ETF Series Solutions (Form: N-CSRS, Received: 11/05/2021 13:58:33)

Semi-Annual Report

August 31, 2021

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

Ticker: PPTY

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

TABLE OF CONTENTS

	Page
Letters to Shareholders		1
Portfolio Allocation		3
Schedule of Investments		4
Statement of Assets and Liabilities		9
Statement of Operations		10
Statements of Changes in Net Assets		11
Financial Highlights		12
Notes to Financial Statements		14
Expense Example		24
Approval of Sub-Advisory Agreement & Board Consideration		25
Review of Liquidity Risk Management Program		27
Federal Tax Information		28
Information About Portfolio Holdings		28
Information About Proxy Voting		28
Frequency Distribution of Premiums and Discounts		29
Information About the Trustees		29

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

Dear Shareholders,

On behalf of the entire team, we want to express our appreciation for the confidence you have placed in the PPTY – U.S. Diversified Real Estate ETF (“PPTY” or the “Fund”). The following information pertains to the fiscal period of March 1, 2021 through August 31, 2021. The Fund seeks to track the total return performance, before fees and expenses, of the USREX – U.S. Diversified Real Estate Index^™ (the “Index”).

The Index is a passive, rules-based strategy index of U.S. real estate equity that selects companies using proprietary factors that take into account property type, property values, leverage, and location data. The Fund had positive performance during the period ending on August 31, 2021. The market price for PPTY increased 21.40% and the NAV increased 21.71%, while the MSCI US REIT Gross Index, a broad market index, gained 24.98% over the same period. The Fund’s Index returned 22.10%. Meanwhile, outstanding shares ended the period at 4,100,000.

For the period, the largest positive contributor to return was Prologis, Inc. (PLD US), adding 1.22% to the return of the Fund, gaining 37.00% with an average weighting of 3.88%. The second largest contributor to return was AvalonBay Communities, Inc. (AVB US), adding 1.11% to the return of the Fund, gaining 32.10% with an average weighting of 3.88%. The third largest contributor to return was VEREIT, Inc. (VER US), adding 1.10% to the return of the Fund, gaining 31.55% with an average weighting of 3.97%.

For the period, the largest negative contributor to return was Marriott International, Inc. (MAR US), detracting 0.16% from the return of the Fund, declining 8.73% with an average weighting of 1.82%. The security contributing second-most negatively was Empire State Realty Trust, Inc. (ESRT US), detracting 0.16% from the return of the Fund, and declining 6.54% with an average weighting of 0.33%. The third largest negative contributor to return was Hyatt Hotels Corporation (H US), detracting 0.10% from the return of the Fund, and declining 16.33% with an average weight of 0.56%.

For the period, the best performing security in the Fund was National Storage Affiliates Trust (NSA US), gaining 50.20% and contributing 0.09% to the return of the Fund. The second-best performing security for the period was Extra Space Storage, Inc. (EXR US), gaining 50.14% and contributing 0.20% to the return of the Fund. The third-best performing security was Life Storage, Inc. (LSI US), gaining 49.86% for the period and contributing 0.10% to the return of the Fund.

For the period, the worst performing security in the Fund was Hyatt Hotels Corporation (H US), declining 16.33% and reducing the return of the Fund by 0.10%. The second-worst performing security in the Fund was LTC Properties, Inc. (LTC US), declining 13.92% and reducing the return of the Fund by 0.04%. The third-worst performing security in the Fund was Xenia Hotels & Resorts, Inc. R (XHR US), declining 12.77% and reducing the return of the Fund by 0.02%.

Sincerely,

Deborah K. Kimery, CFA

Chief Executive Officer, Vident Advisory, LLC

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

Must be preceded or accompanied by the most recent prospectus.

Past performance is not a guarantee of future results.

Investments involve risk. Principal loss is possible. The Fund has the same risks as the underlying securities traded on the exchange throughout the day at market price. The Fund is a diversified management investment company. The Fund’s investments will be concentrated in an industry or group of industries to the extent the Index is so concentrated, and the Index is expected to be concentrated in real estate-related industries. The composition of the Index is heavily dependent on a proprietary quantitative model as well as information and data supplied by third parties (“Models and Data”). The Fund is expected to invest substantially all of its assets in real estate-related companies. Investments in real estate companies involve unique risks. Real estate companies, including REITs, may have limited financial resources, may trade less frequently and in limited volume, and may be more volatile than other securities. The risks of investing in real estate companies include certain risks associated with the direct ownership of real estate and the real estate industry in general. Securities in the real estate sector are subject to the risk that the value of their underlying real estate may go down. As with all ETFs, shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of shares will approximate the Fund’s NAV, there may be times when the market price of shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply and demand of shares or during periods of market volatility. The equity securities of smaller companies have historically been subject to greater investment risk than securities of larger companies.

The USREX – USREX is constructed from a universe of U.S.-listed equity securities with a market capitalization of at least $750 million and meeting certain liquidity thresholds (the “Equity Universe”). For companies currently in the index, the minimum market capitalization is $375 million. Companies in the Equity Universe are then screened to keep only those that derive at least 85% of their income from ownership or management of real property. Companies that meet this criterion are then screened to remove companies that are externally managed or that have a low percentage of their shares directly or indirectly available to the public. The companies remaining after the above screens will constitute the Index. The Index is designed to ensure diversification by property type and by location, while favoring companies with prudent leverage (i.e., the debt-to-enterprise value ratio of real estate investments), all subject to a maximum individual security weighting of 4% at the time of each reconstitution of the Index. The Index is expected to be primarily composed of companies that qualify as real estate investment trusts (“REITs”), but may also include real estate companies that do not qualify as REITs.

The MSCI US REIT Index is a free float-adjusted market capitalization weighted index that is comprised of equity Real Estate Investment Trusts (REITs). The index is based on the MSCI USA Investable Market Index (IMI), its parent index, which captures the large, mid and small cap segments of the USA market. With 149 constituents, it represents about 99% of the U.S. REIT universe and securities are classified under the Equity REITs Industry (under the Real Estate Sector) according to the Global Industry Classification Standard (GICS^®), have core real estate exposure (i.e., only selected Specialized REITs are eligible) and carry REIT tax status.

Fund holdings and sector allocations are subject to change at any time and are not a recommendation to buy or sell any security. Please see the Schedule of Investments for a complete list of Fund holdings.

Opinions expressed are those of the Fund manager and are subject to change, are not guaranteed and should not be considered investment advice.

