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Ark ETF Trust
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ARK Innovation ETF
Investment Objective
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The ARK Innovation ETF's (“Fund”) investment objective is long-term growth of capital. </font></p>
Fund Fees and Expenses
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The table below describes the fees and expenses that you pay if you buy and hold shares of the Fund (“Shares”). Investors may pay brokerage commissions on their purchases and sales of Shares. </font></p>
Shareholder Fees (fees paid directly from your investment)
<div style="display:none">~ http://ark-funds.com/role/RRSchedule3 ~</div>
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
<div style="display:none">~ http://ark-funds.com/role/RRSchedule4 ~</div>
Example
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">This 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 brokerage commissions that you pay when purchasing or selling Shares. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your Shares at the end of those periods. The example also assumes that your investment has a 5% annual return and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </font></p>
<div style="display:none">~ http://ark-funds.com/role/RRSchedule5 ~</div>
Portfolio Turnover
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Principal Investment Strategies
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">The Fund is an actively-managed exchange-traded fund (“ETF”) that will invest under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund's investment theme of disruptive innovation. The Adviser defines “disruptive innovation” as the introduction of a technologically enabled new product or service that potentially changes the way the world works. The Adviser believes that companies relevant to this theme are those that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of genomics* (“Genomic Revolution Companies”); industrial innovation in energy, automation and manufacturing (“Industrial Innovation Companies”); the increased use of shared technology, infrastructure and services (“Web x.0 Companies”); and technologies that make financial services more efficient (“FinTech Innovation Companies”). </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">In selecting companies that the Adviser believes are relevant to a particular investment theme, it seeks to identify, using its own internal research and analysis, companies capitalizing on disruptive innovation or that are enabling the further development of a theme in the markets in which they operate. The Adviser's internal research and analysis leverages insights from diverse sources, including external research, to develop and refine its investment themes and identify and take advantage of trends that have ramifications for individual companies or entire industries. The types of companies that the Adviser believes are Genomic Revolution Companies, Industrial Innovation Companies, Web x.0 Companies, or FinTech Innovation Companies are described below:</font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;"> </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Genomic Revolution Companies.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> Companies that the Adviser believes are substantially focused on and are expected to substantially benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments, improvements and advancements in genomics into their business, such as by offering new products or services that rely on genomic sequencing,** analysis, synthesis or instrumentation. These companies may include ones across multiple sectors, such as healthcare, information technology, materials, energy and consumer discretionary. These companies may also develop, produce, manufacture or significantly rely on or enable bionic devices, bio-inspired computing, bioinformatics,*** molecular medicine and agricultural biotechnology. </font></p> <p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;"> </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Industrial Innovation Companies.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> Companies that the Adviser believes are focused on and expected to benefit from the development of new products or services, technological improvements and advancements in scientific research related to, among other things, disruptive innovation in energy (“energy transformation companies”), automation and manufacturing (“automation transformation companies”), materials, and transportation. </font></p> <p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:.65in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font lang="EN-US" style="font-family:Symbol;font-size:10.0pt;line-height:normal;">°</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;"> </font><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Adviser considers a company to be an energy transformation company if it seeks to capitalize on innovations or evolutions in: (i) ways that energy is stored or used; (ii) the discovery, collection and/or implementation of new sources of energy, including unconventional sources of oil or natural gas; and/or (iii) the production or development of new materials for use in commercial applications of energy production, use or storage. </font></p> <p style="margin-bottom:.0001pt;margin-left:.65in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">* The Adviser defines “genomics” as the study of genes and their functions, and related techniques (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">e.g.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, genomic sequencing). See Genomics and World Health: Report of the Advisory Committee on Health Research, Geneva, WHO (2002). </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">** The Adviser uses the term “genomic sequencing” to refer to the techniques that allows researchers to read and decipher the genetic information found in the DNA (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, the exact sequence of bases A, C, G, and T in a DNA molecule), including the DNA of bacteria, plants, animals and human beings. </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">*** The Adviser defines “bioinformatics” as the science of collecting and analyzing complex biological data such as genetic codes. </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:.65in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font lang="EN-US" style="font-family:Symbol;font-size:10.0pt;line-height:normal;">°</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;"> </font><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Adviser considers a company to be an automation transformation company if it is focused on capitalizing on the productivity of machines, such as through the automation of functions, processes or activities previously performed by human labor or the use of robotics to perform other functions, activities or processes. </font></p> <p style="margin-bottom:.0001pt;margin-left:.65in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;"> </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Web x.0 Companies.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> Companies that the Adviser believes are focused on and expected to benefit from shifting the bases of technology infrastructure from hardware and software to the cloud, enabling mobile and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services. These companies may include mail order houses which generate the entirety of their business through websites and which offer internet-based products and services, such as streaming media or cloud storage in addition to traditional physical goods. These companies may also include ones that develop, use or rely on innovative payment methodologies, big data, the “internet of things*,” machine learning, and social distribution and media. </font></p> <p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;"> </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">FinTech Innovation Companies.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> Companies that the Adviser believes are focused on and expected to benefit from the shifting of the financial sector and economic transactions to technology infrastructure platforms, and technological intermediaries. FinTech Innovation Companies may also develop, use or rely on innovative payment platforms and methodologies, point of sale providers, transactional innovations, business analytics, fraud reduction, frictionless funding platforms, peer-to-peer lending, intermediary exchanges, asset allocation technology, cryptocurrency,** mobile payments, and risk pricing and pooling aggregators. The Fund may have exposure to cryptocurrency, such as bitcoin, indirectly through an investment in a grantor trust. The Fund's exposure to cryptocurrency may change over time and, accordingly, such exposure may not always be represented in the Fund's portfolio. </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">The Adviser will select investments for the Fund that represent its highest-conviction investment ideas within the theme of disruptive innovation, as described above, in constructing the Fund's portfolio. The Adviser's process for identifying Genomic Revolution Companies, Industrial Innovation Companies and Web x.0 Companies uses both “top down” (thematic research sizing the potential total available market, and surfacing the prime beneficiaries) and “bottom up” (valuation, fundamental and quantitative measures) approaches. The Adviser's highest-conviction investment ideas are those that it believes present the best risk-reward opportunities. </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Under normal circumstances, substantially all of the Fund's assets will be invested in equity securities, including common stocks, partnership interests, business trust shares and other equity investments or ownership interests in business enterprises. The Fund's investments will include micro‑, small‑, medium- and large-capitalization companies. The Fund's investments in foreign equity securities will be in both developed and emerging markets. The Fund may invest in foreign securities (including investments in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”)) and securities listed on local foreign exchanges. </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">The Fund is classified as a “non-diversified” investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), which means that it may invest a high percentage of its assets in a limited number of issuers. </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">* The Adviser defines the “internet of things” as a system of interrelated computing devices, mechanical and digital machines, or physical objects that are provided unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">** The Adviser believes that “Cryptocurrency” (notably, bitcoin), which is often referred to as “virtual currency” or “digital currency,” operates as a decentralized, peer-to-peer financial exchange and value storage that is used like money. </font></p>
Principal Risks
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">There is no assurance that the Fund will meet its investment objective. The value of your investment in the Fund, as well as the amount of return you receive on your investment in the Fund, may fluctuate significantly. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. Therefore, you should consider carefully the following risks before investing in the Fund.</font></b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Authorized Participants Concentration Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The Fund has a limited number of financial institutions that may act as Authorized Participants (“APs”) on an agency basis (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">, on behalf of other market participants). To the extent that those APs exit the business or are unable to process creation and/or redemption orders, and no other AP is able to step forward to create and redeem in either of these cases, Shares may possibly trade at a discount to net asset value (“NAV”). The AP risk may be heightened in the case of ETFs investing internationally because international ETFs often require APs to post collateral, which only certain APs are able to do. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Consumer Discretionary Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The consumer discretionary sector may be affected by changes in domestic and international economies, exchange and interest rates, competition, consumers' disposable income and consumer preferences, social trends and marketing campaigns. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Cryptocurrency Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Cryptocurrency (notably, bitcoin), often referred to as “virtual currency” or “digital currency,” operates as a decentralized, peer-to-peer financial exchange and value storage that is used like money. The Fund may have exposure to bitcoin, a cryptocurrency, indirectly through an investment in the Bitcoin Investment Trust (“GBTC”), a privately offered, open-end investment vehicle. Cryptocurrency operates without central authority or banks and is not back by any government. Even indirectly, cryptocurrencies (i.e., bitcoin) may experience very high volatility and related investment vehicles like GBTC may be affected by such volatility. As a result of holding cryptocurrency, the Fund may also trade at a significant premium to NAV. Cryptocurrency is also not legal tender. Federal, state or foreign governments may restrict the use and exchange of cryptocurrency, and regulation in the U.S. is still developing. Cryptocurrency exchanges may stop operating or permanently shut down due to fraud, technical glitches, hackers or malware. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Cryptocurrency Tax Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Many significant aspects of the U.S. federal income tax treatment of investments in bitcoin are uncertain and an investment in bitcoin may produce income that is not treated as qualifying income for purposes of the income test applicable to regulated investment companies, such as the Fund. GBTC is expected to be treated as a grantor trust for U.S. federal income tax purposes, and therefore an investment by the Fund in GBTC will generally be treated as a direct investment in bitcoin for such purposes. See “Taxes” in the Fund's Statement of Additional Information (“SAI”) for more information. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Cyber Security Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  As the use of Internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund's digital information systems through “hacking” or malicious software coding, but may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund's third-party service providers, such as its administrator, transfer agent or custodian, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber security breaches. While the Fund has established business continuity plans and risk management systems designed to reduce the risks associated with cyber security, there are inherent limitations in such plans and systems. Additionally, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers or third-party service providers. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Depositary Receipts Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  ADRs and GDRs are securities typically issued by a bank or trust company that evidence ownership of underlying securities issued by a foreign corporation and entitle the holder to all dividends and capital gains that are paid out on the underlying foreign securities. The issuers of certain depositary receipts are under no obligation to distribute shareholder communications to the holders of such receipts, or to pass through to them any voting rights with respect to the deposited securities. Investment in depositary receipts may be less liquid than the underlying shares in their primary trading market. Depositary receipts may not necessarily be denominated in the same currency as the underlying securities into which they may be converted. In addition, the issuers of the stock underlying unsponsored depositary receipts are not obligated to disclose material information in the United States. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Disruptive Innovation Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Companies that the Adviser believes are capitalizing on disruptive innovation and developing technologies to displace older technologies or create new markets may not in fact do so. Companies that initially develop a novel technology may not be able to capitalize on the technology. Companies that develop disruptive technologies may face political or legal attacks from competitors, industry groups or local and national governments. These companies may also be exposed to risks applicable to sectors other than the disruptive innovation theme for which they are chosen, and the securities issued by these companies may underperform the securities of other companies that are primarily focused on a particular theme. The Fund may invest in a company that does not currently derive any revenue from disruptive innovations or technologies, and there is no assurance that a company will derive any revenue from disruptive innovations or technologies in the future. A disruptive innovation or technology may constitute a small portion of a company's overall business. As a result, the success of a disruptive innovation or technology may not affect the value of the equity securities issued by the company. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Emerging Market Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Investment in securities of emerging market issuers may present risks that are greater than or different from those associated with foreign securities due to less developed and liquid markets and such factors as increased economic, political, regulatory, or other uncertainties. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Equity Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The value of the equity securities the Fund holds may fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Fund holds participate or factors relating to specific companies in which the Fund invests. Equity securities may also be particularly sensitive to general movements in the stock market, and a decline in the broader market may affect the value of the Fund's equity investments. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Financial Technology Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Companies that are developing financial technologies that seek to disrupt or displace established financial institutions generally face competition from much larger and more established firms. FinTech companies may not be able to capitalize on their disruptive technologies if they face political and/or legal attacks from competitors, industry groups or local and national governments. Laws generally vary by country, creating some challenges to achieving scale. A FinTech company may not currently derive any revenue, and there is no assurance that a FinTech company will derive any revenue from innovative technologies in the future. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Foreign Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The Fund's investments in foreign securities can be riskier than U.S. securities investments. Investments in the securities of foreign issuers (including investments in ADRs and 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. The Fund normally will not hedge any foreign currency exposure. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Future Expected Genomic Business Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The Adviser may invest some of the Fund's assets in Genomics Revolution Companies that do not currently derive a substantial portion of their current revenues from genomic-focused businesses and there is no assurance that any company will do so in the future, which may adversely affect the ability of the Fund to achieve its investment objective. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Health Care Sector Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The health care sector may be affected by government regulations and government health care programs, restrictions on government reimbursement for medical expenses, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care companies are: (i) heavily dependent on patent protection and intellectual property rights and the expiration of a patent may adversely affect their profitability; (ii) subject to extensive litigation based on product liability and similar claims; and (iii) subject to competitive forces that may make it difficult to raise prices and, in fact, may result in price discounting. Many health care products and services may be subject to regulatory approvals. The process of obtaining such approvals may be long and costly, and delays or failure to receive such approvals may negatively impact the business of such companies. Additional or more stringent laws and regulations enacted in the future could have a material adverse effect on such companies in the health care sector. In addition, issuers in the health care sector include issuers having their principal activities in the biotechnology industry, medical laboratories and research, drug laboratories and research and drug manufacturers, which have the additional risks described below. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Biotechnology Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  A biotechnology company's valuation can often be based largely on the potential or actual performance of a limited number of products and can accordingly be greatly affected if one of its products proves, among other things, unsafe, ineffective or unprofitable. Biotechnology companies are subject to regulation by, and the restrictions of, the U.S. Food and Drug Administration, the U.S. Environmental Protection Agency, state and local governments, and foreign regulatory authorities. </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Pharmaceutical Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Companies in the pharmaceutical industry can be significantly affected by, among other things, government approval of products and services, government regulation and reimbursement rates, product liability claims, patent expirations and protection and intense competition. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Industrials Sector Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The industrials sector includes companies engaged in aerospace and defense, electrical engineering, machinery, and professional services. Companies in the industrials sector may be adversely affected by changes in government regulation, world events and economic conditions. In addition, companies in the industrials sector may be adversely affected by environmental damages, product liability claims and exchange rates. