united states
securities and exchange commission
washington, d.c. 20549
form n-csr
certified shareholder report of registered management
investment companies
| Investment Company Act file number | 811-23862 |
Texas Capital Funds Trust
(Exact name of registrant as specified in charter)
2000 McKinney Avenue, Suite 700, Dallas, TX 75201
(Address of principal executive offices) (Zip code)
Neil Rajan, Secretary
Texas Capital Funds Trust
2000 McKinney Avenue, Suite 700, Dallas, TX 75201
(Name and address of agent for service)
| Registrant’s telephone number, including area code: | 1-945-229-5947 |
| Date of fiscal year end: | December 31 |
| Date of reporting period: | June 30, 2024 |
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
| (a) | Tailored Shareholder Report |
Texas Capital Texas Equity Index ETF
(TXS) NYSEArca , Inc.
Semi-Annual Shareholder Report - June 30, 2024
Fund Overview
This semi-annual shareholder report contains important information about Texas Capital Texas Equity Index ETF (the "Fund") for the period of January 1, 2024 to June 30, 2024.You can find additional information about the Fund at https://www.texascapitalbank.com/etf-funds-management#Fund-Information. You can also request this information by contacting us at (844) 822-3837.
What were the Fund’s costs for the last six months?
(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 |
|---|---|---|
| Texas Capital Texas Equity Index ETF | $24 | 0.49% |
Fund Statistics
| Net Assets | $23,499,556 |
| Number of Portfolio Holdings | 218 |
| Portfolio Turnover | 1% |
Asset Weighting (% of total investments)
| Value | Value |
|---|---|
| Common Stocks | 98.6% |
| Money Market Funds | 1.4% |
What did the Fund invest in?
Sector Weighting (% of net assets)
| Value | Value |
|---|---|
| Liabilities in Excess of Other Assets | -1.2% |
| Materials | 0.5% |
| Money Market Funds | 1.4% |
| Communications | 1.7% |
| Utilities | 1.7% |
| Consumer Staples | 2.5% |
| Financials | 6.4% |
| Technology | 10.3% |
| Health Care | 10.6% |
| Industrials | 12.3% |
| Real Estate | 13.1% |
| Consumer Discretionary | 19.5% |
| Energy | 21.2% |
Top 10 Holdings (% of net assets)
| Holding Name | % of Net Assets |
| Crowdstrike Holdings, Inc., Class A | 4.4% |
| Digital Realty Trust, Inc. | 4.3% |
| Tenet Healthcare Corp. | 4.2% |
| McKesson Corp. | 4.1% |
| Tesla, Inc. | 4.0% |
| Charles Schwab Corp. (The) | 3.9% |
| Waste Management, Inc. | 3.9% |
| Exxon Mobil Corp. | 3.8% |
| Crown Castle International Corp. | 3.5% |
| Wingstop, Inc. | 2.4% |
Texas Capital Texas Equity Index ETF
Semi-Annual Shareholder Report - June 30, 2024
Where can I find additional information about the Fund?
Additional information is available on the Fund's website (https://www.texascapitalbank.com/etf-funds-management#Fund-Information), including its:
Prospectus
Financial information
Holdings
Proxy voting information
TSR-SAR 063024-TXS
Texas Capital Texas Oil Index ETF
(OILT) NYSEArca, Inc.
Semi-Annual Shareholder Report - June 30, 2024
Fund Overview
This semi-annual shareholder report contains important information about Texas Capital Texas Oil Index ETF (the "Fund") for the period of January 1, 2024 to June 30, 2024.You can find additional information about the Fund at https://www.texascapitalbank.com/etf-funds-management#Fund-Information. You can also request this information by contacting us at (844) 822-3837.
What were the Fund’s costs for the last six months?
(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 |
|---|---|---|
| Texas Capital Texas Oil Index ETF | $17 | 0.35% |
Fund Statistics
| Net Assets | $13,972,124 |
| Number of Portfolio Holdings | 31 |
| Portfolio Turnover | 5% |
Asset Weighting (% of total investments)
| Value | Value |
|---|---|
| Common Stocks | 99.1% |
| Money Market Funds | 0.9% |
What did the Fund invest in?
Industry Weighting (% of net assets)
| Value | Value |
|---|---|
| Liabilities in Excess of Other Assets | -0.8% |
| Money Market Funds | 0.9% |
| Gas & Water Utilities | 3.4% |
| Oil, Gas & Consumable Fuels | 4.4% |
| Oil & Gas Producers | 92.1% |
Top 10 Holdings (% of net assets)
| Holding Name | % of Net Assets |
| Occidental Petroleum Corp. | 8.9% |
| Diamondback Energy, Inc. | 8.5% |
| Exxon Mobil Corp. | 8.4% |
| ConocoPhillips | 8.3% |
| EOG Resources, Inc. | 7.7% |
| APA Corp. | 4.6% |
| Chevron Corp. | 4.4% |
| Ovintiv, Inc. | 4.3% |
| Vital Energy, Inc. | 4.3% |
| Devon Energy Corp. | 4.2% |
Texas Capital Texas Oil Index ETF
Semi-Annual Shareholder Report - June 30, 2024
Where can I find additional information about the Fund?
Additional information is available on the Fund's website (https://www.texascapitalbank.com/etf-funds-management#Fund-Information), including its:
Prospectus
Financial information
Holdings
Proxy voting information
TSR-SAR 063024-OILT
Texas Capital Texas Small Cap Equity Index ETF
(TXSS) NASDAQ Stock Market, LLC
Semi-Annual Shareholder Report - June 30, 2024
Fund Overview
This semi-annual shareholder report contains important information about Texas Capital Texas Small Cap Equity Index ETF (the "Fund") for the period of January 1, 2024 to June 30, 2024.You can find additional information about the Fund at https://www.texascapitalbank.com/etf-funds-management#Fund-Information. You can also request this information by contacting us at (844) 822-3837.
What were the Fund’s costs for the last six months?
(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 |
|---|---|---|
| Texas Capital Texas Small Cap Equity Index ETF | $24 | 0.48% |
Fund Statistics
| Net Assets | $12,419,489 |
| Number of Portfolio Holdings | 162 |
| Portfolio Turnover | 4% |
Asset Weighting (% of total investments)
| Value | Value |
|---|---|
| Common Stocks | 99.8% |
| Money Market Funds | 0.2% |
What did the Fund invest in?
Sector Weighting (% of net assets)
| Value | Value |
|---|---|
| Utilities | 0.1% |
| Money Market Funds | 0.2% |
| Communications | 2.4% |
| Consumer Staples | 2.6% |
| Materials | 3.4% |
| Financials | 6.2% |
| Technology | 6.6% |
| Health Care | 12.7% |
| Industrials | 13.6% |
| Real Estate | 15.4% |
| Consumer Discretionary | 16.3% |
| Energy | 20.5% |
Top 10 Holdings (% of net assets)
| Holding Name | % of Net Assets |
| Howard Hughes Holdings, Inc. | 7.9% |
| AMN Healthcare Services, Inc. | 3.7% |
| Insperity, Inc. | 3.6% |
| Kinetik Holdings, Inc. | 3.0% |
| NETSTREIT Corp. | 2.9% |
| DNOW, Inc. | 2.7% |
| Group 1 Automotive, Inc. | 2.6% |
| Brinker International, Inc. | 2.6% |
| Academy Sports & Outdoors, Inc. | 2.5% |
| Vital Farms, Inc. | 2.4% |
Texas Capital Texas Small Cap Equity Index ETF
Semi-Annual Shareholder Report - June 30, 2024
Where can I find additional information about the Fund?
Additional information is available on the Fund's website (https://www.texascapitalbank.com/etf-funds-management#Fund-Information), including its:
Prospectus
Financial information
Holdings
Proxy voting information
TSR-SAR 063024-TXSS
| (b) | Not applicable. |
Item 2. Code of Ethics.
Not applicable – disclosed with annual report.
Item 3. Audit Committee Financial Expert.
Not applicable – disclosed with annual report.
Item 4. Principal Accountant Fees and Services.
Not applicable – disclosed with annual report.
Item 5. Audit Committee of Listed Registrants.
Not applicable – disclosed with annual report.
Item 6. Investments.
The Registrant’s schedule of investments in unaffiliated issuers is included in the Financial Statements under Item 7 of this form.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
| (a) | Long Form Financial Statements |
 |
| Texas Capital Texas Equity Index ETF (TXS) |
| NYSE Arca, Inc. |
| Texas Capital Texas Oil Index ETF (OILT) |
| NYSE Arca, Inc. |
| Texas Capital Texas Small Cap Equity Index ETF (TXSS) |
| NASDAQ Stock Market LLC |
| Financial Statements |
| (Unaudited) |
| June 30, 2024 |
| Fund Adviser: |
| Texas Capital Bank Wealth Management Services, Inc., doing business as Texas Capital Bank Private Wealth Advisors 2000 McKinney Avenue, Suite 1800 Dallas, TX 75201 |
| Texas Capital Texas Equity Index ETF |
| Schedule of Investments |
| June 30, 2024 - (Unaudited) |
| Shares | Fair Value | |||||||
| COMMON STOCKS — 99.77% | ||||||||
| Communications — 1.71% | ||||||||
| AST SpaceMobile, Inc., Class A(a) | 1,186 | $ | 13,769 | |||||
| AT&T, Inc. | 17,047 | 325,768 | ||||||
| Clear Channel Outdoor Holdings, Inc.(a) | 6,329 | 8,924 | ||||||
| Frontier Communications Parent, Inc.(a) | 559 | 14,635 | ||||||
| Match Group, Inc.(a) | 600 | 18,228 | ||||||
| Nexstar Media Group, Inc. | 78 | 12,949 | ||||||
| Thryv Holdings, Inc.(a) | 478 | 8,518 | ||||||
| 402,791 | ||||||||
| Consumer Discretionary — 19.52% | ||||||||
| Academy Sports & Outdoors, Inc. | 5,974 | 318,115 | ||||||
| Brinker International, Inc.(a) | 1,972 | 142,753 | ||||||
| Builders FirstSource, Inc.(a) | 195 | 26,990 | ||||||
| Chuy’s Holdings, Inc.(a) | 805 | 20,866 | ||||||
| Cinemark Holdings, Inc.(a) | 654 | 14,139 | ||||||
| Copart, Inc.(a) | 2,152 | 116,552 | ||||||
| D.R. Horton, Inc. | 3,352 | 472,397 | ||||||
| Dave & Buster’s Entertainment, Inc.(a) | 1,221 | 48,608 | ||||||
| European Wax Center, Inc., Class A(a) | 1,117 | 11,092 | ||||||
| Forestar Group, Inc.(a) | 320 | 10,237 | ||||||
| GameStop Corp., Class A(a) | 22,484 | 555,130 | ||||||
| Green Brick Partners, Inc.(a) | 443 | 25,357 | ||||||
| Group 1 Automotive, Inc. | 1,108 | 329,386 | ||||||
| LGI Homes, Inc.(a) | 213 | 19,062 | ||||||
| RCI Hospitality Holdings, Inc. | 362 | 15,769 | ||||||
| Rush Enterprises, Inc., Class A | 5,816 | 243,516 | ||||||
| Sally Beauty Holdings, Inc.(a) | 8,553 | 91,774 | ||||||
| Service Corp. International | 6,448 | 458,646 | ||||||
| Six Flags Entertainment Corp.(a) | 2,792 | 92,527 | ||||||
| Target Hospitality Corp.(a) | 1,735 | 15,112 | ||||||
| Tesla, Inc.(a) | 4,787 | 947,252 | ||||||
| Upbound Group, Inc. | 386 | 11,850 | ||||||
| Wingstop, Inc. | 1,330 | 562,138 | ||||||
| XPEL, Inc.(a) | 773 | 27,488 | ||||||
| YETI Holdings, Inc.(a) | 275 | 10,491 | ||||||
| 4,587,247 | ||||||||
| Consumer Staples — 2.53% | ||||||||
| Darling Ingredients, Inc.(a) | 269 | 9,886 | ||||||
| Kimberly-Clark Corp. | 574 | 79,327 | ||||||
| Quanex Building Products Corp. | 327 | 9,042 | ||||||
| Sysco Corp. | 6,710 | 479,027 | ||||||
| Vital Farms, Inc.(a) | 345 | 16,135 | ||||||
| 593,417 | ||||||||
| Energy — 21.20% | ||||||||
| APA Corp. | 1,325 | 39,008 | ||||||
| Archrock, Inc. | 611 | 12,354 | ||||||
| Atlas Energy Solutions, Inc. | 549 | 10,942 | ||||||
See accompanying notes which are an integral part of these financial statements.
