changes in economic or political
conditions. When the value of the Fund’s securities goes down, your investment in the Fund decreases in
value.
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, negatively impact the
Fund’s arbitrage and pricing mechanisms, 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 the Fund will also depend on future developments, which are highly uncertain, difficult to
accurately predict and subject to frequent changes.
Smaller Company Risk. Investments in securities of smaller companies (mid cap and small cap companies) may be riskier, less liquid, more volatile and more vulnerable to economic,
market and industry changes than securities of larger, more established companies. The securities of smaller
companies may trade less frequently and in smaller volumes than securities of larger companies. As a result,
changes in the price of securities issued by such companies may be more sudden or erratic than the prices of
securities of large capitalization companies, especially over the short term. These risks are higher for small
cap companies.
Value
Investing Risk. A value stock may decrease in price or may not increase in price as anticipated by the adviser
if other investors fail to recognize the company’s value or the factors that the adviser believes will
cause the stock price to increase do not occur.
Real Estate Securities Risk. The
Fund’s investments in real estate securities, including REITs, are subject to the same risks as direct
investments in real estate and mortgages, and their value will depend on the value of the underlying real estate interests. These risks include default, prepayments, changes in value resulting from changes in interest rates and demand for real
and rental property, and the management skill and credit-worthiness of REIT issuers. The Fund will indirectly
bear its proportionate share of expenses, including management fees, paid by each REIT in which it invests in
addition to the expenses of the Fund.
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 value of the
Fund’s Shares may fluctuate in response to events affecting that industry or sector.
ETF Shares Trading Risk. Shares are listed for trading on the NYSE Arca, 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. In addition, due to the Fund’s novel and unique structure, Shares of the Fund may trade at a larger premium or discount to the NAV of shares of traditional ETFs that disclose their
portfolio holdings daily. 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.
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. The
fact that the Fund is offering a novel and unique structure may affect the number of entities willing to act as
authorized participants.
Investments in the Fund are not deposits or obligations of, or guaranteed or endorsed by, any bank and are not insured or guaranteed by the FDIC, the
Federal Reserve Board or any other government agency.
You could lose money investing in the Fund.