2025-12-26193422_HoyaCapitalHighDividendYieldETF_TF_TSRAnnual
|
|
| |
|
|
Hoya
Capital High Dividend Yield ETF
|
|
|
RIET
(Principal U.S. Listing Exchange: NYSE
) |
|
Annual
Shareholder Report | February
28, 2026 |
This
annual
shareholder report
contains important information about the Hoya
Capital High Dividend Yield ETF for the period of
March
1, 2025, to February
28, 2026. You
can find additional information about the Fund at https://www.hoyaetfs.com/riet.
You
can also request this information by contacting us at 1-833-HOYA-CAP.
WHAT
WERE THE FUND COSTS FOR THE PAST YEAR? (based
on a hypothetical $10,000 investment)
|
|
| |
|
Fund
Name |
Costs
of a $10,000 investment |
Costs
paid as a percentage of a
$10,000 investment |
|
Hoya
Capital High Dividend Yield ETF |
$50 |
0.50% |
HOW
DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS
PERFORMANCE?
Commercial
real estate markets continued to feel the effects of elevated borrowing costs
during the fiscal period, though conditions
improved modestly as the Federal Reserve began easing benchmark interest rates
in September 2025. Property-level
fundamentals and rental rate trends remained relatively steady across most major
property sectors, but higher
financing costs and tighter credit conditions continued to weigh on valuations
of commercial real estate assets and kept
transaction and development activity below historical
averages.
Among
the classification tiers, the Large-Cap REIT category was the leading
contributor to the Fund’s performance during the
period, reflecting relatively stronger balance sheets and capital market access
compared to smaller peers in a higher-rate
environment. The leading detractor was the Small-Cap REIT category, which
remained more sensitive to elevated
financing costs and macroeconomic uncertainty given the typically higher degree
of financial and operational leverage
among smaller REITs. Among property sectors, Net Lease and Senior Housing were
the leading contributors to performance,
while Office and Commercial Financing were the leading
detractors.
The
Fund seeks to maintain consistent monthly distributions. A portion of these
distributions may constitute a return of capital,
which is primarily a function of the nature of the Fund’s holdings—particularly
REITs, which frequently classify a portion
of their dividends as return of capital—as well as the timing difference between
the Fund’s monthly distributions and
the generally quarterly dividend payments received from portfolio holdings. RIET
ended the period with an SEC yield of
9.14% and has paid a distribution in each month since
inception.
HOW
DID THE FUND PERFORM SINCE
INCEPTION?*
The
$10,000
chart reflects a hypothetical $10,000
investment in the class of shares noted and assumes the maximum sales
charge. The chart uses total return NAV performance and assumes reinvestment of
dividends and capital gains. Fund
expenses, including management fees and other expenses were
deducted.
CUMULATIVE
PERFORMANCE (Initial
Investment of $10,000)
| Hoya
Capital High Dividend Yield ETF |
PAGE
1 |
TSR-AR-26922B840 |
ANNUAL
AVERAGE TOTAL RETURN (%)
|
|
| |
|
|
1
Year |
Since
Inception
(09/21/2021) |
|
Hoya
Capital High Dividend Yield ETF NAV |
1.93 |
-0.51 |
|
S&P
500 TR |
16.99 |
12.49 |
|
Dow
Jones U.S. Real Estate Total Return Index
|
5.89 |
2.07 |
Visit
https://www.hoyaetfs.com/riet
for more recent performance information.
| * |
The
Fund’s past performance is not a good predictor of how the Fund will
perform in the future. The
graph and table do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or redemption
of Fund shares. |
KEY
FUND STATISTICS (as
of February
28, 2026)
|
| |
|
Net
Assets |
$99,260,934 |
|
Number
of Holdings |
102 |
|
Net
Advisory Fee |
$460,362 |
|
Portfolio
Turnover |
36% |
|
30-Day
SEC Yield |
9.14% |
|
30-Day
SEC Yield Unsubsidized |
9.14% |
WHAT
DID THE FUND INVEST IN? (as
of February
28, 2026)
|
| |
|
Top
10 Issuers |
(%
of Net
Assets)
|
|
Mount
Vernon Liquid Assets Portfolio,
LLC |
7.0% |
|
AGNC
Investment Corp. |
2.5% |
|
Rithm
Capital Corp. |
2.2% |
|
Chimera
Investment Corp. |
2.2% |
|
Annaly
Capital Management, Inc.
|
2.1% |
|
Global
Net Lease, Inc. |
2.0% |
|
Adamas
Trust, Inc. |
2.0% |
|
Two
Harbors Investment Corp.
|
1.9% |
|
National
Storage Affiliates Trust
|
1.7% |
|
Realty
Income Corp. |
1.7% |
Industry
Breakdown (% of Net Assets)
For
additional information about the Fund; including its prospectus, financial
information, holdings and proxy information,
scan the QR code or visit https://www.hoyaetfs.com/riet.
HOUSEHOLDING
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed
to shareholders with multiple accounts
at the same address (Householding). If you would prefer that your Hoya
Capital Real Estate documents not be householded,
please contact Hoya
Capital Real Estate at 1-833-HOYA-CAP,
or contact your financial intermediary. Your instructions
will typically be effective within 30 days of receipt by Hoya
Capital Real Estate or your financial intermediary.
| Hoya
Capital High Dividend Yield ETF |
PAGE
2 |
TSR-AR-26922B840 |
10000986584638351958997741000010107932912170144101685910000971185659031103431095230.928.318.612.19.50.6
|
|
| |
|
|
Hoya
Capital Housing ETF |
|
|
HOMZ
(Principal U.S. Listing Exchange: NYSE
) |
|
Annual
Shareholder Report | February
28, 2026 |
This
annual
shareholder report
contains important information about the Hoya
Capital Housing ETF for the period of March
1, 2025,
to February
28, 2026. You
can find additional information about the Fund at https://www.hoyaetfs.com/homz.
You can also
request this information by contacting us at 1-833-HOYA-CAP.
WHAT
WERE THE FUND COSTS FOR THE PAST YEAR? (based
on a hypothetical $10,000 investment)
|
|
| |
|
Fund
Name |
Costs
of a $10,000 investment |
Costs
paid as a percentage of a
$10,000 investment |
|
Hoya
Capital Housing ETF |
$31 |
0.30% |
HOW
DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS
PERFORMANCE?
Residential
real estate markets continued to feel the effects of elevated borrowing costs
during the fiscal period, though conditions
improved modestly as the Federal Reserve began easing benchmark interest rates
in September 2025. Mortgage
rates remained well above their 21st-century average, which weighed on
affordability and suppressed transaction
activity, particularly in the market for existing homes. Even so, housing
fundamentals proved resilient as historically
limited supply, steady household formation, and solid labor market conditions
helped support home prices and rental
demand. As borrowing costs stabilized later in the period, housing markets
showed modest stabilization across several
segments of the residential real estate
ecosystem.
Of
the four Housing Industry Business Segments, the leading contributor during the
period was Home Building and Construction,
supported by persistent supply shortages in the existing home market that
shifted demand toward new construction.
The leading detractor was Residential REITs & Real Estate Operators, as
higher financing costs remained a headwind
for publicly traded residential real estate companies and weighed on valuations.
HOMZ’s diversified investment strategy,
which includes exposure to approximately 100 companies across the U.S. housing
industry—including rental operators,
homebuilders, and home improvement firms—helped mitigate sector-specific
risks.
The
Fund seeks to maintain consistent monthly distributions. A portion of these
distributions may constitute a return of capital,
which is primarily a function of the nature of the Fund’s holdings—particularly
REITs, which frequently classify a portion
of their dividends as return of capital—as well as the timing difference between
the Fund’s monthly distributions and
the generally quarterly dividend payments received from portfolio holdings. HOMZ
ended the period with an SEC yield of
2.69% and increased its distribution by 8.3% in January
2026.
HOW
DID THE FUND PERFORM SINCE
INCEPTION?*
The
$10,000
chart reflects a hypothetical $10,000
investment in the class of shares noted and assumes the maximum sales
charge. The chart uses total return NAV performance and assumes reinvestment of
dividends and capital gains. Fund
expenses, including management fees and other expenses were
deducted.
CUMULATIVE
PERFORMANCE (Initial
Investment of $10,000)
| Hoya
Capital Housing ETF |
PAGE
1 |
TSR-AR-26922A230 |
ANNUAL
AVERAGE TOTAL RETURN (%)
|
|
|
| |
|
|
1
Year |
5
Year |
Since
Inception
(03/19/2019) |
|
Hoya
Capital Housing ETF NAV |
5.36 |
8.56 |
12.20 |
|
S&P
500 TR |
16.99 |
14.19 |
15.42 |
|
S&P
MidCap 400 Total Return Index |
17.24 |
9.10 |
11.25 |
Visit
https://www.hoyaetfs.com/homz
for more recent performance information.
| * |
The
Fund’s past performance is not a good predictor of how the Fund will
perform in the future. The
graph and table do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or redemption
of Fund shares. |
KEY
FUND STATISTICS (as
of February
28, 2026)
|
| |
|
Net
Assets |
$36,854,606 |
|
Number
of Holdings |
99 |
|
Net
Advisory Fee |
$106,218 |
|
Portfolio
Turnover |
12% |
|
30-Day
SEC Yield |
2.69% |
|
30-Day
SEC Yield Unsubsidized |
2.69% |
WHAT
DID THE FUND INVEST IN? (as
of February
28, 2026)
|
| |
|
Top
10 Issuers |
(%
of Net
Assets)
|
|
Lowe’s
Companies, Inc. |
3.3% |
|
Home
Depot, Inc. |
3.2% |
|
Tri
Pointe Homes, Inc. |
2.0% |
|
Toll
Brothers, Inc. |
1.7% |
|
Extra
Space Storage, Inc. |
1.7% |
|
PulteGroup,
Inc. |
1.6% |
|
Public
Storage |
1.6% |
|
CubeSmart
|
1.6% |
|
DR
Horton, Inc. |
1.6% |
|
M/I
Homes, Inc. |
1.6% |
Industry
Breakdown (% of Net Assets)
For
additional information about the Fund; including its prospectus, financial
information, holdings and proxy information,
scan the QR code or visit https://www.hoyaetfs.com/homz.