ALPS Distributors, Inc., distributor.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

PORTFOLIO ALLOCATION

As of August 31, 2021 (Unaudited)

	Percentage of
Sector	Net Assets
Residential REITs		21.8	%
Office REITs		15.3	%
Retail REITs		14.2	%
Industrial REITs		13.4	%
Diversified REITs		11.5	%
Specialized REITs		9.8	%
Health Care REITs		7.0	%
Hotels, Resorts & Cruise Lines		4.5	%
Hotel & Resort REITs		2.9	%
Health Care Facilities		0.2	%
Short-Term Investments		0.2	%
Investments Purchased with Proceeds from Securities Lending		29.0	%
Liabilities in Excess of Other Assets		(29.8	)%
Total		100.0	%

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

SCHEDULE OF INVESTMENTS

August 31, 2021 (Unaudited)

Shares		Security Description	Value

COMMON STOCKS – 100.6%

		Health Care Facilities – 0.2%
	4,837	National HealthCare Corporation	$	357,212

		Hotels, Resorts & Cruise Lines – 4.5%
	5,931	Choice Hotels International, Inc. (a)		707,924
	16,459	Hilton Worldwide Holdings, Inc. (a)(b)		2,055,071
	10,146	Hyatt Hotels Corporation – Class A (a)(b)		746,644
	18,232	Marriott International, Inc. (b)		2,463,873
	10,630	Wyndham Hotels & Resorts, Inc. (a)		772,801
				6,746,313

		Diversified REITs – 11.5%
	12,342	Alexander & Baldwin, Inc.		257,701
	43,564	American Assets Trust, Inc.		1,734,718
	11,412	Armada Hoffler Properties, Inc.		153,263
	135,760	Broadstone Net Lease, Inc. (a)		3,719,824
	22,129	DigitalBridge Group, Inc. (a)(b)		152,690
	212,527	Empire State Realty Trust, Inc. (a)		2,182,652
	29,036	Essential Properties Realty Trust, Inc. (a)		941,057
	13,685	PS Business Parks, Inc.		2,151,693
	87,035	VEREIT, Inc.		4,397,878
	37,134	Washington Real Estate Investment Trust (a)		933,549
	7,577	WP Carey, Inc. (a)		591,915
				17,216,940

		Health Care REITs – 7.0%
	18,342	CareTrust REIT, Inc.		403,341
	7,679	Community Healthcare Trust, Inc.		372,508
	24,566	Global Medical REIT, Inc.		378,808
	17,894	Healthcare Realty Trust, Inc. (a)		537,357
	24,704	Healthcare Trust of America, Inc. (a)		749,272
	36,600	Healthpeak Properties, Inc. (a)		1,317,600
	10,561	LTC Properties, Inc. (a)		364,460
	7,174	Medical Properties Trust, Inc. (a)		146,924
	7,378	National Health Investors, Inc.		441,352
	22,898	Omega Healthcare Investors, Inc. (a)		767,770
	29,097	Physicians Realty Trust (a)		538,585
	28,506	Sabra Health Care REIT, Inc.		456,096

The accompanying notes are an integral part of these financial statements.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

SCHEDULE OF INVESTMENTS

August 31, 2021 (Unaudited) (Continued)

Shares		Security Description	Value

COMMON STOCKS – 100.6% (Continued)

		Health Care REITs – 7.0% (Continued)
	28,214	Ventas, Inc.	$	1,578,291
	26,483	Welltower, Inc. (a)		2,318,057
				10,370,421

		Hotel & Resort REITs – 2.9%
	40,693	Apple Hospitality REIT, Inc.		601,443
	10,989	CorePoint Lodging, Inc. (b)		158,901
	60,138	DiamondRock Hospitality Company (b)		543,648
	63,559	Host Hotels & Resorts, Inc. (a)(b)		1,052,537
	6,625	Pebblebrook Hotel Trust (a)		145,949
	10,363	RLJ Lodging Trust		149,538
	9,068	Ryman Hospitality Properties, Inc. (a)(b)		753,279
	16,276	Summit Hotel Properties, Inc. (a)(b)		151,692
	45,831	Sunstone Hotel Investors, Inc. (a)(b)		531,181
	9,020	Xenia Hotels & Resorts, Inc. (a)(b)		157,128
				4,245,296

		Industrial REITs – 13.4%
	3,837	Americold Realty Trust (a)		140,971
	37,395	Duke Realty Corporation		1,963,611
	6,679	EastGroup Properties, Inc.		1,203,957
	18,922	First Industrial Realty Trust, Inc.		1,059,443
	2,473	Innovative Industrial Properties, Inc. (a)		608,135
	126,386	Lexington Realty Trust (a)		1,710,003
	74,963	Monmouth Real Estate Investment Corporation		1,422,798
	46,675	Prologis, Inc.		6,285,256
	2,442	Rexford Industrial Realty, Inc.		151,233
	41,616	STAG Industrial, Inc.		1,758,276
	56,382	Terreno Realty Corporation		3,766,881
				20,070,564

		Office REITs – 15.3%
	16,427	Alexandria Real Estate Equities, Inc.		3,390,040
	17,390	Boston Properties, Inc.		1,964,896
	10,762	Brandywine Realty Trust (a)		149,377
	93,819	Columbia Property Trust, Inc.		1,568,654
	44,797	Corporate Office Properties Trust		1,262,379
	45,959	Cousins Properties, Inc. (a)		1,772,179

The accompanying notes are an integral part of these financial statements.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

SCHEDULE OF INVESTMENTS

August 31, 2021 (Unaudited) (Continued)

Shares		Security Description	Value

COMMON STOCKS – 100.6% (Continued)

		Office REITs – 15.3% (Continued)
	44,934	Douglas Emmett, Inc. (a)	$	1,483,271
	174,879	Easterly Government Properties, Inc. (a)		3,737,165
	43,071	Equity Commonwealth		1,134,490
	53,174	Highwoods Properties, Inc.		2,429,520
	5,429	Hudson Pacific Properties, Inc. (a)		143,217
	10,685	JBG SMITH Properties		321,939
	38,913	Kilroy Realty Corporation (a)		2,554,638
	35,945	Piedmont Office Realty Trust, Inc.		640,540
	1,952	SL Green Realty Corporation (a)		136,796
	3,372	Vornado Realty Trust (a)		141,219
				22,830,320

		Residential REITs – 21.8%
	14,869	American Campus Communities, Inc.		756,089
	74,892	American Homes 4 Rent – Class A (a)		3,140,970
	21,442	Apartment Income REIT Corporation		1,089,682
	23,469	AvalonBay Communities, Inc.		5,388,013
	12,250	Camden Property Trust		1,837,990
	16,355	Centerspace		1,654,799
	13,928	Equity LifeStyle Properties, Inc.		1,184,855
	51,990	Equity Residential		4,370,799
	7,796	Essex Property Trust, Inc.		2,578,449
	102,585	Independence Realty Trust, Inc. (a)		2,100,941
	30,025	Invitation Homes, Inc.		1,236,430
	14,287	Mid-America Apartment Communities, Inc.		2,748,390
	7,359	Sun Communities, Inc. (a)		1,482,765
	48,825	UDR, Inc. (a)		2,637,527
	16,916	UMH Properties, Inc.		400,909
				32,608,608

