ck0001602508-20230930
One
Capital Management, LLC
FundX ETF –
XCOR
FundX Aggressive
ETF – XNAV
FundX Flexible
ETF – XFLX
FundX Conservative
ETF – XRLX
Each
listed on NYSE Arca, Inc.
Each
a “Fund,” together, the “Funds”
or the “FundX Funds”
PROSPECTUS
These
securities have not been approved or disapproved by the Securities and Exchange
Commission nor has the Commission passed upon the accuracy or adequacy of this
Prospectus. Any representation to the contrary is a criminal
offense.
January 31,
2024
TABLE
OF
CONTENTS
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SUMMARY
SECTION
This
important section summarizes the Funds’ investments, risks, fees and past
performance.
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FundX
ETF |
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FundX
Aggressive ETF |
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| FundX
Flexible ETF |
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| FundX
Conservative ETF |
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MORE
ABOUT THE FUNDS’ INVESTMENT OBJECTIVES, STRATEGIES AND RISKS
This
section provides details about the Funds’ investment strategies and
risks. |
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MANAGEMENT
OF THE FUNDS
Review
this section for information about the organizations and people who
oversee the Funds. |
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SHAREHOLDER
INFORMATION
This
section explains how shares are valued and how to purchase and sell
shares. |
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DISTRIBUTIONS
AND TAXES
This
section generally describes when you may receive dividend distributions
and the tax consequences. |
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DISTRIBUTION |
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FINANCIAL
HIGHLIGHTS
Review
this section for details on selected financial statements of the
Funds. |
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SUMMARY
SECTION
FundX
ETF
Investment
Objective
The
FundX ETF (the “Fund” or the “FundX ETF”) seeks to maximize capital appreciation
over the long term without regard to income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the FundX ETF. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
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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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Management
Fee |
1.00% |
Other
Expenses |
None |
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Acquired
Fund (Underlying Fund) Fees and Expenses |
0.27% |
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Total
Annual Fund Operating Expenses |
1.27% |
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Example
This Example is intended to help you compare the cost of investing
in the FundX ETF with the cost of investing in other funds. The Example assumes
that you invest $10,000 in the FundX ETF 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% return each year and that the FundX ETF’s
operating expenses remain the same. Although your actual
costs may be higher or lower, based on these assumptions, your costs would
be:
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1
Year |
3
Years |
5
Years |
10
Years |
FundX
ETF |
$129 |
$403 |
$697 |
$1,534 |
Portfolio
Turnover
The
FundX ETF may pay transaction costs or broker fees, when it buys and sells
securities (or “turns over” its portfolio). If transaction costs are involved, a
higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes when FundX ETF shares are held in a taxable account.
These costs, which are not reflected in annual fund operating expenses or in the
example, affect the FundX ETF’s performance. During the most recent fiscal year,
the FundX ETF’s portfolio turnover rate was 184% of the average value of its
portfolio.
Principal Investment
Strategies
The
FundX ETF is a fund-of-funds and as such invests primarily in exchange traded
funds (“ETFs”) (“Underlying ETFs”). The Underlying ETFs, in turn, invest
primarily in individual securities such as common stocks.
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Because
markets change, the Advisor actively manages the Fund’s portfolio using a
proprietary investment strategy called Upgrading, which seeks to capture
global market trends. The Advisor invests in the Underlying ETFs that it
considers to be in sync with current market leadership. The Advisor sells
an Underlying ETF when it believes that the Underlying ETF is no longer
performing in sync with current market leadership or if a new Underlying
ETF is judged more attractive than a current holding. |
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Upgrading |
When
a fund begins to lag its peers, the Advisor redeems the shares and directs
the proceeds to a better performing alternative. The Advisor classifies
the pool of Underlying ETFs into five risk/return categories:
▪Sector
Equity Underlying ETFs
▪Aggressive
Equity Underlying ETFs
▪Core
Equity Underlying ETFs
▪Total
Return Underlying ETFs
▪Bond
Underlying ETFs |
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Under
normal market conditions, the FundX ETF will invest predominantly in Core
Equity Underlying ETFs, which generally invest in diversified portfolios
of equity securities of well‑established U.S. and foreign companies with a
wide range of market capitalizations. |
Core
Equity Underlying ETFs may also invest in fixed income securities. Core
Equity Underlying ETFs allow the Fund to participate in broad market
leadership trends, such as the rotation between growth and value stocks,
large- and small-cap stocks, and international and domestic stocks. The
FundX ETF may purchase, without limit, shares of Underlying ETFs that
invest in domestic, international and global
securities. |
To
a lesser extent the FundX ETF may also invest a portion of its assets in Sector
and Aggressive Equity Underlying ETFs, which may invest in more concentrated
portfolios or in small-cap, mid-cap or less-seasoned companies, or may make
significant use of complex investment techniques, such as leverage, short sales
and margin. Sector and Aggressive Equity Underlying ETFs may be riskier than
Core Equity Underlying ETFs, but may hold the potential for higher reward.
Sector and Aggressive Equity Funds allow the Fund to participate in more
specialized stock market leadership trends, such as rotations between specific
sectors or within emerging markets. The FundX ETF may hold up to 50% of its
assets in Underlying ETFs that focus on emerging markets. The FundX ETF may
engage in securities lending activities to increase its income.
See
“More about the Funds’ Investment Objectives, Strategies and Risks – The
Advisor’s Process for Classifying the Underlying ETFs” for more information on
this system.
Principal
Risks
An
investment in the FundX ETF entails risk. The FundX ETF cannot guarantee that it
will meet its investment objective. Since the price of the
Underlying ETFs that the FundX ETF holds may fluctuate, the value of your
investment may fluctuate and you could lose all or a portion of your investment
in the FundX ETF. The following risks could affect the value of
your investment:
▪ETF
Risk.
The Fund is an ETF and, as a result of an ETF’s structure, it is exposed to the
following risks:
•Authorized
Participants, Market Makers, and Liquidity Providers Concentration
Risk. The Fund has a limited number of financial institutions that may act
as Authorized Participants (“APs”). In addition, there may be a limited number
of market makers and/or liquidity providers in the marketplace. To the extent
either of the following events occur, shares may trade at a material discount to
NAV and possibly face delisting: (i) APs exit the business or otherwise become
unable to process creation and/or redemption orders and no other APs step
forward to perform these services, or (ii) market makers and/or liquidity
providers exit the business or significantly reduce their business activities
and no other entities step forward to perform their functions.
•Cash
Redemption Risk.
The Fund’s investment strategy may require it to redeem shares for
cash or to otherwise include cash as part of its redemption proceeds. The Fund
may be required to sell or unwind portfolio investments to obtain the cash
needed to distribute redemption proceeds. This may cause the Fund to realize a
capital gain that it might not have realized if it had made a redemption
in-kind. As a result, the Fund may pay out higher annual capital gain
distributions than if the in-kind redemption process was used. To the extent
that the transaction fees charged for redemptions of creation units is
insufficient to cover the Fund’s transaction costs of selling portfolio
securities, the Fund’s performance could be negatively
impacted.
•Costs
of Buying or Selling Shares. Due to the costs of buying or selling shares, including brokerage
commissions imposed by brokers and bid/ask spreads, frequent trading of shares
may significantly reduce investment results and an investment in shares may not
be advisable for investors who anticipate regularly making small
investments.
•Shares
May Trade at Prices Other Than NAV. As with all ETFs, shares may be bought and sold in the secondary
market at market prices. As a result, investors in the Fund may pay
significantly more or receive significantly less for shares than the Fund’s NAV.
Although it is expected that the market price of shares will approximate the
Fund’s NAV, there may be times when the market price of shares is more than the
NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply
and demand of shares or during periods of market volatility. This risk is
heightened in times of market volatility, periods of steep market declines, and
periods when there is limited trading activity for shares in the secondary
market, in which case such premiums or discounts may be
significant.
•Trading. Although shares are listed for trading on
the NYSE Arca, Inc. (the “Exchange”) and may be traded on U.S. exchanges other
than the Exchange, there can be no assurance that shares will trade with any
volume, or at all, on any stock exchange. In stressed market conditions, the
liquidity of shares may begin to mirror the liquidity of the Fund’s underlying
portfolio holdings, which can be significantly less liquid than shares. This
could lead to the Fund’s shares trading at a price that is higher or lower than
the Fund’s NAV.
▪General
Market Risk – General market risk is the risk that the value of a Fund’s shares
will fluctuate based on the performance of the securities held by the Underlying
ETFs it owns. These fluctuations may cause a security to be worth less than its
cost when originally purchased or less than it was worth at an earlier
time.
▪Management
Risk – Management risk describes the FundX ETF’s ability to meet its
investment objective based on the Advisor’s success or failure to implement
investment strategies for the FundX ETF.
▪Foreign
Securities Risk – The Underlying ETFs held by the FundX ETF may have significant
investments in foreign securities. Foreign securities entail risks relating to
political, social and economic developments abroad and differences between U.S.
and foreign regulatory requirements and market practices.
▪Emerging
Markets Risk
– In addition to developed markets, the FundX ETF may invest in Underlying ETFs
that may invest in emerging markets, which are markets of countries in the
initial stages of industrialization and that generally have low per capita
income. In addition to the risks of foreign securities in general, countries in
emerging markets are generally more volatile and can have relatively unstable
governments, social and legal systems that do not protect shareholders,
economies based on only a few industries and securities markets that trade a
small number of issues, which could reduce liquidity. Additional risks of
emerging markets include differences in nationalization, embargo,
expropriation and acts of war. In addition, clearance and settlement
procedures may be different in foreign countries and, in certain markets, on
certain occasions; such procedures have been unable to keep pace with the volume
of securities transactions, thus making it difficult to conduct such
transactions. The Underlying ETFs may be required to establish special custody
or other arrangements before making certain investments in those
countries.
▪Leverage
Risk – Some Underlying ETFs may borrow money for leveraging and will incur
interest expense. Leverage is investment exposure which exceeds the initial
amount invested. Leverage can cause the portfolio to lose more than the
principal amount invested. Leverage can magnify the portfolio’s gains and losses
and therefore increase its volatility.
▪Short
Sales Risk – The Underlying ETFs may engage in short sales which could cause an
Underlying ETF’s investment performance to suffer if it is required to close out
a short position earlier than it had intended.
▪Small
Company Risk – The Underlying ETFs may invest in securities of small companies,
which involves greater volatility than investing in larger and more established
companies.
▪Large
Company Risk – Large capitalization companies may fall out of favor with investors
based on market and economic conditions. In return for the relative stability
and low volatility of large capitalization companies, the Fund’s value may not
rise as much as the value of funds that focus on companies with smaller market
capitalizations.
▪Sector
Emphasis Risk – Some of the Underlying ETFs may have particular emphasis in one or
more sectors, subjecting that Underlying ETF to sector emphasis risk. Sector
emphasis risk is the possibility that a certain sector may underperform other
sectors or the market as a whole.
▪ETF
Trading Risk
– Because the FundX ETF invests in ETFs, it is subject to additional risks that
do not apply to conventional ETFs, including the risks that the market price of an ETF’s shares may
trade at a discount to its net asset value (“NAV”), an active secondary trading
market may not develop or be maintained, or trading may be halted by the
exchange in which the ETFs trade, which may impact a Fund’s ability to sell its
shares of an ETF.
▪Portfolio
Turnover Risk – To the extent the FundX ETF invests in ETFs, it may be subject to
the risks of having a high portfolio turnover rate. High portfolio turnover
involves correspondingly greater expenses to a Fund, including brokerage
commissions or dealer mark-ups and other transaction costs on the sale of
securities and reinvestments in other securities.