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Aerospace and Defense Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Companies in the aerospace and defense industry rely to a large extent on U.S. (and other) Government demand for their products and services and may be significantly affected by changes in government regulations and spending, as well as economic conditions and industry consolidation.</font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;"><font lang="EN-US" style="font-family:Calibri,sans-serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Professional Services Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Professional services companies may be materially impacted by economic conditions and related fluctuations in client demand for marketing, business, technology and other consulting services. Professional services companies' success depends in large part on attracting and retaining key employees and a failure to do so could adversely affect a company's business. There are relatively few barriers to entry into the professional services market, and new competitors could readily seek to compete in one or more market segments, which could adversely affect a professional services company's operating results through pricing pressure and loss of market share. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Information Technology Sector Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The information technology sector includes companies engaged in internet software and services, technology hardware and storage peripherals, electronic equipment instruments and components, and semiconductors and semiconductor equipment. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Information technology companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base, or achieve general market acceptance for their products could have a material adverse effect on a company's business. Companies in the information technology sector are heavily dependent on intellectual property and the loss of patent, copyright and trademark protections may adversely affect the profitability of these companies. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Internet Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Many Internet-related companies have incurred large losses since their inception and may continue to incur large losses in the hope of capturing market share and generating future revenues. Accordingly, many such companies expect to incur significant operating losses for the foreseeable future, and may never be profitable. The markets in which many Internet companies compete face rapidly evolving industry standards, frequent new service and product announcements, introductions and enhancements, and changing customer demands. The failure of an Internet company to adapt to such changes could have a material adverse effect on the company's business. Additionally, the widespread adoption of new Internet, networking, telecommunications technologies, or other technological changes could require substantial expenditures by an Internet company to modify or adapt its services or infrastructure, which could have a material adverse effect on an Internet company's business. </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;"><font lang="EN-US" style="font-family:Calibri,sans-serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Semiconductor Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Competitive pressures may have a significant effect on the financial condition of semiconductor companies and, as product cycles shorten and manufacturing capacity increases, these companies may become increasingly subject to aggressive pricing, which hampers profitability. Reduced demand for end-user products, under-utilization of manufacturing capacity, and other factors could adversely impact the operating results of companies in the semiconductor sector. Semiconductor companies typically face high capital costs and may be heavily dependent on intellectual property rights. The semiconductor sector is highly cyclical, which may cause the operating results of many semiconductor companies to vary significantly. The stock prices of companies in the semiconductor sector have been and likely will continue to be extremely volatile. </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;"><font lang="EN-US" style="font-family:Calibri,sans-serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Software Industry Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The software industry can be significantly affected by intense competition, aggressive pricing, technological innovations, and product obsolescence. Companies in the software industry are subject to significant competitive pressures, such as aggressive pricing, new market entrants, competition for market share, short product cycles due to an accelerated rate of technological developments and the potential for limited earnings and/or falling profit margins. These companies also face the risks that new services, equipment or technologies will not be accepted by consumers and businesses or will become rapidly obsolete. These factors can affect the profitability of these companies and, as a result, the value of their securities. Also, patent protection is integral to the success of many companies in this industry, and profitability can be affected materially by, among other things, the cost of obtaining (or failing to obtain) patent approvals, the cost of litigating patent infringement and the loss of patent protection for products (which significantly increases pricing pressures and can materially reduce profitability with respect to such products). In addition, many software companies have limited operating histories. Prices of these companies' securities historically have been more volatile than other securities, especially over the short term. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Issuer Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Because the Fund may invest in approximately 40 to 50 issuers, it is subject to the risk that the value of the Fund's portfolio may decline due to a decline in value of the equity securities of particular issuers. The value of an issuer's equity securities may decline for reasons directly related to the issuer, such as management performance and reduced demand for the issuer's goods or services. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Large-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Large-capitalization companies are generally less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the value of large-capitalization companies may not rise as much as that of companies with smaller market capitalizations. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Management Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  As an actively-managed ETF, the Fund is subject to management risk. The ability of the Adviser to successfully implement the Fund's investment strategies will significantly influence the Fund's performance. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Market Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The value of the Fund's assets will fluctuate as the markets in which the Fund invests fluctuate. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, such as inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters or events, terrorism, regulatory events and government controls, that affect large portions of the market. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Market Trading Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The Fund faces numerous market trading risks, including disruptions to the creation and redemption processes of the Fund, losses from trading in secondary markets, the existence of extreme market volatility or potential lack of an active trading market for Shares, which may result in Shares trading at a significant premium or discount to their 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 align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Micro-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Micro-capitalization companies are subject to substantially greater risks of loss and price fluctuations because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses). Their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations. The shares of micro-capitalization companies tend to trade less frequently than those of larger, more established companies, which can adversely affect the pricing of these securities and the future ability to sell these securities. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Non-Diversified Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The Fund is classified as a “non-diversified” investment company under the 1940 Act. Therefore, the Fund may invest a relatively higher percentage of its assets in a relatively 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 align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Small- and Medium-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Small- and medium-capitalization companies may be more volatile and more likely than large-capitalization companies to have narrower product lines, fewer financial resources, less management depth and experience and less competitive strength. Returns on investments in securities of small- and medium-capitalization companies could trail the returns on investments in securities of large-capitalization companies. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Web x.0 Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The risks described below apply, in particular, to the Fund's investment in Web x.0 Companies. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Internet Information Provider Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Internet information provider companies provide Internet navigation services and reference guide information and publish, provide or present proprietary advertising and/or third party content. Such companies often derive a large portion of their revenues from advertising, and a reduction in spending by or loss of advertisers could seriously harm their business. This business is rapidly evolving and intensely competitive, and is subject to changing technologies, shifting user needs, and frequent introductions of new products and services. The research and development of new, technologically advanced products is a complex and uncertain process requiring high levels of innovation and investment, as well as the accurate anticipation of technology, market trends and consumer needs. The number of people who access the Internet is increasing dramatically and a failure to attract and retain a substantial number of such users to a company's products and services or to develop products and technologies that are more compatible with alternative devices, could adversely affect operating results. Concerns regarding a company's products, services or processes that may compromise the privacy of users or other privacy related matters, even if unfounded, could damage a company's reputation and adversely affect operating results. </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;"><font lang="EN-US" style="font-family:Calibri,sans-serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Catalog and Mail Order House Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Catalog and mail order house companies may be exposed to significant inventory risks that may adversely affect operating results due to, among other factors: seasonality, new product launches, rapid changes in product cycles and pricing, defective merchandise, changes in consumer demand and consumer spending patterns, or changes in consumer tastes with respect to products. Demand for products can change significantly between the time inventory or components are ordered and the date of sale. The acquisition of certain types of inventory or components may require significant lead-time and prepayment and they may not be returnable. Failure to adequately predict customer demand or otherwise optimize and operate distribution centers could result in excess or insufficient inventory or distribution capacity, result in increased costs, impairment charges, or both. The business of catalog and mail order house companies can be highly seasonal and failure to stock or restock popular products in sufficient amounts during high demand periods could significantly affect revenue and future growth. Increased website traffic during peak periods could cause system interruptions which may reduce the volume of goods sold and the attractiveness of a company's products and services. </font></p>
Performance
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year and since the Fund's inception compare with those of the S&P 500 Index and the MSCI World Index. The S&P 500 Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization sector of the U.S. stock market. The MSCI World Index represents large and mid-cap equity performance across 23 developed markets countries. Returns shown for the MSCI World Index are net of foreign withholding taxes applicable to U.S. investors. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Updated performance information is available at no cost by visiting http://ark-funds.com or by calling (212) 426-7040</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">.</font></p>
<div style="display:none">~ http://ark-funds.com/role/RRBarChart6 ~</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund's year-to-date total return as of October 31, 2018 was 15.05%. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><div align="left"><table border="0" cellpadding="0" cellspacing="0" width="608" style="width:456.0pt;"> <tr> <td valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Best and Worst Quarter Returns (for the period reflected in the bar chart above)</font></b></p> </td> <td valign="bottom" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td colspan="3" valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Return</font></b></p> </td> <td valign="bottom" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td colspan="3" valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Quarter/Year</font></b></p> </td> </tr><tr> <td valign="bottom" style="background:#CCEEFF;padding:3.0pt 0in 3.0pt 10.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Highest Return</font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">20.93</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">% </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">06/30/2017</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> </tr><tr> <td valign="bottom" style="background:white;padding:3.0pt 0in 3.0pt 10.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Lowest Return</font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">-11.36</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">% </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">09/30/2015</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> </tr></table></div>
Average Annual Total Returns as of December 31, 2017
<div style="display:none">~ http://ark-funds.com/role/RRSchedule7 ~</div>
None
0.0075
0.0000
0.0000
0.0075
77
240
417
930
0.0376
-0.0197
0.8741
Returns Before Taxes
Returns After Taxes on Distributions
Returns After Taxes on Distributions and Sale of Fund Shares
S&P 500 Index (reflects no deduction for fees, expenses or taxes)
MSCI World Index (reflects no deduction for fees, expenses or taxes)
0.8741
0.8642
0.4953
0.2183
0.224
0.2282
0.2226
0.1791
0.1202
0.0925
ARK Genomic Revolution ETF
Investment Objective
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The ARK Genomic Revolution ETF's (“Fund”) investment objective is long-term growth of capital. </font></p>
Fund Fees and Expenses
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The table below describes the fees and expenses that you pay if you buy and hold shares of the Fund (“Shares”). Investors may pay brokerage commissions on their purchases and sales of Shares. </font></p>
Shareholder Fees (fees paid directly from your investment)
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Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
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Example
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">This 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 brokerage commissions that you pay when purchasing or selling Shares. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your Shares at the end of those periods. The example also assumes that your investment has a 5% annual return and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </font></p>
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Portfolio Turnover
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it purchases and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may result in higher transaction costs and 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, may affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 80% of the average value of its portfolio. </font></p>
Principal Investment Strategies
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">The Fund is an actively-managed exchange-traded fund (“ETF”) that will invest under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies across multiple sectors, including healthcare, information technology, materials, energy and consumer discretionary, that are relevant to the Fund's investment theme of the genomics* revolution (“Genomics Revolution Companies”). </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Genomics Revolution Companies are companies relevant to this theme are those that the Adviser believes are substantially focused on and are expected to substantially benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments, improvements and advancements in genomics into their business, such as by offering new products or services that rely on genomic sequencing,** analysis, synthesis or instrumentation. These companies may include ones that develop, produce, manufacture or significantly rely on or enable bionic devices, bio-inspired computing, bioinformatics,*** molecular medicine and agricultural biotechnology. </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">In selecting companies that the Adviser believes are relevant to a particular investment theme, it seeks to identify, using its own internal research and analysis, companies capitalizing on disruptive innovation or that are enabling the further development of a theme in the markets in which they operate. The Adviser's internal research and analysis leverages insights from diverse sources, including external research, to develop and refine its investment themes and identify and take advantage of trends that have ramifications for individual companies or entire industries. The Adviser will use “top down” (thematic research sizing the potential total available market, and surfacing the prime beneficiaries) approaches to select investments for the Fund. The Fund may invest in certain companies that the Adviser believes are well-positioned to capitalize on and expected to devote substantial efforts to business lines enabled by disruptive genomic innovation, even if such companies do not currently derive a substantial portion of their revenues from genomics related activities. </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Under normal circumstances, substantially all of the Fund's assets will be invested in equity securities, including common stocks, partnership interests, business trust shares and other equity investments or ownership interests in business enterprises. The Fund's investments will include micro‑, small‑, medium- and large-capitalization companies. The Fund's investments in foreign equity securities will be in both developed and emerging markets. The Fund currently intends to use only American Depositary Receipts (“ADRs”) when purchasing foreign securities. </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">The Fund will be concentrated (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">, more than 25% of the value of the Fund's assets) in securities of issuers having their principal business activities in any industry or group of industries in the health care sector, including issuers having their principal business activities in the biotechnology industry. Other industries in the health care sector include medical laboratories and research and drug manufacturers. The Fund may invest in foreign securities (including investments in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”)) and securities listed on local foreign exchanges. </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">The Fund is classified as a “non-diversified” investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), which means that it may invest a high percentage of its assets in a limited number of issuers. </font></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">*    The Adviser defines “genomics” as the study of genes and their functions, and related techniques (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">e.g.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, genomic sequencing). See Genomics and World Health: Report of the Advisory Committee on Health Research, Geneva, WHO (2002).</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">**  The Adviser uses the term “genomic sequencing” to refer to the techniques that allows researchers to read and decipher the genetic information found in the DNA (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, the exact sequence of bases A, C, G, and T in a DNA molecule), including the DNA of bacteria, plants, animals and human beings. </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">*** The Adviser defines “bioinformatics” as the science of collecting and analyzing complex biological data such as genetic codes.</font></p>
Principal Risks