HOUSEHOLDING
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed
to shareholders with multiple accounts
at the same address (Householding). If you would prefer that your Hoya
Capital Real Estate documents not be householded,
please contact Hoya
Capital Real Estate at 1-833-HOYA-CAP,
or contact your financial intermediary. Your instructions
will typically be effective within 30 days of receipt by Hoya
Capital Real Estate or your financial intermediary.
| Hoya
Capital Housing ETF |
PAGE
2 |
TSR-AR-26922A230 |
1000010888147581691315285189442112522256100001062513949162361498719551231492708310000970813570146531456216461178912097628.016.015.914.610.56.45.03.30.3
Item 2. Code of Ethics.
The registrant
has adopted a code of ethics that applies to the registrant’s principal
executive officer and principal financial officer. The registrant has not made
any substantive amendments to its code of ethics during the period covered by
this report. The registrant has not granted any waivers from any provisions of
the code of ethics during the period covered by this report.
A copy of the
registrant’s Code of Ethics is filed herewith.
Item 3. Audit Committee Financial
Expert.
The registrant’s
Board of Trustees has determined that the registrant currently does not have an
audit committee financial expert (ACFE) serving on its audit committee due to
the recent death of the Trustee who had most recently served as the registrant’s
ACFE. The Board is developing a plan to address the ACFE role.
Item 4. Principal Accountant Fees and
Services.
The registrant has engaged its principal accountant
to perform audit services, audit-related services, tax services and other
services during the past two fiscal years. “Audit services” refer to performing
an audit of the registrant’s annual financial statements or services that are
normally provided by the accountant in connection with statutory and regulatory
filings or engagements for those fiscal years. “Audit-related services” refer to
the assurance and related services by the principal accountant that are
reasonably related to the performance of the audit. “Tax services” refer to
professional services rendered by the principal accountant for tax compliance,
tax advice, and tax planning. There were no “other services” provided by the
principal accountant. The following table details the aggregate fees billed or
expected to be billed for each of the last two fiscal years for audit fees,
audit-related fees, tax fees and other fees by the principal
accountant.
| |
FYE 2/28/2026 |
FYE
2/28/2025 |
| (a) Audit Fees |
$ 32,000 |
$ 31,000 |
| (b) Audit-Related
Fees |
N/A |
N/A |
| (c) Tax Fees |
$ 9,000 |
$ 9,000 |
| (d) All Other
Fees |
N/A |
N/A |
(e)(1) The audit
committee has adopted pre-approval policies and procedures that require the
audit committee to pre-approve all audit and non-audit services of the
registrant, including services provided to any entity affiliated with the
registrant.
(e)(2) The
percentage of fees billed by Cohen & Company, Ltd. applicable to non-audit
services pursuant to waiver of pre-approval requirement were as follows:
| |
FYE 2/28/2026 |
FYE
2/28/2025 |
| Audit-Related
Fees |
0% |
0% |
| Tax Fees |
0% |
0% |
| All Other Fees |
0% |
0% |
(f) N/A.
(g) The
following table indicates the non-audit fees billed or expected to be billed by
the registrant’s accountant for services to the registrant and to the
registrant’s investment adviser (and any other controlling entity, etc.—not
sub-adviser) for the last two years.
| Non-Audit Related
Fees |
FYE 2/28/2026 |
FYE
2/28/2025 |
| Registrant |
N/A |
N/A |
| Registrant’s Investment
Adviser |
N/A |
N/A |
(h) The audit
committee of the board of trustees has considered whether the provision of
non-audit services that were rendered to the registrant’s investment adviser is
compatible with maintaining the principal accountant’s independence and has
concluded that the provision of such non-audit services by the accountant has
not compromised the accountant’s independence.
(i) The
registrant has not been identified by the U.S. Securities and Exchange
Commission as having filed an annual report issued by a registered public
accounting firm branch or office that is located in a foreign jurisdiction where
the Public Company Accounting Oversight Board is unable to inspect or completely
investigate because of a position taken by an authority in that
jurisdiction.
(j) The
registrant is not a foreign issuer.
Item 5. Audit Committee of Listed
Registrants.
(a) The
registrant is an issuer as defined in Rule 10A-3 under the Securities Exchange
Act of 1934, (the “Act”) and has a separately-designated standing audit
committee established in accordance with Section 3(a)(58)(A) of the Act. The
independent members of the committee are as follows: David A. Massart, Janet D.
Olsen, and Michael A. Castino.
(b) Not
applicable
Item 6. Investments.
|
| (a) |
Schedule of Investments is included within the financial statements
filed under Item 7 of this Form. |
Item 7. Financial Statements and Financial
Highlights for Open-End Investment Companies.
Hoya
Capital High Dividend Yield ETF (Ticker:
RIET)
Hoya
Capital Housing ETF (Ticker: HOMZ)
Annual
Financial Statements and Additional Information
February 28, 2026
TABLE OF CONTENTS
HOYA
CAPITAL HIGH DIVIDEND YIELD ETF
SCHEDULE OF INVESTMENTS
February 28, 2026
|
|
|
|
|
|
|
|
|
COMMON
STOCKS - 89.9%
|
|
|
|
|
|
|
|
Dividend
Champions - 12.1%
|
|
|
|
|
|
|
|
Apple
Hospitality REIT, Inc. |
|
|
120,458 |
|
|
$1,476,815 |
|
Healthpeak
Properties, Inc. |
|
|
79,334 |
|
|
1,402,625 |
|
Millrose
Properties, Inc. |
|
|
46,416 |
|
|
1,455,606 |
|
Omega
Healthcare Investors, Inc. |
|
|
31,423 |
|
|
1,516,788 |
|
Realty
Income Corp. |
|
|
24,976 |
|
|
1,673,392 |
|
Starwood
Property Trust, Inc. |
|
|
79,246 |
|
|
1,411,372 |
|
VICI
Properties, Inc. |
|
|
49,109 |
|
|
1,483,583 |
|
WP
Carey, Inc. |
|
|
21,085 |
|
|
1,573,995
|
|
|
|
|
|
|
|
11,994,176
|
|
Large-Cap
REITs - 18.6%
|
|
|
|
|
|
|
|
AGNC
Investment Corp. |
|
|
137,678 |
|
|
1,543,370 |
|
Alexandria
Real Estate Equities, Inc. |
|
|
27,806 |
|
|
1,502,636 |
|
Annaly
Capital Management, Inc. |
|
|
64,364 |
|
|
1,495,819 |
|
Blackstone
Mortgage Trust, Inc. - Class A |
|
|
75,084 |
|
|
1,442,364 |
|
Broadstone
Net Lease, Inc. |
|
|
77,340 |
|
|
1,499,623 |
|
EPR
Properties |
|
|
27,290 |
|
|
1,621,299 |
|
Gaming
and Leisure Properties, Inc. |
|
|
32,880 |
|
|
1,608,161 |
|
Lineage,
Inc. |
|
|
41,259 |
|
|
1,671,815 |
|
National
Storage Affiliates Trust |
|
|
49,126 |
|
|
1,720,392 |
|
NNN
REIT, Inc. |
|
|
34,561 |
|
|
1,566,304 |
|
Rithm
Capital Corp. |
|
|
128,316 |
|
|
1,289,576 |
|
Sabra
Health Care REIT, Inc. |
|
|
75,562 |
|
|
1,552,799
|
|
|
|
|
|
|
|
18,514,158
|
|
Mid-Cap
REITs - 30.9%(a)
|
|
|
|
|
|
|
|
AH
Realty Trust, Inc. |
|
|
180,592 |
|
|
1,128,700 |
|
Alexander’s,
Inc. |
|
|
5,453 |
|
|
1,279,383 |
|
American
Assets Trust, Inc. |
|
|
59,067 |
|
|
1,152,988 |
|
Americold
Realty Trust, Inc. |
|
|
109,085 |
|
|
1,460,648 |
|
Apollo
Commercial Real Estate Finance, Inc. |
|
|
113,909 |
|
|
1,207,435 |
|
Arbor
Realty Trust, Inc.(b) |
|
|
132,900 |
|
|
1,053,897 |
|
ARMOUR
Residential REIT, Inc.(b) |
|
|
68,165 |
|
|
1,223,562 |
|
BrightSpire
Capital, Inc. |
|
|
205,132 |
|
|
1,191,817 |
|
Dynex
Capital, Inc. |
|
|
83,938 |
|
|
1,177,650 |
|
Easterly
Government Properties, Inc. |
|
|
53,183 |
|
|
1,238,100 |
|
Ellington
Financial, Inc.(b) |
|
|
82,169 |
|
|
1,020,539 |
|
Franklin
BSP Realty Trust, Inc. |
|
|
113,118 |
|
|
1,032,767 |
|
Getty
Realty Corporation |
|
|
39,659 |
|
|
1,301,608 |
|
Global
Net Lease, Inc. |
|
|
141,888 |
|
|
1,336,585 |
|
Highwoods
Properties, Inc. |
|
|
41,491 |
|
|
933,133 |
|
Innovative
Industrial Properties, Inc.(b) |
|
|
23,560 |
|
|
1,247,738 |
|
MFA
Financial, Inc. |
|
|
123,614 |
|
|
1,249,738 |
|
Orchid
Island Capital, Inc.(b) |
|
|
157,261 |
|
|
1,170,022 |
|
Park
Hotels & Resorts, Inc.(b) |
|
|
107,942 |
|
|
1,220,824 |
|
PennyMac
Mortgage Investment Trust |
|
|
89,368 |
|
|
1,095,652 |
|
RLJ
Lodging Trust |
|
|
150,573
|
|
|
1,207,595 |
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
HOYA
CAPITAL HIGH DIVIDEND YIELD ETF
SCHEDULE
OF INVESTMENTS
February 28, 2026(Continued)
|
|
|
|
|
|
|
|
|
COMMON
STOCKS - (Continued)
|
|
Mid-Cap
REITs - (Continued)
|
|
Saul
Centers, Inc. |
|
|
36,595 |
|
|
$1,247,158 |
|
SL
Green Realty Corp.(b) |
|
|
25,769 |
|
|
949,588 |
|
TPG
RE Finance Trust, Inc. |
|
|
128,527 |
|
|
1,087,338 |
|
Two
Harbors Investment Corp. |
|
|
116,491 |
|
|
1,203,352 |
|
Universal
Health Realty Income Trust |
|
|
27,957 |
|
|
1,219,484
|
|
|
|
|
|
|
|
30,637,301
|
|
Small-Cap
REITs - 28.3%(a)
|
|
|
|
|
|
|
|
Adamas
Trust, Inc. |
|
|
158,142 |
|
|
1,303,090 |
|
Alpine
Income Property Trust, Inc. |
|
|
67,680 |
|
|
1,334,650 |
|
Angel
Oak Mortgage REIT, Inc. |
|
|
136,094 |
|
|
1,167,687 |
|
Ares
Commercial Real Estate Corp. |
|
|
227,825 |
|
|
1,143,682 |
|
Braemar
Hotels & Resorts, Inc. |
|
|
404,401 |
|
|
1,176,807 |
|
Brandywine
Realty Trust |
|
|
327,255 |
|
|
1,043,943 |
|
BRT
Apartments Corp. |
|
|
78,851 |
|
|
1,156,744 |
|
Chicago
Atlantic Real Estate Finance, Inc. |
|
|
91,243 |
|
|
1,108,602 |
|
Chimera
Investment Corp. |
|
|
92,809 |
|
|
1,263,131 |
|
Chiron
Real Estate, Inc. |
|
|
35,264 |
|
|
1,221,192 |
|
Clipper
Realty, Inc. |
|
|
312,791 |
|
|
963,396 |
|
Community
Healthcare Trust, Inc. |
|
|
75,432 |
|
|
1,289,133 |
|
CTO
Realty Growth, Inc. |
|
|
64,664 |
|
|
1,259,655 |
|
Gladstone
Commercial Corp. |
|
|
104,747 |
|
|
1,308,290 |
|
Invesco
Mortgage Capital, Inc. |
|
|
145,540 |
|
|
1,226,902 |
|
KKR
Real Estate Finance Trust, Inc. |
|
|
135,770 |
|
|
943,602 |
|
Modiv
Industrial, Inc. |
|
|
77,183 |
|
|
1,197,108 |
|
Nexpoint
Real Estate Finance, Inc. |
|
|
80,246 |
|
|
1,164,369 |
|
One
Liberty Properties, Inc. |
|
|
54,801 |
|
|
1,287,275 |
|
Ready
Capital Corp.(b) |
|
|
458,428 |
|
|
848,092 |
|
Redwood
Trust, Inc. |
|
|
221,584 |
|
|
1,340,583 |
|
Seven
Hills Realty Trust |
|
|
128,962 |
|
|
1,103,915 |
|
Sunrise
Realty Trust, Inc. |
|
|
116,729 |
|
|
1,093,751 |
|
TPG
Mortgage Investment Trust, Inc. |
|
|
143,691 |
|
|
1,162,460
|
|
|
|
|
|
|
|
28,108,059
|
|
TOTAL COMMON STOCKS
(Cost $91,153,459) |
|
|
|
|
|
89,253,694
|
|
PREFERRED
STOCKS - 9.5%
|
|
|
|
|
|
|
|
Preferreds
Issued by U.S. REITs - 9.5%
|
|
|
|
|
|
|
|
ACRES
Commercial Realty Corp., Series C, 9.59% (3 mo. Term SOFR + 5.93%),
Perpetual |
|
|
12,515 |
|
|
312,124 |
|
Adamas
Trust, Inc.