▪Upgrading
Strategy Risk – The FundX ETF employs an Upgrading strategy whereby it continually
seeks to invest in the top-performing securities at a given time. When
investment decisions are based on near-term performance, however, the FundX ETF
may be exposed to the risk of buying Underlying ETFs immediately following a
sudden, brief surge in performance that may be followed by a subsequent drop in
market value.
▪Underlying
ETFs Risk – The risks associated with the FundX ETF include the risks related
to each Underlying ETF in which the FundX ETF invests. Although the FundX ETF
seeks to reduce the risk of your investment by diversifying among ETFs that
invest in stocks and, in some cases, bonds, there are inherent risks of
investing in various asset classes. The Fund must also pay its pro rata portion
of an investment company’s fees and expenses.
▪Securities
Lending Risk - There are certain risks associated with securities lending,
including the risk that the borrower may fail to return the securities on a
timely basis or even the loss of rights in the collateral deposited by the
borrower, if the borrower should fail financially. As a result, the FundX ETF
may lose money.
▪Market
Events Risk – Local, regional, or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues, recessions, or
other events could have a significant impact on the market generally and on
specific securities. Periods of market volatility may occur in response to
pandemics or other events outside of our control. These types of events could
adversely affect the Fund’s performance. Economies and financial markets
throughout the world are increasingly interconnected. Economic, financial or
political events, trading and tariff arrangements, public health events,
terrorism, technology and data interruptions, natural disasters, and other
circumstances in one or more countries or regions could be highly disruptive to,
and have profound impacts on, global economies or markets. As a result, whether
or not a fund invests in securities of issuers located in or has significant
exposure to the countries directly affected, the value and liquidity of a fund’s
investments may go down. Securities markets may also be susceptible to market
manipulation or other fraudulent trade practices, which could disrupt the
orderly functioning of these markets or adversely affect the value of securities
traded in these markets, including a fund’s securities.
Performance
The following performance information provides some indication
of the risks of investing in the FundX ETF. The Fund is the
successor to the FundX Upgrader Fund (the “Predecessor Fund”), as a result of
the reorganization of the Predecessor Fund into the Fund on October 17, 2022,
(the “Reorganization”). Prior to the Reorganization, the Fund had not yet
commenced operations.
As
of the Reorganization, the Fund has adopted the performance history of the
Predecessor Fund, which operated as an open-end mutual fund. The Predecessor
Fund was also advised by the Adviser and had the same investment objective and
substantially similar strategies as the Fund. The bar chart shows the
Predecessor Fund’s performance for the calendar years ended December 31. The
table illustrates how the Predecessor Fund’s average annual returns for 1‑year,
5‑year and 10‑year periods compare with those of a broad measure of market
performance. The Predecessor
Fund’s past performance, before and after taxes, does not necessarily indicate
how the Fund will perform in the future. Updated performance
information will be available on the Fund’s website at www.fundxfunds.com.
Effective at the close of business on August 1, 2014, the FundX
Upgrader Fund, a series of Professionally Managed Portfolios (the “Previous
Predecessor Fund”, together with the Predecessor Fund, the “Predecessor Funds”),
reorganized into the Predecessor Fund, a series of FundX Investment Trust.
Performance information shown prior to the close of business on August 1, 2014
is that of the Previous Predecessor Fund. Additionally, the Predecessor Fund has
adopted the Financial Statements of the Previous Predecessor
Fund.
FundX
ETF – XCOR
Calendar Year Total Return as of
December 31![10518](ck0001602508-20230930_g2.jpg)
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Best
and Worst Quarters of the Predecessor Funds |
Best
Quarter |
6/30/2020 |
21.14% |
Worst
Quarter |
3/31/2020 |
-17.83% |
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Average Annual
Total Returns as of December 31, 2023 for the Predecessor
Funds |
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FundX
ETF – XCOR |
1
Year |
5
Years |
10
Years |
Return Before
Taxes |
14.13% |
10.45% |
7.67% |
Return After
Taxes on Distributions |
13.88% |
7.72% |
6.28% |
Return After
Taxes on Distributions and Sale of Fund Shares |
8.55% |
7.96% |
6.05% |
Morningstar
Global Market Large-Mid Cap Index (reflects
no deduction for fees, expenses or
taxes)* |
21.80% |
11.54% |
7.88% |
S&P
500®
Index (reflects
no deduction for fees, expenses or
taxes) |
26.29% |
15.69% |
12.03% |
*The inception date of the Morningstar Global Markets Large-Mid Cap
Index is November 15,
2016, and the performance inception date of the index is June
30, 1998. Returns prior to the inception date have been synthetically calculated
by the index provider.
The
“Return After Taxes on Distributions” shows the effect of taxable distributions
(dividends and capital gains distributions), but assumes that you still hold
Fund shares at the end of the period. The “Return After Taxes on Distributions
and Sale of Fund Shares” shows the effect of both taxable distributions and any
taxable gain or loss that would be realized if a Fund’s shares were sold at the
end of the specified period. The after‑tax
returns are calculated using the highest individual federal marginal income tax
rates in effect and do not reflect the impact of state and local
taxes. Your actual after‑tax returns depend on your tax
situation and may differ from those shown. The
after‑tax returns are not relevant if you hold your Fund shares through a
tax‑deferred account, such as a 401(k) plan or an individual retirement account
(“IRA”).
In certain cases, Return After Taxes on Distribution and
Sale of Fund Shares may be higher than the other return figures for the same
period. This will occur when a capital loss is realized upon the sale of Fund
shares or
provides an assumed tax benefit that
increases the return. Your actual after-tax returns depend on
your tax situation and may differ from these shown.
Investment
Advisor
One
Capital Management, LLC is the investment advisor to the FundX ETF.
Portfolio
Managers
Janet
Brown, Martin DeVault, and Sean McKeon have served as portfolio managers of the
Predecessor Fund since its 2001 inception and serve as portfolio managers of the
FundX ETF since its inception in October 2022.
Purchase
and Sale of Fund Shares
Individual
shares may only be purchased and sold on a national securities exchange through
a broker-dealer. You can purchase and sell individual shares of the Fund
throughout the trading day like any publicly traded security. The Fund’s shares
are listed on the Exchange. The price of the Fund’s shares is based on market
price and, because exchange-traded fund shares trade at market prices rather
than NAV, shares may trade at a price greater than NAV (premium) or less than
NAV (discount). The Fund issues and redeems shares on a continuous basis, at
NAV, only in blocks of shares called Creation Units, principally in-kind, and
only Authorized Participants (typically, broker-dealers) may purchase or redeem
Creation Units. When buying or selling the Fund’s shares on the Exchange, you
may incur costs attributable to the difference between the highest price a buyer
is willing to pay to purchase shares of the Fund (bid) and the lowest price a
seller is willing to accept for shares of the Fund (ask) (the “bid-ask spread”).
Recent information regarding the Fund’s NAV, market price, premiums and
discounts, and bid-ask spreads will be available at
www.fundxfunds.com.
Tax
Information
The
FundX ETF’s distributions are taxed as ordinary income or capital gains, unless
you are investing through a tax-deferred arrangement, such as a 401(k) plan or
an individual retirement account. Tax-deferred arrangements may be taxed later
upon withdrawal of monies from those accounts.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the FundX ETF through a broker-dealer or other financial
intermediary (such as a bank), the FundX ETF may pay for account servicing and
the Advisor may pay the intermediary for the sale of FundX ETF shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the FundX ETF over another investment. Ask your salesperson or visit
your financial intermediary’s website for more information.
SUMMARY
SECTION
FundX
Aggressive ETF
Investment
Objective
The
FundX Aggressive ETF (the “Fund” or the “Aggressive ETF”) seeks to maximize
capital appreciation over the long term without regard to
income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Aggressive ETF. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
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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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Management
Fee |
1.00% |
Other
Expenses |
None |
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Acquired
(Underlying Fund) Fund Fees and Expenses |
0.30% |
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Total
Annual Fund Operating Expenses |
1.30% |
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Example
This Example is intended to help you compare the cost of investing
in the Aggressive ETF with the cost of investing in other funds. The Example
assumes that you invest $10,000 in the Aggressive ETF 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% return each year and that the
Aggressive ETF’s operating expenses remain the same.
Although your actual costs may be higher or lower, based on
these assumptions, your costs would
be:
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1
Year |
3
Years |
5
Years |
10
Years |
FundX
Aggressive ETF |
$132 |
$412 |
$713 |
$1,568 |
Portfolio
Turnover
The
Aggressive ETF may pay transaction costs or broker fees when it buys and sells
securities (or “turns over” its portfolio.
If
transaction costs are involved, a higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when the Aggressive ETF
shares are held in a taxable account.
These
costs, which are not reflected in annual fund operating expenses or in the
example, affect the Aggressive ETF’s performance.
During
the most recent fiscal year, the Aggressive ETF’s portfolio turnover rate was
184% of the average
value of its portfolio.
Principal Investment
Strategies
The
Aggressive ETF invests primarily in exchange traded funds (“ETFs”) (“Underlying
ETFs”). The Underlying ETFs, in turn, invest primarily in individual securities
such as common stocks.
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Because
markets change, the Advisor actively manages the Fund’s portfolio using a
proprietary investment strategy called Upgrading, which seeks to capture
global market trends. The Advisor invests in the Underlying ETFs that it
considers to be in sync with current market leadership. The Advisor sells
an Underlying ETF when it believes that the Underlying ETF is no longer
performing in sync with current market leadership or if a new Underlying
ETF is judged more attractive than a current holding. |
| Upgrading |
When
a fund begins to lag its peers, the Advisor redeems the shares and directs
the proceeds to a better performing alternative. The Advisor classifies
the pool of Underlying ETFs into five risk/return categories:
▪Sector
Equity Underlying ETFs
▪Aggressive
Equity Underlying ETFs
▪Core
Equity Underlying ETFs
▪Total
Return Underlying ETFs
▪Bond
Underlying ETFs |
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Under normal
market conditions, the Aggressive ETF will invest predominantly (and at times
exclusively) in Sector and Aggressive Equity Underlying ETFs, which may invest
in more concentrated portfolios or in small-cap, mid-cap, or less-seasoned
companies, or in commodities such as precious metals, or in real estate, or may
make significant use of complex investment techniques, such as leverage, short
sales and margin. They may also include the use of derivative securities such as
options, futures and swap contracts for hedging and/or speculative
purposes. The Aggressive ETF will not take direct exposure in
derivative instruments. Sector and Aggressive Equity Underlying ETFs may be
riskier than Core Equity Underlying ETFs, but may provide the potential for
higher reward. Sector and Aggressive Equity Underlying ETFs allow the Aggressive
ETF to participate in more specialized stock market leadership trends, such as
rotations between specific sectors or within emerging markets. The Aggressive
ETF is not limited in the amount of its assets it holds in Underlying ETFs that
focus on emerging markets.
To
a lesser extent the Aggressive ETF may also invest a portion of its assets in
Core Equity Underlying ETFs, which generally invest in diversified portfolios of
equity securities of well-established U.S. and foreign companies with a wide
range of market capitalizations. Core Equity Underlying ETFs may also invest in
fixed income securities. Core Equity Funds allow the Fund to participate in
broader stock market leadership trends, such as rotation between value and
growth stocks, small- and large-cap stocks, and domestic and international
stocks. The Aggressive ETF may purchase, without limit, shares of Underlying
ETFs that invest in domestic, international and global securities. The
Aggressive ETF may engage in securities lending activities to increase its
income.
See
“More about the Funds’ Investment Objectives, Strategies and Risks – The
Advisor’s Process for Classifying the Underlying ETFs” for more information on
this system.