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">There is no assurance that the Fund will meet its investment objective. The value of your investment in the Fund, as well as the amount of return you receive on your investment in the Fund, may fluctuate significantly. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. Therefore, you should consider carefully the following risks before investing in the Fund.</font></b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Authorized Participants Concentration Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The Fund has a limited number of financial institutions that may act as Authorized Participants (“APs”) on an agency basis (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">, on behalf of other market participants). To the extent that those APs exit the business or are unable to process creation and/or redemption orders, and no other AP is able to step forward to create and redeem in either of these cases, Shares may possibly trade at a discount to net asset value (“NAV”). The AP risk may be heightened in the case of ETFs investing internationally because international ETFs often require APs to post collateral, which only certain APs are able to do. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Concentration Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The Fund's assets will be concentrated in securities of issuers having their principal business activities in any industry or group of industries in the health care sector, including issuers having their principal business activities in the biotechnology industry. To the extent that the Fund continues to be concentrated in the health care sector or biotechnology industry (or any other related health care sector or industry), the Fund will be subject to the risk that economic, political or other conditions that have a negative effect on that sector will negatively impact the Fund to a greater extent than if the Fund's assets were invested in a wider variety of sectors or industries. Please see also the “Health Care Sector Risk” disclosures below. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Cyber Security Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  As the use of Internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund's digital information systems through “hacking” or malicious software coding, but may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund's third-party service providers, such as its administrator, transfer agent or custodian, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber security breaches. While the Fund has established business continuity plans and risk management systems designed to reduce the risks associated with cyber security, there are inherent limitations in such plans and systems. Additionally, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers or third-party service providers. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Depositary Receipts Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  ADRs and GDRs are securities typically issued by a bank or trust company that evidence ownership of underlying securities issued by a foreign corporation and entitle the holder to all dividends and capital gains that are paid out on the underlying foreign securities. The issuers of certain depositary receipts are under no obligation to distribute shareholder communications to the holders of such receipts, or to pass through to them any voting rights with respect to the deposited securities. Investment in depositary receipts may be less liquid than the underlying shares in their primary trading market. Depositary receipts may not necessarily be denominated in the same currency as the underlying securities into which they may be converted. In addition, the issuers of the stock underlying unsponsored depositary receipts are not obligated to disclose material information in the United States. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Disruptive Innovation Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Companies that the Adviser believes are capitalizing on disruptive innovation and developing technologies to displace older technologies or create new markets may not in fact do so. Companies that initially develop a novel technology may not be able to capitalize on the technology. Companies that develop disruptive technologies may face political or legal attacks from competitors, industry groups or local and national governments. These companies may also be exposed to risks applicable to sectors other than the disruptive innovation theme for which they are chosen, and the securities issued by these companies may underperform the securities of other companies that are primarily focused on a particular theme. The Fund may invest in a company that does not currently derive any revenue from disruptive innovations or technologies, and there is no assurance that a company will derive any revenue from disruptive innovations or technologies in the future. A disruptive innovation or technology may constitute a small portion of a company's overall business. As a result, the success of a disruptive innovation or technology may not affect the value of the equity securities issued by the company. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Emerging Market Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Investment in securities of emerging market issuers may present risks that are greater than or different from those associated with foreign securities due to less developed and liquid markets and such factors as increased economic, political, regulatory, or other uncertainties.</font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Equity Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The value of the equity securities the Fund holds may fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Fund holds participate or factors relating to specific companies in which the Fund invests. Equity securities may also be particularly sensitive to general movements in the stock market, and a decline in the broader market may affect the value of the Fund's equity investments. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Foreign Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The Fund's investments in foreign securities can be riskier than U.S. securities investments. Investments in the securities of foreign issuers (including investments in ADRs and 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. The Fund normally will not hedge any foreign currency exposure. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Future Expected Genomic Business Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The Adviser expects to invest at least 80% of the Fund's assets in Genomics Revolution Companies. However, certain of these companies do not currently derive a substantial portion of their current revenues from genomic-focused businesses and there is no assurance that any company will do so in the future, which may adversely affect the ability of the Fund to achieve its investment objective. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Health Care Sector Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The health care sector may be affected by government regulations and government health care programs, restrictions on government reimbursement for medical expenses, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care companies are: (i) heavily dependent on patent protection and intellectual property rights and the expiration of a patent may adversely affect their profitability; (ii) subject to extensive litigation based on product liability and similar claims; and (iii) subject to competitive forces that may make it difficult to raise prices and, in fact, may result in price discounting. Many health care products and services may be subject to regulatory approvals. The process of obtaining such approvals may be long and costly, and delays or failure to receive such approvals may negatively impact the business of such companies. Additional or more stringent laws and regulations enacted in the future could have a material adverse effect on such companies in the health care sector. In addition, issuers in the health care sector include issuers having their principal activities in the biotechnology industry, medical laboratories and research, drug laboratories and research and drug manufacturers, which have the additional risks described below. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Biotechnology Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  A biotechnology company's valuation can often be based largely on the potential or actual performance of a limited number of products and can accordingly be greatly affected if one of its products proves, among other things, unsafe, ineffective or unprofitable. Biotechnology companies are subject to regulation by, and the restrictions of, the U.S. Food and Drug Administration, the U.S. Environmental Protection Agency, state and local governments, and foreign regulatory authorities.</font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;"><font lang="EN-US" style="font-family:Calibri,sans-serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Pharmaceutical Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Companies in the pharmaceutical industry can be significantly affected by, among other things, government approval of products and services, government regulation and reimbursement rates, product liability claims, patent expirations and protection and intense competition. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Issuer Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Because the Fund may invest in approximately 35 to 50 issuers, it is subject to the risk that the value of the Fund's portfolio may decline due to a decline in value of the equity securities of particular issuers. The value of an issuer's equity securities may decline for reasons directly related to the issuer, such as management performance and reduced demand for the issuer's goods or services. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Large-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Large-capitalization companies are generally less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the value of large-capitalization companies may not rise as much as that of companies with smaller market capitalizations. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Management Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  As an actively-managed ETF, the Fund is subject to management risk. The ability of the Adviser to successfully implement the Fund's investment strategies will significantly influence the Fund's performance. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Market Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The value of the Fund's assets will fluctuate as the markets in which the Fund invests fluctuate. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, such as inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters or events, terrorism, regulatory events and government controls, that affect large portions of the market. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Market Trading Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The Fund faces numerous market trading risks, including disruptions to the creation and redemption processes of the Fund, losses from trading in secondary markets, the existence of extreme market volatility or potential lack of an active trading market for Shares, which may result in Shares trading at a significant premium or discount to their 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 align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Micro-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Micro-capitalization companies are subject to substantially greater risks of loss and price fluctuations because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses). Their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations. The shares of micro-capitalization companies tend to trade less frequently than those of larger, more established companies, which can adversely affect the pricing of these securities and the future ability to sell these securities. </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></i></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Non-Diversified Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  The Fund is classified as a “non-diversified” investment company under the 1940 Act. Therefore, the Fund may invest a relatively higher percentage of its assets in a relatively 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 align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;"> </font></p><p align="justify" style="margin:0in;margin-bottom:.0001pt;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">Small- and Medium-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;">  Small- and medium-capitalization companies may be more volatile and more likely than large-capitalization companies to have narrower product lines, fewer financial resources, less management depth and experience and less competitive strength. Returns on investments in securities of small- and medium-capitalization companies could trail the returns on investments in securities of large-capitalization companies. </font></p>
Performance
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year and since the Fund's inception compare with those of the NASDAQ Healthcare Index, the S&P 500 Index and the MSCI World Index. The NASDAQ Healthcare Index contains securities of NASDAQ-listed companies classified according to the Industry Classification Benchmark as Health Care. They include health care providers, medical equipment, medical supply companies, biotechnology companies, and pharmaceutical companies. The S&P 500 Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization sector of the U.S. stock market. The MSCI World Index represents large and mid-cap equity performance across 23 developed markets countries. Returns shown for the MSCI World Index are net of foreign withholding taxes applicable to U.S. investors. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Updated performance information is available at no cost by visiting http://ark-funds.com or by calling (212) 426-7040</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">. </font></p>
<div style="display:none">~ http://ark-funds.com/role/RRBarChart12 ~</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund's year-to-date total return as of October 31, 2018 was 13.39%. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><div align="left"><table border="0" cellpadding="0" cellspacing="0" width="608" style="width:456.0pt;"> <tr> <td valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Best and Worst Quarter Returns (for the period reflected in the bar chart above)</font></b></p> </td> <td valign="bottom" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td colspan="3" valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Return</font></b></p> </td> <td valign="bottom" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td colspan="3" valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Quarter/Year</font></b></p> </td> </tr><tr> <td valign="bottom" style="background:#CCEEFF;padding:3.0pt 0in 3.0pt 10.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Highest Return</font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">21.34</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">% </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">03/31/2017</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> </tr><tr> <td valign="bottom" style="background:white;padding:3.0pt 0in 3.0pt 10.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Lowest Return</font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">-18.44</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">% </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">09/30/2015</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> </tr></table></div>
Average Annual Total Returns as of December 31, 2017
<div style="display:none">~ http://ark-funds.com/role/RRSchedule13 ~</div>
None
0.0075
0.0000
0.0000
0.0075
77
240
417
930
-0.0151
-0.1835
0.4539
Returns Before Taxes
Returns After Taxes on Distributions
Returns After Taxes on Distributions and Sale of Fund Shares
NASDAQ Healthcare Index (reflects no deduction for fees, expenses or taxes)
S&P 500 Index (reflects no deduction for fees, expenses or taxes)
MSCI World Index (reflects no deduction for fees, expenses or taxes)
0.4539
0.4472
0.2586
0.213
0.2183
0.224
0.0689
0.0674
0.0529
0.0289
0.1202
0.0925
ARK Industrial Innovation ETF
Investment Objective
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The ARK Industrial Innovation ETF's (“Fund”) investment objective is long-term growth of capital. </font></p>
Fund Fees and Expenses
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The table below describes the fees and expenses that you pay if you buy and hold shares of the Fund (“Shares”). Investors may pay brokerage commissions on their purchases and sales of Shares. </font></p>
Shareholder Fees (fees paid directly from your investment)
<div style="display:none">~ http://ark-funds.com/role/RRSchedule15 ~</div>
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
<div style="display:none">~ http://ark-funds.com/role/RRSchedule16 ~</div>
Example
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">This 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 brokerage commissions that you pay when purchasing or selling Shares. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your Shares at the end of those periods. The example also assumes that your investment has a 5% annual return and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </font></p>
<div style="display:none">~ http://ark-funds.com/role/RRSchedule17 ~</div>
Portfolio Turnover
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it purchases and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may result in higher transaction costs and 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, may affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 57% of the average value of its portfolio. </font></p>
Principal Investment Strategies
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund is an actively-managed exchange-traded fund (“ETF”) that will invest under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund's investment theme of industrial innovation. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Industrial innovation companies are companies that the Adviser believes are expected to focus on and benefit from the development of new products or services, technological improvements and advancements in scientific research related to, among other things, disruptive innovation in energy (“energy transformation companies”), automation and manufacturing (“automation transformation companies”), materials, and transportation. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;"> </font><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Adviser considers a company to be an energy transformation company if it seeks to capitalize on innovations or evolutions in: (i) ways that energy is stored or used; (ii) the discovery, collection and/or implementation of new sources of energy, including unconventional sources of oil or natural gas; and/or (iii) the production or development of new materials for use in commercial applications of energy production, use or storage.</font></p> <p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;font-family:Times New Roman,serif;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></font></p> <p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;"> </font><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Adviser considers a company to be an automation transformation company if it is focused on man capitalizing on the productivity of machines, such as through the automation of functions, processes or activities previously performed by human labor or the use of robotics to perform other functions, activities or processes. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">In selecting companies that the Adviser believes are relevant to a particular investment theme, it seeks to identify, using its own internal research and analysis, companies capitalizing on disruptive innovation or that are enabling the further development of a theme in the markets in which they operate. The Adviser's internal research and analysis leverages insights from diverse sources, including external research, to develop and refine its investment themes and identify and take advantage of trends that have ramifications for individual companies or entire industries. The Adviser will use “top down” (thematic research sizing the potential total available market, and surfacing the prime beneficiaries) approaches to select investments for the Fund. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Under normal circumstances, substantially all of the Fund's assets will be invested in equity securities, including common stocks, partnership interests, business trust shares and other equity investments or ownership interests in business enterprises. The Fund's investments will include micro‑, small‑, medium- and large-capitalization companies. The Fund's investments in foreign equity securities will be in both developed and emerging markets. The Fund currently intends to use only American Depositary Receipts (“ADRs”) when purchasing foreign securities. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund will be concentrated (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, more than 25% of the value of the Fund's assets) in securities of issuers having their principal business activities in groups of industries in the industrials or information technology sectors, although it will not concentrate in any specific industry. The Fund may invest in foreign securities (including investments in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”)) and securities listed on local foreign exchanges. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund is classified as a “non-diversified” investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), which means that it may invest a high percentage of its assets in a limited number of issuers. </font></p>
Principal Risks