		Retail REITs – 14.2%
	97,420	Acadia Realty Trust		2,067,252
	7,627	Agree Realty Corporation (a)		568,593
	6,642	Brixmor Property Group, Inc.		155,755
	19,985	Federal Realty Investment Trust (a)		2,433,573
	37,948	Getty Realty Corporation (a)		1,200,295
	106,458	Kimco Realty Corporation		2,319,720

The accompanying notes are an integral part of these financial statements.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

SCHEDULE OF INVESTMENTS

August 31, 2021 (Unaudited) (Continued)

Shares		Security Description	Value

COMMON STOCKS – 100.6% (Continued)

		Retail REITs – 14.2% (Continued)
	7,491	Kite Realty Group Trust	$	151,768
	24,917	National Retail Properties, Inc.		1,186,298
	5,909	NETSTREIT Corporation		152,807
	2,117	Realty Income Corporation (a)		152,890
	27,914	Regency Centers Corporation		1,915,459
	107,501	Retail Opportunity Investments Corporation		1,943,618
	12,011	Retail Properties of America, Inc.		158,785
	11,848	RPT Realty		153,313
	3,313	Saul Centers, Inc.		152,663
	23,537	Simon Property Group, Inc. (a)		3,164,550
	47,662	SITE Centers Corporation (a)		767,835
	21,163	Spirit Realty Capital, Inc.		1,095,609
	8,466	Tanger Factory Outlet Centers, Inc. (a)		141,552
	7,994	Urban Edge Properties		151,406
	56,588	Urstadt Biddle Properties, Inc. – Class A (a)		1,079,699
				21,113,440

		Specialized REITs – 9.8%
	7,410	CoreSite Realty Corporation (a)		1,099,422
	7,949	CubeSmart		425,272
	16,456	CyrusOne, Inc.		1,266,783
	21,641	Digital Realty Trust, Inc. (a)		3,547,176
	5,454	Equinix, Inc.		4,600,175
	3,934	Extra Space Storage, Inc.		735,304
	3,118	Life Storage, Inc.		388,004
	6,218	National Storage Affiliates Trust (a)		355,981
	3,851	Public Storage		1,246,222
	12,989	QTS Realty Trust, Inc. – Class A (a)		1,012,882
				14,677,221
		TOTAL COMMON STOCKS
		(Cost $117,849,832)		150,236,335

The accompanying notes are an integral part of these financial statements.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

SCHEDULE OF INVESTMENTS

August 31, 2021 (Unaudited) (Continued)

Principal
Amount		Security Description	Value

SHORT-TERM INVESTMENTS – 0.2%
		Money Market Deposit Account – 0.2%
$	249,632	U.S. Bank Money Market
		Deposit Account, 0.003% (c)	$	249,632
		TOTAL SHORT-TERM INVESTMENTS
		(Cost $249,632)		249,632

Units

INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING – 29.0%
		Private Funds – 29.0%
	43,382,750	Mount Vernon Liquid Assets
		Portfolio, LLC, 0.090% (d)(e)		43,382,750
		TOTAL INVESTMENTS PURCHASED WITH
		PROCEEDS FROM SECURITIES LENDING
		(Cost 43,382,750)		43,382,750
		TOTAL INVESTMENTS – 129.8%
		(Cost $161,482,214)		193,868,717
		Liabilities in Excess of Other Assets – (29.8)%		(44,494,120	)
		NET ASSETS – 100.0%	$	149,374,597

Percentages are stated as a percent of net assets.

^(a)	All or portion of this security is out on loan as of August 31, 2021. Total value of securities out on loan is $42,546,189 or 28.5% of net assets.
^(b)	Non-income producing security.
^(c)	The Money Market Deposit Account (the “MMDA”) is a short-term investment vehicle in which the Fund holds cash balances. The MMDA will bear interest at a variable rate that is determined based on conditions and may change daily and by any amount. The rate shown is as of August 31, 2021.
^(d)	Annualized seven-day yield as of August 31, 2021.
^(e)	Privately offered liquidity fund. See Note 2 in Notes to Financial Statements.

REIT – Real Estate Investment Trust

The Global Industry Classification Standard (GICS^®) was developed by and/or is the exclusive property of MSCI, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”). GICS^® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bank Global Fund Services.

The accompanying notes are an integral part of these financial statements.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

STATEMENT OF ASSETS AND LIABILITIES

August 31, 2021 (Unaudited)

ASSETS
Investments in Securities, at Value*⁺	$	193,868,717
Interest and Dividends Receivable		94,588
Securities Lending Income Receivable		1,298
Total Assets		193,964,603

LIABILITIES
Payable for Investment Securities Purchased		1,145,357
Management Fees Payable, Net of Waiver		61,899
Collateral Received for Securities Loaned (See Note 4)		43,382,750
Total Liabilities		44,590,006

NET ASSETS	$	149,374,597

NET ASSETS CONSIST OF:
Paid-in Capital	$	118,270,176
Total Distributable Earnings (Accumulated Deficit)		31,104,421
Net Assets	$	149,374,597

Net Asset Value (unlimited shares authorized):
Net Assets	$	149,374,597
Shares Outstanding (No Par Value)		4,100,000
Net Asset Value, Offering and Redemption Price per Share	$	36.43
* Identified Cost:
Investments in Securities	$	161,482,214
⁺ Includes loaned securities with a value of	$	42,546,189

The accompanying notes are an integral part of these financial statements.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

STATEMENT OF OPERATIONS

For the Six-Months Ended August 31, 2021 (Unaudited)

INVESTMENT INCOME
Dividends	$	2,165,889
Securities Lending Income (See Note 4)		6,952
Interest		4
Total Investment Income		2,172,845

EXPENSES
Management Fees		369,377
Total Expenses		369,377
Fees Waived by Adviser (See Note 3)		(27,877	)
Net Expenses		341,500
Net Investment Income (Loss)		1,831,345

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on:
Investments in Securities		6,986,516
Net Change in Unrealized Appreciation (Depreciation) of:
Investments in Securities		17,689,752
Net Realized and Unrealized Gain (Loss) on Investments		24,676,268
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	26,507,613

The accompanying notes are an integral part of these financial statements.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

STATEMENTS OF CHANGES IN NET ASSETS

	Six-Months Ended
	August 31, 2021			Year Ended
	(Unaudited)			February 28, 2021
OPERATIONS
Net Investment Income (Loss)	$	1,831,345		$	1,999,718
Net Realized Gain (Loss) on Investments		6,986,516			(6,389,664	)
Change in Unrealized Appreciation
(Depreciation) of Investments		17,689,752			8,414,707
Net Increase (Decrease) in Net Assets
Resulting from Operations		26,507,613			4,024,761