Principal
Risks
An
investment in the Aggressive ETF entails risk. The Aggressive ETF cannot
guarantee that it will meet its investment objective. Since the price of the
Underlying ETFs that the Aggressive ETF holds may fluctuate, the value of your
investment may fluctuate and you could lose all or a portion of your investment
in the Aggressive ETF. The following risks could affect the
value of your investment:
•ETF
Risk.
The Fund is an ETF and, as a result of an ETF’s structure, it is exposed to the
following risks:
◦Authorized
Participants, Market Makers, and Liquidity Providers Concentration
Risk.
The Fund has a limited number of financial institutions that may act as
Authorized Participants (“APs”). In addition, there may be a limited number of
market makers and/or liquidity providers in the marketplace. To the extent
either of the following events occur, shares may trade at a material discount to
NAV and possibly face delisting: (i) APs exit the business or otherwise become
unable
to process creation and/or redemption orders and no other APs step
forward to perform these services, or (ii) market makers and/or liquidity
providers exit the business or significantly reduce their business activities
and no other entities step forward to perform their functions.
◦Cash
Redemption Risk.
The Fund’s investment strategy may require it to redeem shares for
cash or to otherwise include cash as part of its redemption proceeds. The Fund
may be required to sell or unwind portfolio investments to obtain the cash
needed to distribute redemption proceeds. This may cause the Fund to realize a
capital gain that it might not have realized if it had made a redemption
in-kind. As a result, the Fund may pay out higher annual capital gain
distributions than if the in-kind redemption process was used. To the extent
that the transaction fees charged for redemptions of creation units is
insufficient to cover the Fund’s transaction costs of selling portfolio
securities, the Fund’s performance could be negatively
impacted.
◦Costs
of Buying or Selling Shares. Due to the costs of buying or selling shares, including brokerage
commissions imposed by brokers and bid/ask spreads, frequent trading of shares
may significantly reduce investment results and an investment in shares may not
be advisable for investors who anticipate regularly making small
investments.
◦Shares
May Trade at Prices Other Than NAV. As with all ETFs, shares may be bought and sold in the secondary
market at market prices. As a result, investors in the Fund may pay
significantly more or receive significantly less for shares than the Fund’s NAV.
Although it is expected that the market price of shares will approximate the
Fund’s NAV, there may be times when the market price of shares is more than the
NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply
and demand of shares or during periods of market volatility. This risk is
heightened in times of market volatility, periods of steep market declines, and
periods when there is limited trading activity for shares in the secondary
market, in which case such premiums or discounts may be
significant.
◦Trading. Although shares are listed for trading
on the NYSE Arca, Inc. (the “Exchange”) and may be traded on U.S. exchanges
other than the Exchange, there can be no assurance that shares will trade with
any volume, or at all, on any stock exchange. In stressed market conditions, the
liquidity of shares may begin to mirror the liquidity of the Fund’s underlying
portfolio holdings, which can be significantly less liquid than shares. This
could lead to the Fund’s shares trading at a price that is higher or lower than
the Fund’s NAV.
•General
Market Risk – General market risk is the risk that the value of a Fund’s shares
will fluctuate based on the performance of the securities held by the Underlying
ETFs it owns. These fluctuations may cause a security to be worth less than its
cost when originally purchased or less than it was worth at an earlier
time.
•Management
Risk – Management risk describes the Aggressive ETF’s ability to meet its
investment objective based on the Advisor’s success or failure to implement
investment strategies for the Aggressive ETF.
•Foreign
Securities Risk – The Underlying ETFs held by the Aggressive ETF may have significant
investments in foreign securities. Foreign securities entail risks relating to
political, social and economic developments abroad and differences between U.S.
and foreign regulatory requirements and market practices.
•Emerging
Markets Risk –
In addition to developed markets, the Aggressive ETF may invest in Underlying
ETFs that may invest in emerging markets, which are markets of countries in the
initial stages of industrialization and that generally have low per capita
income. In addition to the risks of
foreign securities in general, countries in emerging markets are
generally more volatile and can have relatively unstable governments, social and
legal systems that do not protect shareholders, economies based on only a few
industries and securities markets that trade a small number of issues, which
could reduce liquidity. Additional risks of emerging markets include differences
in nationalization, embargo, expropriation and acts of war. In addition,
clearance and settlement procedures may be different in foreign countries and,
in certain markets, on certain occasions; such procedures have been unable to
keep pace with the volume of securities transactions, thus making it difficult
to conduct such transactions. The Underlying ETFs may be required to establish
special custody or other arrangements before making certain investments in those
countries.
•Derivative
Risk – Some Underlying ETFs may use derivative instruments which derive
their value from the value of an underlying asset, currency or index. The value
of derivatives may rise or fall more rapidly than other investments and it is
possible to lose more than the initial amount invested.
•Leverage
Risk – Some Underlying ETFs may borrow money for leveraging and will incur
interest expense. Leverage is investment exposure which exceeds the initial
amount invested. Leverage can cause the portfolio to lose more than the
principal amount invested. Leverage can magnify the portfolio’s gains and losses
and therefore increase its volatility.
•Short
Sales Risk –The Underlying ETFs may engage in short sales which could cause an
Underlying ETF’s investment performance to suffer if it is required to close out
a short position earlier than it had intended.
•Small
Company Risk – The Underlying ETFs may invest in securities of small companies,
which involves greater volatility than investing in larger and more established
companies.
•Large
Company Risk – Large capitalization companies may fall out of favor with investors
based on market and economic conditions. In return for the relative stability
and low volatility of large capitalization companies, the Fund’s value may not
rise as much as the value of funds that focus on companies with smaller market
capitalizations.
•Sector
Emphasis Risk – Some of the Underlying ETFs may have particular emphasis in one or
more sectors, subjecting that Underlying ETF to sector emphasis risk. Sector
emphasis risk is the possibility that a certain sector may underperform other
sectors or the market as a whole.
•ETF
Trading Risk – Because the Aggressive ETF invests in ETFs, it is subject to
additional risks that do not apply to conventional funds, including the risks
that the market price of an ETF’s shares may trade at a discount to its net
asset value (“NAV”), an active secondary trading market may not develop or be
maintained, or trading may be halted by the exchange in which the ETFs trade,
which may impact a Fund’s ability to sell its shares of an
ETF.
•Portfolio
Turnover Risk – To the extent the Aggressive ETF invests in ETFs, it may be subject
to the risks of having a high portfolio turnover rate. High portfolio turnover
involves correspondingly greater expenses to a Fund, including brokerage
commissions or dealer mark-ups and other transaction costs on the sale of
securities and reinvestments in other securities.
•Upgrading
Strategy Risk – The Aggressive ETF employs an Upgrading strategy whereby it
continually seeks to invest in the top-performing securities at a given time.
When investment decisions are based on near-term performance, however, the
Aggressive ETF may be exposed to the risk of buying Underlying ETFs immediately
following a sudden, brief surge in performance that may be followed by a
subsequent drop in market value.
•Underlying
ETFs Risk – The
risks associated with the Aggressive ETF include the risks related to each
Underlying ETF in which the Aggressive ETF invests. Although the Aggressive ETF
seeks to
reduce the risk of your investment by diversifying among ETFs that
invest in stocks and, in some cases, bonds, there are inherent risks of
investing in various asset classes. The Fund must also pay its pro rata portion
of an investment company’s fees and expenses.
•Securities
Lending Risk - There are certain risks associated with securities lending,
including the risk that the borrower may fail to return the securities on a
timely basis or even the loss of rights in the collateral deposited by the
borrower, if the borrower should fail financially. As a result, the Aggressive
ETF may lose money.
•Market
Events Risk - Local, regional, or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues, recessions, or
other events could have a significant impact on the market generally and on
specific securities. Periods of market volatility may occur in response to
pandemics or other events outside of our control. These types of events could
adversely affect the Fund’s performance. Economies and financial markets
throughout the world are increasingly interconnected. Economic, financial or
political events, trading and tariff arrangements, public health events,
terrorism, technology and data interruptions, natural disasters, and other
circumstances in one or more countries or regions could be highly disruptive to,
and have profound impacts on, global economies or markets. As a result, whether
or not a fund invests in securities of issuers located in or has significant
exposure to the countries directly affected, the value and liquidity of a fund’s
investments may go down. Securities markets may also be susceptible to market
manipulation or other fraudulent trade practices, which could disrupt the
orderly functioning of these markets or adversely affect the value of securities
traded in these markets, including a fund’s securities.
Performance
The following performance information provides some indication
of the risks of investing in the Aggressive ETF. The Fund is the
successor to the FundX Aggressive Fund (the “Predecessor Fund”), as a result of
the reorganization of the Predecessor Fund into the Fund on October 17, 2022,
(the “Reorganization”). Prior to the Reorganization, the Fund had not yet
commenced operations.
As
of the Reorganization, the Fund has adopted the performance history of the
Predecessor Fund, which operated as an open-end mutual fund. The Predecessor
Fund was also advised by the Adviser and had the same investment objective and
substantially similar strategies as the Fund. The bar chart shows the
Predecessor Fund’s performance for the calendar years ended December 31. The
table illustrates how the Predecessor Fund’s average annual returns for 1‑year,
5‑year and 10‑year periods compare with those of a broad measure of market
performance. The Predecessor
Fund’s past performance, before and after taxes, does not necessarily indicate
how the Fund will perform in the future. Updated performance
information will be available on the Fund’s website at www.fundxfunds.com.
Effective at the close of business on August 1, 2014, the FundX
Aggressive Upgrader Fund, a series of Professionally Managed Portfolios (the
“Previous Predecessor Fund”, together with the Predecessor Fund, the
“Predecessor Funds”), reorganized into the Predecessor Fund, a series of FundX
Investment Trust. Performance information shown prior to the close of business
on August 1, 2014 is that of the Previous Predecessor Fund. Additionally, the
Predecessor Fund has adopted the Financial Statements of the Previous
Predecessor Fund.
FundX
Aggressive ETF - XNAV
Calendar
Year Total Return as of December 31
|
|
|
|
|
|
|
| |
Best
and Worst Quarters for the Predecessor Funds |
Best
Quarter |
6/30/2020 |
26.08% |
Worst
Quarter |
3/31/2020 |
-18.53% |
|
|
|
|
|
|
|
|
|
|
| |
Average Annual
Total Returns as of December 31, 2023 for the Predecessor
Funds |
| 1
Year |
5
years |
10
Years |
FundX
Aggressive ETF - XNAV |
|
| |
Return Before
Taxes |
16.09% |
10.48% |
6.54% |
Return After
Taxes on Distributions |
15.76% |
7.49% |
5.06% |
Return After
Taxes on Distributions and Sale of Fund Shares |
9.76% |
7.71% |
4.96% |
Morningstar
Global Market Large-Mid Cap Index (reflects
no deduction for fees, expenses or
taxes)* |
21.80% |
11.54% |
7.88% |
S&P
500®
Index (reflects
no deduction for fees, expenses or
taxes) |
26.29% |
15.69% |
12.03% |
*The inception date of the Morningstar Global Markets Large-Mid Cap
Index is November 15,
2016, and the performance inception date of the index is June
30, 1998. Returns prior to the inception date have been synthetically calculated
by the index provider.
