JBOT — Defiance Next Gen Food & Agriculture ETF

JBOT Fund Overview

JBOT — Defiance Next Gen Food & Agriculture ETF is a US ETF managed by ETF Series Solutions, categorised as Japan Blend / Core Thematic Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: ETF Series Solutions
• Category: Japan Blend / Core Thematic Equity
• Assets under management: $2.07M
• Ticker: JBOT
• SEC CIK: 0001540305
• SEC series ID: S000064805
• Share class ID: C000209827

JBOT Investment Objective and Strategy

Defiance Next Gen Food & Agriculture ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by ETF Series Solutions.

Investment objective

The Defiance Next Gen Food and Agriculture ETF (the Fund) seeks to track the total return performance, before fees and expenses, of the Bluestar Food and Agriculture Sustainability Index (the Index).

Principal investment strategy

The Fund uses a passive management (or indexing) approach to track the total return performance, before fees and expenses, of the Index. BlueStar Food and Agriculture Sustainability Index The Index is a rules-based index that consists of a tiered, modified market capitalization-weighted portfolio of globally-listed common equity securities of companies that derive a majority of their revenue from the activities, products, or services described in the groups below (collectively, Food and Agriculture Sustainability Companies). Food and Agriculture Sustainability Companies are assigned to one of four groups of food and agriculture industries, as described below. At the time of each semi-annual rebalance and reconstitution of the Index, each group is assigned the weight noted below, and companies within each group are market capitalization-weighted, subject to a minimum weight of 0.50% and the maximum weights described below.

Additionally, to qualify for inclusion in the Index, pesticide companies (Group 1) must have a minimum market capitalization of US$1 billion or greater; fertilizer companies (Group 1), sustainable protein production companies (Group 1) and flavor and fragrance companies (Group 2) must have a minimum market capitalization of US$2 billion or greater; branded food companies (Group 4) must have a minimum market capitalization of US$10 billion or greater; and all other companies must have a minimum market capitalization of US$250 million or greater. Group 1 (30% weight) consists of Food and Agriculture Sustainability Companies that are focused on (i) irrigation systems, (ii) plant seed modification, (iii) vegan or plant-based branded foods, (iv) water meters, (v) sustainable protein producers, (vi) fertilizers, and (vii) pesticides.

At the time of each semi-annual rebalance and reconstitution of the Index, this group will be assigned an aggregate weight of 30% of the Index, with the weight of any individual company limited to 5% and any excess weight reallocated to companies in the group with a weight below 5%. Group 2 (50% weight) consists of Food and Agriculture Sustainability Companies that are focused on (i) flavors and fragrances, (ii) baby food, (iii) alternative sweeteners, or (iv) agricultural chemicals. At the time of each semi-annual rebalance and reconstitution of the Index, this group will be assigned an aggregate weight of 50% of the Index, with the weight of any individual company limited to 5% and any excess weight reallocated to companies in the group with a weight below 5%. Group 3 (10% weight) consists of Food and Agriculture Sustainability Companies that are focused on (i) agriculture services, (ii) farm equipment and machines, or (iii) diagnostic equipment used for food production and safety.

At the time of each semi-annual rebalance and reconstitution of the Index, this group will be assigned an aggregate weight of 10% of the Index, with the weight of any individual company limited to 3% and any excess weight reallocated to companies in the group with a weight below 3%. Group 4 (10% weight) consists of Food and Agriculture Sustainability Companies that are focused on (i) livestock feed and pharmaceuticals or veterinary equipment, or (ii) branded foods. At the time of each semi-annual rebalance and reconstitution of the Index, this group will be assigned an aggregate weight of 10% of the Index, with the weight of any individual company limited to 3% and any excess weight reallocated to companies in the group with a weight below 3%. The companies included in the Index are screened from the universe of globally-listed equity securities by BlueStar Global Investors, LLC (BlueStar or the Index Provider) based primarily on descriptions of a companys primary business activities in regulatory filings ( e.g.