DISTRIBUTIONS TO SHAREHOLDERS
Net Distributions to Shareholders		(2,171,479	)		(1,999,718	)
Return of Capital		—			(1,870,007	)
Total Distributions to Shareholders		(2,171,479	)		(3,869,725	)

CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold		25,068,645			21,559,155
Payments for Shares Redeemed		(21,655,840	)		(19,324,310	)
Net Increase (Decrease) in
Net Assets Derived from
Capital Share Transactions^(a)		3,412,805			2,234,845
Net Increase (Decrease) in Net Assets	$	27,748,939		$	2,389,881

NET ASSETS
Beginning of Period	$	121,625,658		$	119,235,777
End of Period	$	149,374,597		$	121,625,658

(a) Summary of capital share transactions is as follows:
	Shares			Shares
Shares Sold		700,000			800,000
Shares Redeemed		(600,000	)		(750,000	)
Net Increase (Decrease)		100,000			50,000

The accompanying notes are an integral part of these financial statements.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

FINANCIAL HIGHLIGHTS

For a capital share outstanding throughout each period

Net Asset Value, Beginning of Period/Year

INCOME FROM INVESTMENT OPERATIONS:

Net Investment Income (Loss)^(b)

Net Realized and Unrealized Gain (Loss) on Investments^(g)

Total from Investment Operations

LESS DISTRIBUTIONS:

From Net Investment Income

From Net Realized Gains

From Return of Capital

Total Distributions

CAPITAL SHARES TRANSACTIONS:

Transaction Fees (See Note 7)

Net Asset Value, End of Period/Year

Total Return

SUPPLEMENTAL DATA:

Net Assets at End of Period/Year (000’s)

RATIOS TO AVERAGE NET ASSETS:

Expenses to Average Net Assets (Before Management Fees Waived)

Expenses to Average Net Assets (After Management Fees Waived)

Net Investment Income to Average Net Assets (Before Management Fees Waived)

Net Investment Income to Average Net Assets (After Management Fees Waived)

Portfolio Turnover Rate^(f)

(a)	Commencement of operations on March 26, 2018.
(b)	Calculated based on average shares outstanding during the period.
(c)	Less than $0.005.
(d)	Not annualized.
(e)	Annualized.
(f)	Excludes impact of in-kind transactions.
(g)	Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period.

The accompanying notes are an integral part of these financial statements.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

FINANCIAL HIGHLIGHTS

For a capital share outstanding throughout each period

Six-Months
Ended
August 31,			Year Ended			Year Ended			Period Ended
2021			February 28,			February 29,			February 28,
(Unaudited)			2021			2020			2019^(a)
$	30.41		$	30.19		$	29.23		$	25.00


	0.45			0.52			0.65			0.58
	6.11			0.70			1.38			4.21
	6.56			1.22			2.03			4.79


	(0.54	)		(0.52	)		(0.67	)		(0.48	)
	—			—			(0.05	)		(0.08	)
	—			(0.48	)		(0.35	)		—
	(0.54	)		(1.00	)		(1.07	)		(0.56	)


	—			—			—	^(c)		—	^(c)
$	36.43		$	30.41		$	30.19		$	29.23
	21.71	%^(d)		4.67	%^(d)		6.86	%^(d)		19.32	%^(d)


$	149,375		$	121,626		$	119,236		$	105,215


	0.53	%^(e)		0.53	%		0.53	%		0.53	%^(e)
	0.49	%^(e)		0.49	%		0.53	%		0.53	%^(e)
	2.59	%^(e)		1.88	%		2.05	%		2.26	%^(e)
	2.63	%^(e)		1.92	%		2.05	%		2.26	%^(e)
	13	%^(d)		42	%		18	%		22	%^(d)

The accompanying notes are an integral part of these financial statements.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

NOTES TO FINANCIAL STATEMENTS

August 31, 2021 (Unaudited)

NOTE 1 – ORGANIZATION

PPTY – U.S. Diversified Real Estate ETF (the “Fund”) is a diversified series of ETF Series Solutions (“ESS” or the “Trust”), an open-end management investment company consisting of multiple investment series, organized as a Delaware statutory trust on February 9, 2012. The Trust is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company and the offering of the Fund’s shares is registered under the Securities Act of 1933, as amended (the “Securities Act”). The investment objective of the Fund is to track the performance, before fees and expenses, of the USREX – U.S. Diversified Real Estate Index (the “Index”). The Fund commenced operations on March 26, 2018.

The end of the reporting period for the Fund is August 31, 2021, and the period covered by these Notes to Financial Statements is the six-months ended August 31, 2021 (the “current fiscal period”).

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services – Investment Companies.

The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

A.	Security Valuation. All equity securities, including domestic and foreign common stocks, preferred stocks and exchange traded funds that are traded on a national securities exchange, except those listed on the Nasdaq Global Market^®, Nasdaq Global Select Market^®, and Nasdaq Capital Market Exchange^® (collectively “Nasdaq”) are valued at the last reported sale price on the exchange on which the security is principally traded. Securities traded on Nasdaq will be valued at the Nasdaq Official Closing Price (“NOCP”). If, on a particular day, an exchange-traded or Nasdaq security does not trade, then the mean between the most recent quoted bid and asked prices will be used. All equity securities that are not traded on a listed exchange are valued at the last sale price in the over-the-counter market. If a non-exchange traded security does not trade on a particular day, then the mean between the last quoted closing bid and asked price will be used. Prices denominated in foreign currencies are converted to U.S. dollar equivalents at the current exchange rate, which approximates fair value.

	Investments in mutual funds, including money market funds, are valued at their net asset value (“NAV”) per share.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

NOTES TO FINANCIAL STATEMENTS

August 31, 2021 (Unaudited) (Continued)

	Units of Mount Vernon Liquid Assets Portfolio are not traded on an exchange and are valued at the investment company’s NAV per share as provided by its administrator. These shares are generally classified as Level 2 instruments.

	Deposit accounts are valued at acquisition cost, which approximates fair value.

	Securities for which quotations are not readily available are valued at their respective fair values in accordance with pricing procedures adopted by the Fund’s Board of Trustees (the “Board”). 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 Board. The use of fair value pricing by the Fund may cause the NAV of its shares to differ significantly from the NAV that would be calculated without regard to such considerations.

	As described above, the Fund 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 valuations methods. The three levels of inputs are:

	Level 1 –	Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

	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 Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

	The availability of observable inputs can vary security to security and is affected by a wide variety of 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.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

NOTES TO FINANCIAL STATEMENTS

August 31, 2021 (Unaudited) (Continued)

The following is a summary of the inputs used to value the Fund’s investments as of the end of the current fiscal period:

Description^	Level 1		Level 2		Level 3		Total
Common Stocks	$	150,236,335	$	—	$	—	$	150,236,335
Short-Term Investments		249,632		—		—		249,632
Investments Purchased
with Proceeds from
Securities Lending		—		43,382,750		—		43,382,750
Total Investments
in Securities	$	150,485,967	$	43,382,750	$	—	$	193,868,717

	^ See Schedule of Investments for sector breakouts.