The
“Return After Taxes on Distributions” shows the effect of taxable distributions
(dividends and capital gains distributions), but assumes that you still hold
Fund shares at the end of the period. The “Return After Taxes on Distributions
and Sale of Fund Shares” shows the effect of both taxable distributions and any
taxable gain or loss that would be realized if a Fund’s shares were sold at the
end of the specified period. The after-tax
returns are calculated using the highest individual federal marginal income tax
rates in effect and do not reflect the impact of state and local
taxes. Your actual after-tax returns depend on your tax
situation and may differ from those shown. The
after-tax returns are not relevant if you hold your Fund shares through a
tax-deferred account, such as a 401(k) plan or an
IRA.
In certain
cases, Return After Taxes on Distribution and Sale of Fund Shares may be higher
than the other return figures for the same period. This will occur when a
capital loss is realized upon the sale of Fund shares or provides an assumed tax
benefit that increases the return. Your actual after-tax returns
depend on your tax situation and may differ from these shown.
Investment
Advisor
One
Capital Management, LLC is the investment advisor to the Aggressive
ETF.
Portfolio
Managers
Janet
Brown, Martin DeVault, and Sean McKeon have served as portfolio managers of the
Predecessor Fund since its 2002 inception and serve as portfolio managers of the
Aggressive ETF since its inception in October 2022.
Purchase
and Sale of Fund Shares
Individual
shares may only be purchased and sold on a national securities exchange through
a broker-dealer. You can purchase and sell individual shares of the Fund
throughout the trading day like any publicly traded security. The Fund’s shares
are listed on the Exchange. The price of the Fund’s shares is based on market
price and, because exchange-traded fund shares trade at market prices rather
than NAV, shares may trade at a price greater than NAV (premium) or less than
NAV (discount). The Fund issues and redeems shares on a continuous basis, at
NAV, only in blocks of shares called Creation Units, principally in-kind, and
only Authorized Participants (typically, broker-dealers) may purchase or redeem
Creation Units. When buying or selling the Fund’s shares on the Exchange, you
may incur costs attributable to the difference between the highest price a buyer
is willing to pay to purchase shares of the Fund (bid) and the lowest price a
seller is willing to accept for shares of the Fund (ask) (the “bid-ask spread”).
Recent information regarding the Fund’s NAV, market price, premiums and
discounts, and bid-ask spreads will be available at
www.fundxfunds.com.
Tax
Information
The
Aggressive ETF’s distributions are taxed as ordinary income or capital gains,
unless you are investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account. Tax-deferred arrangements may be taxed
later upon withdrawal of monies from those accounts.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Aggressive ETF through a broker-dealer or other
financial intermediary (such as a bank), the Aggressive ETF may pay for account
servicing and the Advisor may pay the intermediary for the sale of Aggressive
ETF shares and related services. These payments may create a conflict of
interest by influencing the broker‑dealer or other intermediary and your
salesperson to recommend the Aggressive ETF over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
SUMMARY
SECTION
FundX
Flexible ETF
Investment
Objective
The
FundX Flexible ETF (“Flexible ETF”) seeks to generate total return, which is
capital appreciation plus current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Flexible ETF. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
|
|
|
|
| |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fee |
0.70 |
% |
Other
Expenses(1) |
None |
Acquired
Fund (Underlying ETF) Fees and Expenses(2) |
0.47 |
% |
Total
Annual Fund Operating Expenses |
1.17 |
% |
(1)Estimated for current fiscal
year.
(2)
The Total Annual Fund Operating Expenses for the Fund do not
correlate to the Ratio of Expenses to Average Net Assets provided in the
Financial Highlights section of the statutory prospectus, which reflects the
operating expenses of the Fund and does not include Acquired Fund Fees and
Expenses.
Example
This Example is intended to help you compare the cost of investing
in the Flexible ETF with the cost of investing in other mutual funds. The
Example assumes that you invest $10,000 in the Flexible ETF 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% return each year and that the
Flexible ETF’s operating expenses remain the same.
Although your actual costs may be higher or lower, based on
these assumptions, your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
Year |
3
Years |
5
Years |
10
Years |
FundX
Flexible ETF |
$119 |
$372 |
$644 |
$1,420 |
Portfolio
Turnover
The
Flexible ETF may pay transaction costs, such as commissions, when it buys and
sells securities (or “turns over” its portfolio). If transaction costs are
involved, a higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Flexible ETF shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses
or in the Example, affect the Flexible ETF’s performance. During the most recent
fiscal year, the portfolio turnover rate of the FundX Flexible Income Fund (the
“Predecessor Fund”), a mutual fund series of FundX Investment Trust (the
“Trust”) that was reorganized into the Flexible ETF was 209% of the average value of its
portfolio.
Principal Investment
Strategies
The
Flexible ETF is an ETF-of-ETFs and as such invests primarily in other ETFs
(“Underlying ETFs”). The Underlying ETFs, in turn, invest primarily in
individual securities such as common stocks and corporate or government
bonds.
Because
markets change, the Advisor actively manages the Flexible ETF’s portfolio using
a proprietary investment strategy called Upgrading, which seeks to capture
global market trends. The Advisor invests in the Underlying ETFs that it
considers to be in sync with current market leadership. The Advisor sells an
Underlying ETF when it believes that the Underlying ETF is no longer performing
in sync with current market leadership or if a new Underlying ETF is judged more
attractive than a current holding.
The
Advisor classifies the pool of Underlying ETFs into five risk/return categories,
listed here from what it perceives to have the highest to lowest
risk:
•Sector
Equity (including single-country Emerging Markets) Underlying ETFs
•Aggressive
Equity Underlying ETFs
•Core
Equity Underlying ETFs
•Total
Return Underlying ETFs
•Bond
Underlying ETFs
Under normal
market conditions, the Flexible ETF will invest predominately in Bond Underlying
ETFs of varying maturity, credit quality (including high-yield securities, or
“junk bonds”) and regional exposure. The Flexible ETF attempts
to take advantage of bond market leadership trends by targeting those areas of
the bond market that are excelling in the current market environment. The
Flexible ETF aims to control downside risk by limiting exposure to more volatile
areas of the bond market. The Flexible ETF may purchase, without limit, shares
of Underlying ETFs that invest in domestic and international corporate or
government bonds.
To
a lesser extent the Flexible ETF may also invest a portion of its assets in
Total Return Underlying ETFs, which may employ a wide variety of investment
strategies, including blending equity securities with fixed income instruments,
and techniques designed to provide steady returns with dampened volatility, such
as market neutral, long/short, and arbitrage strategies. Because Total Return
Underlying ETFs are not fully invested in bonds, these funds typically have less
credit and interest rate risk. The Flexible ETF may engage in securities lending
activities to increase its income.
See
“More about the Funds’ Investment Objectives, Strategies and Risks – The
Advisor’s Process for Classifying the Underlying ETFs” for more information on
this system.
Principal
Risks
An
investment in the Flexible ETF entails risk. The Flexible ETF cannot guarantee
that it will meet its investment objective. Since the price of the
Underlying ETFs that the Flexible ETF holds may fluctuate, the value of your
investment may fluctuate and you could lose all or a portion of your investment
in the Flexible ETF. The following risks could affect the value
of your investment:
▪ETF
Risk -
The Flexible ETF is an ETF and, as a result of an ETF’s structure, it is exposed
to the following risks:
•Authorized
Participants, Market Makers, and Liquidity Providers Concentration
Risk. The Flexible ETF has a limited number of financial institutions that
may act as Authorized Participants (“APs”). In addition, there may be a limited
number of market makers and/or liquidity providers in the marketplace. To the
extent either of the following events occur, shares may trade at a material
discount to NAV and possibly face delisting: (i) APs exit the business or
otherwise become unable to process creation and/or redemption orders and no
other APs step forward to perform these services, or (ii) market makers and/or
liquidity providers exit the business or significantly reduce their business
activities and no other entities step forward to perform their
functions.
•Cash
Redemption Risk.
The Flexible ETF’s investment strategy may require it to redeem
shares for cash or to otherwise include cash as part of its redemption proceeds.
The Flexible ETF may be required to sell or unwind portfolio investments to
obtain the cash needed to distribute redemption proceeds. This may cause the
Flexible ETF to realize a capital gain that it might not have realized if it had
made a redemption in-kind. As a result, the Flexible ETF may pay out higher
annual capital gain distributions than if the in-kind redemption process was
used. To the extent that the transaction fees charged for redemptions of
creation units is insufficient to cover the Flexible ETF’s transaction costs of
selling portfolio securities, the Flexible ETF’s performance could be negatively
impacted.
•Costs
of Buying or Selling Shares. Due to the costs of buying or selling shares, including brokerage
commissions imposed by brokers and bid/ask spreads, frequent trading of shares
may significantly reduce investment results and an investment in shares may not
be advisable for investors who anticipate regularly making small
investments.
•Shares
May Trade at Prices Other Than NAV. As with all ETFs, shares may be bought and sold in the secondary
market at market prices. As a result, investors in the Flexible ETF may pay
significantly more or receive significantly less for shares than the Flexible
ETF’s NAV. Although it is expected that the market price of shares will
approximate the Flexible ETF’s NAV, there may be times when the market price of
shares is more than the NAV intra-day (premium) or less than the NAV intra-day
(discount) due to supply and demand of shares or during periods of market
volatility. This risk is heightened in times of market volatility, periods of
steep market declines, and periods when there is limited trading activity for
shares in the secondary market, in which case such premiums or discounts may be
significant.
•Trading. Although shares are listed for trading
on the NYSE Arca, Inc. (the “Exchange”) and may be traded on U.S. exchanges
other than the Exchange, there can be no assurance that shares will trade with
any volume, or at all, on any stock exchange. In stressed market conditions, the
liquidity of shares may begin to mirror the liquidity of the Flexible ETF’s
underlying portfolio holdings, which can be significantly less liquid than
shares. This could lead to the Flexible ETF’s shares trading at a price that is
higher or lower than the Flexible ETF’s NAV.
•General
Market Risk – General market risk is the risk that the value of a Flexible ETF’s
shares will fluctuate based on the performance of the securities held by the
Underlying ETFs it owns. These fluctuations may cause a security to be worth
less than its cost when originally purchased or less than it was worth at an
earlier time.
•Management
Risk – Management risk describes the Flexible ETF’s ability to meet its
investment objective based on the Advisor’s success or failure to implement
investment strategies for the Flexible ETF.
•Foreign
Securities Risk – The Underlying ETFs held by the Flexible ETF may have significant
investments in foreign securities. Foreign securities risk entails risk relating
to political, social and economic developments abroad and differences between
U.S. and foreign regulatory requirements and market practices.
•Leverage
Risk – Some Underlying ETFs may borrow money for leveraging and will incur
interest expense. Leverage is investment exposure which exceeds the initial
amount invested. Leverage can cause the portfolio to lose more than the
principal amount invested. Leverage can magnify the portfolio’s gains and losses
and therefore increase its volatility. The ETF does not invest in Underlying
ETFs that utilize leverage as part of their investment
strategies.
•Interest
Rate and Credit Risk – Interest rates may rise resulting in a decrease in the value of the
securities held by the Underlying ETFs or may fall resulting in an increase in
the value of such securities. There is the possibility of heightened volatility,
reduced liquidity and valuation difficulties that may impact fixed income
markets.
•High-Yield
Securities (Junk Bond) Risk – The value of fixed-income securities held by the Underlying ETFs that
are rated below investment grade are subject to additional risk factors such as
increased possibility of default, illiquidity of the security and changes in
value based on public perception of the issuer. High-Yield Securities are
speculative and issuers of high yield securities may have reduced capacity to
repay interest and principal.
•ETF
Trading Risk –
Because the Flexible ETF invests in ETFs, it is subject to additional risks that
do not apply to conventional funds, including the risks that the market price of
an ETF’s shares may trade at a discount to its net asset value (“NAV”), an
active secondary trading market may not develop or be maintained, or trading may
be halted by the exchange in which the ETFs trade, which may impact a fund’s
ability to sell its shares of an ETF.