1
| Texas Capital Texas Equity Index ETF |
| Schedule of Investments (continued) |
| June 30, 2024 - (Unaudited) |
| Shares | Fair Value | |||||||
| COMMON STOCKS — 99.77% - continued | ||||||||
| Energy — 21.20% - continued | ||||||||
| Baker Hughes Co., Class A | 3,604 | $ | 126,753 | |||||
| Berry Corp. | 1,434 | 9,264 | ||||||
| ChampionX Corp. | 343 | 11,391 | ||||||
| Cheniere Energy, Inc. | 3,084 | 539,176 | ||||||
| Chord Energy Corp. | 235 | 39,405 | ||||||
| Comstock Resources, Inc. | 971 | 10,079 | ||||||
| ConocoPhillips | 4,426 | 506,246 | ||||||
| Coterra Energy, Inc. | 2,328 | 62,088 | ||||||
| Crescent Energy Co., Class A | 891 | 10,558 | ||||||
| CVR Energy, Inc. | 333 | 8,914 | ||||||
| Diamond Offshore Drilling, Inc. (a) | 746 | 11,556 | ||||||
| Diamondback Energy, Inc. | 637 | 127,521 | ||||||
| DNOW, Inc.(a) | 1,312 | 18,014 | ||||||
| Dril-Quip, Inc.(a) | 469 | 8,723 | ||||||
| EOG Resources, Inc. | 2,215 | 278,802 | ||||||
| Excelerate Energy, Inc., Class A | 632 | 11,654 | ||||||
| Expro Group Holdings N.V.(a) | 1,131 | 25,923 | ||||||
| Exxon Mobil Corp. | 7,743 | 891,374 | ||||||
| Halliburton Co. | 3,366 | 113,703 | ||||||
| Helix Energy Solutions Group, Inc.(a) | 1,108 | 13,230 | ||||||
| Hess Midstream, L.P., Class A | 319 | 11,624 | ||||||
| HF Sinclair Corp. | 291 | 15,522 | ||||||
| Kinder Morgan, Inc. | 19,359 | 384,663 | ||||||
| Kinetik Holdings, Inc., Class A | 349 | 14,463 | ||||||
| Kodiak Gas Services, Inc. | 420 | 11,449 | ||||||
| Magnolia Oil & Gas Corp., Class A | 565 | 14,317 | ||||||
| Marathon Oil Corp. | 2,127 | 60,981 | ||||||
| Matador Resources Co. | 350 | 20,860 | ||||||
| MRC Global, Inc.(a) | 1,103 | 14,240 | ||||||
| Murphy Oil Corp. | 448 | 18,475 | ||||||
| Newpark Resources, Inc.(a) | 1,562 | 12,980 | ||||||
| Noble Corp. plc | 352 | 15,717 | ||||||
| NOV, Inc. | 664 | 12,623 | ||||||
| Occidental Petroleum Corp. | 2,427 | 152,974 | ||||||
| Oceaneering International, Inc.(a) | 513 | 12,138 | ||||||
| Oil States International, Inc.(a) | 1,978 | 8,782 | ||||||
| Par Pacific Holdings, Inc.(a) | 308 | 7,777 | ||||||
| Patterson-UTI Energy, Inc. | 1,318 | 13,654 | ||||||
| Permian Resources Corp., Class A | 1,354 | 21,867 | ||||||
| Phillips 66 | 732 | 103,336 | ||||||
| ProPetro Holding Corp.(a) | 1,269 | 11,002 | ||||||
| Range Resources Corp. | 774 | 25,952 | ||||||
| Schlumberger Ltd. | 5,434 | 256,376 | ||||||
| Select Water Solutions, Inc., Class A | 1,325 | 14,177 | ||||||
| SilverBow Resources, Inc.(a) | 332 | 12,560 | ||||||
| Southwestern Energy Co.(a) | 3,338 | 22,465 | ||||||
| Sunnova Energy International, Inc.(a) | 1,704 | 9,508 | ||||||
See accompanying notes which are an integral part of these financial statements.
2
| Texas Capital Texas Equity Index ETF |
| Schedule of Investments (continued) |
| June 30, 2024 - (Unaudited) |
| Shares | Fair Value | |||||||
| COMMON STOCKS — 99.77% - continued | ||||||||
| Energy — 21.20% - continued | ||||||||
| Talos Energy, Inc.(a) | 797 | $ | 9,684 | |||||
| Targa Resources Corp. | 2,079 | 267,734 | ||||||
| TETRA Technologies, Inc.(a) | 2,734 | 9,460 | ||||||
| Texas Pacific Land Corp. | 469 | 344,372 | ||||||
| Thermon Group Holdings, Inc.(a) | 376 | 11,566 | ||||||
| Tidewater, Inc.(a) | 169 | 16,090 | ||||||
| U.S. Silica Holdings, Inc.(a) | 914 | 14,121 | ||||||
| VAALCO Energy, Inc. | 2,529 | 15,857 | ||||||
| Valero Energy Corp. | 539 | 84,494 | ||||||
| Viper Energy, Inc. | 316 | 11,859 | ||||||
| Weatherford International PLC(a) | 233 | 28,531 | ||||||
| 4,980,928 | ||||||||
| Financials — 6.35% | ||||||||
| Applied Digital Corp.(a) | 2,621 | 15,595 | ||||||
| Charles Schwab Corp. (The) | 12,368 | 911,398 | ||||||
| Comerica, Inc. | 1,014 | 51,754 | ||||||
| Corebridge Financial, Inc. | 2,066 | 60,162 | ||||||
| Cullen/Frost Bankers, Inc. | 452 | 45,937 | ||||||
| EZCORP, Inc., Class A(a) | 1,075 | 11,255 | ||||||
| First Financial Bankshares, Inc. | 854 | 25,219 | ||||||
| First Foundation, Inc. | 1,383 | 9,059 | ||||||
| FirstCash Holdings, Inc. | 286 | 29,996 | ||||||
| Globe Life, Inc. | 724 | 59,571 | ||||||
| Goosehead Insurance, Inc., Class A(a) | 175 | 10,052 | ||||||
| Hilltop Holdings, Inc. | 384 | 12,012 | ||||||
| Independent Bank Group, Inc. | 286 | 13,019 | ||||||
| International Bancshares Corp. | 431 | 24,657 | ||||||
| Mr. Cooper Group, Inc.(a) | 479 | 38,909 | ||||||
| National Western Life Group, Inc., Class A | 18 | 8,945 | ||||||
| P10, Inc., Class A | 1,249 | 10,592 | ||||||
| Prosperity Bancshares, Inc. | 664 | 40,597 | ||||||
| Skyward Specialty Insurance Group, Inc.(a) | 301 | 10,890 | ||||||
| Southside Bancshares, Inc. | 362 | 9,995 | ||||||
| Stellar Bancorp, Inc. | 416 | 9,551 | ||||||
| Stewart Information Services Corp. | 218 | 13,533 | ||||||
| TPG, Inc., Class A | 691 | 28,642 | ||||||
| Triumph Financial, Inc.(a) | 174 | 14,224 | ||||||
| Veritex Holdings, Inc. | 493 | 10,397 | ||||||
| Victory Capital Holdings, Inc., Class A | 343 | 16,371 | ||||||
| 1,492,332 | ||||||||
| Health Care — 10.60% | ||||||||
| Addus HomeCare Corp.(a) | 1,231 | 142,931 | ||||||
| agilon health, inc.(a) | 23,333 | 152,598 | ||||||
| AMN Healthcare Services, Inc.(a) | 342 | 17,521 | ||||||
| Atrion Corp. | 27 | 12,216 | ||||||
| Cassava Sciences, Inc.(a) | 563 | 6,953 | ||||||
| Castle Biosciences, Inc.(a) | 528 | 11,494 | ||||||
See accompanying notes which are an integral part of these financial statements.