|
|
|
|
|
|
|
|
Series D,
8.00% to 10/15/2027 then 3 mo. LIBOR USD + 5.70%, Perpetual
(c) |
|
|
14,310 |
|
|
325,982 |
|
Series E,
10.83% (3 mo. LIBOR USD + 6.43%), Perpetual (c) |
|
|
12,631 |
|
|
321,333 |
|
AGNC
Investment Corp.
|
|
|
|
|
|
|
|
Series C,
9.04% (3 mo. Term SOFR + 5.37%), Perpetual |
|
|
12,351 |
|
|
314,580 |
|
Series D,
8.27% (3 mo. Term SOFR + 4.59%), Perpetual |
|
|
12,809 |
|
|
319,456 |
|
Series E,
8.92% (3 mo. Term SOFR + 5.25%), Perpetual |
|
|
12,486 |
|
|
316,021 |
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
HOYA
CAPITAL HIGH DIVIDEND YIELD ETF
SCHEDULE
OF INVESTMENTS
February 28, 2026(Continued)
|
|
|
|
|
|
|
|
|
PREFERRED
STOCKS - (Continued)
|
|
|
|
|
|
|
|
Preferreds
Issued by U.S. REITs - (Continued)
|
|
|
|
|
|
|
|
Annaly
Capital Management, Inc.
|
|
|
|
|
|
|
|
Series F,
8.92% (3 mo. Term SOFR + 5.25%), Perpetual |
|
|
12,327 |
|
|
$319,762 |
|
Series G,
8.10% (3 mo. Term SOFR + 4.43%), Perpetual |
|
|
12,491 |
|
|
315,897 |
|
Arbor
Realty Trust, Inc., Series D, 6.38%, Perpetual |
|
|
18,011 |
|
|
309,249 |
|
Chimera
Investment Corp.
|
|
|
|
|
|
|
|
Series B,
9.74% (3 mo. Term SOFR + 6.05%), Perpetual |
|
|
12,951 |
|
|
306,162 |
|
Series C,
8.69% (3 mo. Term SOFR + 5.00%), Perpetual |
|
|
14,056 |
|
|
309,091 |
|
Series D,
9.29% (3 mo. Term SOFR + 5.60%), Perpetual |
|
|
13,009 |
|
|
307,533 |
|
Dynex
Capital, Inc., Series C, 9.39% (3 mo. Term SOFR + 5.72%),
Perpetual |
|
|
12,208 |
|
|
317,042 |
|
Global
Net Lease, Inc.
|
|
|
|
|
|
|
|
Series A,
7.25%, Perpetual |
|
|
14,214 |
|
|
329,765 |
|
Series D,
7.50%, Perpetual |
|
|
13,440 |
|
|
328,070 |
|
Granite
Point Mortgage Trust, Inc., Series A, 7.00% to 01/15/2027 then SOFR +
5.83%, Perpetual |
|
|
16,159 |
|
|
328,512 |
|
Hudson
Pacific Properties, Inc., Series C, 4.75%, Perpetual
(b) |
|
|
21,406 |
|
|
295,617 |
|
Innovative
Industrial Properties, Inc., Series A, 9.00%, Perpetual |
|
|
12,670 |
|
|
288,116 |
|
KKR
Real Estate Finance Trust, Inc., Series A, 6.50%, Perpetual |
|
|
17,146 |
|
|
299,712 |
|
MFA
Financial, Inc., Series C, 9.28% (3 mo. Term SOFR + 5.61%),
Perpetual |
|
|
13,249 |
|
|
302,872 |
|
Pebblebrook
Hotel Trust, Series G, 6.38%, Perpetual |
|
|
16,872 |
|
|
340,140 |
|
PennyMac
Mortgage Investment Trust, Series C, 6.75%, Perpetual |
|
|
16,546 |
|
|
313,712 |
|
Ready
Capital Corp., Series E, 6.50%, Perpetual |
|
|
22,334 |
|
|
259,074 |
|
Redwood
Trust, Inc., 10.00% to 04/15/2028 then 5 yr. CMT Rate + 6.28%,
Perpetual |
|
|
13,112 |
|
|
327,970 |
|
Rithm
Capital Corp.
|
|
|
|
|
|
|
|
Series A,
9.73% (3 mo. Term SOFR + 6.06%), Perpetual |
|
|
12,442 |
|
|
316,276 |
|
Series B,
9.57% (3 mo. Term SOFR + 5.90%), Perpetual |
|
|
12,515 |
|
|
313,876 |
|
Series C,
8.90% (3 mo. Term SOFR + 5.23%), Perpetual |
|
|
12,737 |
|
|
309,891 |
|
TPG
Mortgage Investment Trust, Inc., Series C, 10.40% (3 mo. Term SOFR +
6.74%), Perpetual |
|
|
12,375 |
|
|
310,365 |
|
Two
Harbors Investment Corp.
|
|
|
|
|
|
|
|
Series B,
7.63% to 7/27/2027 then 3 mo. LIBOR USD + 5.35%, Perpetual
(c) |
|
|
13,709 |
|
|
335,871 |
|
Series C,
8.94% (3 mo. Term SOFR + 5.27%), Perpetual |
|
|
13,204 |
|
|
326,139
|
|
TOTAL PREFERRED STOCKS
(Cost $9,109,279) |
|
|
|
|
|
9,420,210
|
|
|
|
|
Units |
|
|
|
|
SHORT-TERM
INVESTMENTS
|
|
|
|
|
|
|
|
INVESTMENTS
PURCHASED WITH PROCEEDS FROM SECURITIES LENDING - 7.0%
|
|
|
|
|
|
|
|
Mount
Vernon Liquid Assets Portfolio, LLC, 3.78%(d) |
|
|
6,926,306 |
|
|
6,926,306
|
|
TOTAL
INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING
(Cost $6,926,306) |
|
|
|
|
|
6,926,306
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
HOYA
CAPITAL HIGH DIVIDEND YIELD ETF
SCHEDULE
OF INVESTMENTS
February 28, 2026(Continued)
|
|
|
|
|
|
|
|
|
MONEY
MARKET FUNDS - 0.4%
|
|
|
|
|
|
|
|
First
American Government Obligations Fund - Class X,
3.60%(d) |
|
|
433,072 |
|
|
$433,072
|
|
TOTAL
MONEY MARKET FUNDS
(Cost $433,072) |
|
|
|
|
|
433,072
|
|
TOTAL
INVESTMENTS - 106.8%
(Cost $107,622,116) |
|
|
|
|
|
$106,033,282
|
|
Liabilities
in Excess of Other Assets - (6.8)% |
|
|
|
|
|
(6,772,348) |
|
TOTAL
NET ASSETS - 100.0% |
|
|
|
|
|
$99,260,934 |
|
|
|
|
|
|
|
|
Percentages
are stated as a percent of net assets.
The
Fund’s security classifications are defined by the Fund’s Adviser.