, financial statements, annual reports, investor presentations), analyst reports, and industry-specific trade publications. Food and Agriculture Sustainability Companies identified by BlueStars screening process are added to the Index, subject to meeting investibility requirements, including minimum market capitalization and liquidity thresholds. The Index may include small-, mid-, and large-capitalization companies. To be eligible for inclusion in the Index, a companys common equity securities must either be denominated in euro or be listed on an exchange in one of the following countries: Australia, Canada, Denmark, Hong Kong, Israel, Japan, Norway, Poland, Singapore, Sweden, Switzerland, Thailand, the United Kingdom, or the United States. The Index is rebalanced and reconstituted semi-annually after the close of business on the third Friday of each June and December based on data as of the Tuesday before the second Friday of each such reconstitution month.

As of April 7, 2020, the Index had 68 constituents. At the time of each semi-annual rebalance and reconstitution of the Index, each constituent is weighted as described above, subject to a downward adjustment for securities trading below certain liquidity thresholds. Additionally, the weight of each Index component may rise and/or fall between Index rebalance dates. The Index was established in 2019 and is owned by the Index Provider. The Funds Investment Strategy The Fund attempts to invest all, or substantially all, of its assets in the component securities that make up the Index. Under normal circumstances, at least 80% of the Funds total assets (exclusive of any collateral held from securities lending) will be invested in the component securities of the Index or in depositary receipts representing such component securities.

The Fund expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better. The Fund will generally use a replication strategy to achieve its investment objective, meaning the Fund will generally invest in all of the component securities of the Index in the same approximate proportions as in the Index. However, the Fund may use a representative sampling strategy, meaning it may invest in a sample of the securities in the Index whose risk, return, and other characteristics closely resemble the risk, return, and other characteristics of the Index as a whole, when the Funds sub-adviser believes it is in the best interests of the Fund ( e.g. , when replicating the Index involves practical difficulties or substantial costs, an Index constituent becomes temporarily illiquid, unavailable, or less liquid, or as a result of legal restrictions or limitations that apply to the Fund but not to the Index).

The Fund generally may invest up to 20% of its total assets (exclusive of any collateral held from securities lending) in securities or other investments not included in the Index, but which the Funds sub-adviser believes will help the Fund track the Index. For example, the Fund may invest in securities that are not components of the Index to reflect various corporate actions and other changes to the Index (such as reconstitutions, additions, and deletions). To the extent the Index concentrates ( i.e. , holds more than 25% of its total assets) in the securities of a particular industry or group of related industries, the Fund will concentrate its investments to approximately the same extent as the Index. The Index is expected to be concentrated in the group of food and agriculture related industries.

JBOT Costs and Fees

JBOT costs about $30 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.30%
• Gross expense ratio: 0.30%
• Portfolio turnover: 15%
• Brokerage commissions: 1.14 bps of average net assets (SEC N-CEN)

JBOT Cashflows

Over the 12 months to 2020-03, Defiance Next Gen Food & Agriculture ETF had net inflows of $0, from monthly SEC N-PORT filings.

JBOT Debt Constituents

No individual debt constituents are reported in Defiance Next Gen Food & Agriculture ETF's latest SEC N-PORT filing.

JBOT Prospectus and SEC Filings

Official Defiance Next Gen Food & Agriculture ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-05-14
• Prospectus (485BPOS) — filed 2019-11-19
• Prospectus (485BPOS) — filed 2019-03-15
• Portfolio holdings (N-PORT) — filed 2020-05-27
• Annual census (N-CEN) — filed 2020-03-13

Related Funds

Related funds tracked on ABC INVEST:

• Defiance Quantum ETF (QTUM)
• Aptus Collared Investment Opportunity ETF (ACIO)
• Bahl & Gaynor Income Growth ETF (BGIG)
• Distillate U.S. Fundamental Stability & Value ETF (DSTL)
• Aptus Defined Risk ETF (DRSK)

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.