•Portfolio
Turnover Risk – To the extent the Flexible ETF invests in ETFs, it may be subject to
the risks of having a high portfolio turnover rate. High portfolio turnover
involves correspondingly greater expenses to a fund, including brokerage
commissions or dealer mark-ups and other transaction costs on the sale of
securities and reinvestments in other securities.
•Upgrading
Strategy Risk – The Flexible ETF employs an Upgrading strategy whereby it
continually seeks to invest in the top-performing securities at a given time.
When investment decisions are based on near-term performance, however, the
Flexible ETF may be exposed to the risk of buying Underlying ETFs immediately
following a sudden, brief surge in performance that may be followed by a
subsequent drop in market value.
•Underlying
ETFs Risk – The risks associated with the Flexible ETF include the risks related
to each Underlying ETF in which the Flexible ETF invests. Although the Flexible
ETF seeks to reduce the risk of your investment by diversifying among ETFs that
invest in bonds and, in some cases, stocks, there are inherent risks of
investing in various asset classes. The Flexible ETF must also pay its pro rata
portion of an investment company’s fees and expenses.
•Securities
Lending Risk - There are certain risks associated with securities lending,
including the risk that the borrower may fail to return the securities on a
timely basis or even the loss of rights in the collateral deposited by the
borrower, if the borrower should fail financially. As a result, the Flexible ETF
may lose money.
•Market
Events Risk - Local, regional, or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues, recessions, or
other events could have a significant impact on the market generally and on
specific securities. Periods of market volatility may occur in response to
pandemics or other events outside of our control. These types of events could
adversely affect the Flexible ETF’s performance. Economies and financial markets
throughout the world are increasingly interconnected. Economic, financial or
political events, trading and tariff arrangements, public health events,
terrorism, technology and data interruptions, natural disasters, and other
circumstances in one or more countries or regions could be highly disruptive to,
and have profound impacts on, global economies or markets. As a result, whether
or not a fund invests in securities of issuers located in or has significant
exposure to the countries directly affected, the value and liquidity of a fund’s
investments may go down. Securities markets may also be susceptible to market
manipulation or other fraudulent trade practices, which could disrupt the
orderly functioning of these markets or adversely affect the value of securities
traded in these markets, including a fund’s securities.
Performance
The following performance information provides some indication
of the risks of investing in the Flexible ETF. The Flexible ETF
is the successor to the FundX Flexible Income Fund (the “Predecessor Fund”), as
a result of the reorganization of the Predecessor Fund into the Flexible ETF on
October 9, 2023, (the “Reorganization”). Prior to the Reorganization, the
Flexible ETF had not yet commenced operations.
As
of the Reorganization, the Flexible ETF has adopted the performance history of
the Predecessor Fund, which operated as an open-end mutual fund. The Predecessor
Fund was also advised by the Advisor and had the same investment objective and
substantially similar strategies as the Flexible ETF. The bar chart shows the
Predecessor Fund’s performance for the calendar years ended December 31. The
table illustrates how the Predecessor Fund’s average annual returns for 1‑year,
5‑year and 10‑year periods compare with those of a broad measure of market
performance. The Predecessor
Fund’s past performance, before and after taxes, does not necessarily indicate
how the Flexible ETF will perform in the future. Updated
performance is available on the Flexible ETF’s website www.fundxfunds.com.
Effective at the close of business on August 1, 2014, the FundX
Flexible Income Fund, a series of Professionally Managed Portfolios (the
“Previous Predecessor Fund”, together with the Predecessor Fund, the
“Predecessor Funds”), reorganized into the Predecessor Fund, a series of FundX
Investment Trust. Performance information shown prior to the close of business
on August 1, 2014 is that of the Previous Predecessor Fund. Additionally, the
Predecessor Fund has adopted the Financial Statements of the Previous
Predecessor Fund.
FundX
Flexible ETF - XFLX
Calendar
Year Total Return as of
December 31
|
|
|
|
|
|
|
| |
Best
and Worst Quarters for the Predecessor Funds |
Best
Quarter |
12/31/2020 |
4.72% |
Worst
Quarter |
3/31/2020 |
-6.38% |
|
|
|
|
|
|
|
|
|
|
| |
Average Annual
Total Returns as of December 31, 2023 for the Predecessor
Fund |
| 1
Year |
5
Years |
10
Years |
FundX
Flexible ETF - XFLX |
|
| |
Return Before
Taxes |
3.73% |
1.23% |
1.66% |
Return After
Taxes on Distributions |
0.28% |
-0.34% |
0.05% |
Return After
Taxes on Distributions and Sale of Fund Shares |
2.26% |
0.32% |
0.64% |
Bloomberg US
Aggregate Bond Index (reflects
no deduction for fees, expenses or
taxes) |
5.53% |
1.10% |
1.81% |
ICE BofA US
3-Month US Treasury Bill Index |
5.01% |
1.88% |
1.25% |
The
“Return After Taxes on Distributions” shows the effect of taxable distributions
(dividends and capital gains distributions), but assumes that you still hold
Flexible ETF shares at the end of the period. The “Return After Taxes on
Distributions and Sale of Fund Shares” shows the effect of both taxable
distributions and any taxable gain or loss that would be realized if a fund’s
shares were sold at the end of the specified period. The after-tax
returns are calculated using the highest individual federal marginal income tax
rates in effect and do not reflect the impact of state and local
taxes. Your actual after tax returns depend on your tax
situation and may differ from those shown. The after
tax returns are not relevant if you hold your Flexible ETF shares through a tax
deferred account, such as a 401(k) plan or an individual retirement account
(“IRA”). In certain cases, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be higher than the other return
figures for the same period. This will occur when a capital loss is realized
upon the sale of Flexible ETF shares and provides an assumed tax benefit that
increases the return.
In certain
cases, Return After Taxes on Distribution and Sale of Fund Shares may be higher
than the other return figures for the same period. This will occur when a
capital loss is realized upon the sale of Fund shares or provides an assumed tax
benefit that increases the return. Your actual after-tax returns
depend on your tax situation and may differ from these shown.
Investment
Advisor
One
Capital Management, LLC is the investment advisor to the Flexible
ETF.
Portfolio
Managers
|
|
|
|
|
|
|
| |
Name |
Title |
Managed
the Fund Since |
Janet
Brown |
Portfolio
Manager |
July
2002 (the Fund’s inception) |
Martin
DeVault |
Portfolio
Manager |
July
2002 (the Fund’s inception) |
Sean
McKeon |
Portfolio
Manager |
July
2002 (the Fund’s inception) |
Purchase
and Sale of Flexible ETF Shares
Individual
shares may only be purchased and sold on a national securities exchange through
a broker-dealer. You can purchase and sell individual shares of the Flexible ETF
throughout the trading day like any publicly traded security. The Flexible ETF’s
shares are listed on the Exchange. The price of the Flexible ETF’s shares is
based on market price and, because exchange-traded fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium)
or less than NAV (discount). The Flexible ETF issues and redeems shares on a
continuous basis, at NAV, only in blocks of shares called Creation Units,
principally in-kind, and only Authorized Participants (typically,
broker-dealers) may purchase or redeem Creation Units. When buying or selling
the Flexible ETF’s shares on the Exchange, you may incur costs attributable to
the difference between the highest price a buyer is willing to pay to purchase
shares of the Flexible ETF (bid) and the lowest price a seller is willing to
accept for shares of the Flexible ETF (ask) (the “bid-ask spread”). Recent
information regarding the Flexible ETF’s NAV, market price, premiums and
discounts, and bid-ask spreads will be available at
www.fundxfunds.com.
Tax
Information
The
FundX Flexible ETF’s distributions are taxed as ordinary income or capital
gains, unless you are investing through a tax-deferred arrangement, such as a
401(k) plan or an individual retirement account. Tax-deferred arrangements may
be taxed later upon withdrawal of monies from those accounts.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Flexible ETF through a broker-dealer or other
financial intermediary (such as a bank), the Flexible ETF may pay for account
servicing and the Advisor may pay the intermediary for the sale of Flexible ETF
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Flexible ETF over another investment. Ask your salesperson or
visit your financial intermediary’s website for more information.
SUMMARY
SECTION
FundX
Conservative ETF
Investment
Objective
The
FundX Conservative ETF (“Conservative ETF”) seeks to obtain capital appreciation
over the long term while at times providing a low level of current income to
reduce portfolio volatility.
Fees
and Expenses of the Conservative
ETF
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Conservative ETF. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
|
|
|
|
| |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fee |
1.00 |
% |
Other
Expenses(1) |
None |
Acquired
Fund (Underlying ETF) Fees and Expenses(2) |
0.63 |
% |
Total
Annual Fund Operating Expenses |
1.63 |
% |
(1)Estimated for current fiscal
year.
(2)
The
Total Annual Fund Operating Expenses for the Fund do not correlate to the Ratio
of Expenses to Average Net Assets provided in the Financial Highlights section
of the statutory prospectus, which reflects the operating expenses of the Fund
and does not include Acquired Fund Fees and
Expenses.
Example
This Example is intended to help you compare the cost of investing
in the Conservative ETF with the cost of investing in other mutual funds. The
Example assumes that you invest $10,000 in the Conservative ETF 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% return each year
and that the Conservative ETF’s operating expenses remain the
same. Although your actual
costs may be higher or lower, based on these assumptions, your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 1
Year |
3
Years |
5
Years |
10
Years |
FundX
Conservative ETF |
$166 |
$514 |
$887 |
$1,933 |
Portfolio
Turnover
The
Conservative ETF may pay transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). If transaction costs are
involved, a higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Conservative ETF shares are held in a
taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the Conservative ETF’s performance. During
the most recent fiscal year, the portfolio turnover rate of the FundX
Conservative Upgrader Fund (the “Predecessor Fund”), a mutual fund series of
FundX Investment Trust (the “Trust”) that was reorganized into the Fund was
219% of the average
value of its portfolio.
Principal Investment
Strategies
The
Conservative ETF is an ETF-of-ETFs and as such invests primarily in ETFs
(“Underlying ETFs”). The Underlying ETFs, in turn, invest primarily in
individual securities such as common stocks and corporate or government bonds.
Because
markets change, the Advisor actively manages the Conservative ETF’s portfolio
using a proprietary investment strategy called Upgrading, which seeks to capture
global market trends. The Advisor invests in the Underlying ETFs that it
considers to be in sync with current market leadership. The Advisor sells an
Underlying ETF when it believes that the Underlying ETF is no longer performing
in sync with current market leadership or if a new Underlying ETF is judged more
attractive than a current holding.
The
Advisor classifies the pool of Underlying ETFs into five risk/return categories,
listed here from what it perceives to have the highest to lowest
risk:
Sector
Equity (including single-country Emerging Markets) Underlying ETFs
•Aggressive
Equity Underlying ETFs
•Core
Equity Underlying ETFs
•Total
Return Underlying ETFs
•Bond
Underlying ETFs
Under normal
market conditions, the Conservative ETF may invest in Core Equity Underlying
ETFs, which generally invest in diversified portfolios of equity securities of
well-established U.S. and foreign companies with a wide range of market
capitalizations. Core Equity Underlying ETFs may also invest in
fixed income securities. Core Equity Underlying ETFs allow the Fund to
participate in broad stock market leadership trends, such as the rotation
between growth and value stocks, large- and small-cap stocks, and international
and domestic stocks. The Conservative ETF may purchase, without limit, shares of
Underlying ETFs that invest in domestic, international and global
securities.