	During the current fiscal period, the Fund did not recognize any transfers into or out of Level 3.

B.	Federal Income Taxes. The Fund’s policy is to comply with the provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all net investment income and net capital gains to shareholders. Therefore, no federal income tax provision is required. The Fund plans to file U.S. Federal and applicable state and local tax returns.

	The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and conclude that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months. Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits on uncertain tax positions as income tax expenses in the Statement of Operations. During the current fiscal period, the Fund did not incur any interest or penalties.

C.	Security Transactions and Investment Income. Investment securities transactions are accounted for on the trade date. Gains and losses realized from investment transactions are determined on a specific identification basis. Dividend income is recorded on the ex-dividend date. Interest income is recorded on an accrual basis.

	Distributions received from a Fund’s investments in real estate investment trusts (“REIT”) may be characterized as ordinary income, net capital gain, or a return of capital. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, the Fund must use estimates in reporting the character of its income and distributions received during the current calendar year for financial statement purposes. The actual character of distributions

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

NOTES TO FINANCIAL STATEMENTS

August 31, 2021 (Unaudited) (Continued)

	to a Fund’s shareholders will be reflected on the Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions received by a Fund’s shareholders may represent a return of capital.

D.	Distributions to Shareholders. Distributions to shareholders from net investment income for the Fund are declared and paid by the Fund on a quarterly basis and distributions from net realized gains on securities are normally declared and paid on an annual basis. Distributions are recorded on the ex-dividend date.

E.	Use of Estimates. The preparation of financial statements in conformity with U.S. 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, as well as the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

F.	Share Valuation. The NAV per share of the Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash and other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding of the Fund, rounded to the nearest cent. The Fund’s shares will not be priced on the days on which the New York Stock Exchange, Inc. (“NYSE”) is closed for trading. The offering and redemption price per share for creation units of the Fund is equal to the Fund’s NAV per share.

G.	Guarantees and Indemnifications. In the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

H.	Reclassification of Capital Accounts. U.S. GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. These timing differences are primarily due to differing book and tax treatments for in-kind transactions. For the fiscal year ended February 28, 2021 the following table shows the reclassifications made:

	Distributable Earnings
	(Accumulated Deficit)	Paid-In Capital
	$(508,031)	$508,031

During the fiscal year ended February 28, 2021, the Fund realized $508,031 of net capital gains/(losses) resulting from in-kind redemptions, in which shareholders exchanged Fund shares for securities held by the Fund rather than for cash. Because such gains are not taxable to the Fund, and are not distributed to shareholders, they have been reclassified from distributable earnings (accumulated deficit) to paid-in capital.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

NOTES TO FINANCIAL STATEMENTS

August 31, 2021 (Unaudited) (Continued)

Subsequent Events. In preparing these financial statements, Management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. On September 7, 2021, the Fund changed its name to U.S. Diversified Real Estate ETF. There were no other events or transactions that occurred during the period subsequent to the end of the current fiscal period that materially impacted the amounts or disclosures in the Fund’s financial statements.

NOTE 3 – COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS

Vident Advisory, LLC (the “Adviser”) serves as the investment adviser to the Fund, and is a wholly-owned subsidiary of Vident Financial LLC, the Index Provider (“Vident Financial”). Pursuant to an Investment Advisory Agreement (“Advisory Agreement”) between the Trust, on behalf of the Fund, and the Adviser, the Adviser provides investment advice to the Fund and oversees the day-to-day operations of the Fund, subject to the direction and control of the Board and the officers of the Trust. Under the Advisory Agreement, the Adviser has agreed to pay all expenses incurred by the Fund except for the fee paid to the Adviser pursuant to this Agreement, interest charges on any borrowings, dividends and other expenses on securities sold short, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, extraordinary expenses, and distribution fees and expenses paid by the Trust under any distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act (collectively, “Excluded Expenses”). The Adviser may delegate its responsibility to pay some or all expenses incurred by the Fund, except for Excluded Expenses, to one or more third parties, including but not limited to, Vident Investment Advisory, LLC (the “Sub-Adviser”), a wholly-owned subsidiary of Vident Financial. For its services, the Sub-Adviser is paid a fee by the Adviser, which is calculated daily and paid monthly, at an annual rate based on the average daily net assets of the Fund. For services provided to the Fund, the Fund pays the Adviser 0.53% at an annual rate based on the Fund’s average daily net assets. Effective June 30, 2021, the Adviser has contractually agreed to waive 0.04% of its adviser fee until June 30, 2022. Fees waived under this waiver agreement are not subject to recoupment by the Adviser.

U.S. Bancorp Fund Services, LLC (“Fund Services” or “Administrator”), doing business as U.S. Bank Global Fund Services, acts as the Fund’s Administrator and, in that capacity, performs various administrative and accounting services for the Fund. The Administrator prepares various federal and state regulatory filings, reports and returns for the Fund, including regulatory compliance monitoring and financial reporting; prepares reports and materials to be supplied to the Board; and monitors the activities of the Fund’s Custodian, transfer agent and fund accountant. Fund Services also serves as the transfer agent and fund accountant to the Fund. U.S. Bank N.A. (the “Custodian”), an affiliate of Fund Services, serves as the Fund’s Custodian.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

NOTES TO FINANCIAL STATEMENTS

August 31, 2021 (Unaudited) (Continued)

The Custodian acts as securities lending agent (the “Securities Lending Agent”) for the Fund.

A Trustee and all officers of the Trust are affiliated with the Administrator and Custodian.

NOTE 4 – SECURITIES LENDING

The Fund may lend up to 33¹/₃% of the value of the securities in its portfolio to brokers, dealers and financial institutions (but not individuals) under terms of participation in a securities lending programs administered by the Securities Lending Agent. The securities lending agreement requires that loans are collateralized at all times in an amount equal to at least 102% of the value of any domestic loaned securities at the time of the loan, plus accrued interest. The use of loans of foreign securities, which are denominated and payable in U.S. dollars, shall be collateralized in an amount equal to 105% of the value of any loaned securities at the time of the loan plus accrued interest. The Fund receives compensation in the form of fees and earns interest on the cash collateral. The amount of fees depends on a number of factors including the type of security and length of the loan. The Fund continues to receive interest payments or dividends on the securities loaned during the borrowing period. Gain or loss in the value of securities loaned that may occur during the term of the loan will be for the account of the Fund. The Fund has the right under the terms of the securities lending agreement to recall the securities from the borrower on demand.

