EKAR — Innovation Shares NextGen Vehicles and Technology ETF

EKAR Fund Overview

EKAR — Innovation Shares NextGen Vehicles and Technology ETF is a US ETF managed by Exchange Traded Concepts Trust, categorised as Emerging Markets Growth Thematic Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Exchange Traded Concepts Trust
• Category: Emerging Markets Growth Thematic Equity
• Assets under management: $7.57M
• 1-year return: -20.3%
• Ticker: EKAR
• SEC CIK: 0001452937
• SEC series ID: S000061192
• Share class ID: C000198172

EKAR Investment Objective and Strategy

Innovation Shares NextGen Vehicles and Technology ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Exchange Traded Concepts Trust.

Investment objective

"The Innovation Shares NextGen Vehicles & Technology ETF (the ""Fund"") seeks to provide investment results that, before fees and expenses, track the performance of the Innovation Labs Next Generation Vehicles Index (the ""Index"")."

Principal investment strategy

"The Fund will normally invest at least 80% of its total assets in securities of the Index. The Index is designed to measure the performance of a portfolio of companies that have business involvement in the development or use of or investment in ""New Energy Vehicles,"" such as vehicles propelled by one or more electric motors powered by rechargeable battery packs, or ""Autonomously Driven Vehicles,"" such as vehicles capable of driving themselves from a starting point to a predetermined destination in ""autopilot"" mode using various in-vehicle technologies and sensors (New Energy Vehicles and Autonomously Driven Vehicles are referred to herein as ""Next Generation Vehicles""). The Index is constructed using a proprietary algorithmic stock selection methodology (the ""Methodology"") developed by Innovation Labs Ltd.

(the ""Index Creator""). The Index has been licensed by Innovation Shares LLC (the ""Index Provider""). The eligible universe of Index components includes companies that: (1) are listed on major stock exchanges of developed and emerging markets countries, as defined by the Index Creator according to the Methodology; (2) have a minimum market capitalization of $100 million and a minimum average daily traded value for the last 6 months greater than or equal to $1 million; and (3) have a minimum free float market capitalization (shares publicly available for purchase on the stock market) equivalent to 10% of shares outstanding. Shares of common stock, units, tracking stocks, American Depository Receipts (""ADRs"") and Global Depository Receipts (""GDRs"") are eligible for inclusion in the Index.

Where securities of eligible companies have multiple share classes listed on major exchanges, the most liquid share class as determined by the average daily traded value for the sixth month period preceding the date companies are screened for inclusion. From this eligible universe, companies are screened according to the Methodology for their investment in, production of materials and components for, or development of technologies for Next Generation Vehicles using the Index Creator's natural language processing (""NLP"") algorithm. The NLP algorithm identifies a relationship between certain keywords that are representative of targeted investment trends and themes, as well as investment securities whose short- and long-term values are affected by such trends and themes. The NLP algorithm reads through a large volume of textual data on online media platform and databases and identifies companies that are strongly tied to Next Generation Vehicles and any derivatives of that technology.

Screened companies are then grouped into four ""Stakeholder"" categories, as determined by the Index Creator's Index Committee: (1) ""Battery Producers:"" companies that mine for metals (such as lithium or cobalt) used in the production of batteries, manufacture of materials and specialty chemicals and components used in batteries, and production of battery cells; (2) ""Original Equipment Manufacturers (""OEMs)"": companies that design, manufacture and/or distribute Next Generation Vehicles; (3) ""Suppliers:"" companies that produce or distribute parts and components used in Next Generation Vehicles; and (4) ""Semis and Software:"" companies that (i) produce semiconductors used in but not limited to advanced driver-assistance systems (""ADAS""), light detection and ranging (""LiDAR"") and infotainment systems in Next Generation Vehicles and (ii) develop software necessary for sensing, mapping, and providing driving policy within Next Generation Vehicles.

