Procure ETF Trust II
NOTES TO FINANCIAL STATEMENTS
January 31, 2024 (Unaudited)
The following is a summary of significant accounting policies consistently followed by Procure Space ETF (“UFO”) and Procure Disaster Recovery Strategy ETF (“FIXT”) which is a series of Procure ETF Trust II (the “Trust”), an open-end management investment company consisting of multiple investment series, organized as a Delaware statutory trust on December 19, 2017. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
A.
| Security Valuation. Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded on the valuation date (or at approximately 4:00 pm Eastern Time if a security’s primary exchange is normally open at that time), or, if there is no such reported sale on the valuation date, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. |
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| | Securities for which quotations are not readily available are valued at their respective fair values as determined in good faith by the Board of Trustees (the “Board”) or the board designee. 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 Trust’s Board. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated without regard to such considerations. As of January 31, 2024, the Trust did not hold any fair valued securities. |
| As described above, the Trust utilizes various methods to measure the fair value of its 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 Trust has the ability to access. |
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| | 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 Trust’s own assumptions about the assumptions a market participant would use in valuing the asset or liabilities 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. |
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| | The following table presents a summary of the Trust’s investments in securities, at fair value, as of January 31, 2024: |
| Procure Space ETF | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Assets^: | | | | | | | | | | | | |
| Common Stocks | | $ | 35,197,654 | | | $ | – | | | $ | – | | | $ | 35,197,654 | |
| Money Market Funds | | | 98,531 | | | | – | | | | – | | | | 98,531 | |
| Total Assets | | $ | 35,296,185 | | | $ | – | | | $ | – | | | $ | 35,296,185 | |
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| Procure Disaster Recovery Strategy ETF | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Assets^: | | | | | | | | | | | | | | | | |
| Common Stocks | | $ | 2,237,351 | | | $ | – | | | $ | – | | | $ | 2,237,351 | |
| Money Market Funds | | | 24,243 | | | | – | | | | – | | | | 24,243 | |
| Total Assets | | $ | 2,261,594 | | | $ | – | | | $ | – | | | $ | 2,261,594 | |
^ See Schedule of Investments for classifications by country and industry.