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">There is no assurance that the Fund will meet its investment objective. The value of your investment in the Fund, as well as the amount of return you receive on your investment in the Fund, may fluctuate significantly. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. Therefore, you should consider carefully the following risks before investing in the Fund. </font></b></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></b></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Authorized Participants Concentration Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund has a limited number of financial institutions that may act as Authorized Participants (“APs”) on an agency basis (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, on behalf of other market participants). To the extent that those APs exit the business or are unable to process creation and/or redemption orders, and no other AP is able to step forward to create and redeem in either of these cases, Shares may possibly trade at a discount to net asset value (“NAV”). The AP risk may be heightened in the case of ETFs investing internationally because international ETFs often require APs to post collateral, which only certain APs are able to do). </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Concentration Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund's assets will be concentrated in securities of issuers having their principal business activities in groups of industries in the (i) industrials sector or (ii) information technology sector. However, the Fund will not concentrate in any specific industry. To the extent that the Fund continues to be concentrated in groups of industries in the industrials sector or the information technology sector, the Fund will be subject to the risk that economic, political, business or other conditions that have a negative effect on such industry groups will negatively impact the Fund to a greater extent than if the Fund's assets were invested in a wider variety of sectors or industries. Please see also the “Industrials Sector Risk” and “Information Technology Sector Risk” disclosures below. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Cyber Security Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  As the use of Internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund's digital information systems through “hacking” or malicious software coding, but may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund's third-party service providers, such as its administrator, transfer agent or custodian, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber security breaches. While the Fund has established business continuity plans and risk management systems designed to reduce the risks associated with cyber security, there are inherent limitations in such plans and systems. Additionally, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers or third-party service providers. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Depositary Receipts Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  ADRs and GDRs are securities typically issued by a bank or trust company that evidence ownership of underlying securities issued by a foreign corporation and entitle the holder to all dividends and capital gains that are paid out on the underlying foreign securities. The issuers of certain depositary receipts are under no obligation to distribute shareholder communications to the holders of such receipts, or to pass through to them any voting rights with respect to the deposited securities. Investment in depositary receipts may be less liquid than the underlying shares in their primary trading market. Depositary receipts may not necessarily be denominated in the same currency as the underlying securities into which they may be converted. In addition, the issuers of the stock underlying unsponsored depositary receipts are not obligated to disclose material information in the United States. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Disruptive Innovation Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Companies that the Adviser believes are capitalizing on disruptive innovation and developing technologies to displace older technologies or create new markets may not in fact do so. Companies that initially develop a novel technology may not be able to capitalize on the technology. Companies that develop disruptive technologies may face political or legal attacks from competitors, industry groups or local and national governments. These companies may also be exposed to risks applicable to sectors other than the disruptive innovation theme for which they are chosen, and the securities issued by these companies may underperform the securities of other companies that are primarily focused on a particular theme. The Fund may invest in a company that does not currently derive any revenue from disruptive innovations or technologies, and there is no assurance that a company will derive any revenue from disruptive innovations or technologies in the future. A disruptive innovation or technology may constitute a small portion of a company's overall business. As a result, the success of a disruptive innovation or technology may not affect the value of the equity securities issued by the company. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Emerging Market Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Investment in securities of emerging market issuers may present risks that are greater than or different from those associated with foreign securities due to less developed and liquid markets and such factors as increased economic, political, regulatory, or other uncertainties. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Equity Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The value of the equity securities the Fund holds may fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Fund holds participate or factors relating to specific companies in which the Fund invests. Equity securities may also be particularly sensitive to general movements in the stock market, and a decline in the broader market may affect the value of the Fund's equity investments. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Foreign Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund's investments in foreign securities can be riskier than U.S. securities investments. Investments in the securities of foreign issuers (including investments in ADRs and 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. The Fund normally will not hedge any foreign currency exposure. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Industrials Sector Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The industrials sector includes companies engaged in aerospace and defense, electrical engineering, machinery, and professional services. Companies in the industrials sector may be adversely affected by changes in government regulation, world events and economic conditions. In addition, companies in the industrials sector may be adversely affected by environmental damages, product liability claims and exchange rates. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Aerospace and Defense Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Companies in the aerospace and defense industry rely to a large extent on U.S. (and other) Government demand for their products and services and may be significantly affected by changes in government regulations and spending, as well as economic conditions and industry consolidation.</font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;font-family:Times New Roman,serif;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Professional Services Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Professional services companies may be materially impacted by economic conditions and related fluctuations in client demand for marketing, business, technology and other consulting services. Professional services companies' success depends in large part on attracting and retaining key employees and a failure to do so could adversely affect a company's business. There are relatively few barriers to entry into the professional services market, and new competitors could readily seek to compete in one or more market segments, which could adversely affect a professional services company's operating results through pricing pressure and loss of market share. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></i></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Information Technology Sector Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The information technology sector includes companies engaged in internet software and services, technology hardware and storage peripherals, electronic equipment instruments and components, and semiconductors and semiconductor equipment. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Information technology companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base, or achieve general market acceptance for their products could have a material adverse effect on a company's business. Companies in the information technology sector are heavily dependent on intellectual property and the loss of patent, copyright and trademark protections may adversely affect the profitability of these companies. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Internet Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Many Internet-related companies have incurred large losses since their inception and may continue to incur large losses in the hope of capturing market share and generating future revenues. Accordingly, many such companies expect to incur significant operating losses for the foreseeable future, and may never be profitable. The markets in which many Internet companies compete face rapidly evolving industry standards, frequent new service and product announcements, introductions and enhancements, and changing customer demands. The failure of an Internet company to adapt to such changes could have a material adverse effect on the company's business. Additionally, the widespread adoption of new Internet, networking, telecommunications technologies, or other technological changes could require substantial expenditures by an Internet company to modify or adapt its services or infrastructure, which could have a material adverse effect on an Internet company's business.</font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;font-family:Times New Roman,serif;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Semiconductor Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Competitive pressures may have a significant effect on the financial condition of semiconductor companies and, as product cycles shorten and manufacturing capacity increases, these companies may become increasingly subject to aggressive pricing, which hampers profitability. Reduced demand for end-user products, under-utilization of manufacturing capacity, and other factors could adversely impact the operating results of companies in the semiconductor sector. Semiconductor companies typically face high capital costs and may be heavily dependent on intellectual property rights. The semiconductor sector is highly cyclical, which may cause the operating results of many semiconductor companies to vary significantly. The stock prices of companies in the semiconductor sector have been and likely will continue to be extremely volatile. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></i></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Issuer Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Because the Fund may invest in approximately 35 to 50 issuers, it is subject to the risk that the value of the Fund's portfolio may decline due to a decline in value of the equity securities of particular issuers. The value of an issuer's equity securities may decline for reasons directly related to the issuer, such as management performance and reduced demand for the issuer's goods or services. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></i></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Large-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Large-capitalization companies are generally less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the value of large-capitalization companies may not rise as much as that of companies with smaller market capitalizations. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></i></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Management Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  As an actively-managed ETF, the Fund is subject to management risk. The ability of the Adviser to successfully implement the Fund's investment strategies will significantly influence the Fund's performance. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></i></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Market Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The value of the Fund's assets will fluctuate as the markets in which the Fund invests fluctuate. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, such as inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters or events, terrorism, regulatory events and government controls, that affect large portions of the market. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Market Trading Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund faces numerous market trading risks, including disruptions to the creation and redemption processes of the Fund, losses from trading in secondary markets, the existence of extreme market volatility or potential lack of an active trading market for Shares, which may result in Shares trading at a significant premium or discount to their 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 align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Micro-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Micro-capitalization companies are subject to substantially greater risks of loss and price fluctuations because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses). Their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations. The shares of micro-capitalization companies tend to trade less frequently than those of larger, more established companies, which can adversely affect the pricing of these securities and the future ability to sell these securities. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Non-Diversified Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund is classified as a “non-diversified” investment company under the 1940 Act. Therefore, the Fund may invest a relatively higher percentage of its assets in a relatively 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 align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Small- and Medium-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Small- and medium-capitalization companies may be more volatile and more likely than large-capitalization companies to have narrower product lines, fewer financial resources, less management depth and experience and less competitive strength. Returns on investments in securities of small- and medium-capitalization companies could trail the returns on investments in securities of large-capitalization companies. </font></p>
Performance
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year and since the Fund's inception compare with those of the NASDAQ Industrials Index, the S&P 500 Index and the MSCI World Index. The NASDAQ Industrial Index contains securities of NASDAQ-listed companies not classified in one of the NASDAQ sector indexes. These include firms that are involved in oil and gas production, oil equipment, services & distribution, chemicals, forestry and paper, industrial metals, mining, construction and materials, aerospace and defense, general industrials, electronic and electrical equipment, industrial engineering, support services, automobiles and parts, beverages, food producers, household goods, leisure goods, personal goods, tobacco, food and drug retailers, general retailers, media, gambling, hotels, recreational services, restaurants and bars, travel & tourism, electricity, gas distribution, water, and multi-utilities. The S&P 500 Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization sector of the U.S. stock market. The MSCI World Index represents large and mid-cap equity performance across 23 developed markets countries. Returns shown for the MSCI World Index are net of foreign withholding taxes applicable to U.S. investors. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Updated performance information is available at no cost by visiting http://ark-funds.com or by calling (212) 426-7040</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">. </font></p>
<div style="display:none">~ http://ark-funds.com/role/RRBarChart18 ~</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund's year-to-date total return as of October 31, 2018 was -1.13%. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><div align="left"><table border="0" cellpadding="0" cellspacing="0" width="608" style="width:456.0pt;"> <tr> <td valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Best and Worst Quarter Returns (for the period reflected in the bar chart above)</font></b></p> </td> <td valign="bottom" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td colspan="3" valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Return</font></b></p> </td> <td valign="bottom" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td colspan="3" valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Quarter/Year</font></b></p> </td> </tr><tr> <td valign="bottom" style="background:#CCEEFF;padding:3.0pt 0in 3.0pt 10.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Highest Return</font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">15.79</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">% </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">09/30/2016</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> </tr><tr> <td valign="bottom" style="background:white;padding:3.0pt 0in 3.0pt 10.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Lowest Return</font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">-11.84</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">% </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">09/30/2015</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> </tr></table></div>
Average Annual Total Returns as of December 31, 2017
<div style="display:none">~ http://ark-funds.com/role/RRSchedule19 ~</div>
None
0.0075
0.0000
0.0000
0.0075
77
240
417
930
-0.0227
0.1474
0.5241
Returns Before Taxes
Returns After Taxes on Distributions
Returns After Taxes on Distributions and Sale of Fund Shares
NASDAQ Industrials Index (reflects no deduction for fees, expenses or taxes)
S&P 500 Index (reflects no deduction for fees, expenses or taxes)
MSCI World Index (reflects no deduction for fees, expenses or taxes)
0.5241
0.5166
0.2992
0.2405
0.2183
0.224
0.1737
0.1707
0.1364
0.1352
0.1203
0.0877
ARK Web x.0 ETF
Investment Objective
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The ARK Web x.0 ETF's (“Fund”) investment objective is long-term growth of capital. </font></p>
Fund Fees and Expenses
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The table below describes the fees and expenses that you pay if you buy and hold shares of the Fund (“Shares”). Investors may pay brokerage commissions on their purchases and sales of Shares. </font></p>
Shareholder Fees (fees paid directly from your investment)
<div style="display:none">~ http://ark-funds.com/role/RRSchedule21 ~</div>
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
<div style="display:none">~ http://ark-funds.com/role/RRSchedule22 ~</div>
Example
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">This 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 brokerage commissions that you pay when purchasing or selling Shares. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your Shares at the end of those periods. The example also assumes that your investment has a 5% annual return and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </font></p>
<div style="display:none">~ http://ark-funds.com/role/RRSchedule23 ~</div>
Portfolio Turnover
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it purchases and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may result in higher transaction costs and 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, may affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 68% of the average value of its portfolio. </font></p>
Principal Investment Strategies
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund is an actively-managed exchange-traded fund (“ETF”) that will invest under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund's investment theme of Web x.0. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Web x.0 companies are companies that the Adviser believes are relevant to this theme are focused on and expected to benefit from shifting the bases of technology infrastructure from hardware and software to the cloud, enabling mobile and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services. These companies may include mail order houses which generate the entirety of their business through websites and which offer internet-based products and services, such as streaming media or cloud storage in addition to traditional physical goods. These companies may also include ones that develop, use or rely on innovative payment methodologies, big data, the “internet of things*,” social distribution and media, and technologies that make financial services more efficient (“FinTech Innovation Companies”). </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">In selecting companies that the Adviser believes are relevant to a particular investment theme, it seeks to identify, using its own internal research and analysis, companies capitalizing on disruptive innovation or that are enabling the further development of a theme in the markets in which they operate. The Adviser's internal research and analysis leverages insights from diverse sources, including internal and external research, to develop and refine its investment themes and identify and take advantage of trends that have ramifications for individual companies or entire industries. The types of companies that the Adviser believes are relevant to this theme are those that are focused on shifting the bases of technology infrastructure from hardware and software to the cloud, enabling mobile and local services, among others. The Adviser believes FinTech Innovation Companies are companies that are focused on and expected to benefit from the shifting of the financial sector and economic transactions to technology infrastructure platforms, and technological intermediaries. FinTech Innovation Companies may also develop, use or rely on innovative payment platforms and methodologies, point of sale providers, transactional innovations, business analytics, fraud reduction, frictionless funding platforms, peer-to-peer lending, intermediary exchanges, asset allocation technology, cryptocurrency,** mobile payments, and risk pricing and pooling aggregators. The Fund may have exposure to cryptocurrency, such as bitcoin, indirectly through an investment in a grantor trust. The Fund's exposure to cryptocurrency may change over time and, accordingly, such exposure may not always be represented in the Fund's portfolio. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Adviser will use both “top down” (thematic research sizing the potential total available market, and surfacing the prime beneficiaries) and “bottom up” (valuation, fundamental and quantitative measures) approaches to select investments for the Fund. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Under normal circumstances, substantially all of the Fund's assets will be invested in equity securities, including common stocks, partnership interests, business trust shares and other equity investments or ownership interests in business enterprises. The Fund's investments will include issuers of micro‑, small‑, medium- and large-capitalizations. The Fund's investments in foreign equity securities will be in both developed and emerging markets. The Fund currently intends to use only American Depositary Receipts (“ADRs”) when purchasing foreign securities. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund will be concentrated (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, more than 25% of the value of the Fund's assets) in securities of issuers having their principal business activities in the Internet information provider and catalog and mail order house industry. This concentration limit does not apply to securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. The Fund may invest in foreign securities (including investments in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”)) and securities listed on local foreign exchanges. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund is classified as a “non-diversified” investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), which means that it may invest a high percentage of its assets in a limited number of issuers. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">*    The Adviser defines the “internet of things” as a system of interrelated computing devices, mechanical and digital machines, or physical objects that are provided unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:15.15pt;margin-right:0in;margin-top:0in;text-indent:-.2in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">**  The Adviser believes that “Cryptocurrency” (notably, bitcoin), which is often referred to as “virtual currency” or “digital currency,” operates as a decentralized, peer-to-peer financial exchange and value storage that is used like money.</font></p>
Principal Risks
