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2018-07-13
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TFLT
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;font-weight: bold; margin: 0in; margin-bottom: .0001pt;"> <font style="font-size:10.0pt;"> Global X TargetIncome<sup><font style="font-size: 8.0pt;font-style: normal;">TM</font> </sup> Plus 2 ETF</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;font-weight: bold; margin: 0in; margin-bottom: .0001pt;"> <font style="font-size:10.0pt;"> INVESTMENT OBJECTIVE</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The Global X TargetIncome<sup><font style="font-size: 8.0pt;font-style: normal;">TM</font> </sup> Plus 2 ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Wilshire TargetIncome<sup><font style="font-size: 8.0pt;font-style: normal;">TM</font> </sup> 10-Year Treasury +2% Plus Index (“Underlying Index”).</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;font-weight: bold; margin: 0in; margin-bottom: .0001pt;"> <font style="font-size:10.0pt;"> FEES AND EXPENSES</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> This table describes the fees and expenses that you may pay if you buy and hold shares (“Shares”) of the Fund. You will also incur usual and customary brokerage commissions when buying and selling Shares.</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Annual Fund Operating Expenses</font> </b> <font style="font-size:10.0pt;"> (expenses that you pay each year as a percentage of the value of your investment):</font> </p> </div>
<div style="display:none">~ http://www.globalxfunds.com/role/ScheduleAnnualFundOperatingExpensesGlobalXTargetIncomePlus2ETF ~</div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;font-weight: bold; margin: 0in; margin-bottom: .0001pt; text-align: justify;"> <font style="font-size:10.0pt;"> Example:</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. This example does not take into account customary brokerage commissions that you pay when purchasing or selling Shares of the Fund in the secondary market. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your Shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same.</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> Although your actual costs may be higher or lower, based on these assumptions, your costs would be:</font> </p> </div>
<div style="display:none">~ http://www.globalxfunds.com/role/ScheduleExpenseExampleGlobalXTargetIncomePlus2ETFTransposed ~</div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;font-weight: bold; margin: 0in; margin-bottom: .0001pt; text-align: justify;"> <font style="font-size:10.0pt;"> Portfolio Turnover:</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. The Fund is a new fund and does not yet have a portfolio turnover rate to disclose.</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;font-weight: bold; margin: 0in; margin-bottom: .0001pt;"> <font style="font-size:10.0pt;"> PRINCIPAL INVESTMENT STRATEGIES</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The Fund is a fund of funds and invests at least 80% of its total assets in the securities of the Underlying Index. The Fund’s 80% investment policy is non-fundamental and requires 60 days prior written notice to shareholders before it can be changed.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The Underlying Index seeks to provide broad exposure to income-producing asset classes using a portfolio of exchange-traded funds (each, an "Underlying ETF"), with the goal, but not the guarantee, of providing exposure that may be sufficient to support an annualized yield of the US 10-Year Treasury yield plus two percent (2.0%) for the Fund, net of fees. The Underlying Index targets an annualized yield that is somewhat higher than the US 10-Year Treasury yield plus 2% (“US 10-Year Treasury +2% Plus”), which is intended to provide the Fund with the ability to achieve the  US 10-Year Treasury yield plus 2% target, net of fees. The Underlying Index allocates index weights among the Underlying ETFs based on a methodology developed by Wilshire Associates, the provider of the Underlying Index ("Index Provider"), which is designed to achieve the target income objective while also utilizing an optimization approach that seeks to minimize the overall risk of the portfolio. The share prices of the Underlying ETFs are expected to track the performance of equities or bonds in developed or emerging markets, senior loans, preferred securities, real estate investment trusts ("REITs"), master limited partnerships (“MLPs”) and energy infrastructure equities, U.S. Treasury bonds, and U.S. Treasury Inflation Protected Securities (“TIPS”). The Underlying ETFs which invest in bonds may have exposure to investment grade and non-investment grade bonds.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The Underlying Index is constructed from the eligible income-producing asset classes, each of which is represented by an Underlying ETF that provides exposure to the given asset class. On a quarterly basis, and subject to certain weighting constraints, the Underlying Index is rebalanced to allocate weights to a subset of the eligible Underlying ETFs using a quantitative optimization approach that is described in more detail below. The Underlying Index has a target yield of the US 10-Year Treasury +2% Plus, which is expected to be generated by the income from the allocation to the Underlying ETFs.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> Optimization is the quantitative process of selecting a specific portfolio allocation from the set of all potential portfolio allocations, based on a defined objective and subject to certain constraints. Given that the objective of the Underlying Index is to achieve the stated income target while seeking to minimize overall portfolio risk, the primary optimization inputs for the Underlying Index are the yield, volatility, and correlation characteristics of the Underlying ETFs. The primary optimization constraints are the maximum weights of the Underlying ETFs as described in more detail below. Based on these inputs and constraints, the optimization process quantitatively determines the allocation to the Underlying ETFs at each quarterly rebalance.