CMT
- Constant Maturity Treasury
LIBOR
- London Interbank Offered Rate
LLC
- Limited Liability Company
REIT
- Real Estate Investment Trust
SOFR
- Secured Overnight Financing Rate
|
(a)
|
To the extent that the Fund invests more heavily in
a particular industry or sector of the economy, its performance will be
especially sensitive to developments that significantly affect those
industries or sectors.
|
|
(b)
|
All or a portion of this security is on loan as of
February 28, 2026. The fair value of these securities was
$6,728,012.
|
|
(c)
|
Securities referencing LIBOR are expected to
transition to an alternative reference rate by the security’s next
scheduled coupon reset date.
|
|
(d)
|
The rate shown represents the 7-day annualized
yield as of February 28, 2026.
|
The
accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
HOYA
CAPITAL HOUSING ETF
SCHEDULE
OF INVESTMENTS
February 28, 2026
|
|
|
|
|
|
|
|
|
COMMON
STOCKS - 99.7%
|
|
|
|
|
|
|
|
Home
Building Products & Materials - 15.9%
|
|
|
|
|
|
|
|
Beazer
Homes USA, Inc.(a) |
|
|
12,461 |
|
|
$318,752 |
|
Builders
FirstSource, Inc.(a) |
|
|
2,616 |
|
|
272,823 |
|
Cavco
Industries, Inc.(a) |
|
|
464 |
|
|
267,849 |
|
Century
Communities, Inc. |
|
|
4,357 |
|
|
292,921 |
|
Champion
Homes, Inc.(a) |
|
|
3,256 |
|
|
304,371 |
|
Dream
Finders Homes, Inc. - Class A(a) |
|
|
13,680 |
|
|
247,198 |
|
Eagle
Materials, Inc. |
|
|
1,267 |
|
|
283,555 |
|
Green
Brick Partners, Inc.(a) |
|
|
4,072 |
|
|
299,943 |
|
Installed
Building Products, Inc. |
|
|
1,027 |
|
|
336,609 |
|
Leggett
& Platt, Inc. |
|
|
28,764 |
|
|
335,963 |
|
Lennox
International, Inc. |
|
|
571 |
|
|
325,436 |
|
LGI
Homes, Inc.(a) |
|
|
5,394 |
|
|
279,949 |
|
Louisiana-Pacific
Corp. |
|
|
3,418 |
|
|
289,641 |
|
Millrose
Properties, Inc. |
|
|
8,718 |
|
|
273,396 |
|
Rayonier,
Inc. |
|
|
24,373 |
|
|
523,776 |
|
Simpson
Manufacturing Co., Inc. |
|
|
1,633 |
|
|
316,100 |
|
TopBuild
Corp.(a) |
|
|
617 |
|
|
276,601 |
|
Watsco,
Inc. |
|
|
789 |
|
|
329,273 |
|
Weyerhaeuser
Co. |
|
|
12,203 |
|
|
299,340
|
|
|
|
|
|
|
|
5,873,496
|
|
Home
Furnishings & Home Goods - 14.6%
|
|
|
|
|
|
|
|
A.
O. Smith Corp. |
|
|
4,234 |
|
|
330,252 |
|
American
Woodmark Corp.(a) |
|
|
5,395 |
|
|
270,289 |
|
Carrier
Global Corp. |
|
|
5,259 |
|
|
338,680 |
|
Floor
& Decor Holdings, Inc. - Class A(a) |
|
|
4,555 |
|
|
314,705 |
|
Fortune
Brands Home & Security, Inc. |
|
|
5,857 |
|
|
318,269 |
|
Hayward
Holdings, Inc.(a) |
|
|
17,726 |
|
|
283,616 |
|
La-Z-Boy,
Inc. |
|
|
7,308 |
|
|
261,042 |
|
Masco
Corp. |
|
|
4,429 |
|
|
317,205 |
|
Masterbrand,
Inc.(a) |
|
|
27,155 |
|
|
274,809 |
|
Mohawk
Industries, Inc.(a) |
|
|
2,508 |
|
|
314,177 |
|
Owens
Corning |
|
|
2,645 |
|
|
322,875 |
|
RH(a) |
|
|
1,801 |
|
|
298,444 |
|
Sherwin-Williams
Co. |
|
|
818 |
|
|
296,599 |
|
Somnigroup
International, Inc. |
|
|
3,155 |
|
|
282,404 |
|
Trex
Company, Inc.(a) |
|
|
8,877 |
|
|
367,685 |
|
Wayfair,
Inc. - Class A(a) |
|
|
2,624 |
|
|
200,290 |
|
Whirlpool
Corp. |
|
|
3,756 |
|
|
257,023 |
|
Williams-Sonoma,
Inc. |
|
|
1,549 |
|
|
318,552
|
|
|
|
|
|
|
|
5,366,916
|
|
Home
Improvement Retailers - 6.4%
|
|
|
|
|
|
|
|
Home
Depot, Inc. |
|
|
3,097 |
|
|
1,179,090 |
|
Lowe’s
Companies, Inc. |
|
|
4,537 |
|
|
1,200,354
|
|
|
|
|
|
|
|
2,379,444
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
HOYA
CAPITAL HOUSING ETF
SCHEDULE
OF INVESTMENTS
February 28, 2026(Continued)
|
|
|
|
|
|
|
|
|
COMMON
STOCKS - (Continued)
|
|
Homebuilders
- 16.0%
|
|
|
|
|
|
|
|
DR
Horton, Inc. |
|
|
3,623 |
|
|
$581,093 |
|
KB
Home |
|
|
8,621 |
|
|
548,123 |
|
Lennar
Corp. - Class A |
|
|
4,317 |
|
|
493,692 |
|
M/I
Homes, Inc.(a) |
|
|
4,068 |
|
|
578,307 |
|
Meritage
Homes Corp. |
|
|
7,563 |
|
|
570,401 |
|
NVR,
Inc.(a) |
|
|
72 |
|
|
541,281 |
|
PulteGroup,
Inc. |
|
|
4,418 |
|
|
606,150 |
|
Taylor
Morrison Home Corp.(a) |
|
|
8,750 |
|
|
576,537 |
|
Toll
Brothers, Inc. |
|
|
4,038 |
|
|
634,935 |
|
Tri
Pointe Homes, Inc.(a) |
|
|
16,286 |
|
|
754,042
|
|
|
|
|
|
|
|
5,884,561
|
|
Mortgage
Lenders & Servicers - 10.5%
|
|
|
|
|
|
|
|
AGNC
Investment Corp. |
|
|
22,982 |
|
|
257,628 |
|
Annaly
Capital Management, Inc. |
|
|
10,744 |
|
|
249,691 |
|
Arbor
Realty Trust, Inc. |
|
|
27,728 |
|
|
219,883 |
|
Chimera
Investment Corp. |
|
|
19,365 |
|
|
263,558 |
|
Citizens
Financial Group, Inc. |
|
|
4,518 |
|
|
271,938 |
|
Ellington
Financial, Inc. |
|
|
17,144 |
|
|
212,929 |
|
Essent
Group Ltd. |
|
|
3,781 |
|
|
230,036 |
|
MFA
Financial, Inc. |
|
|
25,791 |
|
|
260,747 |
|
PennyMac
Mortgage Investment Trust |
|
|
18,646 |
|
|
228,600 |
|
PNC
Financial Services Group, Inc. |
|
|
1,263 |
|
|
268,198 |
|
Rithm
Capital Corp. |
|
|
21,419 |
|
|
215,261 |
|
Starwood
Property Trust, Inc. |
|
|
13,228 |
|
|
235,591 |
|
Truist
Financial Corp. |
|
|
5,195 |
|
|
256,165 |
|
Two
Harbors Investment Corp. |
|
|
24,305 |
|
|
251,071 |
|
UWM
Holdings Corp. |
|
|
45,871 |
|
|
202,291 |
|
Wells
Fargo & Co. |
|
|
2,843 |
|
|
231,562
|
|
|
|
|
|
|
|
3,855,149
|
|
Property,
Title & Mortgage Insurance - 5.0%
|
|
|
|
|
|
|
|
Allstate
Corp. |
|
|
1,102 |
|
|
236,401 |
|
F&G
Annuities & Life, Inc. |
|
|
241 |
|
|
5,459 |
|
Fidelity
National Financial, Inc. |
|
|
4,002 |
|
|
211,626 |
|
First
American Financial Corp. |
|
|
3,660 |
|
|
256,603 |
|
MGIC
Investment Corp. |
|
|
8,352 |
|
|
221,578 |
|
Old
Republic International Corp. |
|
|
5,155 |
|
|
220,995 |
|
Radian
Group, Inc. |
|
|
6,684 |
|
|
230,732 |
|
Stewart
Information Services Corp. |
|
|
3,171 |
|
|
225,109 |
|
Travelers
Companies, Inc. |
|
|
815 |
|
|
251,541
|
|
|
|
|
|
|
|
1,860,044
|
|
Real
Estate Technology, Brokerage & Services - 3.3%
|
|
|
|
|
|
|
|
Appfolio,
Inc. - Class A(a) |
|
|
1,033 |
|
|
183,626 |
|
Compass,
Inc. - Class A(a) |
|
|
48,732 |
|
|
475,137 |
|
CoStar
Group, Inc.(a) |
|
|
3,514 |
|
|
156,830 |
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
HOYA
CAPITAL HOUSING ETF
SCHEDULE
OF INVESTMENTS
February 28, 2026(Continued)
|
|
|
|
|
|
|
|
|
COMMON
STOCKS - (Continued)
|
|
Real
Estate Technology, Brokerage & Services - (Continued)
|
|
Rocket
Cos., Inc. - Class A |
|
|
13,547 |
|
|
$246,420 |
|
Zillow
Group, Inc. - Class C(a) |
|
|
3,320 |
|
|
148,138
|
|
|
|
|
|
|
|
1,210,151
|
|
Residential
REITs & Real Estate Operators - 28.0%(b)
|
|
|
|
|
|
|
|
American
Homes 4 Rent - Class A |
|
|
16,406 |
|
|
492,180 |
|
AvalonBay
Communities, Inc. |
|
|
2,942 |
|
|
521,411 |
|
Camden
Property Trust |
|
|
5,052 |
|
|
547,334 |
|
Centerspace |
|
|
7,970 |
|
|
501,313 |
|
CubeSmart |
|
|
14,656 |
|
|
602,948 |
|
Equity
LifeStyle Properties, Inc. |
|
|
8,437 |
|
|
566,629 |
|
Equity
Residential |
|
|
8,779 |
|
|
554,921 |
|
Essex
Property Trust, Inc. |
|
|
2,035 |
|
|
519,149 |
|
Extra
Space Storage, Inc. |
|
|
4,043 |
|
|
610,614 |
|
Independence
Realty Trust, Inc. |
|
|
31,379 |
|
|
519,950 |
|
Invitation
Homes, Inc. |
|
|
18,856 |
|
|
496,667 |
|
Mid-America
Apartment Communities, Inc. |
|
|
3,979 |
|
|
532,629 |
|
NexPoint
Residential Trust, Inc. |
|
|
16,801 |
|
|
473,620 |
|
Public
Storage |
|
|
1,972 |
|
|
605,522 |
|
Sun
Communities, Inc. |
|
|
4,145 |
|
|
565,627 |
|
UDR,
Inc. |
|
|
14,936 |
|
|
560,100 |
|
UMH
Properties, Inc. |
|
|
34,857 |
|
|
525,643 |
|
Ventas,
Inc. |
|
|
6,709 |
|
|
578,047 |
|
Welltower,
Inc. |
|
|
2,658 |
|
|
550,525
|
|
|
|
|
|
|
|
10,324,829
|
|
TOTAL COMMON STOCKS
(Cost $33,541,257) |
|
|
|
|
|
36,754,590
|
|
SHORT-TERM
INVESTMENTS
|
|
|
|
|
|
|
|
MONEY
MARKET FUNDS - 0.2%
|
|
|
|
|
|
|
|
First
American Government Obligations Fund - Class X,
3.60%(c) |
|
|
77,845 |
|
|
77,845
|
|
TOTAL
MONEY MARKET FUNDS
(Cost $77,845) |
|
|
|
|
|
77,845
|
|
TOTAL
INVESTMENTS - 99.9%
(Cost $33,619,102) |
|
|
|
|
|
$36,832,435
|
|
Other
Assets in Excess of Liabilities - 0.1% |
|
|
|
|
|
22,171
|
|
TOTAL
NET ASSETS - 100.0% |
|
|
|
|
|
$36,854,606 |
|
|
|
|
|
|
|
|
Percentages
are stated as a percent of net assets.