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">There is no assurance that the Fund will meet its investment objective. The value of your investment in the Fund, as well as the amount of return you receive on your investment in the Fund, may fluctuate significantly. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. Therefore, you should consider carefully the following risks before investing in the Fund. </font></b></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></b></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Authorized Participants Concentration Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund has a limited number of financial institutions that may act as Authorized Participants (“APs”) on an agency basis (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, on behalf of other market participants). To the extent that those APs exit the business or are unable to process creation and/or redemption orders, and no other AP is able to step forward to create and redeem in either of these cases, Shares may possibly trade at a discount to net asset value (“NAV”). The AP risk may be heightened in the case of ETFs investing internationally because international ETFs often require APs to post collateral, which only certain APs are able to do). </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Concentration Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund's assets will be concentrated in securities of issuers having their principal business activities in the Internet information provider and catalog and mail order house industry. To the extent that the Fund continues to be concentrated in the Internet information provider and catalog and mail order house industry, the Fund will be subject to the risk that economic, political, or other conditions that have a negative effect on such industry, and likely will negatively impact the Fund to a greater extent than if the Fund's assets were invested in a wider variety of sectors or industries. Please see also the “Internet Information Provider Company Risk” and “Catalog and Mail Order House Company Risk” disclosures below. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Cryptocurrency Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Cryptocurrency (notably, bitcoin), often referred to as “virtual currency” or “digital currency,” operates as a decentralized, peer-to-peer financial exchange and value storage that is used like money. The Fund may have exposure to bitcoin, a cryptocurrency, indirectly through an investment in the Bitcoin Investment Trust (“GBTC”), a privately offered, open-end investment vehicle. Cryptocurrency operates without central authority or banks and is not back by any government. Even indirectly, cryptocurrencies (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, bitcoin) may experience very high volatility and related investment vehicles like GBTC may be affected by such volatility. As a result of holding cryptocurrency, the Fund may also trade at a significant premium to NAV. Cryptocurrency is also not legal tender. Federal, state or foreign governments may restrict the use and exchange of cryptocurrency, and regulation in the U.S. is still developing. Cryptocurrency exchanges may stop operating or permanently shut down due to fraud, technical glitches, hackers or malware. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Cryptocurrency Tax Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Many significant aspects of the U.S. federal income tax treatment of investments in bitcoin are uncertain and an investment in bitcoin may produce income that is not treated as qualifying income for purposes of the income test applicable to regulated investment companies, such as the Fund. GBTC is expected to be treated as a grantor trust for U.S. federal income tax purposes, and therefore an investment by the Fund in GBTC will generally be treated as a direct investment in bitcoin for such purposes. See “Taxes” in the Fund's SAI for more information. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Cyber Security Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  As the use of Internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund's digital information systems through “hacking” or malicious software coding, but may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund's third-party service providers, such as its administrator, transfer agent or custodian, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber security breaches. While the Fund has established business continuity plans and risk management systems designed to reduce the risks associated with cyber security, there are inherent limitations in such plans and systems. Additionally, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers or third-party service providers. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Depositary Receipts Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  ADRs and GDRs are securities typically issued by a bank or trust company that evidence ownership of underlying securities issued by a foreign corporation and entitle the holder to all dividends and capital gains that are paid out on the underlying foreign securities. The issuers of certain depositary receipts are under no obligation to distribute shareholder communications to the holders of such receipts, or to pass through to them any voting rights with respect to the deposited securities. Investment in depositary receipts may be less liquid than the underlying shares in their primary trading market. Depositary receipts may not necessarily be denominated in the same currency as the underlying securities into which they may be converted. In addition, the issuers of the stock underlying unsponsored depositary receipts are not obligated to disclose material information in the United States. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Disruptive Innovation Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Companies that the Adviser believes are capitalizing on disruptive innovation and developing technologies to displace older technologies or create new markets may not in fact do so. Companies that initially develop a novel technology may not be able to capitalize on the technology. Companies that develop disruptive technologies may face political or legal attacks from competitors, industry groups or local and national governments. These companies may also be exposed to risks applicable to sectors other than the disruptive innovation theme for which they are chosen, and the securities issued by these companies may underperform the securities of other companies that are primarily focused on a particular theme. The Fund may invest in a company that does not currently derive any revenue from disruptive innovations or technologies, and there is no assurance that a company will derive any revenue from disruptive innovations or technologies in the future. A disruptive innovation or technology may constitute a small portion of a company's overall business. As a result, the success of a disruptive innovation or technology may not affect the value of the equity securities issued by the company. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Emerging Market Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Investment in securities of emerging market issuers may present risks that are greater than or different from those associated with foreign securities due to less developed and liquid markets and such factors as increased economic, political, regulatory, or other uncertainties. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Equity Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The value of the equity securities the Fund holds may fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Fund holds participate or factors relating to specific companies in which the Fund invests. Equity securities may also be particularly sensitive to general movements in the stock market, and a decline in the broader market may affect the value of the Fund's equity investments. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Financial Technology Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Companies that are developing financial technologies that seek to disrupt or displace established financial institutions generally face competition from much larger and more established firms. FinTech companies may not be able to capitalize on their disruptive technologies if they face political and/or legal attacks from competitors, industry groups or local and national governments. Laws generally vary by country, creating some challenges to achieving scale. A FinTech company may not currently derive any revenue, and there is no assurance that a FinTech company will derive any revenue from innovative technologies in the future. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Foreign Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">   The Fund's investments in foreign securities can be riskier than U.S. securities investments. Investments in the securities of foreign issuers (including investments in ADRs and 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. The Fund normally will not hedge any foreign currency exposure. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Information Technology Sector Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The information technology sector includes companies engaged in internet software and services, technology hardware and storage peripherals, electronic equipment instruments and components, and semiconductors and semiconductor equipment. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Information technology companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base, or achieve general market acceptance for their products could have a material adverse effect on a company's business. Companies in the information technology sector are heavily dependent on intellectual property and the loss of patent, copyright and trademark protections may adversely affect the profitability of these companies. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Internet Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Many Internet-related companies have incurred large losses since their inception and may continue to incur large losses in the hope of capturing market share and generating future revenues. Accordingly, many such companies expect to incur significant operating losses for the foreseeable future, and may never be profitable. The markets in which many Internet companies compete face rapidly evolving industry standards, frequent new service and product announcements, introductions and enhancements, and changing customer demands. The failure of an Internet company to adapt to such changes could have a material adverse effect on the company's business. Additionally, the widespread adoption of new Internet, networking, telecommunications technologies, or other technological changes could require substantial expenditures by an Internet company to modify or adapt its services or infrastructure, which could have a material adverse effect on an Internet company's business.</font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;font-family:Times New Roman,serif;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Semiconductor Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Competitive pressures may have a significant effect on the financial condition of semiconductor companies and, as product cycles shorten and manufacturing capacity increases, these companies may become increasingly subject to aggressive pricing, which hampers profitability. Reduced demand for end-user products, under-utilization of manufacturing capacity, and other factors could adversely impact the operating results of companies in the semiconductor sector. Semiconductor companies typically face high capital costs and may be heavily dependent on intellectual property rights. The semiconductor sector is highly cyclical, which may cause the operating results of many semiconductor companies to vary significantly. The stock prices of companies in the semiconductor sector have been and likely will continue to be extremely volatile.</font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;font-family:Times New Roman,serif;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Software Industry Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The software industry can be significantly affected by intense competition, aggressive pricing, technological innovations, and product obsolescence. Companies in the software industry are subject to significant competitive pressures, such as aggressive pricing, new market entrants, competition for market share, short product cycles due to an accelerated rate of technological developments and the potential for limited earnings and/or falling profit margins. These companies also face the risks that new services, equipment or technologies will not be accepted by consumers and businesses or will become rapidly obsolete. These factors can affect the profitability of these companies and, as a result, the value of their securities. Also, patent protection is integral to the success of many companies in this industry, and profitability can be affected materially by, among other things, the cost of obtaining (or failing to obtain) patent approvals, the cost of litigating patent infringement and the loss of patent protection for products (which significantly increases pricing pressures and can materially reduce profitability with respect to such products). In addition, many software companies have limited operating histories. Prices of these companies' securities historically have been more volatile than other securities, especially over the short term. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Issuer Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Because the Fund may invest in between 40 and 50 issuers, it is subject to the risk that the value of the Fund's portfolio may decline due to a decline in value of the equity securities of particular issuers. The value of an issuer's equity securities may decline for reasons directly related to the issuer, such as management performance and reduced demand for the issuer's goods or services. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Large-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Large-capitalization companies are generally less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the value of large-capitalization companies may not rise as much as that of companies with smaller market capitalizations. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Management Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  As an actively-managed ETF, the Fund is subject to management risk. The ability of the Adviser to successfully implement the Fund's investment strategies will significantly influence the Fund's performance. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Market Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The value of the Fund's assets will fluctuate as the markets in which the Fund invests fluctuate. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, such as inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters or events, terrorism, regulatory events and government controls, that affect large portions of the market. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Market Trading Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund faces numerous market trading risks, including disruptions to the creation and redemption processes of the Fund, losses from trading in secondary markets, the existence of extreme market volatility or potential lack of an active trading market for Shares, which may result in Shares trading at a significant premium or discount to their 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 align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Micro-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Micro-capitalization companies are subject to substantially greater risks of loss and price fluctuations because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses). Their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations. The shares of micro-capitalization companies tend to trade less frequently than those of larger, more established companies, which can adversely affect the pricing of these securities and the future ability to sell these securities. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Non-Diversified Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund is classified as a “non-diversified” investment company under the 1940 Act. Therefore, the Fund may invest a relatively higher percentage of its assets in a relatively 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 align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Small- and Medium-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Small- and medium-capitalization companies may be more volatile and more likely than large-capitalization companies to have narrower product lines, fewer financial resources, less management depth and experience and less competitive strength. Returns on investments in securities of small- and medium-capitalization companies could trail the returns on investments in securities of large-capitalization companies. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Web x.0 Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The risks described below apply, in particular, to the Fund's investment in Web x.0 Companies. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Internet Information Provider Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Internet information provider companies provide Internet navigation services and reference guide information and publish, provide or present proprietary advertising and/or third party content. Such companies often derive a large portion of their revenues from advertising, and a reduction in spending by or loss of advertisers could seriously harm their business. This business is rapidly evolving and intensely competitive, and is subject to changing technologies, shifting user needs, and frequent introductions of new products and services. The research and development of new, technologically advanced products is a complex and uncertain process requiring high levels of innovation and investment, as well as the accurate anticipation of technology, market trends and consumer needs. The number of people who access the Internet is increasing dramatically and a failure to attract and retain a substantial number of such users to a company's products and services or to develop products and technologies that are more compatible with alternative devices, could adversely affect operating results. Concerns regarding a company's products, services or processes that may compromise the privacy of users or other privacy related matters, even if unfounded, could damage a company's reputation and adversely affect operating results.</font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;font-family:Times New Roman,serif;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Catalog and Mail Order House Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Catalog and mail order house companies may be exposed to significant inventory risks that may adversely affect operating results due to, among other factors: seasonality, new product launches, rapid changes in product cycles and pricing, defective merchandise, changes in consumer demand and consumer spending patterns, or changes in consumer tastes with respect to products. Demand for products can change significantly between the time inventory or components are ordered and the date of sale. The acquisition of certain types of inventory or components may require significant lead-time and prepayment and they may not be returnable. Failure to adequately predict customer demand or otherwise optimize and operate distribution centers could result in excess or insufficient inventory or distribution capacity, result in increased costs, impairment charges, or both. The business of catalog and mail order house companies can be highly seasonal and failure to stock or restock popular products in sufficient amounts during high demand periods could significantly affect revenue and future growth. Increased website traffic during peak periods could cause system interruptions which may reduce the volume of goods sold and the attractiveness of a company's products and services.</font></p>
Performance
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year and since the Fund's inception compare with those of the S&P 500 Index and the MSCI World Index. The S&P 500 Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization sector of the U.S. stock market. The MSCI World Index represents large and mid-cap equity performance across 23 developed markets countries. Returns shown for the MSCI World Index are net of foreign withholding taxes applicable to U.S. investors. The Fund's past performance (before and after </font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">taxes) is not necessarily an indication of how the Fund will perform in the future. </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Updated performance information is available at no cost by visiting http://ark-funds.com or by calling (212) 426-7040</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">.</font></p>
<div style="display:none">~ http://ark-funds.com/role/RRBarChart24 ~</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund's year-to-date total return as of October 31, 2018 was 16.42%. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><div align="left"><table border="0" cellpadding="0" cellspacing="0" width="608" style="width:456.0pt;"> <tr> <td valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Best and Worst Quarter Returns (for the period reflected in the bar chart above)</font></b></p> </td> <td valign="bottom" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td colspan="3" valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Return</font></b></p> </td> <td valign="bottom" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td colspan="3" valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Quarter/Year</font></b></p> </td> </tr><tr> <td valign="bottom" style="background:#CCEEFF;padding:3.0pt 0in 3.0pt 10.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Highest Return</font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">21.60</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">% </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">06/30/2017</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> </tr><tr> <td valign="bottom" style="background:white;padding:3.0pt 0in 3.0pt 10.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Lowest Return</font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">-10.72</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">% </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">03/31/2016</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> </tr></table></div>
Average Annual Total Returns as of December 31, 2017
<div style="display:none">~ http://ark-funds.com/role/RRSchedule25 ~</div>
None
0.0075
0.0000
0.0000
0.0075
77
240
417
930
0.1529
0.0871
0.8718
Returns Before Taxes
Returns After Taxes on Distributions
Returns After Taxes on Distributions and Sale of Fund Shares
S&P 500 Index (reflects no deduction for fees, expenses or taxes)
MSCI World Index (reflects no deduction for fees, expenses or taxes)
0.8718
0.8587