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> As of July 1, 2018, the Underlying ETFs eligible for inclusion in the Underlying Index are: Global X SuperDividend<sup>®</sup> ETF, Global X SuperDividend<sup>®</sup> U.S. ETF, iShares 20+ Year Treasury Bond ETF, VanEck Vectors<sup>®</sup> J.P. Morgan EM Local Currency Bond ETF, iShares Core U.S. Aggregate Bond ETF, Xtrackers USD High Yield Corporate Bond ETF, SPDR Blackstone / GSO Senior Loan ETF, Schwab U.S. TIPS ETF, Global X MLP & Energy Infrastructure ETF, Global X U.S. Preferred ETF, and Schwab U.S. REIT ETF. Each Underlying ETF has a minimum weight of 0% and a maximum weight of 20% at each quarterly rebalance. (iShares<sup>®</sup> is a registered trademark of BlackRock (BlackRock, Inc. and its subsidiaries). Neither BlackRock nor the iShares<sup>®</sup> Funds make any representations regarding the advisability of investing in the Fund.)</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The Underlying Index is sponsored by the Index Provider, which is an organization that is independent of the Fund and Global X Management Company LLC, the investment adviser for the Fund (“Adviser”). The Index Provider determines the relative weightings of the Underlying ETFs of the Underlying Index based on the output from the quantitative optimization process described above. The Fund's investment objective and Underlying Index may be changed without shareholder approval.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The Adviser uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to “outperform” the Underlying Index and does not seek temporary defensive positions when markets decline or appear overvalued.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The Fund uses a representative sampling strategy with respect to the Underlying Index. "Representative sampling" is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the Underlying Index in terms of key risk factors, performance attributes and other characteristics. These include country weightings, market capitalization and other financial characteristics of securities. The Fund may or may not hold all of the securities in the Underlying Index. The Adviser expects that, over time, the correlation between the Fund’s performance and that of the Underlying Index, before fees and expenses, will exceed 95%. A correlation percentage of 100% would indicate perfect correlation.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The Fund concentrates its investments (i.e., holds 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. As of July 1, 2018, the Underlying Index was not concentrated in a sector.</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;font-weight: bold; margin: 0in; margin-bottom: .0001pt; text-align: justify;"> <font style="font-size:10.0pt;"> SUMMARY OF PRINCIPAL RISKS</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> As with any investment, you could lose all or part of your investment in the Fund, and the Fund's performance could trail that of other investments. There is no guarantee that the Fund will achieve its investment objective. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund's net asset value ("NAV"), trading price, yield, total return and ability to meet its investment objective, as well as other risks that are described in greater detail in the <b> Additional Information About the Fund</b> section of this Prospectus and in the Statement of Additional Information ("SAI").</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Asset Class Risk:</font> </b> <font style="font-size: 10.0pt;"> Securities in the Underlying Index or otherwise held in the Fund's portfolio may underperform in comparison to the general securities markets or other asset classes.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Asset Fluctuation Risk:</font> </b> <font style="font-size:10.0pt;"> Certain shareholders, including an Authorized Participant (as defined in the SAI), the Adviser or an affiliate of the Adviser, may own a substantial amount of the Fund’s Shares. Additionally, from time to time, an Authorized Participant, a third party investor, the Adviser, or an affiliate of the Adviser may invest in the Fund and hold its investment for a specific period of time in order to facilitate commencement of the Fund’s operations or to allow the Fund to achieve size or scale.  Redemptions by large shareholders could have a significant negative impact on the Fund. If a large shareholder were to redeem all, or a large portion, of its Shares, there is no guarantee that the Fund will be able to maintain sufficient assets to continue operations, in which case the Board of Trustees may determine to liquidate the Fund. In addition, transactions by large shareholders may account for a large percentage of the trading volume on the Cboe BZX Exchange, Inc. (the “Exchange") and may, therefore, have a material upward or downward effect on the market price of the Shares.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Authorized Participant Concentration Risk:</font> </b> <font style="font-size:10.0pt;"> The Fund has a limited number of financial institutions that may act as Authorized Participants. Only Authorized Participants who have entered into agreements with the Fund’s distributor may engage in creation or redemption transactions directly with the Fund. To the extent that those Authorized Participants exit the business or are unable to process creation and/or redemption orders, and no other Authorized Participant is able to step forward to create or redeem in either of those cases, Shares may be more likely to trade at a premium or discount to NAV and possibly face trading halts and/or delisting from a securities exchange.