The securities lending agreement provides that, in the event of a borrower’s material default, the Securities Lending Agent shall take all actions the Securities Lending Agent deems appropriate to liquidate the collateral, purchase replacement securities at the Securities Lending Agent’s expense, or pay the Fund an amount equal to the market value of the loaned securities, subject to certain limitations which are set forth in detail in the securities lending agreement between the Fund and the Securities Lending Agent.

As of the end of the current fiscal period, the Fund had loaned securities that were collateralized by cash equivalents. The cash collateral is invested by the Securities Lending Agent in accordance with approved investment guidelines. Those guidelines require the cash collateral to be invested in readily marketable, high quality, short-term obligations; however, such investments are subject to risk of payment delays or default on the part of the issuer or counterparty or otherwise may not generate sufficient interest to support the costs associated with securities lending. The Fund could also experience delays in recovering its securities and possible loss of income or value if the borrower fails to return the borrowed securities, although the Fund is indemnified from this risk by contract with the Securities Lending Agent.

As of the end of the current fiscal period, the value of the securities on loan was $42,456,189 and payable for collateral due to the Securities Lending Agent was $43,382,750.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

NOTES TO FINANCIAL STATEMENTS

August 31, 2021 (Unaudited) (Continued)

The interest income earned by the Fund on investments of cash collateral received from borrowers for the securities loaned to them (“Securities Lending Income”) is reflected in the Fund’s Statement of Operations. Fees and interest income earned on collateral investments and recognized by the Fund during the current fiscal period was $6,952.

SECURED BORROWINGS

The cash collateral received of $43,382,750 was invested in the Mount Vernon Liquid Assets Portfolio, LLC as shown on the Schedule of Investments, a short-term investment portfolio with an overnight and continuous maturity. The investment objective is to seek to maximize current income to the extent consistent with the preservation of capital and liquidity and maintain a stable NAV of $1.00 per unit.

Due to the absence of a master netting agreement related to the Fund’s participation in securities lending, no additional offsetting disclosures have been made on behalf of the Fund.

NOTE 5 – PURCHASES AND SALES OF SECURITIES

During the current fiscal period, purchases and sales of securities by the Fund, excluding short-term securities and in-kind transactions, were as follows:

	Purchases	Sales
	$18,268,821	$17,477,149

During the current fiscal period, in-kind transactions associated with creations and redemptions were as follows:

	In-Kind Purchases	In-Kind Sales
	$25,037,570	$21,679,430

There were no purchases or sales of U.S. Government securities in the Fund during the period.

NOTE 6 – INCOME TAX INFORMATION

The components of distributable earnings (accumulated deficit) and cost basis of investments and for federal income tax purposes as of February 28, 2021 in the Fund, were as follows:

Tax cost of investments	$	127,494,641
Gross tax unrealized appreciation		17,457,600
Gross tax unrealized depreciation		(3,963,620	)
Net tax unrealized appreciation/(depreciation)		13,493,980
Undistributed ordinary income		—
Undistributed long-term capital gain		—
Other accumulated gain/(loss)		(6,725,693	)
Distributable earnings/(accumulated deficit)	$	6,768,287

The difference between book and tax-basis cost is attributable to wash sales.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

NOTES TO FINANCIAL STATEMENTS

August 31, 2021 (Unaudited) (Continued)

A regulated investment company may elect for any taxable year to treat any portion of any qualified late year loss as arising on the first day of the next taxable year. Qualified late year losses are certain capital and ordinary losses which occur during the portion of the Fund’s taxable year subsequent to October 31 and December 31, respectively. For the taxable year ended February 28, 2021, the Fund did not elect to defer any post-October capital losses or any late-year ordinary losses.

At February 28, 2021, the Fund had the following capital loss carryforwards:

	Short-Term	Long-Term	Expires
	$2,701,192	$4,024,501	Indefinite

The tax character of distributions paid by the Fund during the year ended February 28, 2021 were as follows:

	Ordinary Income	Return of Capital
	$1,999,718	$1,870,007

The tax character of distributions paid by the Fund during the year ended February 29, 2020 were as follows:

Ordinary Income	Return of Capital	Long Term Capital Gains
$2,502,526	$1,288,826	$204,835

NOTE 7 – SHARE TRANSACTIONS

Shares of the Fund are listed and traded on New York Stock Exchange Arca, Inc. (“NYSE Arca”). Market prices for the shares may be different from their NAV. The Fund issues and redeems shares on a continuous basis at NAV only in blocks of 50,000 shares, called “Creation Units.” Creation Units are issued and redeemed principally in-kind for securities included in a specified universe. Once created, shares generally trade in the secondary market at market prices that change throughout the day. Except when aggregated in Creation Units, shares are not redeemable securities of a Fund. Creation Units of a Fund may only be purchased or redeemed by certain financial institutions (“Authorized Participants”). 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. Most retail investors do not qualify as Authorized Participants nor have the resources to buy and sell whole Creation Units. Therefore, they are unable to purchase or redeem the shares directly from a Fund. Rather, most retail investors may purchase shares in the secondary market with the assistance of a broker and are subject to customary brokerage commissions or fees.

The Fund currently offers one class of shares, which have no front-end sales load, no deferred sales charge, and no redemption fee. A fixed transaction fee is imposed for the transfer and other transaction costs associated with the creation or redemption of

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

NOTES TO FINANCIAL STATEMENTS

August 31, 2021 (Unaudited) (Continued)

Creation Units. The standard fixed creation and redemption transaction fee for the Fund is $250 payable to the Custodian. The fixed transaction fee may be waived on transaction orders if the Fund’s Custodian has determined to waive some or all of such fee. In addition, a variable fee, payable to the Fund, may be charged on all cash transactions or substitutes for Creation Units of up to a maximum of 2% as a percentage of the value of the Creation Units subject to the transaction. Variable fees are imposed to compensate the Fund for the transaction costs associated with the cash transaction fees. Variable fees received by the Fund, if any, are displayed in the Capital Shares Transactions section of the Statement of Changes in Net Assets. The Fund may issue an unlimited number of shares of beneficial interest, with no par value. All shares of the Fund have equal rights and privileges.

NOTE 8 – PRINCIPAL RISKS

Concentration Risk. The Fund’s investments will be concentrated in an industry or group of industries to the extent the Index is so concentrated, and the Index is expected to be concentrated in real estate-related industries. Accordingly, the value of shares may rise and fall more than the value of shares that invest in securities of companies in a broader range of industries.