The
Conservative ETF may also invest in Total Return and Bond Underlying ETFs which
are less aggressive. Total Return Underlying ETFs may employ a wide variety of
investment strategies, including blending equity securities with fixed income
instruments, and techniques designed to provide steady returns with dampened
volatility, such as market neutral, long/short, and arbitrage strategies.
Because Total Return Underlying ETFs are not fully invested in bonds, these
funds typically have less credit and interest-rate risk. Bond Underlying ETFs
invest in fixed income securities of varying maturity, credit quality (including
high-yield securities, or “junk bonds”) and regional exposure. The Conservative
ETF attempts to take advantage of bond market leadership trends by targeting
those areas of the bond market that are excelling in the current market
environment. The Conservative ETF aims to control downside risk by limiting
exposure to more volatile areas of the bond market. Investments in Total Return
and Bond Underlying ETFs are intended to reduce the risk and potential
volatility of the Core Equity Underlying ETFs, although there can be no
assurance that Bond Underlying ETFs will be able to moderate risk in this
manner. The Conservative ETF utilizes Bond Underlying ETFs in an attempt to
cushion stock market volatility because bond prices have historically fluctuated
less than stocks, and bonds may provide steady interest payments that help
support their returns.
See “More about the Funds’ Investment Objectives, Strategies and
Risks – The Advisor’s Process for Classifying the Underlying ETFs” for more
information on this system.
Principal
Risks
An
investment in the Conservative ETF entails risk. The Conservative ETF cannot
guarantee that it will meet its investment objective. Since the price of the
Underlying ETFs that the Conservative ETF holds may fluctuate, the value of your
investment may fluctuate and you could lose all or a portion of your investment
in the Conservative ETF. The following risks could affect the
value of your investment:
▪ETF
Risk -
The Conservative ETF is an ETF and, as a result of an ETF’s structure, it is
exposed to the following risks:
•Authorized
Participants, Market Makers, and Liquidity Providers Concentration
Risk.
The Conservative ETF has a limited number of financial institutions that may act
as Authorized Participants (“APs”). In addition, there may be a limited number
of market makers and/or liquidity providers in the marketplace. To the extent
either of the following events occur, shares may trade at
a material discount to NAV and possibly face delisting: (i) APs exit
the business or otherwise become unable to process creation and/or redemption
orders and no other APs step forward to perform these services, or (ii) market
makers and/or liquidity providers exit the business or significantly reduce
their business activities and no other entities step forward to perform their
functions.
•Cash
Redemption Risk -
The Conservative ETF’s investment strategy may require it to redeem
shares for cash or to otherwise include cash as part of its redemption proceeds.
The Conservative ETF may be required to sell or unwind portfolio investments to
obtain the cash needed to distribute redemption proceeds. This may cause the
Conservative ETF to realize a capital gain that it might not have realized if it
had made a redemption in-kind. As a result, the Conservative ETF may pay out
higher annual capital gain distributions than if the in-kind redemption process
was used. To the extent that the transaction fees charged for redemptions of
creation units is insufficient to cover the Conservative ETF’s transaction costs
of selling portfolio securities, the Conservative ETF’s performance could be
negatively impacted.
•Costs
of Buying or Selling Shares - Due to the costs of buying or selling shares, including brokerage
commissions imposed by brokers and bid/ask spreads, frequent trading of shares
may significantly reduce investment results and an investment in shares may not
be advisable for investors who anticipate regularly making small
investments.
•Shares
May Trade at Prices Other Than NAV - As with all ETFs, shares may be bought and sold in the secondary
market at market prices. As a result, investors in the Conservative ETF may pay
significantly more or receive significantly less for shares than the
Conservative ETF’s NAV. Although it is expected that the market price of shares
will approximate the Conservative ETF’s NAV, there may be times when the market
price of shares is more than the NAV intra-day (premium) or less than the NAV
intra-day (discount) due to supply and demand of shares or during periods of
market volatility. This risk is heightened in times of market volatility,
periods of steep market declines, and periods when there is limited trading
activity for shares in the secondary market, in which case such premiums or
discounts may be significant.
•Trading
-
Although shares are listed for trading on the NYSE Arca, Inc. (the “Exchange”)
and may be traded on U.S. exchanges other than the Exchange, there can be no
assurance that shares will trade with any volume, or at all, on any stock
exchange. In stressed market conditions, the liquidity of shares may begin to
mirror the liquidity of the Conservative ETF’s underlying portfolio holdings,
which can be significantly less liquid than shares. This could lead to the
Conservative ETF’s shares trading at a price that is higher or lower than the
Conservative ETF’s NAV.
•General
Market Risk – General market risk is the risk that the value of a Conservative
ETF’s shares will fluctuate based on the performance of the securities held by
the Underlying ETFs it owns. These fluctuations may cause a security to be worth
less than its cost when originally purchased or less than it was worth at an
earlier time.
•Management
Risk – Management risk describes the Conservative ETF’s ability to meet its
investment objective based on the Advisor’s success or failure to implement
investment strategies for the Conservative ETF.
•Foreign
Securities Risk – The Underlying ETFs held by the Conservative ETF may have significant
investments in foreign securities. Foreign securities risk entails risk relating
to political, social and economic developments abroad and differences between
U.S. and foreign regulatory requirements and market practices.
•Emerging
Markets Risk – In addition to the foreign securities risks mentioned above,
emerging markets are generally more volatile and less liquid.
•Leverage
Risk – Some Underlying ETFs may borrow money for leveraging and will incur
interest expense. Leverage is investment exposure which exceeds the initial
amount invested. Leverage can cause the portfolio to lose more than the
principal amount invested. Leverage can magnify the portfolio’s gains and losses
and therefore increase its volatility. The ETF does not invest in Underlying
ETFs that utilize leverage as a part of their investment
strategies.
•Small
Company Risk – The Underlying ETFs may invest in securities of small companies,
which involves greater volatility than investing in larger and more established
companies.
•Large
Company Risk – Large capitalization companies may fall out of favor with investors
based on market and economic conditions. In return for the relative stability
and low volatility of large capitalization companies, the Conservative ETF’s
value may not rise as much as the value of funds that focus on companies with
smaller market capitalizations.
•Sector
Emphasis Risk – Some of the Underlying ETFs may have particular emphasis in one or
more sectors, subjecting that Underlying ETF to sector emphasis risk. Sector
emphasis risk is the possibility that a certain sector may underperform other
sectors or the market as a whole.
•Interest
Rate and Credit Risk – Interest rates may rise resulting in a decrease in the value of the
securities held by the Underlying ETFs or may fall resulting in an increase in
the value of such securities.
•High-Yield
Securities (Junk Bond) Risk – The value of fixed-income securities held by the Underlying ETFs
that are rated below investment grade are subject to additional risk factors
such as increased possibility of default, illiquidity of the security and
changes in value based on public perception of the issuer. High-Yield Securities
are speculative and issuers of high yield securities may have reduced capacity
to repay interest and principal.
•ETF
Trading Risk – Because
the Conservative ETF invests in ETFs, it is subject to additional risks that do
not apply to conventional funds, including the risks that the market price of an
ETF’s shares may trade at a discount to its net asset value (“NAV”), an active
secondary trading market may not develop or be maintained, or trading may be
halted by the exchange in which the ETFs trade, which may impact a fund’s
ability to sell its shares of an ETF.
•Portfolio
Turnover Risk – To the extent the Conservative ETF invests in ETFs, it may be
subject to the risks of having a high portfolio turnover rate. High portfolio
turnover involves correspondingly greater expenses to a fund, including
brokerage commissions or dealer mark-ups and other transaction costs on the sale
of securities and reinvestments in other securities.
•Upgrading
Strategy Risk – The Conservative ETF employs an Upgrading strategy whereby it
continually seeks to invest in the top-performing securities at a given time.
When investment decisions are based on near-term performance, however, the
Conservative ETF may be exposed to the risk of buying Underlying ETFs
immediately following a sudden, brief surge in performance that may be followed
by a subsequent drop in market value.
•Underlying
ETFs Risk – The
risks associated with the Conservative ETF include the risks related to each
Underlying ETF in which the Conservative ETF invests. Although the Conservative
ETF seeks to reduce the risk of your investment by diversifying among ETFs that
invest in stocks and, in some cases, bonds, there are inherent risks of
investing in various asset classes. The Conservative ETF must also pay its pro
rata portion of an investment company’s fees and
expenses.
•Securities
Lending Risk - There are certain risks associated with securities lending,
including the risk that the borrower may fail to return the securities on a
timely basis or even the loss of rights in the collateral deposited by the
borrower, if the borrower should fail financially. As a result, the Conservative
ETF may lose money.
•Market
Events Risk - Local, regional, or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues, recessions, or
other events could have a significant impact on the market generally and on
specific securities. Periods of market volatility may occur in response to
pandemics or other events outside of our control. These types of events could
adversely affect the Conservative ETF’s performance. Economies and financial
markets throughout the world are increasingly interconnected. Economic,
financial or political events, trading and tariff arrangements, public health
events, terrorism, technology and data interruptions, natural disasters, and
other circumstances in one or more countries or regions could be highly
disruptive to, and have profound impacts on, global economies or markets. As a
result, whether or not a fund invests in securities of issuers located in or has
significant exposure to the countries directly affected, the value and liquidity
of a fund’s investments may go down. Securities markets may also be susceptible
to market manipulation or other fraudulent trade practices, which could disrupt
the orderly functioning of these markets or adversely affect the value of
securities traded in these markets, including a fund’s
securities.
Performance
The following performance information provides some indication
of the risks of investing in the Conservative ETF. The
Conservative ETF is the successor to the FundX Conservative Upgrader Fund (the
“Predecessor Fund”), as a result of the reorganization of the Predecessor Fund
into the Conservative ETF on October 9, 2023, (the “Reorganization”). Prior to
the Reorganization, the Conservative ETF had not yet commenced operations.
As
of the Reorganization, the Conservative ETF has adopted the performance history
of the Predecessor Fund, which operated as an open-end mutual fund. The
Predecessor Fund was also advised by the Advisor and had the same investment
objective and substantially similar strategies as the Conservative ETF. The bar
chart shows the Predecessor Fund’s performance for the calendar years ended
December 31. The table illustrates how the Predecessor Fund’s average annual
returns for 1‑year, 5‑year and 10‑year periods compare with those of a broad
measure of market performance. The Predecessor
Fund’s past performance, before and after taxes, does not necessarily indicate
how the Conservative ETF will perform in the future. Updated
performance is available on the Conservative ETF’s website www.fundxfunds.com.
Effective at the close of business on August 1, 2014, the FundX
Conservative Upgrader Fund, a series of Professionally Managed Portfolios (the
“Previous Predecessor Fund”, together with the Predecessor Fund, the
“Predecessor Funds”), reorganized into the Predecessor Fund, a series of FundX
Investment Trust. Performance information shown prior to the close of business
on August 1, 2014 is that of the Previous Predecessor Fund. Additionally, the
Predecessor Fund has adopted the Financial Statements of the Previous
Predecessor Fund.
