)
ETC Gavekal Asia Pacific Government Bond ETF		$	(1,244,231)		$	—		$	—		$	(11,297,716	)		$	(12,541,947	)

*   Includes $630,646 of qualified late-year ordinary losses, which are deferred until April 1, 2023 for tax purposes. Net late-year losses incurred after December 31, 2022, and within the taxable year are deemed to arise on the first day of the Fund’s next taxable year.

At September 30, 2023, gross unrealized appreciation and depreciation of investments owned by the Fund, based on cost for federal income tax purposes were as follows:

Fund		Tax Cost of Investments			Unrealized Appreciation on Investments			Unrealized Depreciation on Investments				Net Unrealized Appreciation (Depreciation) on Investments
ETC Gavekal Asia Pacific Government Bond ETF		$	48,932,329		$	—		$	(13,259,962	)		$	(13,259,962	)

As of the tax year ended March 31, 2023, the Fund had non-expiring accumulated capital loss carryforwards as follows:

Fund		Short-Term			Long-Term			Total Amount
ETC Gavekal Asia Pacific Government Bond ETF		$	177,540		$	436,045		$	613,585

To the extent that the Fund may realize future net capital gains, those gains will be offset by any of its unused capital loss carryforward. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations. In the current year the fund did not utilize any prior accumulated capital losses.

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

Note 8 – Recent Market Events

Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the market generally and on specific securities. Periods of market volatility may occur in response to such events and other economic, political, and global macro factors. The COVID-19 pandemic, Russia’s invasion of Ukraine, and higher inflation have resulted in extreme volatility in the financial markets, economic downturns around the world, severe losses to some sectors of the economy and individual issuers, and reduced liquidity of certain instruments. These events have caused significant disruptions to business operations, including business closures; strained healthcare systems; disruptions to supply chains and employee availability; large fluctuations in consumer demand; large expansion of government deficits and debt as a result of government actions to mitigate the effects of such events; and widespread uncertainty regarding the long-term effects of such events.

Governments and central banks, including the Federal Reserve in the United States, took extraordinary and unprecedented actions to support local and global economies and the financial markets in response to the COVID-19 pandemic, including by keeping interest rates at historically low levels for an extended period. The Federal Reserve concluded its market support activities in 2022 and began to raise interest rates in an effort to fight inflation. The Federal Reserve may determine to raise interest rates further. This and other government intervention into the economy and financial markets to address the pandemic, inflation, or other significant events in the future may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results.

Note 9 – Events Subsequent to the Fiscal Period End

In preparing these financial statements, management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

On October 18, 2023, the Board approved the liquidation of the ETC Gavekal Asia Pacific Government Bond ETF. The Fund liquidated on November 17, 2023.

Management has determined there are no subsequent events that would require disclosure in the Fund’s financial statements.

All ETFs have operating expenses. As a shareholder of the Fund, you incur an advisory fee. In addition to the advisory fee, a shareholder may pay brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses), if any. It is important for you to understand the impact of these ongoing costs on your investment returns. Shareholders may incur brokerage commissions on their purchases and sales of the Fund’s shares, which are not reflected in these examples.

The following examples use the annualized expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in the Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period (unless otherwise noted below). The table below illustrates the Fund’s cost in two ways:

Actual Fund Return

This section helps you to estimate the actual expenses after fee waivers that the Fund may have incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.

You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”

Hypothetical 5% Return

This section helps you compare your Fund’s costs with those of other funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio for the period is unchanged. This example is useful in making comparisons because the SEC requires all funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.

NOTE: Because the return is set at 5% for comparison purposes – NOT your Fund’s actual return – the account values shown may not apply to your specific investment.

		Beginning Account Value April 1, 2023		Ending Account Value September 30, 2023		Annualized Expense Ratio		Expenses Paid During Period(1)
ETC Gavekal Asia Pacific Government Bond ETF
Actual Performance		$   1,000.00		$        961.10		0.50%		$          2.45
Hypothetical (5% return before expenses)		$   1,000.00		$      1,022.50		0.50%		$          2.53

​(1)   Expenses paid during the period are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 183 (the number of days in the most recent six-month period), then divided by 366.

At a meeting held on September 7, 2023 (the “Meeting”), the Board of Trustees (the “Board”) of Exchange Listed Funds Trust (the “Trust”) considered and approved the continuance of the investment advisory agreement between the Trust, on behalf of the ETC Gavekal Asia Pacific Government Bond ETF (“AGOV” or the “Fund”), and Exchange Traded Concepts, LLC (“ETC”), the sub-advisory agreement between ETC and Gavekal Group (“Gavekal”), and the sub-advisory agreement between ETC and System 2 Advisors, L.P. (“S2”) (together, the “Agreements”).