The
Fund’s security classifications are defined by the Fund’s Adviser.
REIT
- Real Estate Investment Trust
|
(a)
|
Non-income producing
security.
|
|
(b)
|
To the extent that the Fund invests more heavily in
a particular industry or sector of the economy, its performance will be
especially sensitive to developments that significantly affect those
industries or sectors.
|
|
(c)
|
The rate shown represents the 7-day annualized
yield as of February 28, 2026.
|
The
accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
HOYA
CAPITAL ETFs
STATEMENTS
OF ASSETS AND LIABILITIES
February 28, 2026
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
Investments,
at value |
|
|
$106,033,282 |
|
|
$36,832,435
|
|
Dividends
receivable |
|
|
190,531 |
|
|
30,790 |
|
Security
lending income receivable |
|
|
1,331 |
|
|
—
|
|
Total
assets |
|
|
106,225,144 |
|
|
36,863,225
|
|
LIABILITIES:
|
|
|
|
|
|
|
|
Payable
upon return of securities loaned |
|
|
6,926,306 |
|
|
— |
|
Payable
to Adviser |
|
|
37,904 |
|
|
8,619
|
|
Total
liabilities |
|
|
6,964,210 |
|
|
8,619
|
|
NET
ASSETS |
|
|
$99,260,934 |
|
|
$36,854,606
|
|
Net
Assets Consists of:
|
|
|
|
|
|
|
|
Paid-in
capital |
|
|
$106,280,233 |
|
|
$35,332,798 |
|
Total
distributable earnings/(accumulated losses) |
|
|
(7,019,299) |
|
|
1,521,808 |
|
Total
net assets |
|
|
$99,260,934 |
|
|
$36,854,606
|
|
Net
assets |
|
|
$99,260,934 |
|
|
$36,854,606
|
|
Shares
issued and outstanding(a) |
|
|
10,360,000 |
|
|
775,000 |
|
Net
asset value per share |
|
|
$9.58 |
|
|
$47.55 |
|
Cost:
|
|
|
|
|
|
|
|
Investments,
at cost |
|
|
$107,622,116 |
|
|
$33,619,102 |
|
Loaned
Securities:
|
|
|
|
|
|
|
|
at
value (included in investments) |
|
|
$6,728,012 |
|
|
$— |
|
|
|
|
|
|
|
|
|
(a)
|
Unlimited shares authorized without par value.
|
The
accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
HOYA
CAPITAL ETFs
STATEMENTS
OF OPERATIONS
For the Year Ended February 28, 2026
|
|
|
|
|
|
|
|
|
INVESTMENT
INCOME:
|
|
|
|
|
|
|
|
Dividend
income |
|
|
$5,511,209 |
|
|
$814,427 |
|
Securities
lending income |
|
|
4,111 |
|
|
—
|
|
Total
investment income |
|
|
5,515,320 |
|
|
814,427
|
|
EXPENSES:
|
|
|
|
|
|
|
|
Investment
advisory fee |
|
|
460,362 |
|
|
106,218
|
|
Total
expenses |
|
|
460,362 |
|
|
106,218
|
|
Net
investment income (loss) |
|
|
5,054,958 |
|
|
708,209
|
|
REALIZED
AND UNREALIZED GAIN (LOSS)
|
|
|
|
|
|
|
|
Net
realized gain (loss) from:
|
|
|
|
|
|
|
|
Investments |
|
|
(898,821) |
|
|
292,702 |
|
In-kind
redemptions |
|
|
695,041 |
|
|
2,477,401
|
|
Net
realized gain (loss) |
|
|
(203,780) |
|
|
2,770,103
|
|
Net
change in unrealized appreciation (depreciation) on:
|
|
|
|
|
|
|
|
Investments |
|
|
(2,337,511) |
|
|
(1,798,452) |
|
Net
change in unrealized appreciation (depreciation) |
|
|
(2,337,511) |
|
|
(1,798,452) |
|
Net
realized and unrealized gain (loss) |
|
|
(2,541,291) |
|
|
971,651
|
|
NET
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
|
|
$2,513,667 |
|
|
$1,679,860 |
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial
statements.
TABLE OF CONTENTS
HOYA
CAPITAL ETFs
STATEMENTS
OF CHANGES IN NET ASSETS
|
|
|
|
|
|
|
|
|
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss) |
|
|
$5,054,958 |
|
|
$4,266,700 |
|
|
$708,209 |
|
|
$786,022 |
|
Net
realized gain (loss) |
|
|
(203,780) |
|
|
(1,172,036) |
|
|
2,770,103 |
|
|
2,368,651 |
|
Net
change in unrealized appreciation (depreciation) |
|
|
(2,337,511) |
|
|
6,070,573 |
|
|
(1,798,452) |
|
|
1,531,904
|
|
Net
increase (decrease) in net assets from operations |
|
|
2,513,667 |
|
|
9,165,237 |
|
|
1,679,860 |
|
|
4,686,577
|
|
DISTRIBUTIONS
TO SHAREHOLDERS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From
earnings |
|
|
(5,054,958) |
|
|
(4,266,700) |
|
|
(700,610) |
|
|
(786,022) |
|
From
return of capital |
|
|
(4,879,287) |
|
|
(3,103,400) |
|
|
(209,811) |
|
|
(146,984) |
|
Total
distributions to shareholders |
|
|
(9,934,245) |
|
|
(7,370,100) |
|
|
(910,421) |
|
|
(933,006) |
|
CAPITAL
TRANSACTIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
sold |
|
|
28,283,950 |
|
|
43,817,652 |
|
|
4,532,123 |
|
|
3,599,103 |
|
Shares
redeemed |
|
|
(6,704,284) |
|
|
(14,333,987) |
|
|
(7,815,836) |
|
|
(8,306,950) |
|
ETF
transaction fees (See Note 6) |
|
|
— |
|
|
27 |
|
|
— |
|
|
—
|
|
Net
increase (decrease) in net assets from capital transactions |
|
|
21,579,666 |
|
|
29,483,692 |
|
|
(3,283,713) |
|
|
(4,707,847) |
|
Net
increase (decrease) in net assets |
|
|
14,159,088 |
|
|
31,278,829 |
|
|
(2,514,274) |
|
|
(954,276) |
|
NET
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
of the year |
|
|
85,101,846 |
|
|
53,823,017 |
|
|
39,368,880 |
|
|
40,323,156
|
|
End
of the year |
|
|
$99,260,934 |
|
|
$85,101,846 |
|
|
$36,854,606 |
|
|
$39,368,880
|
|
SHARES
TRANSACTIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
sold |
|
|
2,930,000 |
|
|
4,200,000 |
|
|
100,000 |
|
|
75,000 |
|
Shares
redeemed |
|
|
(700,000) |
|
|
(1,420,000) |
|
|
(175,000) |
|
|
(175,000) |
|
Total
increase (decrease) in shares outstanding |
|
|
2,230,000 |
|
|
2,780,000 |
|
|
(75,000) |
|
|
(100,000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
HOYA
CAPITAL HIGH DIVIDEND YIELD ETF
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER
SHARE DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, beginning of period |
|
|
$10.47 |
|
|
$10.06 |
|
|
$11.28 |
|
|
$14.26 |
|
|
$14.92
|
|
INVESTMENT
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(b) |
|
|
0.52 |
|
|
0.59 |
|
|
0.61 |
|
|
0.62 |
|
|
0.23 |
|
Net
realized and unrealized gain (loss) on investments(c) |
|
|
(0.38) |
|
|
0.85 |
|
|
(0.80) |
|
|
(2.59) |
|
|
(0.41) |
|
Total
from investment operations |
|
|
0.14 |
|
|
1.44 |
|
|
(0.19) |
|
|
(1.97) |
|
|
(0.18) |
|
LESS
DISTRIBUTIONS FROM:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(0.53) |
|
|
(0.60) |
|
|
(0.61) |
|
|
(0.62) |
|
|
(0.30) |
|
Net
realized gains |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.01) |
|
Return
of capital |
|
|
(0.50) |
|
|
(0.43) |
|
|
(0.42) |
|
|
(0.39) |
|
|
(0.17) |
|
Total
distributions |
|
|
(1.03) |
|
|
(1.03) |
|
|
(1.03) |
|
|
(1.01) |
|
|
(0.48) |
|
ETF
transaction fees per share |
|
|
— |
|
|
0.00(d) |
|
|
— |
|
|
— |
|
|
—
|
|
Net
asset value, end of period |
|
|
$9.58 |
|
|
$10.47 |
|
|
$10.06 |
|
|
$11.28 |
|
|
$14.26
|
|
Total
return(e) |
|
|
1.93% |
|
|
14.82% |
|
|
−1.33% |
|
|
−14.20% |
|
|
−1.35% |
|
SUPPLEMENTAL
DATA AND RATIOS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (in thousands) |
|
|
$99,261 |
|
|
$85,102 |
|
|
$53,823 |
|
|
$32,385 |
|
|
$21,821
|
|
Ratio
of expenses to average net assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before
expense reimbursement/recoupment(f) |
|
|
0.50% |
|
|
0.50% |
|
|
0.50% |
|
|
0.50% |
|
|
0.50% |
|
After
expense reimbursement/recoupment(f) |
|
|
0.50% |
|
|
0.50% |
|
|
0.50% |
|
|
0.36% |
|
|
0.25% |
|
Ratio
of net investment income (loss) to average net assets(f) |
|
|
5.49% |
|
|
5.68% |
|
|
5.94% |
|
|
5.06% |
|
|
3.42% |
|
Portfolio
turnover rate(e)(g) |
|
|
36% |
|
|
36% |
|
|
34% |
|
|
33% |
|
|
7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Inception date of the Fund was September 21,
2021.
|
|
(b)
|
Net investment income per share has been calculated
based on average shares outstanding during the
periods.
|
|
(c)
|
Realized and unrealized gains and losses per share
in the caption are balancing amounts necessary to reconcile the change in
net asset value per share for the periods, and may not reconcile with the
aggregate gains and losses in the Statement of Operations due to share
transactions for the periods.
|
|
(d)
|
Amount represents less than $0.005 per
share.
|
|
(e)
|
Not annualized for periods less than one
year.
|
|
(f)
|
Annualized for periods less than one
year.
|
|
(g)
|
Portfolio turnover rate excludes in-kind
transactions. |
The
accompanying notes are an integral part of these financial
statements.