3
| Texas Capital Texas Equity Index ETF |
| Schedule of Investments (continued) |
| June 30, 2024 - (Unaudited) |
| Shares | Fair Value | |||||||
| COMMON STOCKS — 99.77% - continued | ||||||||
| Health Care — 10.60% - continued | ||||||||
| Enhabit, Inc.(a) | 3,769 | $ | 33,619 | |||||
| Integer Holdings Corp.(a) | 97 | 11,232 | ||||||
| Lexicon Pharmaceuticals, Inc.(a) | 4,463 | 7,498 | ||||||
| McKesson Corp. | 1,664 | 971,843 | ||||||
| Natera, Inc.(a) | 193 | 20,900 | ||||||
| Savara, Inc.(a) | 1,805 | 7,274 | ||||||
| Shattuck Labs, Inc.(a) | 1,033 | 3,987 | ||||||
| Taysha Gene Therapies, Inc.(a) | 3,606 | 8,078 | ||||||
| Tenet Healthcare Corp.(a) | 7,362 | 979,367 | ||||||
| U.S. Physical Therapy, Inc. | 1,132 | 104,619 | ||||||
| 2,492,130 | ||||||||
| Industrials — 12.34% | ||||||||
| AECOM | 1,589 | 140,054 | ||||||
| Alamo Group, Inc. | 57 | 9,861 | ||||||
| American Airlines Group, Inc.(a) | 5,871 | 66,518 | ||||||
| Arcosa, Inc. | 180 | 15,014 | ||||||
| AZZ, Inc. | 159 | 12,283 | ||||||
| Bristow Group, Inc.(a) | 356 | 11,937 | ||||||
| Cactus, Inc., Class A | 242 | 12,763 | ||||||
| Caterpillar, Inc. | 844 | 281,136 | ||||||
| CECO Environmental Corp.(a) | 553 | 15,954 | ||||||
| Comfort Systems USA, Inc. | 380 | 115,566 | ||||||
| CSW Industrials, Inc. | 49 | 13,000 | ||||||
| DXP Enterprises, Inc.(a) | 246 | 11,277 | ||||||
| Evolv Technologies Holdings, Inc., Class A(a) | 2,906 | 7,410 | ||||||
| Flowserve Corp. | 235 | 11,304 | ||||||
| Fluor Corp.(a) | 1,958 | 85,271 | ||||||
| Great Lakes Dredge & Dock Corp.(a) | 1,306 | 11,467 | ||||||
| IES Holdings, Inc.(a) | 200 | 27,866 | ||||||
| Insperity, Inc. | 412 | 37,578 | ||||||
| Intuitive Machines, Inc.(a) | 2,884 | 9,517 | ||||||
| Jacobs Solutions, Inc. | 1,462 | 204,256 | ||||||
| KBR, Inc. | 1,549 | 99,353 | ||||||
| Kirby Corp.(a) | 575 | 68,845 | ||||||
| Lennox International, Inc. | 54 | 28,889 | ||||||
| Orion Group Holdings, Inc.(a) | 1,148 | 10,917 | ||||||
| Powell Industries, Inc. | 69 | 9,895 | ||||||
| Primoris Services Corp. | 531 | 26,492 | ||||||
| Quanta Services, Inc. | 1,713 | 435,256 | ||||||
| Southwest Airlines Co. | 5,692 | 162,848 | ||||||
| Sterling Infrastructure, Inc.(a) | 309 | 36,567 | ||||||
| Trinity Industries, Inc. | 393 | 11,758 | ||||||
| Waste Management, Inc. | 4,262 | 909,255 | ||||||
| 2,900,107 | ||||||||
| Materials — 0.51% | ||||||||
| ATI, Inc.(a) | 223 | 12,365 | ||||||
| Celanese Corp. | 185 | 24,955 | ||||||
See accompanying notes which are an integral part of these financial statements.
4
| Texas Capital Texas Equity Index ETF |
| Schedule of Investments (continued) |
| June 30, 2024 - (Unaudited) |
| Shares | Fair Value | |||||||
| COMMON STOCKS — 99.77% - continued | ||||||||
| Materials — 0.51% - continued | ||||||||
| Commercial Metals Co. | 214 | $ | 11,768 | |||||
| Eagle Materials, Inc. | 60 | 13,048 | ||||||
| Encore Wire Corp. | 51 | 14,782 | ||||||
| Huntsman Corp. | 373 | 8,493 | ||||||
| United States Lime & Minerals, Inc. | 36 | 13,110 | ||||||
| Uranium Energy Corp.(a) | 1,731 | 10,403 | ||||||
| Westlake Corp. | 77 | 11,151 | ||||||
| 120,075 | ||||||||
| Real Estate — 13.04% | ||||||||
| Camden Property Trust | 1,952 | 212,983 | ||||||
| CBRE Group, Inc., Class A(a) | 5,740 | 511,491 | ||||||
| Crown Castle International Corp. | 8,414 | 822,048 | ||||||
| Digital Realty Trust, Inc. | 6,614 | 1,005,659 | ||||||
| Howard Hughes Holdings, Inc.(a) | 936 | 60,671 | ||||||
| Invitation Homes, Inc. | 10,862 | 389,837 | ||||||
| NETSTREIT Corp. | 1,363 | 21,944 | ||||||
| NexPoint Residential Trust, Inc. | 422 | 16,673 | ||||||
| Summit Hotel Properties, Inc. | 1,963 | 11,758 | ||||||
| Whitestone REIT | 898 | 11,953 | ||||||
| 3,065,017 | ||||||||
| Technology — 10.26% | ||||||||
| Alkami Technology, Inc.(a) | 476 | 13,556 | ||||||
| Applied Optoelectronics, Inc.(a) | 719 | 5,961 | ||||||
| Aviat Networks, Inc.(a) | 308 | 8,837 | ||||||
| BigCommerce Holdings, Inc.(a) | 1,458 | 11,751 | ||||||
| Bumble, Inc., Class A(a) | 1,004 | 10,552 | ||||||
| Cirrus Logic, Inc.(a) | 125 | 15,958 | ||||||
| Core Scientific, Inc.(a) | 1,208 | 11,234 | ||||||
| Crowdstrike Holdings, Inc., Class A(a) | 2,724 | 1,043,810 | ||||||
| Dell Technologies, Inc., Class C | 418 | 57,646 | ||||||
| Diodes, Inc.(a) | 162 | 11,653 | ||||||
| E2open Parent Holdings, Inc., Class A(a) | 2,595 | 11,652 | ||||||
| Green Dot Corp., Class A(a) | 1,136 | 10,735 | ||||||
| Hewlett Packard Enterprise Co. | 2,083 | 44,097 | ||||||
| Omnicell, Inc.(a) | 546 | 14,780 | ||||||
| Oracle Corp. | 3,792 | 535,430 | ||||||
| PROS Holdings, Inc.(a) | 290 | 8,308 | ||||||
| Q2 Holdings, Inc.(a) | 240 | 14,479 | ||||||
| Sabre Corp.(a) | 3,932 | 10,499 | ||||||
| Silicon Laboratories, Inc.(a) | 73 | 8,076 | ||||||
| SolarWinds Corp.(a) | 912 | 10,990 | ||||||
| Texas Instruments, Inc. | 1,625 | 316,111 | ||||||
| Tyler Technologies, Inc.(a) | 465 | 233,793 | ||||||
| 2,409,908 | ||||||||
| Utilities — 1.71% | ||||||||
| Aris Water Solution, Inc., Class A | 808 | 12,662 | ||||||
| Atmos Energy Corp. | 708 | 82,588 | ||||||
See accompanying notes which are an integral part of these financial statements.
5
| Texas Capital Texas Equity Index ETF |
| Schedule of Investments (continued) |
| June 30, 2024 - (Unaudited) |
| Shares | Fair Value | |||||||
| COMMON STOCKS — 99.77% - continued | ||||||||
| Utilities — 1.71% - continued | ||||||||
| CenterPoint Energy, Inc. | 3,000 | $ | 92,940 | |||||
| NRG Energy, Inc. | 967 | 75,290 | ||||||
| Vistra Corp. | 1,612 | 138,600 | ||||||
| 402,080 | ||||||||
| Total Common Stocks— 99.77% (Cost $20,694,883) | 23,446,032 | |||||||
| MONEY MARKET FUNDS - 1.43% | ||||||||
| State Street Institutional U.S. Government Money Market Fund, Opportunity Class, 5.22%(b) | 335,321 | 335,321 | ||||||
| Total Money Market Funds (Cost $335,321) | 335,321 | |||||||
| Total Investments — 101.20% (Cost $21,030,204) | 23,781,353 | |||||||
| Liabilities in Excess of Other Assets — (1.20)% | (281,797 | ) | ||||||
| NET ASSETS — 100.00% | $ | 23,499,556 | ||||||
| (a) | Non-income producing security. |
| (b) | Rate disclosed is the seven day effective yield as of June 30, 2024. |
REIT - Real Estate Investment Trust
See accompanying notes which are an integral part of these financial statements.
6
| Texas Capital Texas Oil Index ETF |
| Schedule of Investments |
| June 30, 2024 - (Unaudited) |
| Shares | Fair Value | |||||||
| COMMON STOCKS — 99.85% | ||||||||
| Gas & Water Utilities — 3.33% | ||||||||
| Osaka Gas Company Ltd. (Japan) | 7,200 | $ | 158,577 | |||||
| Tokyo Gas Company Ltd. (Japan) | 14,245 | 305,947 | ||||||
| 464,524 | ||||||||
| Oil & Gas Producers — 92.15% | ||||||||
| APA Corp. | 22,018 | 648,210 | ||||||
| Baytex Energy Corp. | 90,831 | 316,092 | ||||||
| BP PLC - ADR | 9,688 | 349,737 | ||||||
| Chesapeake Energy Corp. | 2,312 | 190,023 | ||||||
| Comstock Resources, Inc. | 18,276 | 189,705 | ||||||
| ConocoPhillips | 10,093 | 1,154,437 | ||||||
| Coterra Energy, Inc. | 7,819 | 208,533 | ||||||
| Crescent Energy Co. | 24,106 | 285,656 | ||||||
| Devon Energy Corp. | 12,475 | 591,315 | ||||||
| Diamondback Energy, Inc. | 5,922 | 1,185,525 | ||||||
| EOG Resources, Inc. | 8,585 | 1,080,594 | ||||||
| Exxon Mobil Corp. | 10,208 | 1,175,145 | ||||||
| Kinder Morgan, Inc. | 16,257 | 323,027 | ||||||
| Magnolia Oil & Gas Corp., Class A | 8,784 | 222,586 | ||||||
| Marathon Oil Corp. | 20,624 | 591,290 | ||||||
| Matador Resources Co. | 643 | 38,323 | ||||||
| Murphy Oil Corp. | 5,291 | 218,201 | ||||||
| Occidental Petroleum Corp. | 19,799 | 1,247,931 | ||||||
| Ovintiv, Inc. | 12,721 | 596,233 | ||||||
| Permian Resources Corp. | 33,638 | 543,254 | ||||||
| Repsol S.A. - ADR | 5,156 | 81,052 | ||||||
| Riley Exploration Permian, Inc. | 3,087 | 87,393 | ||||||
| Ring Energy, Inc.(a) | 61,109 | 103,274 | ||||||
| SilverBow Resources, Inc.(a) | 5,654 | 213,891 | ||||||
| SM Energy Co. | 12,094 | 522,824 | ||||||
| Total S.A. - ADR | 1,746 | 116,423 | ||||||
| Vital Energy, Inc.(a) | 13,281 | 595,254 | ||||||
| 12,875,928 | ||||||||
| Oil, Gas & Consumable Fuels — 4.37% | ||||||||
| Chevron Corp. | 3,900 | 610,038 | ||||||
| Total Common Stocks— 99.85% (Cost $12,700,288) | 13,950,490 | |||||||
| MONEY MARKET FUNDS — 0.94% | ||||||||
| State Street Institutional U.S. Government Money Market Fund, Opportunity Class, 5.22%(b) | 131,948 | 131,948 | ||||||
| Total Money Market Funds (Cost $131,948) | 131,948 | |||||||
| Total Investments — 100.79% (Cost $12,832,236) | 14,082,438 | |||||||
| Liabilities in Excess of Other Assets — (0.79)% | (110,314 | ) | ||||||
| NET ASSETS — 100.00% | $ | 13,972,124 | ||||||
| (a) | Non-income producing security. |
| (b) | Rate disclosed is the seven day effective yield as of June 30, 2024. |
ADR - American Depositary Receipt.