0.4966
0.2183
0.224
0.3084
0.3022
0.2466
0.1203
0.0877
The 3D Printing ETF
Investment Objective
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The 3D Printing ETF (“Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Total 3D-Printing Index (“Index”). </font></p>
Fund Fees and Expenses
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The table below describes the fees and expenses that you pay if you buy and hold shares of the Fund (“Shares”). Investors may pay brokerage commissions on their purchases and sales of Shares. </font></p>
Shareholder Fees (fees paid directly from your investment)
<div style="display:none">~ http://ark-funds.com/role/RRSchedule27 ~</div>
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
<div style="display:none">~ http://ark-funds.com/role/RRSchedule28 ~</div>
Example
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">This 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 brokerage commissions that you pay when purchasing or selling Shares. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your Shares at the end of those periods. The example also assumes that your investment has a 5% annual return and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </font></p>
<div style="display:none">~ http://ark-funds.com/role/RRSchedule29 ~</div>
Portfolio Turnover
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it purchases and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may result in higher transaction costs and 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, may affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 53% of the average value of its portfolio. </font></p>
Principal Investment Strategies
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund normally invests at least 80% of its total assets in securities that are included in the Fund's benchmark Index, depositary receipts representing securities included in the Index or underlying stocks in respect of depositary receipts included in the Index. This 80% investment policy is non-fundamental and may be changed without shareholder approval upon 60 days' prior written notice to shareholders. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Index is designed to track the price movements of stocks of companies involved in the 3D printing industry. The Index has been created and licensed to the Fund by ARK's Index Products Group and is calculated, published and distributed by Solactive AG (“Solactive”). Information regarding the Index is available at http://www.solactive.com. The Index is composed of equity securities and depositary receipts of exchange listed companies from the U.S., non-U.S. developed markets and Taiwan that are engaged in 3D printing related businesses within the following business lines: (i) 3D printing hardware, (ii) computer aided design (“CAD”) and 3D printing simulation software, (iii) 3D printing centers, (iv) scanning and measurement, and (v) 3D printing materials. The Index assigns a pre-determined weighting to each business line and all companies within each business line are equally weighted within the business line. As of November 6, 2018, the Index included 49 securities of companies with a market capitalization range of between approximately $116 million and $832 billion and a weighted average market capitalization of $45 billion. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">At least 80% of the companies in the Index derive at least 50% of their earnings or revenues or at least 50% of their assets are devoted to the development or distribution of equipment, materials, and software primarily used in 3D printing or 3D printed products. In addition, at least 80% of the assets of the Fund will be comprised of companies that derive at least 50% of their earnings or revenues or at least 50% of their assets are devoted to the development or distribution of equipment, materials, and software primarily used in 3D printing or 3D printed products. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund, using an indexing investment approach, attempts to approximate, before fees and expenses, the investment performance of the Index by investing in a portfolio of securities that generally replicates the Index. The Fund generally will use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of the Index in approximately the same proportions as in the Index. However, the Fund may utilize a representative sampling strategy with respect to the Index when it might not be possible or practicable to purchase all of the securities of the Index in approximately the same proportions as in the Index, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of securities to replicate the Index, in instances in which a security in the Index becomes temporarily illiquid, unavailable or less liquid, or as a result of legal restrictions or limitations (such as tax diversification requirements) that apply to the Fund but not the Index. There also may be instances in which the Adviser may choose to underweight or overweight a security in the Index, purchase securities not in the Index that the Adviser believes are appropriate to substitute for certain securities in the Index or utilize various combinations of other available investment techniques in seeking to replicate as closely as possible, before fees and expenses, the performance of the Index. The Fund may sell securities that are represented in the Index in anticipation of their removal from the Index or purchase securities not represented in the Index in anticipation of their addition to the Index. The Fund does not take temporary defensive positions when markets decline or appear overvalued. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Adviser expects that, over time, the correlation between the Fund's performance and that of the Index, before fees and expenses, will exceed 95%. A correlation percentage of 100% would indicate perfect correlation. If the Fund uses a replication strategy, it can be expected to have greater correlation to the Index than if it uses a representative sampling strategy. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund may concentrate its investments in a particular industry or group of industries to the extent that the Index concentrates in an industry or group of industries. Based on the composition of the Index as of November 6, 2018, the Technology Hardware, Storage & Peripherals, Software, and Machinery industries represented a significant portion of the Index. The Fund may invest in foreign securities (including investments in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”)) and securities listed on local foreign exchanges. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund is classified as a “non-diversified” investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), which means that it may invest a high percentage of its assets in a limited number of issuers. </font></p>
Principal Risks
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">There is no assurance that the Fund will meet its investment objective. The value of your investment in the Fund, as well as the amount of return you receive on your investment in the Fund, may fluctuate significantly. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. Therefore, you should consider carefully the following risks before investing in the Fund.</font></b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Authorized Participants Concentration Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund has a limited number of financial institutions that may act as Authorized Participants (“APs”) on an agency basis (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, on behalf of other market participants). To the extent that those APs exit the business or are unable to process creation and/or redemption orders, and no other AP is able to step forward to create and redeem in either of these cases, Shares may possibly trade at a discount to net asset value (“NAV”). The AP risk may be heightened in the case of exchange-traded funds (“ETFs”) investing internationally because international ETFs often require APs to post collateral, which only certain APs are able to do). </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Concentration/Focused Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund's assets may be concentrated in a particular industry or group of industries to the extent the Index concentrates in a particular industry or group of industries. Based on the composition of the Index as of November 6, 2018, the Technology Hardware, Storage & Peripherals, Software, and Machinery industries represented a significant portion of the Index. Therefore, the Fund will be subject to the risk that economic, political or other conditions that have a negative effect on one or more of those identified industries or sectors may negatively impact the Fund to a greater extent than if the Fund's assets were invested in a wider variety of industries or sectors.</font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Cyber Security Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  As the use of Internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund's digital information systems through “hacking” or malicious software coding, but may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund's third-party service providers, such as its administrator, transfer agent or custodian, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber security breaches. While the Fund has established business continuity plans and risk management systems designed to reduce the risks associated with cyber security, there are inherent limitations in such plans and systems. Additionally, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers or third-party service providers. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Depositary Receipts Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund may invest in depositary receipts, which involve similar risks to those associated with investments in foreign securities. Depositary receipts are receipts listed on U.S. or foreign exchanges issued by banks or trust companies that entitle the holder to all dividends and capital gains that are paid out on the underlying foreign shares. Investments in depositary receipts may be less liquid than the underlying shares in their primary trading market and, if not included in the Index, may negatively affect the Fund's ability to replicate the performance of the Index. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Equity Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The value of the equity securities the Fund holds may fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Fund holds participate or factors relating to specific companies in which the Fund invests. Equity securities may also be particularly sensitive to general movements in the stock market, and a decline in the broader market may affect the value of the Fund's equity investments. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Foreign Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund's investments in foreign securities can be riskier than U.S. securities investments. Investments in the securities of foreign issuers (including investments in ADRs and 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. The Fund normally will not hedge any foreign currency exposure. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Index Tracking Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund's return may not track the performance of the Index for a number of reasons. For example, the Fund incurs a number of operating expenses not applicable to the Index and incurs costs associated with buying and selling securities, especially when rebalancing the Fund's securities holdings to reflect changes in the composition of the Index. The Fund also bears the costs and risks associated with buying and selling securities while such costs and risks are not factored into the return of the Index. In addition, the Fund may not be able to invest in certain securities included in the Index or may not be able to invest in them in the exact proportions in which they are represented in the Index, due to legal restrictions or limitations imposed by the governments of certain countries, potential adverse tax consequences or other regulatory reasons. The risk that the Fund may not track the performance of the Index may be magnified during times of heightened market volatility or other unusual market conditions. To the extent the Fund calculates its NAV based on “fair value” prices for certain securities and the value of the Index is based on securities' closing prices (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, the value of the Index is not based on “fair value” prices), the Fund's ability to track the Index may be adversely affected. For tax efficiency purposes, the Fund may sell certain securities to realize losses causing it to deviate from the Index. Errors in the construction or calculation of the Index may occur from time to time and any such errors may not be immediately identified and corrected by Solactive, which may have an adverse impact on the Fund and its shareholders. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Industrials Sector Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The industrials sector includes companies engaged in aerospace and defense, electrical engineering, machinery, and professional services. Companies in the industrials sector may be adversely affected by changes in government regulation, world events and economic conditions. In addition, companies in the industrials sector may be adversely affected by environmental damages, product liability claims and exchange rates. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:30.2pt;margin-right:0in;margin-top:0in;text-indent:-15.1pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">     </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Machinery Industry Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The machinery industry can be significantly affected by general economic trends, including employment, economic growth, and interest rates; changes in consumer sentiment and spending; overall capital spending levels, which are influenced by an individual company's profitability and broader factors such as interest rates and foreign competition; commodity prices; technical obsolescence; labor relations legislation; government regulation and spending; import controls; and worldwide competition. Companies in this industry also can be adversely affected by liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Information Technology Sector Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The information technology sector includes companies engaged in Internet software and services, technology hardware and storage peripherals, electronic equipment instruments and components, and semiconductors and semiconductor equipment. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Information technology companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face product rapid obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base, or achieve general market acceptance for their products could have a material adverse effect on a company's business. Companies in the information technology sector are heavily dependent on intellectual property and the loss of patent, copyright and trademark protections may adversely affect the profitability of these companies.</font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:30.2pt;margin-right:0in;margin-top:0in;text-indent:-15.1pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">     </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Software Industry Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The software industry can be significantly affected by intense competition, aggressive pricing, technological innovations, and product obsolescence. Companies in the software industry are subject to significant competitive pressures, such as aggressive pricing, new market entrants, competition for market share, short product cycles due to an accelerated rate of technological developments and the potential for limited earnings and/or falling profit margins. These companies also face the risks that new services, equipment or technologies will not be accepted by consumers and businesses or will become rapidly obsolete. These factors can affect the profitability of these companies and, as a result, the value of their securities. Also, patent protection is integral to the success of many companies in this industry, and profitability can be affected materially by, among other things, the cost of obtaining (or failing to obtain) patent approvals, the cost of litigating patent infringement and the loss of patent protection for products (which significantly increases pricing pressures and can materially reduce profitability with respect to such products). In addition, many software companies have limited operating histories. Prices of these companies' securities historically have been more volatile than other securities, especially over the short term. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">International Closed-Market Trading Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Because certain of the Fund's underlying securities trade on an exchange that is closed when the securities exchange on which Fund Shares list and trade is open, there are likely to be deviations between the current pricing of an underlying security and stale security pricing (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, the last quote from its closed foreign market), likely resulting in premiums or discounts to NAV that may be greater than those experienced by ETFs that do not invest in foreign securities. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Investable Universe of Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The investable universe of companies in which the Fund may invest may be limited. If a company no longer meets the criteria for inclusion in the Index, the Fund may need to reduce or eliminate its holdings in that company from the Fund. The reduction or elimination of the Fund's holdings in the company may have an adverse impact on the liquidity of the Fund's underlying portfolio holdings and on Fund performance. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Issuer Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund is subject to the risk that the value of the Fund's portfolio may decline due to a decline in value of the equity securities of particular issuers. The value of an issuer's equity securities may decline for reasons directly related to the issuer, such as management performance and reduced demand for the issuer's goods or services. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Large-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Large-capitalization companies are generally less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the value of large-capitalization companies may not rise as much as that of companies with smaller market capitalizations. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Market Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The value of the Fund's assets will fluctuate as the markets in which the Fund invests fluctuate. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, such as inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters or events, terrorism, regulatory events and government controls, that affect large portions of the market. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Market Trading Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund faces numerous market trading risks, including disruptions to the creation and redemption processes of the Fund, losses from trading in secondary markets, the existence of extreme market volatility or potential lack of an active trading market for Shares, which may result in Shares trading at a significant premium or discount to their 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 align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Micro-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Micro-capitalization companies are subject to substantially greater risks of loss and price fluctuations because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses). Their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations. The shares of micro-capitalization companies tend to trade less frequently than those of larger, more established companies, which can adversely affect the pricing of these securities and the future ability to sell these securities. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Non-Diversified Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund is classified as a “non-diversified” investment company under the 1940 Act. Therefore, the Fund may invest a relatively higher percentage of its assets in a relatively 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 align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Portfolio Turnover Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Index is adjusted to add or remove companies once per quarter and upon certain extraordinary events or corporate actions affecting a company that is included in the Index. As companies leave and enter the Index, the Fund's portfolio will be adjusted to match the current Index composition. This process can result in the realization of capital gains or losses and can have adverse tax consequences for you as an investor. Because the Fund will buy and sell securities as needed to maintain its correlation to the Index, portfolio turnover in the Fund may be substantial. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Replication Management Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  An investment in the Fund involves risks similar to those of investing in any fund of equity securities traded on an exchange, such as market fluctuations caused by such factors as economic and political developments, changes in interest rates and perceived trends in security prices. However, because the Fund is not “actively” managed, unless a specific security is removed from the Index through quarterly rebalancing or otherwise because it no longer qualifies to be included in the Index, the Fund generally will not sell a security because the security's issuer is in financial trouble. Therefore, the Fund's performance could be lower than funds that may actively shift their portfolio assets to take advantage of market opportunities or to lessen the impact of a market decline or a decline in the value of one or more issuers. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Sampling Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund's use of a representative sampling approach may result in it holding a smaller number of securities than are in the Index. As a result, an adverse development respecting an issuer of securities held by the Fund could result in a greater decline in NAV than would be the case if the Fund held all of the securities in the Index. Conversely, a positive development relating to an issuer of securities in the Index that is not held by the Fund could cause the Fund to underperform the Index. To the extent the assets in the Fund are smaller, these risks will be greater. A representative sampling strategy may increase the Fund's susceptibility to Index Tracking Risk. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Small- and Medium-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Small- and medium-capitalization companies may be more volatile and more likely than large-capitalization companies to have narrower product lines, fewer financial resources, less management depth and experience and less competitive strength. Returns on investments in securities of small- and medium-capitalization companies could trail the returns on investments in securities of large-capitalization companies. </font></p>