TABLE OF CONTENTS
HOYA
CAPITAL HOUSING ETF
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
PER
SHARE DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, beginning of year |
|
|
$46.32 |
|
|
$42.45 |
|
|
$35.07 |
|
|
$39.64 |
|
|
$35.07
|
|
INVESTMENT
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(a) |
|
|
0.91 |
|
|
0.83 |
|
|
0.72 |
|
|
0.63 |
|
|
0.42 |
|
Net
realized and unrealized gain (loss) on investments(b) |
|
|
1.49 |
|
|
4.04 |
|
|
7.55 |
|
|
(4.46) |
|
|
4.71
|
|
Total
from investment operations |
|
|
2.40 |
|
|
4.87 |
|
|
8.27 |
|
|
(3.83) |
|
|
5.13
|
|
LESS
DISTRIBUTIONS FROM:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(0.91) |
|
|
(0.84) |
|
|
(0.72) |
|
|
(0.64) |
|
|
(0.42) |
|
Net
realized gains |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.01) |
|
Return
of capital |
|
|
(0.26) |
|
|
(0.16) |
|
|
(0.17) |
|
|
(0.10) |
|
|
(0.13) |
|
Total
distributions |
|
|
(1.17) |
|
|
(1.00) |
|
|
(0.89) |
|
|
(0.74) |
|
|
(0.56) |
|
Net
asset value, end of year |
|
|
$47.55 |
|
|
$46.32 |
|
|
$42.45 |
|
|
$35.07 |
|
|
$39.64
|
|
Total
return |
|
|
5.36% |
|
|
11.51% |
|
|
23.94% |
|
|
−9.62% |
|
|
14.60% |
|
SUPPLEMENTAL
DATA AND RATIOS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of year (in thousands) |
|
|
$36,855 |
|
|
$39,369 |
|
|
$40,323 |
|
|
$35,069 |
|
|
$63,423
|
|
Ratio
of expenses to average net assets |
|
|
0.30% |
|
|
0.30% |
|
|
0.30% |
|
|
0.30% |
|
|
0.30% |
|
Ratio
of net investment income (loss) to average net assets |
|
|
2.00% |
|
|
1.81% |
|
|
1.92% |
|
|
1.80% |
|
|
1.03% |
|
Portfolio
turnover rate(c) |
|
|
12% |
|
|
20% |
|
|
18% |
|
|
18% |
|
|
13% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Net investment income per share has been calculated
based on average shares outstanding during the
years.
|
|
(b)
|
Realized and unrealized gains and losses per share
in the caption are balancing amounts necessary to reconcile the change in
net asset value per share for the periods, and may not reconcile with the
aggregate gains and losses in the Statement of Operations due to share
transactions for the periods.
|
|
(c)
|
Portfolio turnover rate excludes in-kind
transactions. |
The
accompanying notes are an integral part of these financial
statements.
TABLE OF CONTENTS
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February 28, 2026
NOTE
1 – ORGANIZATION
Hoya Capital High Dividend Yield ETF and Hoya
Capital Housing ETF (individually each a “Fund” or collectively the “Funds”) are
each a diversified series of ETF Series Solutions (“ESS” or the “Trust”),
an open-end management investment company consisting of multiple investment
series, organized as a Delaware statutory trust on February 9, 2012. The
Trust is registered with the U.S. Securities and Exchange Commission (“SEC”)
under the Investment Company Act of 1940, as amended (the “1940 Act”), as an
open-end management investment company and the offering of the Funds’ shares is
registered under the Securities Act of 1933, as amended (the “Securities Act”).
The investment objective of the Hoya Capital High Dividend Yield ETF is to track
the performance, before fees and expenses, of the Hoya Capital High Dividend
Yield Index (the “Index”). The investment objective of the Hoya Capital Housing
ETF is to track the performance, before fees and expenses, of the Hoya Capital
Housing 100™ Index (the “Index”). Hoya Capital High Dividend Yield ETF commenced
operations on September 21, 2021 and Hoya Capital Housing ETF commenced
operations on March 19, 2019.
The
end of the reporting period for the Funds is February 28, 2026. The current
fiscal period is the period from March 1, 2025 through February 28,
2026.
NOTE
2 – SIGNIFICANT ACCOUNTING POLICIES
The
Funds are investment companies and accordingly follow the investment company
accounting and reporting guidance of the Financial Accounting Standards Board
(“FASB”) Accounting Standards Codification (“ASC”) Topic 946 Financial
Services – Investment Companies.
The
following is a summary of significant accounting policies consistently followed
by the Funds. These policies are in conformity with accounting principles
generally accepted in the United States of America (“U.S. GAAP”).
|
A.
|
Security Valuation. All equity
securities, including domestic and foreign common stocks, preferred stocks
and exchange traded funds that are traded on a national securities
exchange, except those listed on the Nasdaq Global Market®,
Nasdaq Global Select Market® and the Nasdaq Capital
Market® exchanges (collectively, “Nasdaq”) are valued at the
last reported sale price on the exchange on which the security is
principally traded. Securities traded on Nasdaq will be valued at the
Nasdaq Official Closing Price (“NOCP”). If, on a particular day, an
exchange-traded or Nasdaq security does not trade, then the mean between
the most recent quoted bid and asked prices will be used. All equity
securities that are not traded on a listed exchange are valued at the last
sale price in the over-the-counter market. If a non-exchange traded
security does not trade on a particular day, then the mean between the
last quoted closing bid and asked price will be used. Prices denominated
in foreign currencies are converted to U.S. dollar equivalents at the
current exchange rate, which approximates fair value.
|
Investments
in mutual funds, including money market funds, are valued at their net asset
value (“NAV”) per share.
Units
of Mount Vernon Liquid Assets Portfolio are not traded on an exchange and are
valued at the investment company’s NAV per share as provided by the underlying
fund’s administrator.
Securities
for which quotations are not readily available are valued at their respective
fair values in accordance with pricing procedures adopted by the Fund’s Board of
Trustees (the “Board”). When a security is “fair valued,” consideration is given
to the facts and circumstances relevant to the particular situation, including a
review of various factors set forth in the pricing procedures adopted by the
Board. The use of fair value pricing by the Funds may cause the NAV of their
shares to differ significantly from the NAV that would be calculated without
regard to such considerations.
As
described above, the Funds utilize various methods to measure the fair value of
their investments on a recurring basis. U.S. GAAP establishes a hierarchy that
prioritizes inputs to valuation methods. The three levels of inputs are:
|
Level 1
–
|
Unadjusted
quoted prices in active markets for identical assets or liabilities that
the Fund has the ability to access. |
TABLE OF CONTENTS
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February 28, 2026(Continued)
|
Level 2
–
|
Observable
inputs other than quoted prices included in Level 1 that are observable
for the asset or liability, either directly or indirectly. These inputs
may include quoted prices for the identical instrument on an inactive
market, prices for similar instruments, interest rates, prepayment speeds,
credit risk, yield curves, default rates and similar data.
|
|
Level 3
–
|
Unobservable
inputs for the asset or liability, to the extent relevant observable
inputs are not available; representing the Funds’ own assumptions about
the assumptions a market participant would use in valuing the asset or
liability, and would be based on the best information available.
|
The
availability of observable inputs can vary from security to security and is
affected by a wide variety of factors, including, for example, the type of
security, whether the security is new and not yet established in the
marketplace, the liquidity of markets, and other characteristics particular to
the security. To the extent that valuation is based on models or inputs that are
less observable or unobservable in the market, the determination of fair value
requires more judgment. Accordingly, the degree of judgment exercised in
determining fair value is greatest for instruments categorized in
Level 3.
The
inputs used to measure fair value may fall into different levels of the fair
value hierarchy. In such cases, for disclosure purposes, the level in the fair
value hierarchy within which the fair value measurement falls in its entirety is
determined based on the lowest level input that is significant to the fair value
measurement in its entirety.
The
following is a summary of the inputs used to value the Funds’ investments as of
the end of the current fiscal period:
Hoya
Capital High Dividend Yield ETF
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stocks |
|
|
$89,253,694 |
|
|
$— |
|
|
$— |
|
|
$89,253,694 |
|
Preferred
Stocks |
|
|
9,420,210 |
|
|
— |
|
|
— |
|
|
9,420,210 |
|
Investments
Purchased with Proceeds from Securities Lending^^ |
|
|
— |
|
|
— |
|
|
— |
|
|
6,926,306 |
|
Money
Market Funds |
|
|
433,072 |
|
|
— |
|
|
— |
|
|
433,072
|
|
Total
Investments |
|
|
$99,106,976 |
|
|
$— |
|
|
$— |
|
|
$106,033,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hoya
Capital Housing ETF
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stocks |
|
|
$36,754,590 |
|
|
$— |
|
|
$— |
|
|
$36,754,590 |
|
Money
Market Funds |
|
|
77,845 |
|
|
— |
|
|
— |
|
|
77,845
|
|
Total
Investments |
|
|
$36,832,435 |
|
|
$— |
|
|
$— |
|
|
$36,832,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
^^
|
Certain
investments that are measured at fair value using the net asset value per
share (or its equivalent) practical expedient have not been categorized in
the fair value hierarchy. The fair value amounts presented in the table
are intended to permit reconciliation of the fair value hierarchy to the
amounts listed in the Schedule of Investments. |
Refer
to the Schedule of Investments for further disaggregation of investment
categories.
|
B.
|
Federal Income Taxes. The Funds’ policy
is to comply with the requirements of Subchapter M of the Internal Revenue
Code of 1986, as amended, applicable to regulated investment companies and
to distribute substantially all of their net investment income and net
capital gains to shareholders. Therefore, no federal income tax provision
is required. Each Fund plans to file U.S. Federal and applicable state and
local tax returns. |
Each
Fund recognizes the tax benefits of uncertain tax positions only when the
position is more likely than not to be sustained. Management has analyzed each
Fund’s uncertain tax positions and concluded that no liability for unrecognized
tax benefits should be recorded related to uncertain tax positions. Management
is not aware
TABLE OF CONTENTS
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February 28, 2026(Continued)
of
any tax positions for which it is reasonably possible that the total amounts of
unrecognized tax benefits will change materially in the next 12 months. Income
and capital gain distributions are determined in accordance with federal income
tax regulations, which may differ from U.S. GAAP. The Funds recognize interest
and penalties, if any, related to unrecognized tax benefits on uncertain tax
positions as income tax expense in the Statement of Operations. During the
current fiscal period, the Funds did not incur any interest or penalties.
|
C.
|
Security Transactions and Investment
Income. Investment securities transactions are accounted for on the
trade date. Gains and losses realized on sales of securities are
determined on a specific identification basis. Dividend income is recorded
on the ex-dividend date. Non-cash dividends included in dividend income or
separately disclosed, if any, are recorded at the fair value of the
security received. Interest income is recorded on an accrual basis.
