Semi Annual Report
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Semi-Annual Report March 31, 2021 (Unaudited) BlueStar Israel Technology ETF Ticker: ITEQ The Fund is a series of ETF Managers Trust. BlueStar Israel Technology ETF TABLE OF CONTENTS March 31, 2021 (Unaudited) Page Shareholder Letter 2 Growth of $10,000 Investment 3 Top 10 Holdings 4 Important Disclosures and Key Risk Factors 5 Portfolio Allocations 6 Schedule of Investments 7 Statement of Assets and Liabilities 11 Statement of Operations 12 Statements of Changes in Net Assets 13 Financial Highlights 14 Notes to the Financial Statements 15 Approval of Advisory Agreement and Board Considerations 24 Expense Example 27 Statement Regarding Liquidity Risk Management Program 28 Supplementary Information 29 Information About Portfolio Holdings 29 Information About Proxy Voting 29 Trustees and Officers Table 30 BlueStar Israel Technology ETF Dear Shareholder, On behalf of the entire team, we want to express our appreciation for the confidence you have placed in the BlueStar Israel Technology Exchange-Traded Fund (“ITEQ” or the “Fund”). The following information pertains to the fiscal period from October 1, 2020 to March 31, 2021. The Fund seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the BlueStar Israel Global Technology IndexTM (the “Index”). Over the 6-month period ending March 31, 2021, the total return for the Fund was 17.52% while the total return for the Index, which does not incur Fund expenses, was 17.75%. The best performers in the Fund on the basis of contribution to its return were SolarEdge Technologies, Novocure Ltd., Verint Systems Inc., Amdocs Ltd. and Kornit Digital Ltd. while the worst performers were Jfrog Ltd., Brainstorm Cell Therapeutics, Compugen Ltd., Check Point Software Technologies Ltd. and Lemonade Inc. At the end of the reporting period, the Fund saw an approximate allocation of 31.1% to Software, 16.3% to IT Services, 13.0% to Semiconductors & Semiconductor Equipment, 8.1% to Health Care Equipment & Supplies and 2.1% to Independent Power and Renewable Electricity Producers. The Fund was exposed predominately to Israel 62.0%, followed by the United States 23.5%. We continue to believe Israeli companies play an essential role in the global high technology value chain. Most technology users, from online shoppers to Fortune 500 companies, use Israeli technology applications and solutions every day without ever being aware of it. From cybersecurity and defense to clean energy and agriculture, Israeli innovations power some of the biggest names in the tech industry today. Even in industries where Israeli companies do not have dominant individual market share, the collective footprint of Israeli companies is significant in many key technology subsectors, and Israel- based Research & Development and non-public companies are usually significant contributors to that same sub-industry’s ecosystem. There is much ahead for Israeli Technology companies and we are thankful you have joined us. You can find further details about ITEQ by visiting www.etfmg.com, or by calling 1-844-ETF-MGRS. (1- 844-383-6477). Sincerely, Samuel Masucci III Chairman of the Board 2 BlueStar Israel Technology ETF Growth of $10,000 (Unaudited) $33,000 $28,000 $23,000 $18,000 $13,000 $8,000 11/02/201512/30/201503/31/201606/30/201609/30/201612/31/201603/31/201706/30/201709/30/201712/31/201703/31/201806/30/201809/30/201812/31/201803/31/201906/30/201909/30/201912/31/201903/31/202006/30/202009/30/202012/31/202003/31/2021 BlueStar Israel Technology ETF (NAV) BlueStar Israel Technology ETF (Market) S&P 500 Index BlueStar Israel Global Technology Index™ Since Value of Average Annual Returns 1 Year 5 Year Inception $10,000 Period Ended March 31, 2021 Return Return (11/2/2015) (3/31/2021) BlueStar Israel Technology ETF (NAV) 80.73% 22.58% 19.69% $ 26,449 BlueStar Israel Technology ETF (Market) 82.88% 22.47% 19.73% $ 26,489 S&P 500 Index 56.35% 16.29% 14.73% $ 21,031 BlueStar Israel Global Technology IndexTM 83.08% 23.76% 20.82% $ 27,830 Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. All performance is historical and includes reinvestment of dividends and capital gains. Performance data current to the most recent month end may be obtained by calling 1-844-ETF-MGRS (1-844-383-6477). The chart illustrates the performance of a hypothetical $10,000 investment made on November 2, 2015, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions from the sales of Fund shares. The chart assumes reinvestment of capital gains and dividends, if any. The Index Returns do not reflect fees or expenses and are not available for direct investment. 