Treasury, that are backed by the full faith and credit of the United States are guaranteed only as to the timely payment of
interest and principal when held to maturity and the market prices for such securities will fluctuate.
Notwithstanding that these securities are backed by the full faith and credit of the United States,
circumstances could arise that would prevent the payment of interest or principal. This would result in losses to
the Fund. Securities issued or guaranteed by U.S. government-related organizations, such as Fannie Mae and
Freddie Mac, are not backed by the full faith and credit of the U.S. government and no assurance can be given
that the U.S. government will provide financial support. Therefore, U.S. government-related organizations may
not have the funds to meet their payment obligations in the future. U.S. government securities include
zero-coupon securities, which tend to be subject to greater market risk than interest-paying securities of
similar maturities.
Cash Transactions Risk. Unlike certain ETFs, the Fund may effect creations and redemptions in cash or partially in cash. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund
might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Shares
may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely
in-kind.
General Market Risk. Economies and financial markets throughout the world are becoming increasingly interconnected, which increases the likelihood that events or conditions in one country or region will adversely impact markets or issuers
in other countries or regions. Securities in the Fund’s portfolio may underperform in comparison to
securities in general financial markets, a particular financial market or other asset classes due to a number
of factors, including inflation (or expectations for inflation), deflation (or expectations for deflation), interest rates, global demand for particular products or resources, market instability, debt crises and downgrades, embargoes,
tariffs, sanctions and other trade barriers, regulatory events, other governmental trade or market control
programs and related geopolitical events. In addition, the value of the Fund’s investments may be
negatively affected by the occurrence of global events such as war, terrorism, environmental disasters, natural
disasters or events, country instability, and infectious disease epidemics or pandemics.
For example, the outbreak of COVID-19 has negatively affected economies, markets and individual companies throughout the
world, including those in which the Fund invests. The effects of this pandemic to public health and business
and market conditions, including, among other things, reduced consumer demand and economic output, supply chain
disruptions and increased government spending, may continue to have a significant negative impact on the
performance of the Fund’s investments, increase the Fund’s volatility, exacerbate pre-existing
political, social and economic risks to the Fund, and negatively impact broad segments of businesses and populations. In addition, governments, their regulatory agencies, or self-regulatory organizations have taken or may take actions in
response to the pandemic that affect the instruments in which the Fund invests, or the issuers of such
instruments, in ways that could have a significant negative impact on the Fund’s investment performance.
The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the
long-term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the
associated conditions impact a Fund
will also depend on future developments, which are highly uncertain, difficult to accurately predict and
subject to frequent changes.
Industry and Sector Focus Risk. At times the Fund may increase the relative emphasis of its investments in a particular industry or sector. The prices of securities of issuers in a particular industry or sector may be more susceptible to fluctuations
due to changes in economic or business conditions, government regulations, availability of basic resources or
supplies, or other events that affect that industry or sector more than securities of issuers in other
industries and sectors. To the extent that the Fund increases the relative emphasis of its investments in a
particular industry or sector, the shares’ values may fluctuate in response to events affecting that
industry or sector.
ETF Shares Trading Risk. Shares are listed for trading on the Cboe BZX Exchange, Inc. (the “Exchange”) and are bought and sold in the secondary market at market prices. The market prices of Shares are expected to fluctuate, in some cases materially, in response to changes in the Fund’s NAV, the intraday value of the Fund’s holdings and supply and
demand for Shares. The adviser cannot predict whether Shares will trade above, below or at their NAV.
Disruptions to creations and redemptions, the existence of significant market volatility or potential lack of
an active trading market for the Shares (including through a trading halt), as well as other factors, may result
in the Shares trading significantly above (at a premium) or below (at a discount) to NAV or to the intraday
value of the Fund’s holdings. During such periods, you may incur significant losses if you sell your
Shares.
The securities held by the Fund may be traded in markets that close at a different time than the Exchange. Liquidity in those securities may be reduced after the applicable closing
times. Accordingly, during the time when the Exchange is open but after the applicable market closing, fixing
or settlement times, bid-ask spreads on the Exchange and the corresponding premium or discount to the
Shares’ NAV may widen.
Authorized Participant Concentration Risk. Only an authorized participant may engage in creation or redemption transactions directly with the Fund. The Fund has a limited number of intermediaries that act as authorized participants and none of
these authorized participants is or will be obligated to engage in creation or redemption transactions. To the
extent that these intermediaries exit the business or are unable to or choose not to proceed with creation
and/or redemption orders with respect to the Fund and no other authorized participant creates or redeems,
Shares may trade at a discount to NAV and possibly face trading halts and/or delisting.
Floating and Variable Rate Securities Risk. Floating and variable rate securities provide for a periodic adjustment in the interest rate paid on the securities. The rate adjustment intervals
may be regular and range from daily up to annually, or may be based on an event, such as a change in the prime
rate. Floating and variable rate securities may be subject to greater liquidity risk than other debt
securities, meaning that there may be limitations on the Fund’s ability to sell the securities at any given
time. Such securities also may lose value.
Concentration Risk. The Fund may invest more than 25% of its Assets in municipal securities, the interest upon which is paid from revenues of projects within a single sector, such as
housing and healthcare. As a result, the Fund could be more susceptible to developments which affect those
sectors.