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Concentration Risk:</font> </b> <font style="font-size: 10.0pt;"> To the extent that the Underlying Index or the Underlying ETFs concentrate in the securities of issuers in a particular country, industry, market, asset class, or sector, the Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in a country, industry, market, asset class, or sector, the Fund faces more risks than if it were diversified broadly over numerous countries, industries, markets, asset classes, or sectors. Such risks, any of which may adversely affect the companies in which the Underlying ETFs invest, may include, but are not limited to, the following: general economic conditions or cyclical market patterns that could negatively affect supply and demand; competition for resources; adverse labor relations; political or world events; obsolescence of technologies; and increased competition or new product introductions that may affect the profitability or viability of companies in a particular country, industry, market, asset class, or sector. In addition, at times, such country, industry, market, asset class, or sector may be out of favor and underperform other similar categories or the market as a whole.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Credit Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have exposure to credit risk. Credit risk refers to the possibility that the issuer of the security will not be able to make principal and interest payments when due. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also affect the value of the Underlying ETF's investment in that issuer. Securities rated in the four highest categories by the rating agencies are considered investment grade but they may also have some speculative characteristics. Investment grade ratings do not guarantee that bonds will not lose value.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Currency Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may invest in securities denominated in foreign currencies. Because the Fund's NAV is determined in U.S. dollars, the Fund's NAV could decline if the relevant foreign currencies depreciate against the U.S. dollar or if there are delays or limits on repatriation of such currency. Currency exchange rates can be very volatile and can change quickly and unpredictably. As a result, the Fund's NAV may change quickly and without warning, which could have a significant negative impact on the Fund.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Custody Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in less developed markets. Less developed markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by local banks, agents and depositories.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Cyber Security Risk:</font> </b> <font style="font-size:10.0pt;"> Failures or breaches of the electronic systems of the Fund, the Adviser, and the Fund's other service providers, market makers, Authorized Participants or the issuers of securities in which an Underlying ETF invests have the ability to cause disruptions and negatively impact the Fund's business operations, potentially resulting in financial losses to the Fund and its shareholders. While the Fund has established business continuity plans and risk management systems seeking to address system breaches or failures, there are inherent limitations in such plans and systems. Furthermore, the Fund cannot control the cyber security plans and systems of the Fund's service providers, market makers, Authorized Participants or issuers of securities in which the Underlying ETFs invest.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Emerging Markets Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in emerging markets. Investments in emerging market countries may be subject to a greater risk of loss than investments in developed markets. Securities markets of emerging market countries are less liquid, subject to greater price volatility, have smaller market capitalizations, have less government regulation, and are not subject to as extensive and frequent accounting, financial, and other reporting requirements as the securities markets of more developed countries.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Equity Securities Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in equity securities. Equity securities are subject to changes in value and their values may be more volatile than other asset classes, as a result of such factors as a company’s business performance, investor perceptions, stock market trends and general economic conditions.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Foreign Securities Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in foreign securities. The Underlying ETFs' investments in foreign securities can be riskier than U.S. securities investments. Investments in the securities of foreign issuers (including investments in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs)) are subject to the risks associated with investing in those foreign markets, such as heightened risks of inflation or nationalization. The prices of foreign securities and the prices of U.S. securities have, at times, moved in opposite directions. In addition, securities of foreign issuers may lose value due to political, economic and geographic events affecting a foreign issuer or market. During periods of social, political or economic instability in a country or region, the value of a foreign security traded on U.S. exchanges could be affected by, among other things, increasing price volatility, illiquidity, or the closure of the primary market on which the security (or the security underlying the ADR or GDR) is traded. You may lose money due to political, economic, and geographic events affecting a foreign issuer or market.