3 BlueStar Israel Technology ETF Top Ten Holdings as of March 31, 2021 (Unaudited)* % of Total Security Investments 1 Wix.com, Ltd. 7.85% 2 SolarEdge Technologies, Inc. 7.52% 3 Check Point Software Technologies, Ltd. 6.66% 4 Nice, Ltd. 6.42% 5 Amdocs, Ltd. 6.38% 6 Novocure, Ltd. 5.48% 7 CyberArk Software, Ltd. 4.02% 8 Ormat Technologies, Inc. 3.71% 9 Fiverr International, Ltd. 3.26% 10 Elbit Systems, Ltd. 3.20% Top Ten Holdings = 54.50% of Total Investments * Current Fund holdings may not be indicative of future Fund holdings. 4 BlueStar Israel Technology ETF Important Disclosures and Key Risk Factors Past performance is not indicative of future return. A fund’s performance for very short time periods may not be indicative of future performance. ITEQ The BlueStar Israel Technology ETF (the “Fund”) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the BlueStar Israel Global Technology Index (the “Index”). Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. Investment in securities of Israeli companies involves risks that may negatively affect the value of your investment in the Fund. Among other things, Israel’s economy depends on imports of certain key items, such as crude oil, coal, grains, raw materials and military equipment. Foreign investing involves special risks such as currency fluctuations and political uncertainty. Funds that invest in smaller companies may experience greater volatility. Funds that emphasize investments in technology generally will experience greater price volatility. The Fund’s return may not match or achieve a high degree of correlation with the return of the Index. To the extent the Fund utilizes a sampling approach, it may experience tracking error to a greater extent than if the Fund had sought to replicate the Index. Diversification does not guarantee a profit, nor does it protect against a loss in a declining market. Unlike with an actively managed fund, the Fund’s adviser does not use techniques or defensive strategies designed to lessen the effects of market volatility or to reduce the impact of periods of market decline. This means that, based on market and economic conditions, the Fund’s performance could be lower than other types of funds that may actively shift their portfolio assets to take advantage of market opportunities or to lessen the impact of a market decline. Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and may be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Fund’s investments. Given the increasing interdependence among global economies and markets, conditions in one country, market, or region are increasingly likely to adversely affect markets, issuers, and/or foreign exchange rates in other countries, including the U.S. Any such events could have a significant adverse impact on the value of the Fund’s investments. ETF Managers Group LLC is the investment advisor to the Fund. The Fund is distributed by ETFMG Financial LLC. ETF Managers Group LLC and ETFMG Financial LLC are wholly owned subsidiaries of Exchange Traded Managers Group LLC (collectively, “ETFMG”). ETFMG is not affiliated with MV Index Solutions GmbH or its affiliates. 5 BlueStar Israel Technology ETF PORTFOLIO ALLOCATIONS As of March 31, 2021 (Unaudited) BlueStar Israel Technology ETF As a percent of Net Assets: Gibraltar 1.2% Guernsey 6.4 Israel 62.0 Jersey 5.5 United Kingdom 0.9 United States 23.5 Short-Term and other Net Assets (Liabilities) 0.5 100.0% 6 BlueStar Israel Technology ETF Schedule of Investments March 31, 2021 (Unaudited) Shares Value COMMON STOCKS - 99.5% Gibraltar - 1.2% Hotels, Restaurants & Leisure - 1.2% 888 Holdings PLC 430,342 $ 2,343,426 Guernsey - 6.4% IT Services - 6.4% Amdocs, Ltd. 182,972 12,835,486 Israel - 62.0% Aerospace & Defense - 3.7% Elbit Systems, Ltd. 45,467 6,428,839 RADA Electronic Industries, Ltd. (a) 83,939 1,008,107 Total Aerospace & Defense 7,436,946 Biotechnology - 0.7% Kamada, Ltd. (a) 109,088 665,994 UroGen Pharma, Ltd. (a)(b) 39,692 773,200 Total Biotechnology 1,439,194 Capital Markets - 0.4% Electreon Wireless, Ltd.