Real Estate Investment Risk. The Fund is expected to invest substantially all of its assets in real estate-related companies. Investments in real estate companies involve unique risks. Real estate companies, including REITs, may have limited financial resources, may trade less frequently and in limited volume, and may be more volatile than other securities. The risks of investing in real estate companies include certain risks associated with the direct ownership of real estate and the real estate industry in general. Securities in the real estate sector are subject to the risk that the value of their underlying real estate may go down. Many factors may affect real estate values, including the general and local economies, the amount of new construction in a particular area, the laws and regulations (including zoning and tax laws) affecting real estate, and the costs of owning, maintaining and improving real estate. The availability of mortgages and changes in interest rates may also affect real estate values. Real estate companies are also subject to heavy cash flow dependency, defaults by borrowers, and self-liquidation. Because the Fund invests primarily in real estate companies, its performance will be especially sensitive to developments that significantly affect real estate companies.

Covid-19 Risk. The global outbreak of COVID-19 has disrupted economic markets and the prolonged economic impact is uncertain. The operational and financial performance of the issuers of securities in which the Fund invests depends on future developments, including the duration and spread of the outbreak, and such uncertainty may in turn impact the value of the Fund’s investments.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

NOTES TO FINANCIAL STATEMENTS

August 31, 2021 (Unaudited) (Continued)

NOTE 9 – BENEFICIAL OWNERSHIP

The beneficial ownership, either directly or indirectly, of 25% or more of the voting securities of a fund creates a presumption of control of a fund, under section 2(a)(9) of the 1940 Act. As of the end of the current fiscal period, Thrivent Trust Company, as a beneficial shareholder, owned greater than 25% of the outstanding shares of the Fund.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

EXPENSE EXAMPLE

For the Six-Months Ended August 31, 2021 (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares, and (2) ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The first line of the table provides information about actual account values based on actual returns and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then, multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table provides information about hypothetical account values based on a hypothetical return and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of Fund shares. Therefore, the second line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher.

	Beginning	Ending
	Account	Account
	Value	Value	Expenses
	March 1,	August 31,	Paid During
	2021	2021	the Period^(a)
Actual	$1,000.00	$1,217.10	$2.74
Hypothetical (5% annual return
before expenses)	$1,000.00	$1,022.74	$2.50

^(a)	The dollar amounts shown as expenses paid during the period are equal to the annualized net expense ratio, 0.49%, multiplied by the average account value during the period, multiplied by 184/365, to reflect the one-half year period. See Note 3.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

APPROVAL OF SUB-ADVISORY AGREEMENT & BOARD CONSIDERATION

(Unaudited)

Pursuant to Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), at a meeting held April 20-21, 2021 (the “Meeting”), the Board of Trustees (the “Board”) of ETF Series Solutions (the “Trust”) considered the approval of the continuation of the Investment Sub-Advisory Agreement (the “Agreement”) between the Trust, on behalf of the PPTY – U.S. Diversified Real Estate ETF (the “Fund”), Vident Advisory, LLC (the “Adviser”), and Vident Investment Advisory, LLC (the “Sub-Adviser”).

Prior to the Meeting, the Board, including the Trustees who are not parties to the Agreement or “interested persons” of any party thereto, as defined in the 1940 Act (the “Independent Trustees”), reviewed written materials from the Sub-Adviser (the “Materials”) regarding, among other things: (i) the nature, extent, and quality of the services provided by the Sub-Adviser; (ii) the historical performance of the Fund; (iii) the cost of the services provided and the profits realized by the Sub-Adviser from services rendered to the Fund; (iv) the extent to which the sub-advisory fee for the Fund reflects economies of scale shared with the Fund shareholders; and (v) other factors the Board deemed to be relevant.

The Board also considered that the Sub-Adviser, along with other service providers of the Fund, presented written information to help the Board evaluate the Sub-Adviser’s fees and other aspects of the Agreement. Additionally, representatives from the Sub-Adviser provided an oral overview of the services provided to the Fund by the Sub-Adviser and additional information about the Sub-Adviser’s personnel and operations. The Board then discussed the written materials and oral presentation that it had received and any other information that the Board received at the Meeting and deliberated on the approval of the Agreement in light of this information. In its deliberations, the Board did not identify any single piece of information discussed below that was all-important or controlling.

Nature, Extent, and Quality of Services Provided. The Board considered the scope of services to be provided to the Fund under the Agreement, noting the Sub-Adviser would continue to provide investment management services to the Fund. The Board noted the responsibilities that the Sub-Adviser has as the Fund’s investment sub-adviser, including: responsibility for the general management of the day-to-day investment and reinvestment of the assets of the Fund; determining the daily baskets of deposit securities and cash components; executing portfolio security trades for purchases and redemptions of the Fund’s shares conducted on a cash-in-lieu basis; oversight of general portfolio compliance with relevant law; responsibility for quarterly reporting to the Board; and implementation of Board directives as they relate to the Fund.

In considering the nature, extent, and quality of the services provided by the Sub-Adviser, the Board considered reports of the Trust’s Chief Compliance Officer with respect to the Sub-Adviser’s compliance program and the Sub-Adviser’s experience providing investment management services to other ETFs, including other series of the

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

APPROVAL OF SUB-ADVISORY AGREEMENT & BOARD CONSIDERATION

(Unaudited) (Continued)

Trust. The Board also considered the Sub-Adviser’s resources and capacity with respect to portfolio management, compliance, and operations given the number of funds for which it provides sub-advisory services. The Board further considered information provided by the Sub-Adviser with respect to the impact of the COVID-19 pandemic on the Sub-Adviser’s operations.

Historical Performance. The Board noted that it had received information regarding the Fund’s performance for various time periods in the Materials and primarily considered the Fund’s performance for periods ended December 31, 2020. Because the Fund is designed to track the performance of an index, the Board considered the extent to which the Fund tracked its index before fees and expenses. The Board noted that the Fund outperformed its underlying index before fees and expenses for the one-year and the since inception periods. The Board noted that the Sub-Adviser attributed such outperformance to income generated from lending the Fund’s securities, which income is reflected in the Fund’s returns but not in the returns of the Fund’s underlying index.

Costs of Services Provided and Economies of Scale. The Board reviewed the sub-advisory fees paid by the Adviser to the Sub-Adviser for its services to the Fund. The Board considered that the fees paid to the Sub-Adviser are paid by the Adviser, which is an affiliate of the Sub-Adviser, and the Board also took into account analyses of the Sub-Adviser’s profitability with respect to the Fund. The Board also considered the fees paid to the Sub-Adviser relative to the fees paid to the Sub-Adviser by other funds with similar investment objectives.

The Board expressed the view that the Sub-Adviser might realize economies of scale in managing the Fund as assets grow in size. The Board further noted that because the Fund pays the Adviser a unified fee, any benefits from breakpoints in the sub-advisory fee schedule would accrue to the Adviser, rather than Fund shareholders. Consequently, the Board determined that it would monitor fees as the Fund grows to determine whether economies of scale were being effectively shared with the Fund and its shareholders.