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Geographic Risk:</font> </b> <font style="font-size: 10.0pt;"> A natural or other disaster could occur in a geographic region in which an Underlying ETF invests, which could affect the economy or particular business operations of companies in the specific geographic region, causing an adverse impact on the Fund’s (through the Underlying ETF) investments in the affected region or in a region economically tied to the affected region.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> High Dividend Yield Stocks Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in high yielding dividend stocks. High-yielding stocks are often speculative, high risk investments. These companies can be paying out more than they can support and may reduce their dividends or stop paying dividends at any time, which could have a material adverse effect on the stock price of these companies and the Fund’s performance.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> High Yield Securities Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in high yield securities. Securities that are rated below investment grade (commonly referred to as “junk bonds,” including those bonds rated lower than “BBB-“ by Standard & Poor’s<sup>®</sup> (a division of the McGraw-Hill Companies, Inc.) (“S&P”) and Fitch, Inc. (“Fitch), “Baa3” by Moody’s<sup>®</sup> Investors Service, Inc. (“Moody’s”), or “BBBL” by Dominion Bond Rating Service Limited (“Dominion”)), or are unrated but judged by the Adviser to be of comparable quality, at the time of purchase, may be more volatile than higher-rated securities of similar maturity. Investing in junk bonds is speculative.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Income Risk:</font> </b> <font style="font-size:10.0pt;"> Income risk is the risk that the Fund’s income will decline because of falling interest rates.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Index-Related Risk:</font> </b> <font style="font-size: 10.0pt;"> There is no guarantee that the Fund will achieve a high degree of correlation to the Underlying Index and therefore achieve its investment objective. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the Underlying Index. Errors in index data, index computations and/or the construction of the Underlying Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Interest Rate Risk:</font> </b> <font style="font-size: 10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have exposure to interest rate risk. Interest rate risk is the risk that prices of fixed income securities generally increase when interest rates decline and decrease when interest rates increase. The Fund may lose money if short-term or long-term interest rates rise sharply.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> International Closed Market Trading Risk:</font> </b> <font style="font-size:10.0pt;"> To the extent that the underlying securities held by the Underlying ETF trade on foreign exchanges that may be closed when the securities exchange on which the Fund’s Shares trade is open, there are likely to be deviations between the current price of such an underlying security and the last quoted price for the underlying security (i.e., the Fund’s quote from the closed foreign market). These deviations could result in premiums or discounts to the Fund’s NAV that may be greater than those experienced by other exchange-traded funds ("ETFs").</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Issuer Risk:</font> </b> <font style="font-size:10.0pt;"> Fund performance depends on the performance of individual companies in which the Underlying ETFs invest. Changes to the financial condition of any of those companies may cause the value of their securities to decline.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Large-Capitalization Companies Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in large-capitalization companies. Large-capitalization companies may trail the returns of the overall stock market. Large-capitalization stocks tend to go through cycles of doing better - or worse - than the stock market in general. These periods have, in the past, lasted for as long as several years.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Listing Standards Risk:</font> </b> <font style="font-size:10.0pt;"> Under continuous listing standards adopted by the Fund’s listing exchange, the Fund will be required to confirm on an ongoing basis that the components of the Underlying Index satisfy the applicable listing requirements. In the event that the Underlying Index does not comply with the applicable listing requirements, the Fund would be required to rectify such non-compliance by requesting that the Index Provider modify the Underlying Index, adopting a new underlying index, or obtaining relief from the SEC. Failure to rectify such non-compliance may result in the Fund being delisted by the listing exchange.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Management Risk:</font> </b> <font style="font-size: 10.0pt;"> The Fund is subject to the risk that the Adviser’s investment management strategy may cause the Fund to underperform the market or its relevant benchmark or adversely affect the ability of the Fund to achieve its investment objective.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Market Risk:</font> </b> <font style="font-size:10.0pt;"> Turbulence in the financial markets and reduced liquidity may negatively affect issuers, which could have an adverse effect on the Fund. In addition, there is a risk that policy changes by the U.S. Government, Federal Reserve, or other government actors, which could include increasing interest rates, could cause increased volatility in financial markets and lead to higher levels of Fund redemptions, which could have a negative impact on the Fund. The Fund’s NAV could decline over short periods due to short-term market movements and over longer periods during market downturns.