See accompanying notes which are an integral part of these financial statements.
7
| Texas Capital Texas Small Cap Equity Index ETF |
| Schedule of Investments |
| June 30, 2024 - (Unaudited) |
| Shares | Fair Value | |||||||
| COMMON STOCKS — 99.78% | ||||||||
| Communications — 2.44% | ||||||||
| AST SpaceMobile, Inc.(a) | 3,337 | $ | 38,743 | |||||
| Clear Channel Outdoor Holdings, Inc.(a) | 48,692 | 68,656 | ||||||
| Nexstar Media Group, Inc. | 737 | 122,349 | ||||||
| Thryv Holdings, Inc.(a) | 4,143 | 73,828 | ||||||
| 303,576 | ||||||||
| Consumer Discretionary — 16.28% | ||||||||
| Academy Sports & Outdoors, Inc. | 5,893 | 313,802 | ||||||
| Brinker International, Inc.(a) | 4,390 | 317,792 | ||||||
| Carriage Services, Inc. | 2,105 | 56,498 | ||||||
| Chuy’s Holdings, Inc.(a) | 1,697 | 43,986 | ||||||
| Cinemark Holdings, Inc.(a) | 2,994 | 64,731 | ||||||
| Dave & Buster’s Entertainment, Inc.(a) | 762 | 30,335 | ||||||
| European Wax Center, Inc.(a) | 4,704 | 46,711 | ||||||
| Forestar Group, Inc.(a) | 726 | 23,225 | ||||||
| Green Brick Partners, Inc.(a) | 1,508 | 86,318 | ||||||
| Group 1 Automotive, Inc. | 1,080 | 321,062 | ||||||
| Landesa Home Corp.(a) | 595 | 5,468 | ||||||
| LGI Homes, Inc.(a) | 752 | 67,296 | ||||||
| RCI Hospitality Holdings, Inc. | 730 | 31,799 | ||||||
| Rent-A-Center, Inc. | 899 | 27,599 | ||||||
| Rush Enterprises, Inc., Class A | 4,840 | 202,651 | ||||||
| Sally Beauty Holdings, Inc.(a) | 7,512 | 80,604 | ||||||
| Six Flags Entertainment Corp.(a) | 1,509 | 50,008 | ||||||
| Target Hospitality Corp.(a) | 3,624 | 31,565 | ||||||
| XPEL, Inc.(a) | 3,283 | 116,744 | ||||||
| YETI Holdings, Inc.(a) | 2,722 | 103,844 | ||||||
| 2,022,038 | ||||||||
| Consumer Staples — 2.55% | ||||||||
| Quanex Building Products Corp. | 839 | 23,199 | ||||||
| Vital Farms, Inc.(a) | 6,273 | 293,388 | ||||||
| 316,587 | ||||||||
| Energy — 20.51% | ||||||||
| Amplify Energy Corp.(a) | 1,115 | 7,560 | ||||||
| Archrock, Inc. | 2,916 | 58,962 | ||||||
| Atlas Energy Solutions, Inc. | 1,179 | 23,497 | ||||||
| Berry Corp. | 1,169 | 7,552 | ||||||
| Comstock Resources, Inc. | 1,956 | 20,303 | ||||||
| Crescent Energy Co. | 1,965 | 23,285 | ||||||
| CVR Energy, Inc. | 2,437 | 65,238 | ||||||
| Diamond Offshore Drilling, Inc.(a) | 2,055 | 31,832 | ||||||
| DNOW, Inc.(a) | 24,693 | 339,035 | ||||||
| Dril-Quip, Inc.(a) | 833 | 15,494 | ||||||
| Evolution Petroleum Corp. | 995 | 5,244 | ||||||
| Excelerate Energy, Inc., Class A | 12,726 | 234,667 | ||||||
| Expro Group Holdings N.V.(a) | 4,006 | 91,818 | ||||||
| Granite Ridge Resources, Inc. | 1,143 | 7,235 | ||||||
See accompanying notes which are an integral part of these financial statements.
8
| Texas Capital Texas Small Cap Equity Index ETF |
| Schedule of Investments (continued) |
| June 30, 2024 - (Unaudited) |
| Shares | Fair Value | |||||||
| COMMON STOCKS — 99.78% - continued | ||||||||
| Energy — 20.51% - continued | ||||||||
| Helix Energy Solutions Group, Inc.(a) | 2,906 | $ | 34,698 | |||||
| Hess Midstream, L.P., Class A | 1,606 | 58,523 | ||||||
| Kinetik Holdings, Inc. | 8,923 | 369,769 | ||||||
| Kodiak Gas Services, Inc. | 482 | 13,139 | ||||||
| Magnolia Oil & Gas Corp., Class A | 3,105 | 78,681 | ||||||
| MRC Global, Inc.(a) | 19,670 | 253,940 | ||||||
| Murphy Oil Corp. | 2,448 | 100,956 | ||||||
| Natural Gas Services Group, Inc.(a) | 352 | 7,082 | ||||||
| Newpark Resources, Inc.(a) | 2,058 | 17,102 | ||||||
| Noble Corp. PLC | 1,926 | 85,996 | ||||||
| Oceaneering International, Inc.(a) | 2,499 | 59,126 | ||||||
| Oil States International, Inc.(a) | 1,568 | 6,962 | ||||||
| Par Pacific Holdings, Inc. (a) | 1,372 | 34,643 | ||||||
| Patterson-UTI Energy, Inc. | 7,197 | 74,561 | ||||||
| ProPetro Holding Corp.(a) | 1,671 | 14,488 | ||||||
| Ranger Energy Services, Inc. | 4,606 | 48,455 | ||||||
| Ring Energy, Inc.(a) | 3,861 | 6,525 | ||||||
| Sable Offshore Corp. (a) | 900 | 13,563 | ||||||
| Select Energy Services, Inc., Class A | 1,835 | 19,634 | ||||||
| SilverBow Resources, Inc.(a) | 451 | 17,061 | ||||||
| Solaris Oilfield Infrastructure, Inc., Class A | 750 | 6,435 | ||||||
| Sunnova Energy International, Inc.(a) | 2,891 | 16,132 | ||||||
| Talos Energy, Inc.(a) | 2,666 | 32,392 | ||||||
| TETRA Technologies, Inc.(a) | 2,359 | 8,162 | ||||||
| Thermon Group Holdings, Inc.(a) | 833 | 25,623 | ||||||
| Tidewater, Inc.(a) | 1,047 | 99,685 | ||||||
| U.S. Silica Holdings, Inc.(a) | 1,525 | 23,561 | ||||||
| VAALCO Energy, Inc. | 1,953 | 12,245 | ||||||
| Viper Energy, Inc. | 1,854 | 69,581 | ||||||
| W&T Offshore, Inc. | 2,989 | 6,396 | ||||||
| 2,546,838 | ||||||||
| Financials — 6.21% | ||||||||
| Applied Blockchain, Inc.(a) | 2,156 | 12,828 | ||||||
| eHealth, Inc.(a) | 993 | 4,498 | ||||||
| EZCORP, Inc., Class A(a) | 924 | 9,674 | ||||||
| First Financial Bankshares, Inc. | 1,930 | 56,993 | ||||||
| First Foundation, Inc. | 995 | 6,517 | ||||||
| FirstCash Holdings, Inc. | 736 | 77,192 | ||||||
| Goosehead Insurance, Inc., Class A(a) | 443 | 25,446 | ||||||
| Hilltop Holdings, Inc. | 878 | 27,464 | ||||||
| Independent Bank Group, Inc. | 674 | 30,681 | ||||||
| International Bancshares Corp. | 939 | 53,720 | ||||||
| Mr. Cooper Group, Inc.(a) | 1,156 | 93,902 | ||||||
| National Western Life Group, Inc., Class A | 66 | 32,798 | ||||||
| P10, Inc. | 833 | 7,064 | ||||||
| Prosperity Bancshares, Inc. | 1,642 | 100,392 | ||||||
| Skyward Specialty Insurance Group, Inc.(a) | 566 | 20,478 | ||||||
See accompanying notes which are an integral part of these financial statements.
