Christopher D. Menconi
+1.202.373.6173
christopher.menconi@morganlewis.com
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Re: | Exchange Traded Concepts Trust (the “Registrant”) File Nos. 333-156529 and 811-22263 |
1. | Comment: Item 27(b)(7)(iv) of Form N-1A requires exchange-traded funds (“ETFs”) to provide a table showing the number of days the market price of the ETF’s shares was greater and less than the ETF’s net asset value for the most recently completed five fiscal years (or life of the ETF, if shorter), but allows ETFs to omit this table from the annual report if the ETF’s website provides the premium/discount information required under Item 11(g) of Form N-1A. To the extent the Funds are omitting this information from the annual report, please ensure that the Funds’ websites are disclosing the information in accordance with Item 27(b)(7)(iv). |
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Morgan, Lewis & Bockius llp
1111 Pennsylvania Avenue, NW
Washington, DC 20004 |
+1.202.739.3000
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United States
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+1.202.739.3001
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2. | Comment: In the Expense Example, please include the disclosure required by Instruction 1(e)(i) to Item 27(d)(1) of Form N-1A, which requires ETFs to state that investors may pay brokerage commissions on their purchase and sale of fund shares, which are not reflected in the example. |
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Response: The Registrant confirms that such disclosure will be included in shareholder reports moving forward. The Registrant notes that it includes similar disclosure in each Fund’s prospectus, as is required by Instruction 1(e)(i) to Item 3 of Form N-1A.
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3. | Comment: Please consider disclosing each Fund’s market price as of the end of the reporting period in the Financial Highlights table or in the Management Discussion of Fund Performance section. |
4. | Comment: The Staff notes that the Fund engaged in short sales and appears to have used the proceeds from those short sales to purchase securities. In light of this, the Staff requests that the Registrant explain the basis for not including a Statement of Cash Flows. In addition, please ensure that the Fund’s Prospectus contains appropriate disclosure relating to borrowing and leveraging. |
5. | Comment: The Staff refers the Registrant to Note 2 of the Financial Statements, which provides that in the absence of a last quoted sale price, securities are valued at the most recent quoted bid. Please confirm whether this policy also applies when valuing short sale positions. |
Sincerely,
/s/ Christopher D. Menconi
Christopher D. Menconi
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