Once eligible companies are grouped into the four Stakeholder categories, companies are ranked within their category based on a score applied using the Methodology. In order to limit overconcentration of the Index in a Stakeholder category, the following rules are applied in constructing the final Index: (1) Index components are selected based on rankings within their Stakeholder category; (2) the maximum number of Index components in each Stakeholder category is capped at 25; (3) the initial weight of an Index component at the time of re-constitution is based on its market capitalization; (4) the individual weighting of an Index component is capped at 7% at the time of reconstitution; and (5) if the collective weight of Index components within a category exceed 40% at the time of reconstitution, the weightings of Index components are reduced proportionally so that their collective weight equals 40%.

Index components are reconstituted semi-annually in June and December and re-balanced on a quarterly basis to their original weights set at the reconstitution preceding the quarterly rebalance. As of January 23, 2018, the Index comprised 73 component securities. The Fund employs a ""passive management"" investment strategy designed to track the performance of the Index. Penserra Capital Management LLC (the ""Sub-Adviser""), the Fund's sub-adviser, generally will use a replication methodology, meaning it will invest in all of the securities composing the Index in proportion to their respective weightings in the Index. However, the Sub-Adviser may utilize a sampling methodology under various circumstances, including when it may not be possible or practicable to purchase all of the securities in the Index.

Exchange Traded Concepts, LLC (""ETC"" or the ""Adviser"") expects that over time, if the Fund has sufficient assets, the correlation between the Fund's performance, before fees and expenses, and that of the Index will be 95% or better. A figure of 100% would indicate perfect correlation. The Fund may invest up to 20% of its total assets in investments that are not included in the Index, but that the Adviser or the Sub-Adviser believes will help the Fund track the performance of the Index. The Fund will concentrate its investments ( i.e. , invest more than 25% of its net assets) in a particular industry or group of industries to approximately the same extent that the Index concentrates in an industry or group of industries. As of the date of this Prospectus, the Index was concentrated in the consumer discretionary and information technology industries.

In addition, in replicating the Index, the Fund may from time to time invest a significant portion of its assets in the securities of companies in one or more sectors. As of the date of this Prospectus, a significant portion of the Index consisted of companies in the consumer discretionary, information technology and materials sectors. The Index was created by Innovation Labs Ltd. and is provided via license by Innovation Shares LLC, neither of which is an affiliate of the Fund, the Adviser, or the Sub-Adviser. The Index is calculated and administered by Solactive AG, which is not an affiliate of the Fund, the Adviser, the Sub-Adviser or the Index Provider. The Adviser has entered into a license agreement with the Index Provider pursuant to which the Adviser pays a fee to use the Index. The Adviser is sublicensing rights to the Index to the Fund at no charge."

EKAR Performance

Total returns for EKAR (as of 2026-10-01), from SEC filings.

EKAR Risk Information

Risk metrics for EKAR, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 29.1%

EKAR Costs and Fees

EKAR costs about $65 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.65%
• Gross expense ratio: 0.95%
• Portfolio turnover: 22%
• Brokerage commissions: 5.80 bps of average net assets (SEC N-CEN)

EKAR Cashflows

Over the 12 months to 2022-11, Innovation Shares NextGen Vehicles and Technology ETF had net inflows of $2.01M, from monthly SEC N-PORT filings.

EKAR Debt Constituents

No individual debt constituents are reported in Innovation Shares NextGen Vehicles and Technology ETF's latest SEC N-PORT filing.

EKAR Prospectus and SEC Filings

Official Innovation Shares NextGen Vehicles and Technology ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2021-12-16
• Prospectus (485BPOS) — filed 2021-03-30
• Prospectus supplement (497) — filed 2022-04-20
• Portfolio holdings (N-PORT) — filed 2023-01-27
• Portfolio holdings (N-PORT) — filed 2022-10-28
• Portfolio holdings (N-PORT) — filed 2022-07-29
• Annual census (N-CEN) — filed 2023-02-10
• Annual census (N-CEN) — filed 2022-02-14

Related Funds

Other Emerging Markets Growth Thematic Equity funds tracked on ABC INVEST:

• Cannabis Growth Fund (CANNX)
• Parabla Innovation ETF (LZRD)
• Anthropic AI Lab Ecosystem ETF (ANTW)
• Emerging Markets AI ETF (EMIQ)
• Emerging Markets AI Mag 3 ETF (EMAG)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.