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Market Trading Risk:</font> </b> <font style="font-size: 10.0pt;"> Shares of the Fund are publicly traded on a national securities exchange which may subject shareholders to numerous market trading risks, including the potential lack of an active market for Shares, losses from trading in secondary markets, periods of high volatility and disruption in the creation/redemption process of the Fund. Any of these factors may lead to the Shares trading at a premium or discount to NAV.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Mid-Capitalization Companies Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in mid-capitalization companies. Mid-capitalization companies may have greater price volatility, lower trading volume and less liquidity than large-capitalization companies. In addition, mid-capitalization companies may have smaller revenues, narrower product lines, less management depth and experience, smaller shares of their product or service markets, fewer financial resources and less competitive strength than large-capitalization companies.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> MLP Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in MLPs. Investments in securities of an MLP involve risks that differ from investments in common stock, including risks related to limited control and limited rights to vote on matters affecting the MLP, risks related to potential conflicts of interest between the MLP and the MLP’s general partner, and cash flow risks. MLP common units and other equity securities can be affected by changes in macro-economic and other factors affecting the stock market in general, including changes in growth, unemployment, and inflation rates, as well as expectations of interest rates. MLP common units and other equity securities can also be affected by investor sentiment towards MLPs or the energy sector, changes in a particular issuer’s financial condition, or unfavorable or unanticipated poor performance of a particular issuer (in the case of MLPs, generally measured in terms of distributable cash flow). Prices of common units of individual MLPs and other equity securities also can be affected by fundamentals unique to the partnership or company, including earnings power and coverage ratios.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> MLP Tax Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in MLPs. MLPs do not pay U.S. federal income tax at the partnership level. Rather, each partner is allocated a share of the partnership’s income, gains, losses, deductions and expenses. A change in current tax law, or a change in the underlying business mix of a given MLP, could result in an MLP being treated as a corporation for U.S. federal income tax purposes, which would result in such MLP being required to pay U.S. federal income tax on its taxable income. The classification of an MLP as a corporation for U.S. federal income tax purposes would have the effect of reducing the amount of cash available for distribution by the MLP. Thus, if any of the MLPs owned by an Underlying ETF in which the Fund invests were treated as a corporation for U.S. federal income tax purposes, it could result in a reduction in the value of the Fund’s investment in the Underlying ETF and lower the Fund’s income.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Model Portfolio Risk:</font> </b> <font style="font-size:10.0pt;"> The risk that investments selected using a proprietary methodology (i.e., quantitative model) may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a quantitative model will enable the Fund to achieve positive returns or outperform the market. The Underlying Index utilizes a quantitative optimization model to determine the allocations to the Underlying ETFs in which the Fund invests.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> New Fund Risk:</font> </b> <font style="font-size:10.0pt;"> The Fund is a new fund, with no operating history, which may result in additional risks for investors in the Fund. There can be no assurance that the Fund will grow to or maintain an economically viable size, in which case the Board of Trustees may determine to liquidate the Fund. While shareholder interests will be the paramount consideration, the timing of any liquidation may not be favorable to certain individual shareholders. New funds are also subject to Asset Fluctuation Risk.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Non-Diversification Risk:</font> </b> <font style="font-size:10.0pt;"> The Fund is classified as a “non-diversified” investment company under the Investment Company Act of 1940 ("1940 Act"). As a result, the Fund is subject to the risk that it may be more volatile than a diversified fund because the Fund may invest its assets in a smaller number of issuers or may invest a larger proportion of its assets in a single issuer. As a result, the gains and losses on a single investment may have a greater impact on the Fund’s NAV and may make the Fund more volatile than more diversified funds.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Non-U.S. Issuers Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in non-U.S. issuers. Bonds issued by non-U.S. issuers carry different risks from bonds issued by U.S. issuers. These include differences in accounting, auditing and financial reporting standards, the possibility of expropriation or confiscatory taxation, adverse changes in investment or exchange control regulations, political instability, regulatory and economic differences, and potential restrictions on the flow of international capital.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Operational Risk:</font> </b> <font style="font-size: 10.0pt;"> The Fund is exposed to operational risk arising from a number of factors, including but not limited to human error, processing and communication errors, errors of the Fund's service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. The Fund and the Adviser seek to reduce these operational risks through controls and procedures. However, these measures do not address every possible risk and may be inadequate for those risks that they are intended to address.