Performance
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year and since the Fund's inception compare with those of the Index, the S&P 500 Index and the MSCI World Index. The S&P 500 Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization sector of the U.S. stock market. The MSCI World Index represents large and mid-cap equity performance across 23 developed markets countries. Returns shown for the MSCI World Index are net of foreign withholding taxes applicable to U.S. investors. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Updated performance information is available at no cost by visiting http://ark-funds.com or by calling (212) 426-7040</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">. </font></p>
<div style="display:none">~ http://ark-funds.com/role/RRBarChart30 ~</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font color="black" lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund's year-to-date total return as of October 31, 2018 was -10.89%.</font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><div align="left"><table border="0" cellpadding="0" cellspacing="0" width="608" style="width:456.0pt;"> <tr> <td valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Best and Worst Quarter Returns (for the period reflected in the bar chart above)</font></b></p> </td> <td valign="bottom" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td colspan="3" valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Return</font></b></p> </td> <td valign="bottom" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td colspan="3" valign="bottom" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font style="font-family:Arial,sans-serif;font-size:8.0pt;line-height:normal;">Quarter/Year</font></b></p> </td> </tr><tr> <td valign="bottom" style="background:#CCEEFF;padding:3.0pt 0in 3.0pt 10.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Highest Return</font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font color="black" style="background:#CCEEFF;font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">9.48</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">% </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">06/30/2017</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:#CCEEFF;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> </tr><tr> <td valign="bottom" style="background:white;padding:3.0pt 0in 3.0pt 10.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Lowest Return</font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">-4.36</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">% </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> <td valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">12/31/2017</font></p> </td> <td nowrap="nowrap" valign="bottom" style="background:white;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> </td> </tr></table></div>
Average Annual Total Returns as of December 31, 2017
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None
0.0065
0.0000
0.0001
0.0066
67
211
368
822
0.1776
Returns Before Taxes
Returns After Taxes on Distributions
Returns After Taxes on Distributions and Sale of Fund Shares
The Total 3-D Printing Index
S&P 500 Index (reflects no deduction for fees, expenses or taxes)
MSCI World Index (reflects no deduction for fees, expenses or taxes)
0.1776
0.1684
0.1021
0.1941
0.2183
0.224
0.1604
0.1541
0.1209
0.1741
0.1794
0.1772
ARK Israel Innovative Technology ETF
Investment Objective
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The ARK Israel Innovative Technology ETF (“Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the ARK Israeli Innovation Index (“Index”). </font></p>
Fund Fees and Expenses
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The table below describes the fees and expenses that you pay if you buy and hold shares of the Fund (“Shares”). Investors may pay brokerage commissions on their purchases and sales of Shares. </font></p>
Shareholder Fees (fees paid directly from your investment)
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Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
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Example
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">This 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 brokerage commissions that you pay when purchasing or selling Shares. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your Shares at the end of those periods. The example also assumes that your investment has a 5% annual return and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </font></p>
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Portfolio Turnover
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it purchases and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may result in higher transaction costs and 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, may affect the Fund's performance. This Fund is newly offered. Therefore, it does not have a turnover rate to report for the most recent fiscal year. The Fund's portfolio turnover rate for the period from commencement of operation on December 5, 2017 through July 31, 2018 was 40%. </font></p>
Principal Investment Strategies
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund normally invests at least 80% of its total assets in securities that are included in the Fund's benchmark Index, depositary receipts representing securities included in the Index or underlying stocks in respect of depositary receipts included in the Index. This 80% investment policy is non-fundamental and may be changed without shareholder approval upon 60 days' prior written notice to shareholders. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Index is designed to track the price movements of exchange listed Israeli Companies (as defined herein) whose main business operations are causing disruptive innovation in the areas of genomics, health care, biotechnology, industrials, manufacturing, the Internet or information technology. The Index has been created and licensed to the Fund by ARK's Index Products Group and is calculated, published and distributed by Solactive AG (“Solactive”). Information regarding the Index is available at http://www.solactive.com. The Index includes equity securities and depositary receipts of exchange listed companies that are incorporated and/or domiciled in Israel (“Israeli Companies”) and are included in one of the following economic sectors as defined by FactSet Research Systems: (i) health technology, (ii) communications, (iii) technology services, (iv) electronic technology, (v) consumer services, or (vi) producer manufacturing. Securities in the Index are equally weighted and weightings are rebalanced quarterly. As of November 6, 2018, the Index included 41 securities of companies with a market capitalization range of between approximately $102 million and $25 billion and a weighted average market capitalization of $2.3 billion. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund, using an indexing investment approach, attempts to approximate, before fees and expenses, the investment performance of the Index by investing in a portfolio of securities that generally replicates the Index. The Fund generally will use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of the Index in approximately the same proportions as in the Index. However, the Fund may utilize a representative sampling strategy with respect to the Index when it might not be possible or practicable to purchase all of the securities of the Index in approximately the same proportions as in the Index. Such instances may include when there are practical difficulties or substantial costs involved in compiling a portfolio of securities to replicate the Index, in instances in which a security in the Index becomes temporarily illiquid, unavailable or less liquid, or as a result of legal restrictions or limitations (such as tax diversification requirements) that apply to the Fund but not the Index. There also may be instances in which the Adviser may choose to underweight or overweight a security in the Index, purchase securities not in the Index that the Adviser believes are appropriate to substitute for certain securities in the Index or utilize various combinations of other available investment techniques in seeking to replicate as closely as possible, before fees and expenses, the performance of the Index. The Fund may sell securities that are represented in the Index in anticipation of their removal from the Index or purchase securities not represented in the Index in anticipation of their addition to the Index. The Fund does not seek temporary defensive positions when markets decline or appear overvalued. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Adviser expects that, over time, the correlation between the Fund's performance and that of the Index, before fees and expenses, will exceed 95%. A correlation percentage of 100% would indicate perfect correlation. If the Fund uses a replication strategy, it can be expected to have greater correlation to the Index than if it uses a representative sampling strategy. The Fund may concentrate its investments in a particular industry or group of industries to the extent that the Index concentrates in an industry or group of industries. The Fund may invest in foreign securities (including investments in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”)) and securities listed on local foreign exchanges. </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund is classified as a “non-diversified” investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), which means that it may invest a high percentage of its assets in a limited number of issuers. </font></p>
Principal Risks
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">There is no assurance that the Fund will meet its investment objective. The value of your investment in the Fund, as well as the amount of return you receive on your investment in the Fund, may fluctuate significantly. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. Therefore, you should consider carefully the following risks before investing in the Fund.</font></b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Authorized Participants Concentration Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund has a limited number of financial institutions that may act as Authorized Participants (“APs”) on an agency basis (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, on behalf of other market participants). To the extent that those APs exit the business or are unable to process creation and/or redemption orders, and no other AP is able to step forward to create and redeem in either of these cases, Shares may possibly trade at a discount to net asset value (“NAV”). The AP risk may be heightened in the case of exchange-traded funds (“ETFs”) investing internationally because international ETFs often require APs to post collateral, which only certain APs are able to do. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Cyber Security Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  As the use of Internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund's digital information systems through “hacking” or malicious software coding, but may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund's third-party service providers, such as its administrator, transfer agent or custodian, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber security breaches. While the Fund has established business continuity plans and risk management systems designed to reduce the risks associated with cyber security, there are inherent limitations in such plans and systems. Additionally, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers or third-party service providers. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Depositary Receipts Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund may invest in depositary receipts, which involve similar risks to those associated with investments in foreign securities. Depositary receipts are receipts listed on U.S. or foreign exchanges issued by banks or trust companies that entitle the holder to all dividends and capital gains that are paid out on the underlying foreign shares. Investments in depositary receipts may be less liquid than the underlying shares in their primary trading market and, if not included in the Index, may negatively affect the Fund's ability to replicate the performance of the Index. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></i></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Equity Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The value of the equity securities the Fund holds may fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Fund holds participate or factors relating to specific companies in which the Fund invests. Equity securities may also be particularly sensitive to general movements in the stock market, and a decline in the broader market may affect the value of the Fund's equity investments. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Focused Investment Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund's assets will be focused on Israeli Companies. Therefore, the Fund will be subject to the risk that certain economic, political or other conditions may have a negative effect on Israeli securities or companies. The Fund's assets may be concentrated in a particular industry or group of industries to the extent the Index concentrates in a particular industry or group of industries. The Fund's assets also may be focused in a particular sector or sectors to the extent the Index focuses in a certain sector or sectors. Based on the composition of the Index as of November 6, 2018, the health care sector and information technology sector represented a significant portion of the Index. Thus, adverse consequences to companies within the health care sector and information technology sector may negatively impact the Fund to a greater extent than if the Fund's assets were invested in a wider variety of sectors. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Foreign Securities Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund's investments in foreign securities can be riskier than U.S. securities investments. Investments in the securities of foreign issuers (including investments in ADRs and 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. The Fund normally will not hedge any foreign currency exposure. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Health Care Sector Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The health care sector may be affected by government regulations and government health care programs, restrictions on government reimbursement for medical expenses, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care companies are (i) heavily dependent on patent protection and intellectual property rights and the expiration of a patent may adversely affect their profitability, (ii) subject to extensive litigation based on product liability and similar claims, and (iii) subject to competitive forces that may make it difficult to raise prices and, in fact, may result in price discounting. Many health care products and services may be subject to regulatory approvals. The process of obtaining such approvals may be long and costly, and delays or failure to receive such approvals may negatively impact the business of such companies. Additional or more stringent laws and regulations enacted in the future could have a material adverse effect on such companies in the health care sector. In addition, issuers in the health care sector include issuers having their principal activities in the biotechnology industry, medical laboratories and research, drug laboratories and research and drug manufacturers, which have the additional risks described below. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Biotechnology Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  A biotechnology company's valuation can often be based largely on the potential or actual performance of a limited number of products and can accordingly be greatly affected if one of its products proves, among other things, unsafe, ineffective or unprofitable. Biotechnology companies are subject to regulation by, and the restrictions of, the U.S. Food and Drug Administration, the U.S. Environmental Protection Agency, state and local governments, and foreign regulatory authorities.</font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;font-family:Times New Roman,serif;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Pharmaceutical Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Companies in the pharmaceutical industry can be significantly affected by, among other things, government approval of products and services, government regulation and reimbursement rates, product liability claims, patent expirations and protection and intense competition. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></i></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Index Tracking Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund's return may not track the performance of the Index for a number of reasons. For example, the Fund incurs a number of operating expenses not applicable to the Index and incurs costs associated with buying and selling securities, especially when rebalancing the Fund's securities holdings to reflect changes in the composition of the Index. The Fund also bears the costs and risks associated with buying and selling securities while such costs and risks are not factored into the return of the Index. In addition, the Fund may not be able to invest in certain securities included in the Index, or may not be able to invest in them in the exact proportions in which they are represented in the Index, due to legal restrictions or limitations imposed by the governments of certain countries, potential adverse tax consequences or other regulatory reasons. The risk that the Fund may not track the performance of the Index may be magnified during times of heightened market volatility or other unusual market conditions. To the extent the Fund calculates its NAV based on “fair value” prices for certain securities and the value of the Index is based on securities' closing prices (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, the value of the Index is not based on “fair value” prices), the Fund's ability to track the Index may be adversely affected. For tax efficiency purposes, the Fund may sell certain securities to realize losses causing it to deviate from the Index. Errors in the construction or calculation of the Index may occur from time to time and any such errors may not be immediately identified and corrected by Solactive, which may have an adverse impact on the Fund and its shareholders. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Industrials Sector Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The industrials sector includes companies engaged in the aerospace and defense industry, electrical engineering, machinery, and professional services. Companies in the industrials sector may be adversely affected by changes in government regulation, world events and economic conditions. In addition, companies in the industrials sector may be adversely affected by environmental damages, product liability claims and exchange rates. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Aerospace and Defense Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Companies in the aerospace and defense industry rely to a large extent on U.S. and Israel (and other) Government demand for their products and services and may be significantly affected by changes in government regulations and spending, as well as economic conditions and industry consolidation.</font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;font-family:Times New Roman,serif;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Professional Services Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Professional services companies may be materially impacted by economic conditions and related fluctuations in client demand for marketing, business, technology and other consulting services. Professional services companies' success depends in large part on attracting and retaining key employees and a failure to do so could adversely affect a company's business. There are relatively few barriers to entry into the professional services market, and new competitors could readily seek to compete in one or more market segments, which could adversely affect a professional services company's operating results through pricing pressure and loss of market share. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></i></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Information Technology Sector Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The information technology sector includes companies engaged in internet software and services, technology hardware and storage peripherals, electronic equipment instruments and components, and semiconductors and semiconductor equipment. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Information technology companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base or achieve general market acceptance for their products could have a material adverse effect on a company's business. Companies in the information technology sector are heavily dependent on intellectual property and the loss of patent, copyright and trademark protections may adversely affect the profitability of these companies. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Internet Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Many Internet-related companies have incurred large losses since their inception and may continue to incur large losses in the hope of capturing market share and generating future revenues. Accordingly, many such companies expect to incur significant operating losses for the foreseeable future, and may never be profitable. The markets in which many Internet companies compete face rapidly evolving industry standards, frequent new service and product announcements, introductions and enhancements, and changing customer demands. The failure of an Internet company to adapt to such changes could have a material adverse effect on the company's business. Additionally, the widespread adoption of new Internet, networking, telecommunications technologies, or other technological changes could require substantial expenditures by an Internet company to modify or adapt its services or infrastructure, which could have a material adverse effect on an Internet company's business.