FundX
Conservative ETF - XRLX
Calendar
Year Total Return as of
December 31
|
|
|
|
|
|
|
| |
Best
and Worst Quarters of the Predecessor Funds |
Best
Quarter |
6/30/2020 |
10.79% |
Worst
Quarter |
3/31/2020 |
-13.20% |
|
|
|
|
|
|
|
|
|
|
| |
Average Annual
Total Returns as of December 31, 2023 for the Predecessor
Fund |
| 1
Year |
5
Years |
10
Years |
FundX
Conservative ETF - XRLX |
|
| |
Return Before
Taxes |
8.91% |
6.82% |
5.37% |
Return
After Taxes on Distributions |
7.29% |
5.09% |
3.73% |
Return
After Taxes on Distributions and Sale of Fund
Shares |
5.45% |
5.06% |
3.84% |
Morningstar
Global Market Large-Mid Cap Index* (reflects no deduction for fees, expenses or
taxes) |
21.80% |
11.54% |
7.88% |
S&P
500®
Index (reflects no deduction for fees, expenses or
taxes) |
26.29% |
15.69% |
12.03% |
Balanced
Index (60% S&P 500/40% Bloomberg US Aggregate Bond
Index) |
10.68% |
9.00% |
7.21% |
Bloomberg
US Aggregate Bond Index (reflects no deduction for fees, expenses or
taxes) |
5.53% |
1.10% |
1.81% |
*The inception date of the Morningstar Global Markets Large-Mid Cap
Index is November 15,
2016, and the performance inception date of the index is June
30, 1998. Returns prior to the inception date have been synthetically calculated
by the index provider.
The
“Return After Taxes on Distributions” shows the effect of taxable distributions
(dividends and capital gains distributions), but assumes that you still hold
Conservative ETF shares at the end of the period. The “Return After Taxes on
Distributions and Sale of Fund Shares” shows the effect of both taxable
distributions and any taxable gain or loss that would be realized if a fund’s
shares were sold at the end of the specified period. The after‑tax
returns are calculated using the highest individual federal marginal income tax
rates in effect and do not reflect the impact of state and local
taxes. Your actual after-tax returns depend on your tax
situation and may differ from those shown. The
after‑tax returns are not relevant if you hold your Conservative ETF shares
through a tax-deferred account, such as a 401(k) plan or an
IRA.
In certain
cases, Return After Taxes on Distribution and Sale of Fund Shares may be higher
than the other return figures for the same period. This will occur when a
capital loss is realized upon the sale of Conservative ETF shares or provides an
assumed tax benefit that increases the return. Your actual
after-tax returns depend on your tax situation and may differ from these
shown.
Investment
Advisor
One
Capital Management, LLC is the investment advisor to the Conservative
ETF.
Portfolio
Managers
|
|
|
|
|
|
|
| |
Name |
Title |
Managed
the Conservative ETF Since |
Janet
Brown |
Portfolio
Manager |
July
2002 (the Fund’s inception) |
Martin
DeVault |
Portfolio
Manager |
July
2002 (the Fund’s inception) |
Sean
McKeon |
Portfolio
Manager |
July
2002 (the Fund’s inception) |
Purchase
and Sale of Conservative ETF Shares
Individual
shares may only be purchased and sold on a national securities exchange through
a broker-dealer. You can purchase and sell individual shares of the Conservative
ETF throughout the trading day like any publicly traded security. The
Conservative ETF’s shares are listed on the Exchange. The price of the
Conservative ETF’s shares is based on market price and, because exchange-traded
fund shares trade at market prices rather than NAV, shares may trade at a price
greater than NAV (premium) or less than NAV (discount). The Conservative ETF
issues and redeems shares on a continuous basis, at NAV, only in blocks of
shares called Creation Units, principally in-kind, and only Authorized
Participants (typically, broker-dealers) may purchase or redeem Creation Units.
When buying or selling the Conservative ETF’s shares on the Exchange, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase shares of the Conservative ETF (bid) and the lowest
price a seller is willing to accept for shares of the Conservative ETF (ask)
(the “bid-ask spread”). Recent information regarding the Conservative ETF’s NAV,
market price, premiums and discounts, and bid-ask spreads will be available at
www.fundxfunds.com.
Tax
Information
The
Conservative ETF’s distributions are taxed as ordinary income or capital gains,
unless you are investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account. Tax-deferred arrangements may be taxed
later upon withdrawal of monies from those accounts.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Conservative ETF through a broker-dealer or other
financial intermediary (such as a bank), the Conservative ETF may pay for
account servicing and the Advisor may pay the intermediary for the sale of
Conservative ETF shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Conservative ETF over another investment. Ask
your salesperson or visit your financial intermediary’s website for more
information.
MORE
ABOUT THE FUNDS’ INVESTMENT
OBJECTIVES,
STRATEGIES AND RISKS
Investment
Objectives
Please
refer to the Summary Section for each Fund in the front of this Prospectus for
each Fund’s investment objective. Each Fund’s investment objective is
non-fundamental and may therefore be changed, without shareholder approval, upon
a 60-day written notice to a Fund’s shareholders.
Principal
Investment Strategies
Advisor’s
General Approach to Managing the FundX Funds
In
selecting investments for the Funds’ portfolios, the Advisor employs its
proprietary Upgrading investment strategy. The Advisor believes that the best
investment returns can be attained by continually moving assets into what it
determines to be the current top-performing Underlying ETFs within a given risk
class.
The
Advisor’s Upgrading strategy is designed to be a logical system of investing in
top Underlying ETFs while they are performing well, and then moving to others
when the Advisor believes the original choices are no longer the best. The
Advisor selects Underlying ETFs that it believes offer above-average prospects
for achieving each Fund’s goal of either capital growth or capital preservation
and believes such Underlying ETFs can be identified through current performance.
The
Advisor has used this Upgrading investment strategy to manage accounts since
1969. The Advisor believes Upgrading can provide an effective way to
successfully participate in a broad range of investment opportunities as they
develop.
The
Advisor believes that investing in other ETFs will provide the Funds with
opportunities to achieve greater diversification of portfolio securities and
investment techniques than the Funds could achieve by investing directly in
individual portfolio securities.
Since
1976, the Advisor has published NoLoad
FundX,
a monthly newsletter that provides information on an Upgrading strategy similar
to the strategies utilized by the Funds. Although the Underlying ETFs purchased
for the Funds will generally also be highly ranked in the Advisor’s proprietary
ranking system, the Advisor may also invest in funds not included in the
newsletter, such as institutional or other mutual funds that are not available
to the general public, but are available to the Advisor.
Underlying
ETFs in which the Funds Invest
Each
of the Funds seeks to achieve its investment objectives by investing primarily
in no-load and load-waived mutual funds, including ETFs, which are referred to
as the Underlying ETFs. Each Fund will invest primarily in Underlying ETFs that
have an investment objective similar to the Fund’s or that otherwise are
permitted investments under the Fund’s investment policies described herein.
Nevertheless, the Underlying ETFs purchased by a Fund likely will have certain
investment policies and use certain investment practices that may be different
from those of the Fund and not described here. These other policies and
practices may subject the Underlying ETFs’ assets to varying or greater degrees
of risk.
The
Advisor’s Upgrading strategy classifies Underlying ETFs according to risk, based
primarily on their historical performance with emphasis on their downside
records. As its secondary selection process, the Advisor then scores and ranks
the Underlying ETFs on recent total returns.
The
Advisor selects a diversified portfolio of Underlying ETFs using its Upgrading
Strategy. When needed, the Advisor may also sell Underlying ETFs in order to
take profits or raise cash. The Advisor utilizes options to both raise cash and
to put cash to work. Options can also be used to potentially provide downside
protection.
The
Advisor’s Process for Classifying the Underlying ETFs in which the Funds
Invest
The
Advisor utilizes proprietary risk classes to categorize Underlying ETFs in which
it invests. These are: Sector Equity Underlying ETFs, Aggressive Equity
Underlying ETFs, Core Equity Underlying ETFs, Total Return Underlying ETFs and
Bond Underlying ETFs. Using broad categories allows the Advisor to have a full
range of investment opportunities available to the Funds. For instance, rather
than isolating international funds from domestic, the Advisor groups them with
other funds with similar downside risk. The intent is to allow the best funds to
rise to the top, whatever their investment approach may be. Occasionally, some
overlap may occur. An Aggressive Equity Underlying ETF may exhibit no more
volatility than a typical
Core
Equity Underlying ETF. Furthermore, the Advisor may re-classify Underlying ETFs
when new information indicates such change is appropriate. The descriptions
below provide a realistic indication of what might be expected from a fund in
each classification.
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Sector
Equity Funds |
Sector
Equity Underlying ETFs include equity funds that focus on specific
industries or market sectors in the hopes of achieving above-average
returns. International funds in this group may concentrate in a particular
country or region, including emerging markets or economies not considered
mature. These funds mostly hold common stocks, but may contain convertible
bonds or other instruments and they may use investing techniques such as
leveraging, margin, short positions or use of derivative instruments such
as options or futures in ways that may lead to increased volatility. The
Advisor considers emerging markets countries to be those defined by the
Morgan Stanley Capital International (“MSCI”) Emerging Markets
Index. |
Aggressive
Equity Funds |
Aggressive
Equity Underlying ETFs include equity funds invested in small- or
mid-sized companies, but may also include large-cap stocks. Many of these
funds may lack diversification by focusing on a few industry sectors or
concentrating their portfolios in a few individual holdings, in the hopes
of achieving above-average returns. Many of these funds have a history of
greater-than-market-level volatility. International funds may concentrate
in a particular region, including emerging markets or economies not
considered mature. These funds mostly hold common stocks, but may contain
convertible bonds or other instruments. The Advisor considers emerging
markets countries to be those defined by the MSCI Emerging Markets
Index. |
Core
Equity Funds |
Core
Equity Underlying ETFs are generally comprised of diversified equity
portfolios invested in well-established companies. Such portfolios may
include some fixed-income instruments such as bonds, convertibles,
preferred stock or cash and may have flexibility to move to large cash
positions. International (foreign) or global (foreign and domestic) funds
tend to invest in larger companies in mature economies (e.g.,
Europe & Japan). |
Total
Return (or Balanced) Funds |
Total
Return Underlying ETFs may employ a wide variety of investment strategies,
including blending equity securities with fixed income instruments, and
techniques designed to provide steady returns with dampened volatility,
such as market neutral long/short, and arbitrage strategies. Because Total
Return Underlying ETFs are not fully invested in bonds, these funds
typically have less credit and interest rate risk. Often these funds hold
income-generating instruments, such as bonds, to lower portfolio
volatility. Some of these funds may use derivative instruments such as
futures, put options or short selling to a limited extent to lessen
volatility. |
Bond/Fixed-Income
Funds |
Bond
Underlying ETFs have a primary objective of current income and
preservation of capital. These funds are divided into sub-categories of
fixed-income securities based on credit quality, duration and maturity. It
is not the Advisor’s intention to purchase funds to achieve a particular
tax result. Bond Underlying ETFs attempt to cushion market
volatility.
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Additional
Information about the FundX Funds’ Investments
Underlying
ETFs Operate Independently of FundX Funds.
The
Funds are independent from any of the Underlying ETFs in which they invest and
have little voice in or control over the investment practices, policies or
decisions of those Underlying ETFs. If a Fund disagrees with those practices,
policies or decisions, it may have no choice other than to liquidate its
investment in that Underlying ETF, which may entail losses.
FundX
Funds May Not be Able to Sell Underlying ETFs Readily.
An Underlying ETF may limit a Fund’s ability to sell its shares of the
Underlying ETF at certain times. In these cases, such investments will be
considered illiquid and subject to a Fund’s overall limit on illiquid
securities. For example, no Underlying ETF is required to redeem any of its
shares owned by a Fund in an amount exceeding 1% of the Underlying ETF’s shares
during any period of less than 30 days. As a result, to the extent that a Fund
owns more than 1% of an Underlying ETF’s shares, a Fund may not be able to
redeem those shares promptly in the event of adverse market conditions or other
considerations. (This limitation does not apply to a Fund’s holdings of shares
of ETFs, which are not redeemed through the ETF itself, but which can be sold by
a Fund on a securities exchange in a secondary market transaction.)