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Optimization Risk:</font> </b> <font style="font-size: 10.0pt;"> The Fund is based on the “modern portfolio theory” approach to asset allocation, which is a framework for determining the allocation of a portfolio with the goal of maximizing expected return for a given level of risk. While the Fund’s Underlying Index is not seeking to maximize expected return, its objective of delivering a specific yield target while minimizing overall risk applies similar modern portfolio theory principles. There is no guarantee that the Underlying Index will outperform any alternative strategy that might be employed in respect of the component assets or that past volatilities and correlations of particular asset classes will be indicative of future results.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Passive Investment Risk:</font> </b> <font style="font-size:10.0pt;"> The Fund is not actively managed and the Adviser does not attempt to take defensive positions in declining markets. Unlike many investment companies, the Fund does not seek to outperform its Underlying Index. Therefore, it would not necessarily buy or sell a security unless that security is added or removed, respectively, from the Underlying Index, even if that security generally is underperforming. Maintaining investments in securities regardless of market conditions or the performance of individual securities could cause the Fund’s return to be lower than if the Fund employed an active strategy.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Preferred Stock Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in preferred stocks. Preferred stock is subject to many of the risks associated with debt securities, including interest rate risk. As interest rates rise, the value of the preferred stocks held by the Underlying ETFs are likely to decline. In addition, preferred stock may not pay a dividend, an issuer may suspend payment of dividends on preferred stock at any time, and in certain situations an issuer may call or redeem its preferred stock or convert it to common stock.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Premium/Discount Risk:</font> </b> <font style="font-size:10.0pt;"> Disruptions to creations and redemptions, the existence of extreme market volatility or potential lack of an active trading market for Shares may result in Shares trading at a significant premium or discount to NAV. If a shareholder purchases Shares at a time when the market price is at a premium to the NAV or sells Shares at a time when the market price is at a discount to the NAV, the shareholder may sustain losses.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Prepayment Risk:</font> </b> <font style="font-size: 10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have exposure to prepayment risk. When interest rates fall, certain obligations will be paid off by the obligor more quickly than originally anticipated, and the Underlying ETFs may have to invest the proceeds in securities with lower yields.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Risks Related to Investing in Bonds:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in bonds. Investments in debt securities are generally affected by changes in prevailing interest rates and the creditworthiness of the issuer. Prices of debt securities fall when prevailing interest rates rise. An Underlying ETF’s yield on investments in debt securities will fluctuate as the securities in the Underlying ETF are rebalanced and reinvested in securities with different interest rates. Investments in bonds are also subject to credit risk. Credit risk is the risk that an issuer of debt securities will be unable to pay principal and interest when due, or that the value of the security will suffer because investors believe the issuer is less able to make required principal and interest payments. This is broadly gauged by the credit ratings of the debt securities in which an Underlying ETF invests. However, credit ratings are only the opinions of the rating agencies issuing them, do not purport to reflect the risk of fluctuations in market value and are not absolute guarantees as to the payment of interest and the repayment of principal.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Risks Related to Investing in ETFs:</font> </b> <font style="font-size:10.0pt;"> The Fund is expected to primarily hold ETFs to gain exposure to certain asset classes. As a result, the Fund will be subject to the same risks as the Underlying ETFs. While the risks of owning shares of an Underlying ETF generally reflect the risks of owning the underlying securities of the index the ETF is designed to track, lack of liquidity in the Underlying ETF can result in its value being more volatile than the underlying portfolio securities. Because the value of an Underlying ETF's shares depends on the demand in the market, the Adviser may not be able to liquidate the Fund’s holdings in those shares at the most optimal time, thereby adversely affecting the Fund’s performance. In addition, an Underlying ETF's shares may trade at a premium or discount to NAV.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> In addition, investments in the securities of Underlying ETFs may involve duplication of advisory fees and certain other expenses. The Fund will pay brokerage commissions in connection with the purchase and sale of shares of the Underlying ETFs, which could result in greater expenses to the Fund. By investing in an Underlying ETF, the Fund becomes a shareholder thereof. As a result, Fund shareholders indirectly bear the Fund’s proportionate share of the fees and expenses indirectly paid by shareholders of the Underlying ETF, in addition to the fees and expenses Fund shareholders indirectly bear in connection with the Fund’s own operations.