9
| Texas Capital Texas Small Cap Equity Index ETF |
| Schedule of Investments (continued) |
| June 30, 2024 - (Unaudited) |
| Shares | Fair Value | |||||||
| COMMON STOCKS — 99.78% - continued | ||||||||
| Financials — 6.21% - continued | ||||||||
| Southside Bancshares, Inc. | 545 | $ | 15,047 | |||||
| Stellar Bancorp, Inc. | 870 | 19,975 | ||||||
| Stewart Information Services Corp. | 508 | 31,537 | ||||||
| TPG, Inc. | 1,221 | 50,611 | ||||||
| Triumph Bancorp, Inc.(a) | 412 | 33,681 | ||||||
| Veritex Holdings, Inc. | 992 | 20,921 | ||||||
| Victory Capital Holdings, Inc., Class A | 825 | 39,377 | ||||||
| 770,796 | ||||||||
| Health Care — 12.67% | ||||||||
| Addus HomeCare Corp.(a) | 2,262 | 262,641 | ||||||
| agilon health, inc.(a) | 42,882 | 280,448 | ||||||
| AMN Healthcare Services, Inc.(a) | 9,049 | 463,580 | ||||||
| Atrion Corp. | 28 | 12,668 | ||||||
| Cassava Sciences, Inc.(a) | 4,998 | 61,725 | ||||||
| Castle Biosciences, Inc.(a) | 675 | 14,695 | ||||||
| Enhabit, Inc.(a) | 6,564 | 58,551 | ||||||
| Integer Holdings Corp.(a) | 838 | 97,032 | ||||||
| Lexicon Pharmaceuticals, Inc.(a) | 3,312 | 5,564 | ||||||
| Savara, Inc.(a) | 17,541 | 70,690 | ||||||
| Shattuck Labs, Inc.(a) | 3,709 | 14,317 | ||||||
| Taysha Gene Therapies, Inc.(a) | 17,279 | 38,705 | ||||||
| U.S. Physical Therapy, Inc. | 2,085 | 192,696 | ||||||
| 1,573,312 | ||||||||
| Industrials — 13.57% | ||||||||
| Alamo Group, Inc. | 233 | 40,309 | ||||||
| Arcosa, Inc. | 976 | 81,408 | ||||||
| AZZ, Inc. | 637 | 49,208 | ||||||
| Bristow Group, Inc.(a) | 3,601 | 120,742 | ||||||
| Cactus, Inc., Class A | 1,656 | 87,337 | ||||||
| CECO Environmental Corp.(a) | 784 | 22,618 | ||||||
| CSW Industrials, Inc. | 379 | 100,553 | ||||||
| Distribution Solutions Group, Inc.(a) | 2,432 | 72,960 | ||||||
| DXP Enterprises, Inc.(a) | 3,049 | 139,766 | ||||||
| Ennis, Inc. | 637 | 13,944 | ||||||
| Evolv Technologies Holdings, Inc.(a) | 2,646 | 6,747 | ||||||
| Great Lakes Dredge & Dock Corp.(a) | 2,532 | 22,231 | ||||||
| Hyliion Holdings Corp.(a) | 3,534 | 5,725 | ||||||
| IES Holdings, Inc.(a) | 735 | 102,408 | ||||||
| Insperity, Inc. | 4,938 | 450,395 | ||||||
| Intuitive Machines, Inc.(a) | 1,302 | 4,297 | ||||||
| Orion Group Holdings, Inc.(a) | 1,340 | 12,743 | ||||||
| Powell Industries, Inc. | 245 | 35,133 | ||||||
| Primoris Services Corp. | 1,925 | 96,038 | ||||||
| SEACOR Marine Holdings, Inc.(a) | 2,645 | 35,681 | ||||||
| Sterling Construction Co., Inc.(a) | 1,050 | 124,257 | ||||||
| Trinity Industries, Inc. | 2,058 | 61,576 | ||||||
| 1,686,076 | ||||||||
See accompanying notes which are an integral part of these financial statements.
10
| Texas Capital Texas Small Cap Equity Index ETF |
| Schedule of Investments (continued) |
| June 30, 2024 - (Unaudited) |
| Shares | Fair Value | |||||||
| COMMON STOCKS — 99.78% - continued | ||||||||
| Materials — 3.44% | ||||||||
| Encore Wire Corp. | 374 | $ | 108,396 | |||||
| Huntsman Corp. | 5,167 | 117,653 | ||||||
| United States Lime & Minerals, Inc. | 49 | 17,845 | ||||||
| Uranium Energy Corp.(a) | 8,007 | 48,122 | ||||||
| Westlake Chemical Corp. | 933 | 135,117 | ||||||
| 427,133 | ||||||||
| Real Estate — 15.45% | ||||||||
| Howard Hughes Holdings, Inc.(a) | 15,215 | 986,236 | ||||||
| Legacy Housing Corp.(a) | 285 | 6,538 | ||||||
| NETSTREIT Corp. | 22,207 | 357,533 | ||||||
| NexPoint Residential Trust, Inc. | 6,096 | 240,853 | ||||||
| Summit Hotel Properties, Inc. | 28,392 | 170,068 | ||||||
| Whitestone REIT | 11,825 | 157,391 | ||||||
| 1,918,619 | ||||||||
| Technology — 6.60% | ||||||||
| Alkami Technology, Inc.(a) | 1,372 | 39,075 | ||||||
| Applied Optoelectronics, Inc.(a) | 931 | 7,718 | ||||||
| Asure Software, Inc.(a) | 686 | 5,762 | ||||||
| Aviat Networks, Inc.(a) | 294 | 8,435 | ||||||
| BigCommerce Holdings, Inc.(a) | 1,890 | 15,233 | ||||||
| Bumble, Inc., Class A(a) | 2,912 | 30,605 | ||||||
| Core Scientific, Inc.(a) | 4,202 | 39,079 | ||||||
| CS Disco, Inc.(a) | 931 | 5,549 | ||||||
| Digital Turbine, Inc.(a) | 2,989 | 4,962 | ||||||
| Diodes, Inc.(a) | 1,127 | 81,065 | ||||||
| E2open Parent Holdings, Inc.(a) | 5,217 | 23,424 | ||||||
| Green Dot Corp., Class A(a) | 879 | 8,306 | ||||||
| Omnicell, Inc.(a) | 5,598 | 151,538 | ||||||
| Open Lending Corp.(a) | 1,853 | 10,340 | ||||||
| PROS Holdings, Inc.(a) | 1,172 | 33,578 | ||||||
| Q2 Holdings, Inc.(a) | 1,523 | 91,883 | ||||||
| Rackspace Technology, Inc.(a) | 24,255 | 72,280 | ||||||
| Ribbon Communications, Inc.(a) | 4,011 | 13,196 | ||||||
| Sabre Corp.(a) | 10,440 | 27,875 | ||||||
| Silicon Laboratories, Inc.(a) | 794 | 87,840 | ||||||
| SolarWinds Corp.(a) | 1,571 | 18,930 | ||||||
| TaskUs, Inc.(a) | 3,253 | 43,297 | ||||||
| 819,970 | ||||||||
| Utilities — 0.06% | ||||||||
| Aris Water Solution, Inc., Class A | 523 | 8,195 | ||||||
| Total Common Stocks— 99.78% (Cost $12,040,000) | 12,393,140 | |||||||
| MONEY MARKET FUNDS - 0.23% | ||||||||
| State Street Institutional U.S. Government Money Market Fund, Opportunity Class, 5.22%(b) | 27,987 | 27,987 | ||||||
See accompanying notes which are an integral part of these financial statements.
11
| Texas Capital Texas Small Cap Equity Index ETF |
| Schedule of Investments (continued) |
| June 30, 2024 - (Unaudited) |
| Shares | Fair Value | |||||||
| MONEY MARKET FUNDS - 0.23% - continued | ||||||||
| Total Money Market Funds (Cost $27,987) | $ | 27,987 | ||||||
| Total Investments — 100.01% (Cost $12,067,987) | 12,421,127 | |||||||
| Liabilities in Excess of Other Assets — (0.01)% | (1,638 | ) | ||||||
| NET ASSETS — 100.00% | $ | 12,419,489 | ||||||
| (a) | Non-income producing security. |
| (b) | Rate disclosed is the seven day effective yield as of June 30, 2024. |
REIT - Real Estate Investment Trust
See accompanying notes which are an integral part of these financial statements.
12
| Texas Capital Funds Trust |
| Statements of Assets and Liabilities |
| June 30, 2024 - (Unaudited) |
| Texas | Texas | |||||||||||
| Capital | Texas | Capital | ||||||||||
| Texas | Capital | Texas Small | ||||||||||
| Equity | Texas Oil | Cap Equity | ||||||||||
| Index ETF | Index ETF | Index ETF | ||||||||||
| Assets | ||||||||||||
| Investments in securities, at fair value (cost $21,030,204, $12,832,236 and $12,067,987) | $ | 23,781,353 | $ | 14,082,438 | $ | 12,421,127 | ||||||
| Foreign currency (cost $–, $6,019 and $–) | — | 5,931 | — | |||||||||
| Receivable for investments sold | — | — | 89,351 | |||||||||
| Dividends and interest receivable | 12,490 | 5,647 | 2,224 | |||||||||
| Tax reclaims receivable | — | 674 | — | |||||||||
| Total Assets | 23,793,843 | 14,094,690 | 12,512,702 | |||||||||
| Liabilities | ||||||||||||
| Payable for investments purchased | 219,188 | 32,955 | 88,103 | |||||||||
| Distributions payable | 65,823 | 85,696 | — | |||||||||
| Payable to Adviser | 9,276 | 3,915 | 5,110 | |||||||||
| Total Liabilities | 294,287 | 122,566 | 93,213 | |||||||||
| Net Assets | $ | 23,499,556 | $ | 13,972,124 | $ | 12,419,489 | ||||||
| Net Assets consist of: | ||||||||||||
| Paid-in capital | 20,279,271 | 12,445,951 | 11,495,945 | |||||||||
| Accumulated earnings | 3,220,285 | 1,526,173 | 923,544 | |||||||||
| Net Assets | $ | 23,499,556 | $ | 13,972,124 | $ | 12,419,489 | ||||||
| Shares outstanding (unlimited number of shares authorized, no par value) | 804,000 | 520,000 | 490,000 | |||||||||
| Net asset value per share | $ | 29.23 | $ | 26.87 | $ | 25.35 | ||||||
See accompanying notes which are an integral part of these financial statements.
13
| Texas Capital Funds Trust |
| Statements of Operations |
| For the six months ended June 30, 2024 - (Unaudited) |
| Texas | Texas | |||||||||||
| Capital | Texas | Capital | ||||||||||
| Texas | Capital | Texas Small | ||||||||||
| Equity | Texas Oil | Cap Equity | ||||||||||
| Index ETF | Index ETF | Index ETF | ||||||||||
| Investment Income | ||||||||||||
| Dividend income (net of foreign taxes withheld of $–, $1,310 and $–) | $ | 178,688 | $ | 182,289 | $ | 63,982 | ||||||
| Interest income | 1,096 | 1,128 | 412 | |||||||||
| Total investment income | 179,784 | 183,417 | 64,394 | |||||||||
| Expenses | ||||||||||||
| Advisory fees | 51,619 | 20,042 | 25,996 | |||||||||
| Total operating expenses | 51,619 | 20,042 | 25,996 | |||||||||
| Net investment income | 128,165 | 163,375 | 38,398 | |||||||||
| Net Realized and Change in Unrealized Gain (Loss) on Investments | ||||||||||||
| Net realized loss on investment securities | (103,597 | ) | (28,607 | ) | (65,015 | ) | ||||||
| Net realized gain from in-kind redemptions | 592,193 | 306,764 | 597,021 | |||||||||
| Foreign currency transactions | — | (978 | ) | — | ||||||||
| Change in unrealized appreciation (depreciation) on investment securities | 1,722,746 | 1,250,066 | 343,361 | |||||||||
| Foreign currency translations | — | (91 | ) | — | ||||||||
| Net realized and change in unrealized gain (loss) on investment securities | 2,211,342 | 1,527,154 | 875,367 | |||||||||
| Net increase in net assets resulting from operations | $ | 2,339,507 | $ | 1,690,529 | $ | 913,765 | ||||||
See accompanying notes which are an integral part of these financial statements.