Withholding taxes on foreign dividends, if any, have been provided for in
accordance with the Funds’ understanding of the applicable tax rules and
regulations. |
Distributions
received from investments in Real Estate Investment Trusts (“REITs”) may be
characterized as ordinary income, net capital gain, or a return of capital. The
proper characterization of REIT distributions is generally not known until after
the end of each calendar year. As such, the Funds must use estimates in
reporting the character of income and distributions received during the current
calendar year for financial statement purposes. The actual character of
distributions to the Funds’ shareholders will be reflected on the Form 1099
received by shareholders after the end of the calendar year. Due to the nature
of REIT investments, a portion of the distributions received by the Funds’
shareholders may represent a return of capital.
|
D.
|
Distributions to Shareholders.
Distributions to shareholders from net investment income, if any, are
declared and paid monthly by the Funds. Distributions to shareholders from
net realized gains on securities are declared and paid by the Funds on, at
least, an annual basis. Distributions are recorded on the ex-dividend
date. |
|
E.
|
Use of Estimates. The preparation of
financial statements in conformity with U.S. GAAP requires management to
make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements, as well as the reported amounts of
revenues and expenses during the current fiscal period. Actual results
could differ from those estimates. |
|
F.
|
Share Valuation. The NAV per share of
each Fund is calculated by dividing the sum of the value of the securities
held by each Fund, plus cash and other assets, minus all liabilities
(including estimated accrued expenses) by the total number of outstanding
shares of each Fund, rounded to the nearest cent. The Funds’ shares will
not be priced on the days on which the New York Stock Exchange (“NYSE”) is
closed for trading. The offering and redemption price per share of each
Fund is equal to each Fund’s NAV per share. |
|
G.
|
Guarantees and Indemnifications. In the
normal course of business, the Funds enter into contracts with service
providers that contain general indemnification clauses. The Funds’ maximum
exposure under these arrangements is unknown as this would involve future
claims that may be against the Funds that have not yet occurred. However,
based on experience, the Funds expect the risk of loss to be remote.
|
|
H.
|
Reclassifications of Capital Accounts.
U.S. GAAP requires that certain components of net assets relating to
permanent differences be reclassified between financial and tax reporting.
These reclassifications have no effect on net assets or NAV per share.
|
These
differences are primarily due to differing book and tax treatments for in-kind
transactions. For the fiscal year ended February 28, 2026, the following
table shows the reclassifications made:
|
|
|
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$(421,116) |
|
|
$421,116 |
|
Hoya
Capital Housing ETF |
|
|
(2,504,516) |
|
|
2,504,516 |
|
|
|
|
|
|
|
|
TABLE OF CONTENTS
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February 28, 2026(Continued)
|
I.
|
Segment Reporting. Each Fund operates as
a single segment entity. Each Fund’s income, expenses, assets, and
performance are regularly monitored and assessed by the President of the
Adviser, who serves as the chief operating decision maker, using the
information presented in the financial statements and financial
highlights. |
|
J.
|
Subsequent Events. In preparing these
financial statements, management has evaluated events and transactions for
potential recognition or disclosure through the date the financial
statements were issued. There were no events or transactions that occurred
during the period subsequent to the end of the current fiscal period that
materially impacted the amounts or disclosures in the Funds’ financial
statements. |
NOTE
3 – COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
Hoya
Capital Real Estate, LLC (the “Adviser”), serves as the investment adviser to
the Funds. An affiliate of the Adviser, Hoya Capital Index Innovations (the
“Index Provider”), serves as index provider to the Funds. Pursuant to an
Investment Advisory Agreement (“Advisory Agreement”) between the Trust, on
behalf of the Funds, and the Adviser, the Adviser provides investment advice to
the Funds and oversees the day-to-day operations of the Funds, subject to the
direction and control of the Board and the officers of the Trust. Under the
Advisory Agreement, the Adviser is also responsible for arranging, in
consultation with Penserra Capital Management, LLC, (the “Sub-Adviser”),
transfer agency, custody, fund administration and accounting, and other
non-distribution related services necessary for the Funds to operate. Under the
Advisory Agreement, the Adviser has agreed to pay all expenses of the Funds,
except for: the fee paid to the Adviser pursuant to the Advisory Agreement,
interest charges on any borrowings, dividends and other expenses on securities
sold short, taxes, brokerage commissions and other expenses incurred in placing
orders for the purchase and sale of securities and other investment instruments,
acquired fund fees and expenses, accrued deferred tax liability, extraordinary
expenses and distribution (12b-1) fees and expenses. For the services it
provides to the Funds, the Funds pay the Adviser a unified management fee, which
is calculated daily and paid monthly, at the annual rates of each Fund’s average
daily net assets listed below. The Adviser is responsible for paying the
Sub-Adviser.
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
0.50%
|
|
Hoya
Capital Housing ETF |
|
|
0.30% |
|
|
|
|
|
U.S.
Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services
(“Fund Services” or “Administrator”), acts as the Funds’ Administrator and, in
that capacity, performs various administrative and accounting services for the
Funds. The Administrator prepares various federal and state regulatory filings,
reports and returns for the Funds, including regulatory compliance monitoring
and financial reporting; prepares reports and materials to be supplied to the
Board; monitors the activities of the Funds’ Custodian, transfer agent, and fund
accountant. Fund Services also serves as the transfer agent and fund accountant
to the Funds. U.S. Bank N.A. (the “Custodian”), an affiliate of Fund Services,
serves as the Funds’ Custodian.
All
officers of the Trust are affiliated with the Administrator and Custodian.
NOTE
4 – SECURITIES LENDING
Hoya
Capital High Dividend Yield ETF may lend up to 331∕3 percent of the value of the
securities in its portfolio to brokers, dealers and financial institutions (but
not individuals) under terms of participation in a securities lending program
administered by the Securities Lending Agent. Under the terms of the securities
lending agreement, the Fund may lend securities to certain broker-dealers and
banks in exchange for collateral in the amount of at least 102% of the value of
U.S. securities loaned or at least 105% of the value of non-U.S. securities
loaned, marked to market daily. The market value of the loaned securities is
determined daily at the close of business of the Fund and any additional
required collateral is delivered to the Fund on the next business day. The Fund
receives compensation in the form of fees and earns interest on the cash
collateral. The amount of fees depends on a number of factors including the type
of security and length of the loan. The Fund continues to receive interest
payments or dividends on the securities loaned during the borrowing period. Gain
or loss in the fair value of securities loaned, that may occur during the term
of the loan, will be for the account of the Fund. The Fund has the right, under
the terms of the securities lending agreement, to recall the securities from the
borrower on demand.
TABLE OF CONTENTS
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February 28, 2026(Continued)
The
securities lending agreement provides that, in the event of a borrower’s
material default, the Securities Lending Agent shall take all actions the
Securities Lending Agent deems appropriate to liquidate the collateral, purchase
replacement securities at the Securities Lending Agent’s expense, or pay the
Fund an amount equal to the market value of the loaned securities, subject to
certain limitations which are set forth in detail in the securities lending
agreement between the Fund and the Securities Lending Agent.
As
of the end of the current fiscal period, Hoya Capital High Dividend Yield ETF
loaned securities and received cash collateral for the loans.
The
cash collateral is invested by the Securities Lending Agent in accordance with
approved investment guidelines. Those guidelines require the cash collateral to
be invested in readily marketable, high quality, short-term obligations;
however, such investments are subject to risk of payment delays or default on
the part of the issuer or counterparty or otherwise may not generate sufficient
interest to support the costs associated with securities lending. The Fund could
also experience delays in recovering securities and possible loss of income or
value if the borrower fails to return the borrowed securities, although the Fund
is indemnified from this risk by contract with the Securities Lending Agent. The
Fund manages credit exposure arising from these lending transactions by, in
appropriate circumstances, entering into master netting agreements and
collateral agreements with third party borrowers that provide the Fund, in the
event of default (such as bankruptcy or a borrower’s failure to pay or perform),
the right to net a third party borrower’s rights and obligations under such
agreement and liquidate and set off collateral against the net amount owed by
the counterparty.
As
of the end of the current fiscal period, the value of the securities on loan and
payable for collateral due to broker were as follows:
|
|
|
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$6,728,012 |
|
|
$6,926,306 |
|
|
|
|
|
|
|
|
|
*
|
The
cash collateral received was invested in the Mount Vernon Liquid Assets
Portfolio, LLC as shown on the Schedules of Investments, a short-term
investment portfolio with an overnight and continuous maturity. The
investment objective is to seek to maximize current income to the extent
consistent with the preservation of capital and liquidity and maintain a
stable NAV of $1.00 per unit. |
The
interest income earned by the Fund on the investment of cash collateral received
from the borrowers for the securities loaned to them (“Securities lending
income”) is reflected in the Fund’s Statement of Operations. Net Fees and
interest income earned on collateral investments and recognized by the Fund
during the current fiscal period were as follows:
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$4,111 |
|
|
|
|
|
NOTE
5 – PURCHASES AND SALES OF SECURITIES
During
the current fiscal period, purchases and sales of securities by the Funds,
excluding short-term securities and in-kind transactions were as follows:
|
|
|
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$32,491,566 |
|
|
$33,729,606
|
|
Hoya
Capital Housing ETF |
|
|
6,986,272 |
|
|
4,169,204 |
|
|
|
|
|
|
|
|
During
the current fiscal period, there were no purchases or sales of U.S. Government
securities.