</font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;font-family:Times New Roman,serif;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Semiconductor Company Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Competitive pressures may have a significant effect on the financial condition of semiconductor companies and, as product cycles shorten and manufacturing capacity increases, these companies may become increasingly subject to aggressive pricing, which hampers profitability. Reduced demand for end-user products, under-utilization of manufacturing capacity, and other factors could adversely impact the operating results of companies in the semiconductor sector. Semiconductor companies typically face high capital costs and may be heavily dependent on intellectual property rights. The semiconductor sector is highly cyclical, which may cause the operating results of many semiconductor companies to vary significantly. The stock prices of companies in the semiconductor sector have been and likely will continue to be extremely volatile.</font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font style="display:none;font-family:Times New Roman,serif;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></font></p><p style="margin-bottom:.0001pt;margin-left:31.7pt;margin-right:0in;margin-top:0in;text-indent:-15.85pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">•</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">      </font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Software Industry Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The software industry can be significantly affected by intense competition, aggressive pricing, technological innovations, and product obsolescence. Companies in the software industry are subject to significant competitive pressures, such as aggressive pricing, new market entrants, competition for market share, short product cycles due to an accelerated rate of technological developments and the potential for limited earnings and/or falling profit margins. These companies also face the risks that new services, equipment or technologies will not be accepted by consumers and businesses or will become rapidly obsolete. These factors can affect the profitability of these companies and, as a result, the value of their securities. Also, patent protection is integral to the success of many companies in this industry, and profitability can be affected materially by, among other things, the cost of obtaining (or failing to obtain) patent approvals, the cost of litigating patent infringement and the loss of patent protection for products (which significantly increases pricing pressures and can materially reduce profitability with respect to such products). In addition, many software companies have limited operating histories. Prices of these companies' securities historically have been more volatile than other securities, especially over the short term. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></i></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">International Closed-Market Trading Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Because certain of the Fund's underlying securities trade on an exchange that is closed when the securities exchange on which Fund Shares list and trade is open, there are likely to be deviations between the current pricing of an underlying security and stale security pricing (</font><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">, the last quote from its closed foreign market), likely resulting in premiums or discounts to NAV that may be greater than those experienced by ETFs that do not invest in foreign securities. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Innovative Technology Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Companies that are developing technologies to displace older technologies or create new markets may not in fact do so. Companies that initially develop a novel technology may not be able to capitalize on the technology. Companies that develop disruptive technologies may face political or legal attacks from competitors, industry groups or local and national governments. A company may not currently derive any revenue from innovative technologies, and there is no assurance that a company will derive any revenue from innovative technologies in the future. An innovative technology may constitute a small portion of a company's overall business. As a result, the success of an innovative technology may not affect the value of the equity securities issued by the company. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Investable Universe of Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The investable universe of companies in which the Fund may invest is limited. If a company no longer meets the criteria for inclusion in the Index, the Fund may need to reduce or eliminate its holdings in that company from the Fund. The reduction or elimination of the Fund's holdings in the company may have an adverse impact on the liquidity of the Fund's underlying portfolio holdings and on Fund performance. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Israel Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Because the Fund invests in securities of Israeli Companies, the Fund may be exposed to special risks and considerations. There may be less information concerning the securities of Israeli Companies available to the public than the securities of U.S. companies. There is also potential difficulty in obtaining or enforcing a court judgment, and the unique characteristics of securities of Israeli Companies and the Israel stock market may have a negative impact on the Fund. Any major hostilities involving Israel, including hostilities with neighboring countries, or the interruption or curtailment of trade between Israel and its present trading partners, could have a negative impact on the Fund. Shares and dividends of Israeli Companies are often Israeli new shekel (“ILS”) denominated. Changes in the relationship of the ILS to the U.S. dollar and other currencies could have a negative impact on the Fund. The government of Israel may change the way in which Israeli Companies are taxed, or may impose taxes on foreign investment. Such actions could have an adverse impact on the overall market for securities of Israeli Companies and on the Fund. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Issuer Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund is subject to the risk that the value of the Fund's portfolio may decline due to a decline in value of the equity securities of particular issuers. The value of an issuer's equity securities may decline for reasons directly related to the issuer, such as management performance and reduced demand for the issuer's goods or services. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Large-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Large-capitalization companies are generally less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the value of large-capitalization companies may not rise as much as that of companies with smaller market capitalizations. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Limited Operating History Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund has limited operating history for investors to evaluate. There can be no assurance that the Fund will grow to or maintain an economically viable size. The Fund may liquidate and terminate at any time without shareholder approval. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Market Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The value of the Fund's assets will fluctuate as the markets in which the Fund invests fluctuate. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, such as inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters or events, terrorism, regulatory events and government controls, that affect large portions of the market. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Market Trading Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund faces numerous market trading risks, including disruptions to the creation and redemption processes of the Fund, losses from trading in secondary markets, the existence of extreme market volatility or potential lack of an active trading market for Shares, which may result in Shares trading at a significant premium or discount to their 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 align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Micro-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Micro-capitalization companies are subject to substantially greater risks of loss and price fluctuations because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses). Their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations. The shares of micro-capitalization companies tend to trade less frequently than those of larger, more established companies, can adversely affect the pricing of these securities and the future ability to sell these securities. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Non-Diversified Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund is classified as a “non-diversified” investment company under the 1940 Act. Therefore, the Fund may invest a relatively higher percentage of its assets in a relatively 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 align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Portfolio Turnover Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Index is adjusted to add or remove companies once per quarter and upon certain extraordinary events or corporate actions affecting a company that is included in the Index. As companies leave and enter the Index, the Fund's portfolio will be adjusted to match the current Index composition. This practice can result in the realization of capital gains or losses and can have adverse tax consequences for you as an investor. Because the Fund will buy and sell securities as needed to maintain its correlation to the Index, portfolio turnover in the Fund may be substantial. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Replication Management Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  An investment in the Fund involves risks similar to those of investing in any fund of equity securities traded on an exchange, such as market fluctuations caused by such factors as economic and political developments, changes in interest rates and perceived trends in security prices. However, because the Fund is not “actively” managed, unless a specific security is removed from the Index through quarterly rebalancing or otherwise because it no longer qualifies to be included in the Index, the Fund generally will not sell a security because the security's issuer is in financial trouble. Therefore, the Fund's performance could be lower than funds that may actively shift their portfolio assets to take advantage of market opportunities or to lessen the impact of a market decline or a decline in the value of one or more issuers. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Sampling Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  The Fund's use of a representative sampling approach may result in it holding a smaller number of securities than are in the Index. As a result, an adverse development respecting an issuer of securities held by the Fund could result in a greater decline in NAV than would be the case if the Fund held all of the securities in the Index. Conversely, a positive development relating to an issuer of securities in the Index that is not held by the Fund could cause the Fund to underperform the Index. To the extent the assets in the Fund are smaller, these risks will be greater. A representative sampling strategy may increase the Fund's susceptibility to Index Tracking Risk. </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;"> </font></p><p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">Small- and Medium-Capitalization Companies Risk.</font></i><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">  Small- and medium-capitalization companies may be more volatile and more likely than large-capitalization companies to have narrower product lines, fewer financial resources, less management depth and experience and less competitive strength. Returns on investments in securities of small- and medium-capitalization companies could trail the returns on investments in securities of large-capitalization companies. </font></p>
Performance
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;vertical-align:top;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:10.0pt;line-height:normal;">The Fund commenced operations on December 5, 2017. Performance history will be available for the Fund after it has been in operation for a full calendar year. Once available, the Fund's performance information will be accessible on the Fund's website at http://ark-funds.com.</font></p>
None
0.0048
0.0000
0.0001
0.0049
50
157
274
616
0.89
Investors may pay brokerage commissions on their purchases and sales of Shares.
You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments.
The Fund is classified as a “non-diversified” investment company under the 1940 Act. Therefore, the Fund may invest a relatively higher percentage of its assets in a relatively 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.
The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund’s performance from year to year. The table shows how the Fund’s average annual returns for 1 year and since the Fund’s inception compare with those of the NASDAQ Industrials Index, the S&P 500 Index and the MSCI World Index. The NASDAQ Industrial Index contains securities of NASDAQ-listed companies not classified in one of the NASDAQ sector indexes. These include firms that are involved in oil and gas production, oil equipment, services & distribution, chemicals, forestry and paper, industrial metals, mining, construction and materials, aerospace and defense, general industrials, electronic and electrical equipment, industrial engineering, support services, automobiles and parts, beverages, food producers, household goods, leisure goods, personal goods, tobacco, food and drug retailers, general retailers, media, gambling, hotels, recreational services, restaurants and bars, travel & tourism, electricity, gas distribution, water, and multi-utilities. The S&P 500 Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization sector of the U.S. stock market. The MSCI World Index represents large and mid-cap equity performance across 23 developed markets countries. Returns shown for the MSCI World Index are net of foreign withholding taxes applicable to U.S. investors.
(212) 426-7040
The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
http://ark-funds.com
reflects no deduction for fees, expenses or taxes
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.
year-to-date total return
2018-10-31
0.1505
Highest Return
2017-06-30
0.2093
Lowest Return
2015-09-30
-0.1136
0.8
Investors may pay brokerage commissions on their purchases and sales of Shares.
You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments.
The Fund is classified as a “non-diversified” investment company under the 1940 Act. Therefore, the Fund may invest a relatively higher percentage of its assets in a relatively 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.
The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund’s performance from year to year. The table shows how the Fund’s average annual returns for 1 year and since the Fund’s inception compare with those of the NASDAQ Industrials Index, the S&P 500 Index and the MSCI World Index. The NASDAQ Industrial Index contains securities of NASDAQ-listed companies not classified in one of the NASDAQ sector indexes. These include firms that are involved in oil and gas production, oil equipment, services & distribution, chemicals, forestry and paper, industrial metals, mining, construction and materials, aerospace and defense, general industrials, electronic and electrical equipment, industrial engineering, support services, automobiles and parts, beverages, food producers, household goods, leisure goods, personal goods, tobacco, food and drug retailers, general retailers, media, gambling, hotels, recreational services, restaurants and bars, travel & tourism, electricity, gas distribution, water, and multi-utilities. The S&P 500 Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization sector of the U.S. stock market. The MSCI World Index represents large and mid-cap equity performance across 23 developed markets countries. Returns shown for the MSCI World Index are net of foreign withholding taxes applicable to U.S. investors.
(212) 426-7040
The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
http://ark-funds.com
reflects no deduction for fees, expenses or taxes
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.
year-to-date total return
2018-10-31
0.1339
Highest Return
2017-03-31
0.2134
Lowest Return
2015-09-30
-0.1844
0.57
Investors may pay brokerage commissions on their purchases and sales of Shares.
You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments.
The Fund is classified as a “non-diversified” investment company under the 1940 Act. Therefore, the Fund may invest a relatively higher percentage of its assets in a relatively 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.
The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund’s performance from year to year. The table shows how the Fund’s average annual returns for 1 year and since the Fund’s inception compare with those of the NASDAQ Industrials Index, the S&P 500 Index and the MSCI World Index. The NASDAQ Industrial Index contains securities of NASDAQ-listed companies not classified in one of the NASDAQ sector indexes. These include firms that are involved in oil and gas production, oil equipment, services & distribution, chemicals, forestry and paper, industrial metals, mining, construction and materials, aerospace and defense, general industrials, electronic and electrical equipment, industrial engineering, support services, automobiles and parts, beverages, food producers, household goods, leisure goods, personal goods, tobacco, food and drug retailers, general retailers, media, gambling, hotels, recreational services, restaurants and bars, travel & tourism, electricity, gas distribution, water, and multi-utilities. The S&P 500 Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization sector of the U.S. stock market. The MSCI World Index represents large and mid-cap equity performance across 23 developed markets countries. Returns shown for the MSCI World Index are net of foreign withholding taxes applicable to U.S. investors.
(212) 426-7040
http://ark-funds.com
The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future
reflects no deduction for fees, expenses or taxes
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.
year-to-date total return
2018-10-31
-0.0113
Highest Return
2016-09-30
0.1579
Lowest Return
2015-09-30
-0.1184
0.68
Investors may pay brokerage commissions on their purchases and sales of Shares.
You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments.
The Fund is classified as a “non-diversified” investment company under the 1940 Act. Therefore, the Fund may invest a relatively higher percentage of its assets in a relatively 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.
The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund’s performance from year to year. The table shows how the Fund’s average annual returns for 1 year and since the Fund’s inception compare with those of the S&P 500 Index and the MSCI World Index. The S&P 500 Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization sector of the U.S. stock market. The MSCI World Index represents large and mid-cap equity performance across 23 developed markets countries. Returns shown for the MSCI World Index are net of foreign withholding taxes applicable to U.S. investors.
(212) 426-7040
http://ark-funds.com
The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
reflects no deduction for fees, expenses or taxes
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.
year-to-date total return
2018-10-31
0.1642
Highest Return
2017-06-30
0.216
Lowest Return
2016-03-31
-0.1072
0.53
Investors may pay brokerage commissions on their purchases and sales of Shares.
You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments.
The Fund is classified as a “non-diversified” investment company under the 1940 Act. Therefore, the Fund may invest a relatively higher percentage of its assets in a relatively 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.
The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund’s performance from year to year. The table shows how the Fund’s average annual returns for 1 year and since the Fund’s inception compare with those of the Index, the S&P 500 Index and the MSCI World Index. The S&P 500 Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization sector of the U.S. stock market. The MSCI World Index represents large and mid-cap equity performance across 23 developed markets countries. Returns shown for the MSCI World Index are net of foreign withholding taxes applicable to U.S. investors. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available at no cost by visiting http://ark-funds.com or by calling (212) 426-7040.
(212) 426-7040
http://ark-funds.com
The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
reflects no deduction for fees, expenses or taxes
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.
year-to-date total return
2018-10-31
-0.1089
Highest Return
2017-06-30
0.0948
Lowest Return
2017-12-31
-0.0436
0.4
Investors may pay brokerage commissions on their purchases and sales of Shares.
Other Expenses and Total Annual Fund Operating Expenses are based on estimated expenses for the current fiscal year.
You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments.
http://ark-funds.com
The Fund is classified as a “non-diversified” investment company under the 1940 Act. Therefore, the Fund may invest a relatively higher percentage of its assets in a relatively 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.
The Fund commenced operations on December 5, 2017. Performance history will be available for the Fund after it has been in operation for a full calendar year. Once available, the Fund’s performance information will be accessible on the Fund’s website at http://ark-funds.com.
Pursuant to a Supervision Agreement, ARK Investment Management LLC ("ARK" or "Adviser") pays all other expenses of the Fund (other than taxes and governmental fees, brokerage fees, commissions and other transaction expenses, certain foreign custodial fees and expenses, costs of borrowing money, including interest expenses, and extraordinary expenses (such as litigation and indemnification expenses)).
The Fund commenced operations on October 30, 2014.
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Shares at the end of the measurement period.
Pursuant to a Supervision Agreement, ARK Investment Management LLC ("Adviser") pays all other expenses of the Fund (other than taxes and governmental fees, brokerage fees, commissions and other transaction expenses, certain foreign custodial fees and expenses, costs of borrowing money, including interest expenses, and extraordinary expenses (such as litigation and indemnification expenses)).
The Fund commenced operations on September 29, 2014.
The Fund commenced operations on July 19, 2016.
Other Expenses and Total Annual Fund Operating Expenses are based on estimated expenses for the current fiscal year.