In considering whether to approve the continuance of the Agreements, the Board took into account the materials provided for the Meeting, the extensive discussion before and during the Meeting, including the discussion the Independent Trustees had during their executive session with independent legal counsel. In particular, the Board took into consideration (i) the nature, extent, and quality of the services provided by ETC and each sub-adviser to the Fund; (ii) the Fund’s performance; (iii) ETC’s and each sub-adviser’s costs of and profits realized from providing advisory and sub-advisory services to the Fund, including any fall-out benefits enjoyed by ETC and the sub-advisers or their respective affiliates; (iv) comparative fee and expense data; (v) the extent to which the advisory fee for the Fund reflects economies of scale shared with Fund shareholders; and (vi) other factors the Board deemed to be relevant.

Nature, Extent, and Quality of Services. With respect to the nature, extent, and quality of the services provided to the Fund, the Board considered ETC’s and each sub-adviser’s specific responsibilities in all aspects of day-to-day management of the Fund. The Board noted that AGOV is structured as an actively managed fund that is advised by ETC and for which Gavekal is responsible for making day-to-day investment decisions for the Fund and ETC and S2 are responsible for trading portfolio securities on behalf of the Fund. The Board found that (i) ETC’s responsibilities, including through its affiliates, include ensuring the Fund has a continuous investment program; overseeing the sub-advisers including regular review of the sub-advisers’ performance; trading portfolio securities on behalf of the Fund; selecting broker-dealers to execute purchase and sale transactions; determining the daily baskets of deposit securities and cash components; executing portfolio securities trades for purchases and redemptions of Fund shares conducted on a cash-in-lieu basis; monitoring compliance with various policies and procedures and applicable securities regulations; overseeing general portfolio compliance with relevant law; quarterly reporting to the Board; and implementing Board directives as they relate to the Fund, (ii) subject to the supervision of ETC and oversight of the Board, Gavekal’s responsibilities include making portfolio investment decisions for the Fund and continuously reviewing and administering the investment program of the Fund, and (iii) subject to the supervision of ETC and oversight of the Board, S2’s responsibilities include the limited trading of portfolio securities and other investment instruments on behalf of the Fund in certain foreign jurisdictions (currently, India) and selecting broker-dealers to execute certain purchase and sale transactions. The Board noted that it had been provided with ETC’s and the sub-advisers’ registration forms on Form ADV as well as their responses to a detailed series of questions, which included a description of their operations, services, personnel, compliance programs, risk management programs, and financial conditions, and whether there had been material changes to such information since it was last presented to the Board. The Board considered the qualifications, experience, and responsibilities of ETC’s and each sub-adviser’s investment personnel, the quality of ETC’s and the sub-advisers’ compliance infrastructures, and the determination of the Trust’s Chief Compliance Officer that each has appropriate compliance policies and procedures in place. The Board considered ETC’s and each sub-adviser’s experience working with ETFs, including the Fund, and noted ETC’s experience managing other series of the Trust and other ETFs outside of the Trust.

The Board also considered other services provided to the Fund by ETC, including its affiliates, such as arranging for transfer agency, custody, fund administration and accounting, and other non-distribution related services necessary for the Fund to operate; administering the Fund’s business affairs; providing office facilities and equipment and certain clerical, bookkeeping, and administrative services; liaising with and reporting to the Board on matters relating to Fund operations, portfolio management and other matters essential to the Fund’s business activities; supervising the Fund’s registration as an investment company and the offering of Fund shares to the public, including oversight and preparation of regulatory filings; working with ETF market participants, including authorized participants, market makers, and exchanges, to help facilitate an orderly trading environment for the Fund’s shares; and providing its officers and employees to serve as officers or Trustees of the Trust.

With respect to S2, the Board noted ETC’s representation that as of the present date S2 is only operational in India, S2 has only executed a limited number of trades of securities of issuers located in India since the inception of AGOV, and S2’s engagement continues to be necessary to sell those positions. ETC has been monitoring S2’s progress in onboarding in those several countries in which it was intended to be operational, as well as with respect to the provision of regular reporting to ETC and demonstration of best execution of trades it makes on behalf of the Fund. S2’s role is therefore highly limited at this time with respect to AGOV, but continues to be necessary.

Based on review of this information, the Board concluded that the nature, extent and quality of services provided to the Fund under the Agreements supported the Board’s approval of the continuance of the Agreements, respectively, for the coming year.