TABLE OF CONTENTS
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February 28, 2026(Continued)
During
the current fiscal period, in-kind transactions associated with creations and
redemptions were as follows:
|
|
|
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$27,691,651 |
|
|
$6,562,231
|
|
Hoya
Capital Housing ETF |
|
|
2,269,444 |
|
|
7,744,175 |
|
|
|
|
|
|
|
|
NOTE
6 – INCOME TAX INFORMATION
The
components of distributable earnings (accumulated losses) and cost basis of
investments for federal income tax purposes at February 28, 2026 were as
follows:
|
|
|
|
|
|
|
|
|
Tax
cost of investments |
|
|
$110,569,342 |
|
|
$33,763,456 |
|
Gross
tax unrealized appreciation |
|
|
9,595,838 |
|
|
7,180,073 |
|
Gross
tax unrealized depreciation |
|
|
(14,131,898) |
|
|
(4,111,094) |
|
Net
tax unrealized appreciation (depreciation) |
|
|
(4,536,060) |
|
|
3,068,979 |
|
Undistributed
ordinary income |
|
|
— |
|
|
— |
|
Undistributed
long-term capital gains |
|
|
— |
|
|
— |
|
Other
accumulated gain (loss) |
|
|
(2,483,239) |
|
|
(1,547,171) |
|
Distributable
earnings (accumulated losses) |
|
|
$(7,019,299) |
|
|
$1,521,808 |
|
|
|
|
|
|
|
|
The
difference between the cost basis for financial statement and federal income tax
purposes is primarily due to timing differences in recognizing wash sales.
A
regulated investment company may elect for any taxable year to treat any portion
of any qualified late year loss as arising on the first day of the next taxable
year. Qualified late year losses are certain capital and ordinary losses which
occur during the portion of the Funds’ taxable year subsequent to October 31 and
December 31, respectively. For the taxable year ended February 28, 2026,
the Funds did not elect to defer any post-October capital losses or late-year
losses.
As
of February 28, 2026, the Funds had the following capital loss carryforwards
with an indefinite expiration:
|
|
|
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$423,745 |
|
|
$2,059,495 |
|
Hoya
Capital Housing ETF |
|
|
28,694 |
|
|
1,518,477 |
|
|
|
|
|
|
|
|
The
tax character of distributions paid by the Funds during the year ended
February 28, 2026 were as follows:
|
|
|
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$5,054,958 |
|
|
$4,879,287 |
|
Hoya
Capital Housing ETF |
|
|
$700,610 |
|
|
$209,811 |
|
|
|
|
|
|
|
|
The
tax character of distributions paid by the Funds during the year ended
February 28, 2025 were as follows:
|
|
|
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
$4,266,700 |
|
|
$3,103,400 |
|
Hoya
Capital Housing ETF |
|
|
$786,022 |
|
|
$146,984 |
|
|
|
|
|
|
|
|
TABLE OF CONTENTS
HOYA
CAPITAL ETFs
NOTES
TO FINANCIAL STATEMENTS
February 28, 2026(Continued)
NOTE
7 – SHARE TRANSACTIONS
Shares
of the Funds are listed and trade on the New York Stock Exchange Arca, Inc.
(“NYSE Arca”). Market prices for the shares may be different from their NAV. The
Funds issue and redeem shares on a continuous basis at NAV generally in large
blocks of shares, called “Creation Units.” Creation Units are issued and
redeemed principally in-kind for securities included in a specified universe.
Once created, shares generally trade in the secondary market at market prices
that change throughout the day. Except when aggregated in Creation Units, shares
are not redeemable securities of the Funds. Creation Units may only be purchased
or redeemed by certain financial institutions (“Authorized Participants”). An
Authorized Participant is either (i) a broker-dealer or other participant in the
clearing process through the Continuous Net Settlement System of the National
Securities Clearing Corporation or (ii) a Depository Trust Company participant
and, in each case, must have executed a Participation Agreement with the
Distributor. Most retail investors do not qualify as Authorized Participants nor
have the resources to buy and sell whole Creation Units. Therefore, they are
unable to purchase or redeem shares directly from the Funds. Rather, most retail
investors may purchase shares in the secondary market with the assistance of a
broker and are subject to customary brokerage commissions or fees.
The
Funds currently offer one class of shares, which has no front-end sales load, no
deferred sales charge, and no redemption fee. A fixed transaction fee is imposed
for the transfer and other transaction costs associated with the purchase or
sale of Creation Units. The standard fixed transaction fee for the Funds is
$300, payable to the Custodian. The fixed transaction fee may be waived on
certain orders if the Funds’ Custodian has determined to waive some or all of
the costs associated with the order or another party, such as the Adviser, has
agreed to pay such fee. In addition, a variable fee, payable to the Funds, may
be charged on all cash transactions or substitutes for Creation Units of up to a
maximum of 2% as a percentage of the value of the Creation Units subject to the
transaction. Variable fees are imposed to compensate the Funds for the
transaction costs associated with the cash transaction fees. Variable fees
received by the Funds, if any, are displayed in the Capital Shares Transactions
section of the Statements of Changes in Net Assets. The Funds may issue an
unlimited number of shares of beneficial interest, with no par value. All shares
of the Funds have equal rights and privileges.
NOTE
8 – RISKS
Concentration
Risk. The Funds’ investments will be
concentrated in an industry or group of industries to the extent the Indexes are
so concentrated, and the Indexes are expected to be concentrated in housing and
real estate-related industries. When the Funds focus their investments in a
particular industry or sector, they thereby present a more concentrated risk and
their performance will be especially sensitive to developments that
significantly affect that industry or group of industries. In addition, the
value of shares may change at different rates compared to the value of shares of
a fund with investments in a more diversified mix of industries. An industry may
have above-average performance during particular periods, but may also move up
and down more than the broader market. The several industries that constitute a
sector may all react in the same way to economic, political or regulatory
events. The Funds’ performance could also be affected if the sectors,
industries, or sub-sectors do not perform as expected. Alternatively, the lack
of exposure to one or more sectors or industries may adversely affect
performance.
Construction
and Housing Risk. The construction and housing
industry can be significantly affected by the national, regional and local real
estate markets. This industry is also sensitive to interest rate fluctuations
which can cause changes in the availability of mortgage capital and directly
affect the purchasing power of potential homebuyers. The building industry can
be significantly affected by changes in government spending, consumer
confidence, demographic patterns and the level of new and existing home sales.
TABLE OF CONTENTS
HOYA
CAPITAL ETFs
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Hoya Capital ETFs and
Board
of Trustees of ETF Series Solutions
Opinion on the Financial Statements
We
have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Hoya Capital ETFs comprising the funds listed
below (the “Funds”), each a series of ETF Series Solutions, as of
February 28, 2026, the related statements of operations and changes in net
assets, and the financial highlights for each of the periods indicated below,
and the related notes (collectively referred to as the “financial statements”).
In our opinion, the financial statements present fairly, in all material
respects, the financial position of each of the Funds as of February 28, 2026,
the results of their operations, the changes in net assets, and the financial highlights for each of the
periods indicated below in conformity with accounting principles generally
accepted in the United States of America.
|
|
|
|
|
|
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
For
the year ended February 28, 2026 |
|
|
For
the years ended February 28, 2026 and 2025 |
|
|
For
the years ended February 28, 2026 and 2025, February 29, 2024,
February 28, 2023, and for the period from September 21, 2021
(commencement of operations) to February 28, 2022 |
|
Hoya
Capital Housing ETF |
|
|
For
the year ended February 28, 2026 |
|
|
For
the years ended February 28, 2026 and 2025 |
|
|
For
the years ended February 28, 2026 and 2025, February 29, 2024,
and February 28, 2023 and 2022 |
|
|
|
|
|
|
|
|
|
|
|
Basis for Opinion
These
financial statements are the responsibility of the Funds’ management. Our
responsibility is to express an opinion on the Funds’ financial statements based
on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (“PCAOB”) and are required to
be independent with respect to the Funds in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We
conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of material
misstatement whether due to error or fraud.
Our
audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of February 28, 2026, by correspondence with the custodian and
securities lending agent. Our audits also included evaluating the
accounting principles used and significant estimates made by management, as well
as evaluating the overall presentation of the financial statements. We believe
that our audits provide a reasonable basis for our opinion.
We
have served as the Funds’ auditor since
2019.
COHEN
& COMPANY, LTD.
Philadelphia,
Pennsylvania
April
28, 2026
TABLE OF CONTENTS
HOYA
CAPITAL ETFs
FEDERAL
TAX INFORMATION (Unaudited)
For the fiscal year ended February 28, 2026, certain
dividends paid by the Funds may be subject to the maximum tax rate of 23.8%, as
provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The
percentage of dividends declared from ordinary income designated as qualified
dividend income was as follows:
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
3.18% |
|
Hoya
Capital Housing ETF |
|
|
48.85% |
|
|
|
|
|
For
corporate shareholders, the percentage of ordinary income distributions
qualifying for the corporate dividends received deduction for the fiscal year
ended February 28, 2026 was as follows:
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
5.10% |
|
Hoya
Capital Housing ETF |
|
|
44.67% |
|
|
|
|
|
The
percentage of taxable ordinary income distributions that are designated as
short-term capital gain distributions under Internal Revenue
Section 871(k)(2)(C) for each Fund was as follows:
|
|
|
|
|
|
Hoya
Capital High Dividend Yield ETF |
|
|
0.00%
|
|
Hoya
Capital Housing ETF |
|
|
0.00% |
|
|
|
|
|
TABLE OF CONTENTS
HOYA
CAPITAL ETFs
ADDITIONAL
INFORMATION (Unaudited)
Changes in and Disagreements with Accountants
There
were no changes in or disagreements with accountants during the period covered
by this report.
Proxy
Disclosure
There
were no matters submitted to a vote of shareholders during the period covered by
this report.
Remuneration
Paid to Directors, Officers, and Others
All
fund expenses, including Trustee compensation is paid by the Investment Adviser
pursuant to the Investment Advisory Agreement. Additional information related to
those fees is available in the Funds’ Statement of Additional Information.
Statement
Regarding Basis for Approval of Investment Advisory Contract
Not
applicable.