Conclusion. No single factor was determinative of the Board’s decision to approve the Sub-Advisory Agreement; rather, the Board based its determination on the total mix of information available to it. Based on a consideration of all the factors in their totality, the Board, including a majority of the Independent Trustees, determined that the Sub-Advisory Agreement, including the compensation payable under the agreement, was fair and reasonable to the Fund. The Board, including a majority of the Independent Trustees, therefore determined that the approval of the continuation of the Sub-Advisory Agreement was in the best interests of the Fund and its shareholders.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

REVIEW OF LIQUIDITY RISK MANAGEMENT PROGRAM

(Unaudited)

Pursuant to Rule 22e-4 under the Investment Company Act of 1940, the Trust, on behalf of the series of the Trust covered by this shareholder report (the “Series”), has adopted a liquidity risk management program to govern the Trust’s approach to managing liquidity risk. Rule 22e-4 seeks to promote effective liquidity risk management, thereby reducing the risk that a fund will be unable to meet its redemption obligations and mitigating dilution of the interests of fund shareholders. The Trust’s liquidity risk management program is tailored to reflect the Series’ particular risks, but not to eliminate all adverse impacts of liquidity risk, which would be incompatible with the nature of such Series.

The investment adviser to the Series has adopted and implemented its own written liquidity risk management program (the “Program”) tailored specifically to assess and manage the liquidity risk of the Series.

At a recent meeting of the Board of Trustees of the Trust, the Trustees received a report pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the period ended December 31, 2020. The report concluded that the Program is reasonably designed to assess and manage the Series’ liquidity risk and has operated adequately and effectively to manage such risk. The report reflected that there were no liquidity events that impacted the Series’ ability to timely meet redemptions without dilution to existing shareholders. The report further noted that no material changes have been made to the Program since its implementation.

There can be no assurance that the Program will achieve its objectives in the future. Please refer to the prospectus for more information regarding the Series’ exposure to liquidity risk and other principal risks to which an investment in the Series may be subject.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

FEDERAL TAX INFORMATION

(Unaudited)

QUALIFIED DIVIDEND INCOME

(Unaudited)

For the year ended February 28, 2021, certain dividends paid by the Fund may be subject to a maximum tax rate of 23.8%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003.

The percentage of dividends declared from ordinary income designated as qualified dividend income was 1.28%.

DIVIDENDS RECEIVED DEDUCTION

For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the year ended February 28, 2021 was 1.69%.

SHORT TERM CAPITAL GAIN (Unaudited)

For the year ended February 28, 2021, the percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(C) for the Fund was 0.00%.

INFORMATION ABOUT PORTFOLIO HOLDINGS

(Unaudited)

The Fund files its complete schedule of portfolio holdings for its first and third fiscal quarters with the SEC on Part F of Form N-PORT. The Fund’s Part F of Form N-PORT is available without charge, upon request, by calling toll-free at (800) 617-0004. Furthermore, you may obtain Part F of Form N-PORT on the SEC’s website at www.sec.gov. The Fund’s portfolio holdings are posted on its website at www.videntfunds.com daily.

INFORMATION ABOUT PROXY VOTING

(Unaudited)

A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is provided in the SAI. The SAI is available without charge upon request by calling toll-free at (800) 617-0004, by accessing the SEC’s website at www.sec.gov, or by accessing the Fund’s website at www.videntfunds.com.

Information regarding how the Fund voted proxies relating to portfolio securities during the twelve-months ending June 30 will be available by calling toll-free at (800) 617-0004 and the SEC’s website at www.sec.gov.

PPTY – U.S. DIVERSIFIED REAL ESTATE ETF

FREQUENCY DISTRIBUTION OF PREMIUMS AND DISCOUNTS

(Unaudited)

Information regarding how often shares of the Fund trade on the exchange at a price above (i.e., at a premium) or below (i.e., at a discount) to their daily NAV is available, without charge, on the Fund’s website at www.videntfunds.com.

INFORMATION ABOUT THE TRUSTEES

(Unaudited)

The SAI includes additional information about the Funds’ Trustees and is available without charge, upon request, by calling (800) 617-0004 or by accessing the SEC’s website at www.sec.gov or by accessing the Funds’ website at www.videntfunds.com.

Adviser

Vident Advisory, LLC

1125 Sanctuary Parkway, Suite 515

Alpharetta, Georgia 30009

Sub-Adviser

Vident Investment Advisory, LLC

1125 Sanctuary Parkway, Suite 515

Alpharetta, Georgia 30009

Index Provider

Vident Financial, LLC

1125 Sanctuary Parkway, Suite 515

Alpharetta, Georgia 30009

Distributor

ALPS Distributors, Inc.

1290 Broadway, Suite 1000

Denver, Colorado 80203

Custodian

U.S. Bank National Association

1555 North Rivercenter Drive, Suite 302

Milwaukee, Wisconsin 53212

Transfer Agent

U.S. Bancorp Fund Services, LLC

615 East Michigan Street

Milwaukee, Wisconsin 53202

Independent Registered Public Accounting Firm

Cohen & Company, Ltd.

342 North Water Street, Suite 830

Milwaukee, Wisconsin 53202

Legal Counsel

Morgan, Lewis & Bockius LLP

1111 Pennsylvania Avenue NW

Washington, DC 20004-2541

PPTY – U.S. Diversified Real Estate ETF

Symbol – PPTY

CUSIP – 26922A511

Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semi-annual reports.

Item 6. Investments.

Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed‑End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.

Item 11. Controls and Procedures.

(a)

The Registrant’s President (principal executive officer) and Treasurer (principal financial officer) have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

(b)

There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred 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 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

Not applicable to open-end investment companies.

Item 13. Exhibits.

(a)	(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not Applicable.

(2) A separate certification for each principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

(3) Any written solicitation to purchase securities under Rule 23c‑1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.

(4)	Change in the registrant’s independent public accountant. There was no change in the registrant’s independent public accountant for the period covered by this report.

(b)	Certifications pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002. Furnished herewith.

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.

(Registrant) ETF Series Solutions

By (Signature and Title)* /s/ Kristina R. Nelson

Kristina R. Nelson, President (principal executive officer)

Date November 4, 2021

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 (Signature and Title)* /s/ Kristina R. Nelson

Kristina R. Nelson, President (principal executive officer)

Date November 4, 2021

By (Signature and Title)* /s/ Kristen M. Weitzel

Kristen M. Weitzel, Treasurer (principal financial officer)

Date November 4, 2021

* Print the name and title of each signing officer under his or her signature.

/s/ Kristina R. Nelson Kristina R. Nelson President (principal executive officer) ETF Series Solutions	/s/ Kristen M. Weitzel Kristen M. Weitzel Treasurer (principal financial officer) ETF Series Solutions
Dated: November 4, 2021	Dated: November 4, 2021