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> If the Underlying ETF fails to achieve its investment objective, the value of the Fund’s investment may decline, adversely affecting the Fund’s performance. ETFs that invest in commodities may be, or may become, subject to regulatory trading limits that could hurt the value of their securities and could affect the Fund’s ability to pursue its investment program as described in this Prospectus. Additionally, some ETFs are not registered under the 1940 Act and therefore, are not subject to the regulatory scheme and investor protections of the 1940 Act.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Risks Related to Investing in Inflation-Linked Bonds:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in inflation-linked bonds. Inflation-linked bonds are income-generating instruments whose interest and principal payments are adjusted for inflation – a sustained increase in prices that erodes the purchasing power of money. The inflation adjustment, which is typically applied monthly to the principal of the bond, follows a designated inflation index, such as the consumer price index. Because of this inflation adjustment feature, inflation-protected bonds typically have lower yields than conventional fixed-rate bonds.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Risks Related to Investing in Mortgage Real Estate Investment Trusts:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in mortgage real estate investment trusts. Mortgage real estate investment trusts are exposed to the risks specific to the real estate market as well as credit risk, interest rate risk, leverage risk and prepayment risk.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Risks Related to Investing in Real Estate Stocks and Real Estate Investment Trusts (“REITs”):</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in real estate stocks and REITs. These investments expose investors in the Fund to the risks of owning real estate directly, as well as to risks that relate specifically to the way in which real estate companies are organized and operated. Real estate is highly sensitive to general and local economic conditions and developments, and characterized by intense competition and periodic overbuilding. Many real estate companies, including REITs, utilize leverage (and some may be highly leveraged), which increases risk and could adversely affect a real estate company's operations and market value in periods of rising interest rates.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Risks Related to Investing in Senior Loans:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in senior loans. Investments in senior loans are subject to credit risk and general investment risk. Credit risk refers to the possibility that the borrower of a senior loan will be unable and/or unwilling to make timely interest payments and/or repay the principal on its obligation. Default in the payment of interest or principal on a senior loan will result in a reduction in the value of the senior loan and consequently a reduction in the value of the Underlying ETF’s investments and a potential decrease in the NAV of the Underlying ETF. Senior loans are also subject to the risk that the value of the collateral securing a senior loan may decline, be insufficient to meet the obligations of the borrower or be difficult to liquidate. In addition, the Underlying ETF’s access to the collateral may be limited by bankruptcy or other insolvency laws. Further, loans held by the portfolio may not be considered securities and, therefore, purchasers, such as the Underlying ETF, may not be entitled to rely on the strong anti-fraud protections of the federal securities laws. Some senior loans are subject to the risk that a court, pursuant to fraudulent conveyance or other similar laws, could subordinate the senior loans to presently existing or future indebtedness of the borrower or take other action detrimental to lenders, including the Underlying ETF, such as invalidation of senior loans or causing interest previously paid to be refunded to the borrower.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Risks Related to Investing in the Energy Sector:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in the energy sector. The value of securities issued by companies in the energy sector may decline for many reasons, including, without limitation, changes in energy prices; international politics; energy conservation; the success of exploration projects; natural disasters or other catastrophes; changes in exchange rates, interest rates, or economic conditions; changes in demand for energy products and services; and tax and other government regulatory policies.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Risks Related to Investing in the Financials Sector:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in the financials sector. Performance of companies in the financials sector may be adversely impacted by many factors, including, among others, government regulations, economic conditions, credit rating downgrades, changes in interest rates, and decreased liquidity in credit markets. This sector has experienced significant losses in the recent past, and the impact of more stringent capital requirements and of recent or future regulation on any individual financial company or on the sector as a whole cannot be predicted.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Small-Capitalization Companies Risk:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in small-capitalization companies. Compared to mid- and large-capitalization companies, small-capitalization companies may be less stable and more susceptible to adverse developments, and their securities may be more volatile and less liquid.