14
| Texas Capital Funds Trust |
| Statements of Changes in Net Assets |
| Texas Capital Texas Equity | ||||||||
| Index ETF | ||||||||
| For the Six | For the | |||||||
| Months | Period Ended | |||||||
| Ended June | December 31, | |||||||
| 30, 2024 | 2023(a) | |||||||
| (Unaudited) | ||||||||
| Increase (Decrease) in Net Assets due to: | ||||||||
| Operations | ||||||||
| Net investment income | $ | 128,165 | $ | 85,883 | ||||
| Net realized loss on investment securities | (103,597 | ) | (29,176 | ) | ||||
| Net realized gain from in-kind redemptions | 592,193 | 218,651 | ||||||
| Change in unrealized appreciation on investment securities | 1,722,746 | 1,028,403 | ||||||
| Net increase in net assets resulting from operations | 2,339,507 | 1,303,761 | ||||||
| Distributions to Shareholders from Earnings | (125,720 | ) | (87,885 | ) | ||||
| Capital Transactions | ||||||||
| Proceeds from shares sold | 4,130,797 | 18,797,389 | ||||||
| Amount paid for shares redeemed | (1,692,881 | ) | (1,265,412 | ) | ||||
| Net increase in net assets resulting from capital transactions | 2,437,916 | 17,531,977 | ||||||
| Total Increase in Net Assets | 4,651,703 | 18,747,853 | ||||||
| Net Assets | ||||||||
| Beginning of period | $ | 18,847,853 | $ | 100,000 | ||||
| End of period | $ | 23,499,556 | $ | 18,847,853 | ||||
| Share Transactions | ||||||||
| Shares sold | 150,000 | 764,000 | ||||||
| Shares redeemed | (60,000 | ) | (50,000 | ) | ||||
| Net increase in shares outstanding | 90,000 | 714,000 | ||||||
| (a) | For the period July 12, 2023 (commencement of operations) to December 31, 2023. |
See accompanying notes which are an integral part of these financial statements.
15
| Texas Capital Funds Trust |
| Statements of Changes in Net Assets (continued) |
| Texas Capital Texas Oil Index | ||||||||
| ETF | ||||||||
| For the Six | For the | |||||||
| Months | Period Ended | |||||||
| Ended June | December 31, | |||||||
| 30, 2024 | 2023(a) | |||||||
| (Unaudited) | ||||||||
| Increase (Decrease) in Net Assets due to: | ||||||||
| Operations | ||||||||
| Net investment income | $ | 163,375 | $ | 8 | ||||
| Net realized loss on investment securities | (29,585 | ) | — | |||||
| Net realized gain from in-kind redemptions | 306,764 | — | ||||||
| Change in unrealized appreciation on investment securities | 1,249,975 | 136 | ||||||
| Net increase in net assets resulting from operations | 1,690,529 | 144 | ||||||
| Distributions to Shareholders from Earnings | (164,500 | ) | — | |||||
| Capital Transactions | ||||||||
| Proceeds from shares sold | 14,335,293 | 247,525 | ||||||
| Amount paid for shares redeemed | (2,136,867 | ) | — | |||||
| Net increase in net assets resulting from capital transactions | 12,198,426 | 247,525 | ||||||
| Total Increase in Net Assets | 13,724,455 | 247,669 | ||||||
| Net Assets | ||||||||
| Beginning of period | $ | 247,669 | $ | — | ||||
| End of period | $ | 13,972,124 | $ | 247,669 | ||||
| Share Transactions | ||||||||
| Shares sold | 590,000 | 10,000 | ||||||
| Shares redeemed | (80,000 | ) | — | |||||
| Net increase in shares outstanding | 510,000 | 10,000 | ||||||
| (a) | For the period December 20, 2023 (commencement of operations) to December 31, 2023. |
See accompanying notes which are an integral part of these financial statements.
16
| Texas Capital Funds Trust |
| Statements of Changes in Net Assets (continued) |
| Texas Capital Texas Small | ||||||||
| Cap Equity Index ETF | ||||||||
| For the Six | For the | |||||||
| Months | Period Ended | |||||||
| Ended June | December 31, | |||||||
| 30, 2024 | 2023(a) | |||||||
| (Unaudited) | ||||||||
| Increase (Decrease) in Net Assets due to: | ||||||||
| Operations | ||||||||
| Net investment income (loss) | $ | 38,398 | $ | (48 | ) | |||
| Net realized loss on investment securities | (65,015 | ) | — | |||||
| Net realized gain from in-kind redemptions | 597,021 | — | ||||||
| Change in unrealized appreciation on investment securities | 343,361 | 9,779 | ||||||
| Net increase in net assets resulting from operations | 913,765 | 9,731 | ||||||
| Capital Transactions | ||||||||
| Proceeds from shares sold | 13,248,865 | 493,025 | ||||||
| Amount paid for shares redeemed | (2,245,897 | ) | — | |||||
| Net increase in net assets resulting from capital transactions | 11,002,968 | 493,025 | ||||||
| Total Increase in Net Assets | 11,916,733 | 502,756 | ||||||
| Net Assets | ||||||||
| Beginning of period | $ | 502,756 | $ | — | ||||
| End of period | $ | 12,419,489 | $ | 502,756 | ||||
| Share Transactions | ||||||||
| Shares sold | 560,000 | 20,000 | ||||||
| Shares redeemed | (90,000 | ) | — | |||||
| Net increase in shares outstanding | 470,000 | 20,000 | ||||||
| (a) | For the period December 20, 2023 (commencement of operations) to December 31, 2023. |
See accompanying notes which are an integral part of these financial statements.
17
| Texas Capital Texas Equity Index ETF |
| Financial Highlights |
| (For a share outstanding during each period) |
| For the Six | For the | |||||||
| Months | Period | |||||||
| Ended June | Ended | |||||||
| 30, 2024 | December | |||||||
| (Unaudited) | 31, 2023(a) | |||||||
| Selected Per Share Data: | ||||||||
| Net asset value, beginning of period | $ | 26.40 | $ | 25.00 | ||||
| Investment operations: | ||||||||
| Net investment income | 0.30 | 0.14 | ||||||
| Net realized and unrealized gain on investments | 2.83 | 1.40 | ||||||
| Total from investment operations | 3.13 | 1.54 | ||||||
| Less distributions to shareholders from: | ||||||||
| Net investment income | (0.30 | ) | (0.14 | ) | ||||
| Total distributions | (0.30 | ) | (0.14 | ) | ||||
| Net asset value, end of period | $ | 29.23 | $ | 26.40 | ||||
| Market price, end of period | $ | 29.21 | $ | 26.39 | ||||
| Total Return(b) | 11.34 | % (c) | 6.18 | % (c) | ||||
| Ratios and Supplemental Data: | ||||||||
| Net assets, end of period (000 omitted) | $ | 23,500 | $ | 18,848 | ||||
| Ratio of expenses to average net assets | 0.49 | % (d) | 0.49 | % (d) | ||||
| Ratio of net investment income to average net assets | 1.22 | % (d) | 1.24 | % (d) | ||||
| Portfolio turnover rate(e) | 1 | % (c) | 3 | % (c) | ||||
| (a) | For the period July 12, 2023 (commencement of operations) to December 31, 2023. |
| (b) | Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net asset value per share on their respective payment dates. |
| (c) | Not annualized. |
| (d) | Annualized. |
| (e) | Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions. |
See accompanying notes which are an integral part of these financial statements.
18
| Texas Capital Texas Oil Index ETF |
| Financial Highlights |
| (For a share outstanding during each period) |
| For the Six | For the | |||||||
| Months | Period | |||||||
| Ended June | Ended | |||||||
| 30, 2024 | December | |||||||
| (Unaudited) | 31, 2023(a) | |||||||
| Selected Per Share Data: | ||||||||
| Net asset value, beginning of period | $ | 24.77 | $ | 24.75 | ||||
| Investment operations: | ||||||||
| Net investment income | 0.34 | — | (b) | |||||
| Net realized and unrealized gain on investments | 2.10 | 0.02 | ||||||
| Total from investment operations | 2.44 | 0.02 | ||||||
| Less distributions to shareholders from: | ||||||||
| Net investment income | (0.34 | ) | — | |||||
| Total distributions | (0.34 | ) | — | |||||
| Net asset value, end of period | $ | 26.87 | $ | 24.77 | ||||
| Market price, end of period | $ | 26.93 | $ | 24.92 | ||||
| Total Return(c) | 9.85 | % (d) | 0.08 | % (d) | ||||
| Ratios and Supplemental Data: | ||||||||
| Net assets, end of period (000 omitted) | $ | 13,972 | $ | 248 | ||||
| Ratio of expenses to average net assets | 0.35 | % (e) | 0.35 | % (e) | ||||
| Ratio of net investment income to average net assets | 2.83 | % (e) | 0.11 | % (e) | ||||
| Portfolio turnover rate(f) | 5 | % (d) | — | % (d) | ||||
| (a) | For the period December 20, 2023 (commencement of operations) to December 31, 2023. |
| (b) | Rounds to less than $0.005. |
| (c) | Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net asset value per share on their respective payment dates. |
| (d) | Not annualized. |
| (e) | Annualized. |
| (f) | Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions. |
See accompanying notes which are an integral part of these financial statements.
19
| Texas Capital Texas Small Cap Equity Index ETF |
| Financial Highlights |
| (For a share outstanding during each period) |
| For the Six | For the | |||||||
| Months | Period | |||||||
| Ended June | Ended | |||||||
| 30, 2024 | December | |||||||
| (Unaudited) | 31, 2023(a) | |||||||
| Selected Per Share Data: | ||||||||
| Net asset value, beginning of period | $ | 25.14 | $ | 24.65 | ||||
| Investment operations: | ||||||||
| Net investment income | 0.08 | — | (b) | |||||
| Net realized and unrealized gain on investments | 0.13 | 0.49 | ||||||
| Total from investment operations | 0.21 | 0.49 | ||||||
| Net asset value, end of period | $ | 25.35 | $ | 25.14 | ||||
| Market price, end of period | $ | 25.34 | $ | 25.16 | ||||
| Total Return(c) | 0.84 | % (d) | 1.99 | % (d) | ||||
| Ratios and Supplemental Data: | ||||||||
| Net assets, end of period (000 omitted) | $ | 12,419 | $ | 503 | ||||
| Ratio of expenses to average net assets | 0.49 | % (e) | 0.49 | % (e) | ||||
| Ratio of net investment income (loss) to average net assets | 0.72 | % (e) | (0.32 | )% (e) | ||||
| Portfolio turnover rate(f) | 4 | % (d) | — | % (d) | ||||
| (a) | For the period December 20, 2023 (commencement of operations) to December 31, 2023. |
| (b) | Rounds to less than $0.005. |
| (c) | Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net asset value per share on their respective payment dates. |
| (d) | Not annualized. |
| (e) | Annualized. |
| (f) | Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions. |
See accompanying notes which are an integral part of these financial statements.