Performance. The Board reviewed the Fund’s performance in light of its stated investment objective, noting that the Fund is actively managed. The Board was provided reports regarding the Fund’s past performance, including a report comparing the Fund’s performance to the performance of its peer group and benchmark index for various time periods ended June 30, 2023.

The Board found that the Fund underperformed the median and mean for both of the June 30, 2023 year-to-date and 1 year periods (annualized) relative to its Peer Group, and also underperformed its benchmark index (Bloomberg Asian Pacific Aggregate Index) for the one-year period ended June 30, 2023 and since inception. The Board considered ETC’s commentary with respect to Fund performance, including the Fund’s short performance period, and the fact that it was subject to extraordinary events that contributed to negative performance, among other matters, that the Fund’s exposure to Russian Government bonds and their markdown to zero value was a significant contributor to negative returns. The Board noted that ETC had represented that it will continue to monitor AGOV to determine if additional steps are necessary to correct underperformance if persistent.

Based on this review, the Board concluded that the performance of the Fund supported the Board’s approval of the continuance of the Agreements, respectively, for the coming year.

Cost of Advisory Services and Profitability. The Board reviewed the advisory fee paid by the Fund to ETC and the sub-advisory fees paid by ETC to each sub-adviser under the Agreements. The Board reviewed a report prepared by ISS, an independent third party, comparing the Fund’s advisory fee to those paid by a group of peer funds. The Board noted that the report included mutual funds in the Fund’s peer group, which were intended to enhance the Board’s ability to evaluate the quality of fees and expenses on a broader scale. The Board took into account the differences in operations and fee structures between ETFs and mutual funds and gave such weight to the mutual fund data as it deemed appropriate. The Board noted that ISS selected the particular mutual funds that were included in its report. In support of its review of the statistical information, the Board was provided with a description of the methodology used by ISS to prepare this information.

The Board noted that the Fund’s advisory fee was lower than the median of the peer group range. The Board took into account that due to the specialized nature of the Fund’s strategy, noting that the peer group was comprised of Funds whose strategies focused on investing in non-U.S. bonds dominated in local currencies issued both by governments and quasi governments, and the Fund’s strategy was more narrowly tailored, which may lead to limitations in comparing the Fund’s advisory fee to those of other funds and the information provided by the peer group report may not provide meaningful direct comparisons to the Funds.

The Board took into consideration that the advisory fee for the Fund is a “unitary fee,” meaning that the Fund pays no expenses other than the advisory fee and certain expenses customarily excluded from unitary fee arrangements, such as brokerage commissions, taxes, and interest. The Board noted that ETC is responsible for compensating the Fund’s other service providers and paying the Fund’s other expenses out of its own fee and resources and that, while Gavekal has assumed such responsibility, ETC is ultimately responsible for ensuring the obligation is satisfied. The Board considered that the sub-advisory fees are paid by ETC, not the Fund, and that the fees reflect an arm’s length negotiation between ETC and each sub-adviser. The Board further found that the sub-advisory fees reflected a reasonable allocation of the advisory fee between ETC and each sub-adviser given the work performed by each firm. The Board considered information provided about the costs and expenses incurred by ETC and each sub-adviser in providing advisory and sub-advisory services, evaluated the compensation and benefits received by ETC

10900 Hefner Pointe Drive, Suite 400
Oklahoma City, OK 73120

Investment Adviser:

Exchange Traded Concepts, LLC
10900 Hefner Pointe Drive, Suite 400
Oklahoma City, OK 73120

Investment Sub-Advisers:

Gavekal Capital Limited
Suite 3101, Central Plaza
18 Harbour Road
Wan Chai, Hong Kong

System 2 Advisors, L.P.
47 Maple Street, #303A
Summit, NJ 07901

Distributor:

Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101

Legal Counsel:

Morgan, Lewis & Bockius LLP
1111 Pennsylvania Avenue NW
Washington, DC 20004

Proxy Voting Information

Exchange Traded Concepts’ proxy voting policies and procedures are attached to the Fund’s Statement of Additional Information, which is available without charge by visiting the Fund’s website at www.agovetf.com or the SEC’s website at www.sec.gov or by calling toll free (833) 817-7116.

In addition, a description of how the Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available without charge upon request by calling toll free (833) 817-7116 or on the SEC’s website at www.sec.gov.

Quarterly Portfolio Holdings Information

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of its fiscal period as an exhibit to its reports on Form N-PORT within sixty days after the end of the period. The Fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov. In addition, the Fund’s full portfolio holdings are updated daily and available on the Fund’s website at www.agovetf.com.

This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.