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Tracking Error Risk:</font> </b> <font style="font-size: 10.0pt;"> Tracking error is the divergence of the Fund's performance from that of the Underlying Index. Tracking error may occur because of differences between the securities and other instruments held in the Fund's portfolio and those included in the Underlying Index, pricing differences (including differences between a security's price at the local market close and the Fund's valuation of a security at the time of calculation of the Fund's NAV), differences in transaction costs, the Fund's holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or interest, tax gains or losses, changes to the Underlying Index or the costs to the Fund of complying with various new or existing regulatory requirements. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the Underlying Index does not. ETFs that track indices with significant weight in emerging markets issuers may experience higher tracking error other than other ETFs that do not track such indices.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Trading Halt Risk:</font> </b> <font style="font-size: 10.0pt;"> An exchange or market may close or issue trading halts on specific securities, or the ability to buy or sell certain securities or financial instruments may be restricted, which may result in the Fund being unable to buy or sell certain securities or financial instruments. In such circumstances, the Fund may be unable to rebalance its portfolio, may be unable to accurately price its investments and/or may incur substantial trading losses.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Turnover Risk:</font> </b> <font style="font-size:10.0pt;"> The Fund may experience relatively high portfolio turnover, which may result in increased transaction costs and lower Fund performance.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> U.S. Economic Risk:</font> </b> <font style="font-size: 10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in the United States. Decreasing U.S. imports, new trade regulations, changes in the U.S. dollar exchange rates, a recession in the United States or increases in foreclosures rates may have an adverse impact on the Fund.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> U.S. Treasury Obligations Risks:</font> </b> <font style="font-size:10.0pt;"> Some of the Underlying ETFs in which the Fund invests may have investments in U.S. Treasury obligations. U.S. Treasury obligations may differ in their interest rates, maturities times of issuance and other characteristics. Similar to other issuers, changes to the financial condition or credit rating of the U.S. Government may cause the value of the Fund's or an Underlying ETF's U.S. Treasury obligations to decline.</font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;">  </font> </p> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <b> <font style="font-size:10.0pt;"> Valuation Risk:</font> </b> <font style="font-size:10.0pt;"> The sales price the Fund could receive for a security may differ from the Fund’s valuation of the security and may differ from the value used by the Underlying Index, particularly for securities that trade in low value or volatile markets or that are valued using a fair value methodology. The value of the securities in the Fund's portfolio may change on days when shareholders will not be able to purchase or sell the Fund's Shares.</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;font-weight: bold; margin: 0in; margin-bottom: .0001pt; text-align: justify;"> <font style="font-size:10.0pt;"> PERFORMANCE INFORMATION</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The Fund does not have a full calendar year of performance. Once the Fund has completed a full calendar year of operations, a bar chart and table will be included that will provide some indication of the risks of investing in the Fund by showing the variability of the Fund's returns and comparing the Fund's performance to the Underlying Index. The Fund's performance is not necessarily indicative of how the Fund will perform in the future.</font> </p> </div>
0.0039
0
0.00
0.0039
0.0078
80
249
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> You will also incur usual and customary brokerage commissions when buying and selling Shares.</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The Fund concentrates its investments (i.e., holds 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. As of July 1, 2018, the Underlying Index was not concentrated in a sector.</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> As with any investment, you could lose all or part of your investment in the Fund, and the Fund's performance could trail that of other investments.</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The Fund is classified as a “non-diversified” investment company under the Investment Company Act of 1940 ("1940 Act"). As a result, the Fund is subject to the risk that it may be more volatile than a diversified fund because the Fund may invest its assets in a smaller number of issuers or may invest a larger proportion of its assets in a single issuer. As a result, the gains and losses on a single investment may have a greater impact on the Fund’s NAV and may make the Fund more volatile than more diversified funds.</font> </p> </div>
<div class="WordSection1"> <p style="margin-right:0in;margin-left:0in;font-size:10.0pt;font-family:Times New Roman,serif;margin:0in;margin-bottom:.0001pt;text-align:justify;"> <font style="font-size:10.0pt;"> The Fund does not have a full calendar year of performance.</font> </p> </div>
"Other Expenses" are based on estimated amounts for the current fiscal year.
"Acquired Fund Fees and Expenses" are estimates for the current fiscal year of those expenses that are expected to be incurred indirectly by the Fund as a result of acquiring investments in shares of one or more other investment companies.