20
| Texas Capital Funds Trust |
| Notes to the Financial Statements |
| June 30, 2024 - (Unaudited) |
NOTE 1. ORGANIZATION
Texas Capital Texas Equity Index ETF, Texas Capital Texas Oil Index ETF and Texas Capital Texas Small Cap Equity Index ETF (each a “Fund” and collectively, the “Funds”) are each registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as a diversified series of Texas Capital Funds Trust (the “Trust”), except for the Texas Capital Texas Oil Index ETF, which is non-diversified. The Texas Capital Texas Equity Index ETF commenced operations on July 12, 2023. The Texas Capital Texas Oil Index ETF and the Texas Capital Texas Small Cap Equity Index ETF commenced operations on December 20, 2023. The Trust is an open-end investment management company established under the laws of Delaware by an Agreement and Declaration of Trust dated March 21, 2023, as amended (the “Trust Agreement”). The Trust Agreement permits the Board of Trustees of the Trust (the “Board”) to issue an unlimited number of shares of beneficial interest of separate series. The Funds’ investment adviser is Texas Capital Bank Wealth Management Services, Inc., doing business as Texas Capital Bank Private Wealth Advisors (the “Adviser”). The investment objective of the Texas Capital Texas Equity Index ETF is to seek to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Texas Capital Texas Equity Index. The investment objective of the Texas Capital Texas Oil Index ETF is to seek to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Alerian Texas Weighted Oil and Gas Index. The investment objective of the Texas Capital Texas Small Cap Equity Index ETF is to seek to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Texas Capital Texas Small Cap Equity Index.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The Funds are investment companies and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies”. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”).
Regulatory Update – Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds (“ETFs”) – The Securities and Exchange Commission adopted rule and form amendments that have resulted in changes to the design and delivery of shareholder reports of mutual funds and ETFs, requiring them to transmit concise and visually engaging streamlined annual and semi-annual reports to shareholders that highlight key information by July 24, 2024. Other information, including financial statements, will no longer appear
21
| Texas Capital Funds Trust |
| Notes to the Financial Statements (continued) |
| June 30, 2024 - (Unaudited) |
in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semi-annual basis on Form N-CSR.
Estimates – The preparation of financial statements in conformity with 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 and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
Federal Income Taxes – The Funds make no provision for federal income or excise tax. Each Fund has qualified and intends to qualify each year as a regulated investment company (“RIC”) under subchapter M of the Internal Revenue Code of 1986, as amended, by complying with the requirements applicable to RICs and by distributing substantially all of its taxable income. Each Fund also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. If the required amount of net investment income or gains is not distributed, the Funds could incur a tax expense.
As of and during the six months ended June 30, 2024, the Funds did not have any liabilities for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations when incurred. During the period, the Funds did not incur any interest or penalties. Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the previous three tax year ends and the interim tax period since then, as applicable) and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements and does not expect this to change over the next twelve months. The Funds’ federal tax returns for the current fiscal year remain subject to examination by the Internal Revenue Service.
Security Transactions and Related Income – The Funds follow industry practice and record security transactions on the trade date for financial reporting purposes. The specific identification method is used for determining gains or losses for financial statement and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Non-cash income, if any, is recorded at the fair market value of the securities received. Withholding taxes on foreign dividends, if any, have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates.
Dividends and Distributions – The Texas Capital Texas Equity Index ETF and the Texas Capital Texas Small Cap Equity Index ETF each typically distribute net investment
22
| Texas Capital Funds Trust |
| Notes to the Financial Statements (continued) |
| June 30, 2024 - (Unaudited) |
income and any realized net capital gains annually. The Texas Capital Texas Oil Index ETF typically distributes net investment income quarterly and any realized net capital gains annually. Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the year from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. Where such differences are permanent in nature; they are reclassified in the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations, or net asset values (“NAV”) per share of the Funds.
NOTE 3. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS
Each Fund values its portfolio securities at fair value as of the close of regular trading on the New York Stock Exchange (“NYSE”) (normally 4:00 p.m. Eastern Time) on each business day the NYSE is open for business. Fair value is defined as the price that a Fund would receive upon selling an investment or transferring a liability in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.
Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique). Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained and available from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
Various inputs are used in determining the value of each Fund’s investments. These inputs are summarized in the three broad levels listed below.
| ● | Level 1 – unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published and is the basis for current transactions for identical assets or liabilities at the valuation date |
23
| Texas Capital Funds Trust |
| Notes to the Financial Statements (continued) |
| June 30, 2024 - (Unaudited) |
| ● | Level 2 – other significant observable inputs (including, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
| ● | Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining fair value of investments based on the best information available) |
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 which is reported is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
In computing the NAV of the Funds, fair value is based on market valuations with respect to portfolio securities for which market quotations are readily available. Pursuant to Board approved policies, the Funds rely on independent third-party pricing services to provide the current market value of securities. Those pricing services value equity securities, including ETFs, exchange-traded notes, closed-end funds and preferred stocks, traded on a securities exchange at the last reported sales price on the principal exchange. Equity securities quoted by Nasdaq are valued at the Nasdaq Official Closing Price. If there is no reported sale on the principal exchange, equity securities are valued at the mean between the most recent quoted bid and asked price. When using market quotations or close prices provided by the pricing service and when the market is considered active, the security will be classified as a Level 1 security. Investments in open-end mutual funds, including money market mutual funds, are generally priced at the ending NAV provided by the pricing service of the funds and are generally categorized as Level 1 securities.
In the event that market quotations are not readily available or are considered unreliable due to market or other events, securities are valued in good faith by the Adviser as “valuation designee” under the oversight of the Board. The Adviser has adopted written policies and procedures for valuing securities and other assets in circumstances where market quotes are not readily available or are deemed not to reflect market value. In the event that market quotes are not readily available or are deemed not to reflect market value, and the security or asset cannot be valued pursuant to one of the valuation methods, the value of the security or asset will be determined in good faith by the Adviser pursuant to its policies and procedures. Under these policies, the securities will be classified as Level 2 or 3 within the fair value hierarchy, depending on the inputs used.
24
| Texas Capital Funds Trust |
| Notes to the Financial Statements (continued) |
| June 30, 2024 - (Unaudited) |
The following is a summary of the inputs used to value the Funds’ investments as of June 30, 2024:
| Valuation Inputs | ||||||||||||||||
| Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Texas Capital Texas Equity Index ETF | ||||||||||||||||
| Common Stocks (a) | $ | 23,446,032 | $ | — | $ | — | $ | 23,446,032 | ||||||||
| Money Market Funds | 335,321 | — | — | 335,321 | ||||||||||||
| Total | $ | 23,781,353 | $ | — | $ | — | $ | 23,781,353 | ||||||||
| Valuation Inputs | ||||||||||||||||
| Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Texas Capital Texas Oil Index ETF | ||||||||||||||||
| Common Stocks (a) | $ | 13,950,490 | $ | — | $ | — | $ | 13,950,490 | ||||||||
| Money Market Funds | 131,948 | — | — | 131,948 | ||||||||||||
| Total | $ | 14,082,438 | $ | — | $ | — | $ | 14,082,438 | ||||||||
| Valuation Inputs | ||||||||||||||||
| Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Texas Capital Texas Small Cap Equity Index ETF | ||||||||||||||||
| Common Stocks (a) | $ | 12,393,140 | $ | — | $ | — | $ | 12,393,140 | ||||||||
| Money Market Funds | 27,987 | — | — | 27,987 | ||||||||||||
| Total | $ | 12,421,127 | $ | — | $ | — | $ | 12,421,127 | ||||||||
| (a) | Refer to Schedule of Investments for sector classifications. |
NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES AND OTHER SERVICE PROVIDERS
The Adviser, under the terms of the Advisory Agreement with the Trust with respect to each Fund (the “Agreement”), manages the Funds’ investments. As compensation for its management services, each Fund pays the Adviser a unitary management fee based on each Fund’s average daily net assets as follows:
| Texas Capital Texas | ||||||
| Texas Capital Texas | Texas Capital Texas | Small Cap Equity | ||||
| Equity Index ETF | Oil Index ETF | Index ETF | ||||
| Advisory fees rate | 0.49% | 0.35% | 0.49% | |||
| Advisory fees earned | $51,619 | $20,042 | $25,996 | |||
| Payable to Adviser | $9,276 | $3,915 | $5,110 |
Under the Agreement, the Adviser has agreed to pay all expenses of the Funds, except for the fee payment under the Agreement, payments under the Funds’ 12b-1 plan (if any), interest expenses, taxes, acquired fund fees and expenses, brokers’ commissions and any other transaction-related expenses and fees arising out of transactions effected on behalf of each Fund, costs of holding shareholder meetings and litigation and indemnification
25
| Texas Capital Funds Trust |
| Notes to the Financial Statements (continued) |
| June 30, 2024 - (Unaudited) |
expenses and other extraordinary expenses not incurred in the ordinary course of the Funds’ business.
State Street Bank and Trust Company (“State Street”) serves as Funds’ custodian and transfer agent. The Adviser pays State Street fees in accordance with the agreements for such services.
Ultimus Fund Solutions, LLC (“Ultimus”) provides administration and fund accounting services to the Funds. The Adviser pays Ultimus fees in accordance with the Master Services Agreement for such services.
Northern Lights Compliance Services, LLC (“NLCS”), an affiliate of Ultimus, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives fees from the Adviser, which are approved annually by the Board.
Under the terms of a Distribution Agreement with the Trust, Northern Lights Distributors, LLC (the “Distributor”) serves as principal underwriter to the Funds. The Distributor is a wholly-owned subsidiary of Ultimus. The Distributor is compensated by the Adviser (not the Funds) for acting as principal underwriter.
Certain officers of the Trust are also employees of Ultimus and such persons are not paid by the Funds for serving in such capacities.
NOTE 5. PURCHASES AND SALES OF SECURITIES
For the six months ended June 30, 2024, purchases and sales of investment securities, other than in-kind transactions and short-term investments, were as follows:
| Purchases | Sales | |||||||
| Texas Capital Texas Equity Index ETF | $ | 1,710,643 | $ | 303,751 | ||||
| Texas Capital Texas Oil Index ETF | 1,593,109 | 511,296 | ||||||
| Texas Capital Texas Small Cap Equity Index ETF | 1,913,370 | 417,899 | ||||||
For the six months ended June 30, 2024, purchases and sales for in-kind transactions were as follows:
| Purchases | Sales | |||||||
| Texas Capital Texas Equity Index ETF | $ | 2,683,716 | $ | 1,679,628 | ||||
| Texas Capital Texas Oil Index ETF | 13,225,819 | 2,128,113 | ||||||
| Texas Capital Texas Small Cap Equity Index ETF | 11,720,965 | 2,201,372 | ||||||
26
| Texas Capital Funds Trust |
| Notes to the Financial Statements (continued) |
| June 30, 2024 - (Unaudited) |
For the six months ended June 30, 2024, the Texas Capital Texas Equity Index ETF, Texas Capital Texas Oil Index ETF and Texas Capital Texas Small Cap Equity Index ETF had in-kind net realized gains of $592,193, $306,764 and $597,021 respectively.
There were no purchases or sales of long-term U.S. government obligations during the six months ended June 30, 2024.
Transaction Fees – Shares are not individually redeemable and may be redeemed by each Fund at NAV only in large blocks known as “Creation Units.” Shares are created and redeemed by the Texas Capital Texas Equity Index ETF and Texas Capital Texas Small Cap Equity Index ETF only in Creation Unit size aggregations of 10,000 shares. Shares are created and redeemed by the Texas Capital Texas Oil Index ETF only in Creation Unit size aggregations of 5,000 shares. Only certain financial institutions (each an “Authorized Participant”) or transactions done through an Authorized Participant are permitted to purchase or redeem Creation Units from the Funds. 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 Participant Agreement with the Distributor. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per share of the Funds on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances. In addition, the Funds may impose transaction fees on purchases and redemptions of Funds shares to cover the custodial and other costs incurred by the Funds in effecting trades. A fixed fee payable to the custodian may be imposed on each creation and redemption transaction regardless of the number of Creation Units involved in the transaction (“Standard Transaction Fee”). Purchases and redemptions of Creation Units for cash or involving cash-in-lieu are required to pay an additional variable charge to compensate the Funds and that ongoing shareholders for brokerage and market impact expenses relating to Creation Unit transactions (“Variable Charge,” and together with the Standard Transaction Fee, the “Transaction Fees”). For the six months ended June 30, 2024, the Funds did not have any Standard Transaction Fees and Variable Charges.
27
| Texas Capital Funds Trust |
| Notes to the Financial Statements (continued) |
| June 30, 2024 - (Unaudited) |
The Transaction Fees for the Funds are listed in the table below:
| In-kind | Cash | |||||
| Transaction | Transaction | Variable | ||||
| Fee | Fee | Charge | ||||
| Texas Capital Texas Equity Index ETF | $250 | $100 | 2.00%* | |||
| Texas Capital Texas Oil Index ETF | $150 | $100 | 2.00%* | |||
| Texas Capital Texas Small Cap Equity | ||||||
| Index ETF | $250 | $100 | 2.00%* |
| * | The maximum Transaction Fee may be up to 2.00% of the amount invested. |
NOTE 6. FEDERAL TAX INFORMATION
At June 30, 2024, the net unrealized appreciation (depreciation) and tax cost of investments for tax purposes were as follows:
| Texas Capital | ||||||||||||
| Texas Capital | Texas Capital | Texas Small Cap | ||||||||||
| Texas Equity | Texas Oil Index | Equity Index | ||||||||||
| Index ETF | ETF | ETF | ||||||||||
| Gross unrealized appreciation | $ | 3,685,048 | $ | 1,285,869 | $ | 1,365,091 | ||||||
| Gross unrealized depreciation | (933,899 | ) | (35,667 | ) | (1,011,951 | ) | ||||||
| Net unrealized appreciation on investments | $ | 2,751,149 | $ | 1,250,202 | $ | 353,140 | ||||||
| Tax cost of investments | $ | 21,030,204 | $ | 12,832,236 | $ | 12,067,987 | ||||||
The differences between book-basis and tax-basis unrealized appreciation (depreciation) are attributable primarily to: tax deferral of losses on wash sales, differences related to passive foreign investment companies and the return of capital adjustments from underlying investments.
The tax character of distributions paid for the fiscal year ended December 31, 2023, the Funds’ most recent fiscal year end, were as follows:
| Texas Capital | ||||||||||||
| Texas Capital | Texas Capital | Texas Small Cap | ||||||||||
| Texas Equity | Texas Oil Index | Equity Index | ||||||||||
| Index ETF | ETF | ETF | ||||||||||
| Distributions paid from: | ||||||||||||
| Ordinary income(a) | $ | 87,885 | $ | — | $ | — | ||||||
| Total distributions paid | $ | 87,885 | $ | — | $ | — | ||||||
| (a) | Short-term capital gain distributions are treated as ordinary income for tax purposes. |
28
| Texas Capital Funds Trust |
| Notes to the Financial Statements (continued) |
| June 30, 2024 - (Unaudited) |
At December 31, 2023, the components of accumulated earnings (deficit) on a tax basis were as follows:
| Texas Capital | ||||||||||||
| Texas Capital | Texas Capital | Texas Small Cap | ||||||||||
| Texas Equity | Texas Oil Index | Equity Index | ||||||||||
| Index ETF | ETF | ETF | ||||||||||
| Undistributed ordinary income | $ | — | $ | 8 | $ | — | ||||||
| Accumulated capital and other losses | (25,270 | ) | — | — | ||||||||
| Unrealized appreciation on investments | 1,031,768 | 136 | 9,779 | |||||||||
| Total accumulated earnings | $ | 1,006,498 | $ | 144 | $ | 9,779 | ||||||
As of December 31, 2023, the Texas Capital Texas Equity Index ETF had short-term capital loss carryforwards available to offset future gains and not subject to expiration in the amount of $25,270.
NOTE 7. PRINCIPAL RISKS
Sector Risk: If a Fund has significant investments in the securities of issuers within a particular sector, any development affecting that sector will have a greater impact on the value of the net assets of a Fund than would be the case if a Fund did not have significant investments in that sector. In addition, this may increase the risk of loss in a Fund and increase the volatility of a Fund’s NAV per share. For instance, economic or market factors, regulatory changes or other developments may negatively impact all companies in a particular sector, and therefore the value of the Fund’s portfolio will be adversely affected. As of June 30, 2024, the Texas Capital Texas Oil Index ETF had 96.52% of the value of its net assets invested in stocks within the Energy sector.
Texas Risk: Texas’ economy relies to a significant extent on certain key industries, such as the oil and gas industry (including drilling, production and refining), chemicals production, technology and telecommunications equipment manufacturing and international trade. Each of these industries has from time to time suffered from economic downturns, and adverse conditions in one or more of these industries could impair the ability of issuers of Texas municipal securities to pay principal or interest on their obligations.
Investment and Market Risk: As with all investments, an investment in the Funds is subject to investment risk. Investors in the Funds could lose money, including the possible loss of the entire principal amount of an investment, over short or prolonged periods of time. Markets can decline in value sharply and unpredictably. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region, or financial market.
29
| Texas Capital Funds Trust |
| Notes to the Financial Statements (continued) |
| June 30, 2024 - (Unaudited) |
Index Tracking Risk: There is no guarantee that the Funds will achieve a high degree of correlation to their respective index and therefore achieve their investment objective. The Funds may have difficulty achieving their investment objective due to fees, expenses (including rebalancing expenses), and other transaction costs related to the normal operation of the Funds. These costs that may be incurred by the Funds are not incurred by the Index, which may make it more difficult for the Funds to track the index.
Passive Investment Risk: The Funds are not actively managed, and the Adviser will not sell a security due to current or projected under performance of a security, industry, or sector, unless that security is removed from the index by the index provider, who is unaffiliated with the Adviser. The Funds invest in securities included in the index regardless of the Adviser’s independent analysis of the investment decision.
The Funds’ prospectus contains more information regarding these risks and other risks related to the Funds as well as other information about the Funds and should be read carefully before investing.
NOTE 8. INDEMNIFICATIONS
The Trust indemnifies its officers and Trustees for certain liabilities that may arise from their performance of their duties to the Trust or the Funds. Additionally, in the normal course of business, the Trust enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.
NOTE 9. SUBSEQUENT EVENTS
Management of the Funds has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date at which these financial statements were issued. Based upon this evaluation, management has determined there were no items requiring adjustment of the financial statements or additional disclosure.
30
Proxy Voting
A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how each Fund voted those proxies during the most recent twelve month period ended June 30 are available (1) without charge upon request by calling the Funds at (844) 822-3837 and (2) in Fund documents filed with the Securities and Exchange Commission (the “SEC”) on the SEC’s website at www.sec.gov.
| TRUSTEES J. Kyle Bass Avery Johnson Eduardo Margain Daniel S. Hoverman Jocelyn E. Kukulka | INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst and Young LLP 2323 Victory Avenue Suite 2000 Dallas, TX 75219 |
| OFFICERS Edward Rosenberg Joel Colpitts Neil Rajan Kevin Patton | LEGAL COUNSEL Dechert, LLP 1095 Avenue of the Americas New York, NY 10036 |
| INVESTMENT ADVISER Texas Capital Bank Private Wealth Advisors. 2000 McKinney Ave, Unit 1800 Dallas, TX 75201 | CUSTODIAN AND TRANSFER AGENT State Street Bank and Trust Company 1 Congress Street Boston, MA 02114 |
| DISTRIBUTOR Northern Lights Distributors, LLC 4221 North 203rd Street, Suite 100 Elkhorn, NE 68022 | ADMINISTRATOR AND FUND ACCOUNTANT Ultimus Fund Solutions, LLC 225 Pictoria Drive, Suite 450 Cincinnati, OH 45246 |
This report is intended only for the information of shareholders or those who have received a Fund’s prospectus which contains information about the Fund’s management fee and expenses. Please read the prospectus carefully before investing.
Distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Under its Advisory Agreement with each Fund, Texas Capital Bank Wealth Management Services, Inc. (the “Adviser”) bears all of the costs of the Funds, with certain exceptions. Expenses borne by the Adviser include trustee and officer compensation. Additional information related to such compensation is available in the Funds’ Statement of Additional Information.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
Not applicable.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15. Submission of Matters to a Vote of Security Holders.
None.
Item 16. Controls and Procedures
(a) The registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures as of a date within 90 days of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation.
(a) Not applicable.
(b) Not applicable.
Item 19. Exhibits.
(a)(1) Not aplicable – disclosed with annual report.
(a)(2) Not applicable.
(a)(3) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)): Attached hereto.
(a)(4) Not applicable.
(b) Certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)): Attached hereto
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Texas Capital Funds Trust
| By /s/ Edward Rosenberg |
| Edward Rosenberg |
| President and Chief Executive Officer |
| Date: September 6, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By /s/ Edward Rosenberg |
| Edward Rosenberg |
| President and Chief Executive Officer |
| Date: September 6, 2024 |
| By /s/ Joel Colpitts |
| Joel Colpitts |
| Treasurer and Principal Financial Officer |
| Date: September 6, 2024 |