An
Underlying ETF May Invest In Similar Securities of Another Underlying
ETF.
Also, the investment advisors of the Underlying ETFs in which a Fund invests may
simultaneously pursue inconsistent or contradictory courses of action. For
example, one Underlying ETF may be purchasing securities of the same issuer
whose securities are being sold by another Underlying ETF, with the result that
a Fund would incur an indirect brokerage expense without any corresponding
investment or economic benefit.
Underlying
ETF Expenses.
Furthermore,
the Funds will normally invest only in Underlying ETFs that do not impose
up-front sales loads, deferred sales loads, distribution fees of more than 0.25%
or redemption fees. If a Fund invests in an Underlying ETF that normally charges
an up-front sales load, it may use available sales load waivers and quantity
discounts to eliminate the sales load. However, this policy does not preclude
the Funds from investing in Underlying ETFs with sales related expenses,
redemption fees or service fees in excess of 0.25%.
High
Portfolio Turnover.
Each Fund is actively managed and has no restrictions on portfolio turnover.
Each Fund may at times experience an annual portfolio turnover rate
substantially in excess of 200% on a regular basis. A high portfolio turnover
rate (100% or more) may result in the realization and distribution of higher
capital gains to Fund shareholders and may mean a higher tax liability. A high
portfolio turnover rate may also lead to higher transaction costs, which could
negatively affect a Fund’s performance.
Temporary
Defensive Strategies.
For
temporary defensive purposes under abnormal market or economic conditions, a
Fund may hold all or a portion of its assets in money market instruments, money
market funds or U.S. government repurchase agreements. A Fund may also invest in
such instruments at any time to maintain liquidity or pending selection of
investments in accordance with its policies. To the extent a Fund is invested in
such defensive instruments, the Fund may not achieve its investment objective,
on account of following a temporary defensive strategy being inconsistent with a
Fund’s principal investment strategy. Taking a temporary defensive strategy is
inconsistent with a Fund’s principal investment strategies.
SEC
Limitations of FundX Funds’ Investments in Other Investments
Companies.
Up
to 25% of a Fund’s assets may be invested in shares of a single Underlying ETF;
however, each Fund intends to limit its investments in Underlying ETFs in
accordance with the Investment Company Act of 1940, as amended (the “1940 Act”),
or with certain terms and conditions of applicable exemptive orders issued by
the Securities and Exchange Commission (“SEC”) and approved by the Board. A Fund
may invest in Underlying ETFs that are permitted to invest more than 25% of
their assets in a single industry and may also invest in Underlying ETFs that
are themselves non-diversified.
A
Fund may invest in the securities of other registered investment companies,
including exchange-traded funds (“ETFs”), money market funds and other mutual
funds, subject to the limitations of the 1940 Act, and subject to such
investments being consistent with the overall objective and policies of the
Fund.
As
a fund-of-funds, each Fund relies on Section 12(d)(1)(F) of the 1940 Act
that permits each Fund to invest in unaffiliated funds subject to certain
guidelines including that each Fund (together with its affiliated funds) may
acquire no more than 3% of the outstanding voting securities of the unaffiliated
fund. Generally, Section 12(d)(1) of the 1940 Act (and the rules
thereunder) restricts investments by registered investment companies in
securities of other registered investment companies, including the Underlying
ETFs. The acquisition of shares of the Underlying ETFs by each Fund is therefore
subject to the restrictions of Section 12(d)(1) of the 1940 Act,
except as may be permitted by any exemptive orders obtained by the Underlying
ETFs or pursuant to Rule 12d1-4 under the 1940 Act that permit registered
investment companies such as each Fund to invest in the Underlying ETF beyond
the limits of Section 12(d)(1), subject to certain terms and conditions,
including that each Fund enter into an agreement with the Underlying ETF
regarding the terms of the investment.
Principal
Risks
Although
the Funds principally invest in any number of Underlying ETFs, this investment
strategy does not eliminate investment risk. Therefore, there is no assurance
that the Funds will achieve their investment objectives. Since the prices of
securities in the Underlying ETFs may fluctuate, the value of your investment in
the Funds may fluctuate and you could lose money. The following list sets forth
more information about the principal risks that apply to the Funds. The
following risks apply to each Fund unless otherwise noted.
ETF
Risk.
◦Authorized
Participants, Market Makers, and Liquidity Providers Concentration
Risk.
Each Fund has a limited number of financial institutions that may act as APs. In
addition, there may be a limited number of market makers and/or liquidity
providers in the marketplace. To the extent either of the following events
occur, Shares may trade at a material discount to NAV and possibly face
delisting: (i) APs exit the business or otherwise become unable to process
creation and/or redemption orders and no other APs step forward to perform these
services; or (ii) market makers and/or liquidity providers exit the business or
significantly reduce their business activities and no other entities step
forward to perform their functions.
◦Cash
Redemption Risk.
A Fund’s investment strategy may require it to redeem Shares for cash or to
otherwise include cash as part of its redemption proceeds. For example, a Fund
may not be able to redeem in-kind certain securities held by the Fund (e.g., TBA
transactions, short positions, derivative instruments, and bonds that cannot be
broken up beyond certain minimum sizes needed for transfer and settlement). In
such a case, a Fund may be required to sell or unwind portfolio investments to
obtain the cash needed to distribute redemption proceeds. This may cause the
Fund to recognize a capital gain that it might not have recognized if it had
made a redemption in-kind. As a result, a Fund may pay out higher annual capital
gain distributions than if the in-kind redemption process was used.
◦Costs
of Buying or Selling Shares.
Investors buying or selling Shares in the secondary market will pay brokerage
commissions or other charges imposed by brokers, as determined by that broker.
Brokerage commissions are often a fixed amount and may be a significant
proportional cost for investors seeking to buy or sell relatively small amounts
of Shares. In addition, secondary market investors will also incur the cost of
the bid-ask spread. The bid-ask spread varies over time for Shares based on
trading volume and market liquidity, and is generally lower if Shares have more
trading volume and market liquidity and higher if Shares have little trading
volume and market liquidity. Further, a relatively small investor base in a
Fund, asset swings in a Fund
and/or
increased market volatility may cause increased bid-ask spreads. Due to the
costs of buying or selling Shares, including bid-ask spreads, frequent trading
of Shares may significantly reduce investment results and an investment in
Shares may not be advisable for investors who anticipate regularly making small
investments.
◦Shares
May Trade at Prices Other Than NAV. As
with all ETFs, Shares may be bought and sold in the secondary market at market
prices. Although it is expected that the market price of the Shares will
approximate a Fund’s NAV, there may be times when the market price of Shares is
more than the NAV intra-day (premium) or less than the NAV intra-day (discount)
due to supply and demand of the Shares or during periods of market volatility.
This risk is heightened in times of market volatility or periods of steep market
declines. The market price of Shares during the trading day, like the price of
any exchange-traded security, includes a “bid-ask” spread charged by the
exchange specialist, market makers or other participants that trade the Shares.
In times of severe market disruption, the bid-ask spread can increase
significantly. At those times, Shares are most likely to be traded at a discount
to NAV, and the discount is likely to be greatest when the price of Shares is
falling fastest, which may be the time that you most want to sell your Shares.
The Adviser believes that, under normal market conditions, large market price
discounts or premiums to NAV will not be sustained because of arbitrage
opportunities.
◦Trading.
Although Shares are listed for trading on the Exchange and may be listed or
traded on U.S. and non-U.S. stock exchanges other than the Exchange, there can
be no assurance that an active trading market for such Shares will develop or be
maintained. Trading in Shares may be halted due to market conditions or for
reasons that, in the view of the Exchange, make trading in Shares inadvisable.
In addition, trading in Shares on the Exchange is subject to trading halts
caused by extraordinary market volatility pursuant to Exchange “circuit breaker”
rules, which temporarily halt trading on the Exchange when a decline in the
S&P 500 Index during a single day reaches certain thresholds (e.g., 7%, 13%,
and 20%). Additional rules applicable to the Exchange may halt trading in Shares
when extraordinary volatility causes sudden, significant swings in the market
price of Shares. There can be no assurance that Shares will trade with any
volume, or at all, on any stock exchange. In stressed market conditions, the
liquidity of Shares may begin to mirror the liquidity of the Funds’ underlying
portfolio holdings, which can be significantly less liquid than
Shares.
General
Market Risk
– The Funds’ assets will be invested in Underlying ETFs that themselves invest
primarily in equity securities. The value of your investment in each Fund
depends on the value of the Underlying ETFs it owns. In turn, the value of an
Underlying ETF depends on the market value of the equity securities in which it
has invested. General market risk is the risk that the market value of a
security may fluctuate, sometimes rapidly and unpredictably. These fluctuations
may cause a security to be worth less than its cost when originally purchased or
less than it was worth at an earlier time. General market risk may affect a
single issuer, industry, sector of the economy or the market as a
whole.
Management
Risk
– Management risk describes a Fund’s ability to meet its investment objective
based on the Advisor’s success or failure to implement investment strategies for
the Fund. The value of your investment in a Fund is subject to the investment
strategies used by the Underlying ETFs in selecting investments, including the
ability of the investment advisory organizations that manage the Underlying ETFs
in assessing economic conditions and investment opportunities, and may not
result in an increase in the value of your investment or in overall performance
equal to other investments. If the Advisor’s investment strategies do not
produce the expected results, your investment could be diminished or even lost.
Upgrading
Strategy Risk
– The Funds employ an Upgrading strategy whereby they continually seek to invest
in the top-performing funds at a given time. When investment decisions are based
on near-term performance, however, the Funds may be exposed to the risk of
buying Underlying ETFs immediately
following
a sudden, brief surge in performance that may be followed by a subsequent drop
in market value. Furthermore, focusing on current market leaders may expose the
Funds to concentration risk.
Small
Company Risk
– The
FundX ETF,
Aggressive
ETF
and Conservative
ETF
may invest in Underlying ETFs that invest in small capitalization companies. As
a result, your investment will be subject to small company risk. Small company
risk is the risk that, due to limited product lines, markets or financial
resources, dependence on a relatively small management group or other factors,
small companies may be more vulnerable than larger companies to adverse business
or economic developments. Securities of small companies are generally less
liquid and more volatile than securities of larger companies or the market
averages. In addition, small companies may not be as well-known to the investing
public as large companies, may not have institutional ownership and may have
only cyclical, static or moderate growth prospects. In addition, the performance
of an Underlying ETF may be adversely affected during periods when the smaller
capitalization stocks are out-of-favor with investors. Under normal market
conditions, the Advisor intends to hold small company funds only when small
company stocks are outperforming large company stocks.
Large
Company Risk –
The
FundX ETF,
Aggressive
ETF
and Conservative
ETF may
invest in Underlying ETFs that invest in
Large
capitalization companies that may fall out of favor with investors based on
market and economic conditions. In return for the relative stability and low
volatility of large capitalization companies, the Fund’s value may not rise as
much as the value of funds that focus on companies with smaller market
capitalizations.
Foreign
Securities Risk
– The
FundX
ETF,
Aggressive
ETF
and Conservative
ETF
may
invest in Underlying ETFs that invest in the securities of foreign companies. As
a result, such Underlying ETF would be subject to foreign securities risk.
Foreign securities risk entails risk relating to political, social and economic
developments abroad and differences between U.S. and foreign regulatory
requirements and market practices. Securities that are denominated in foreign
currencies are subject to the further risk that the value of the foreign
currency will fall in relation to the U.S. dollar and/or will be affected by
volatile currency markets or actions of U.S. and foreign governments or central
banks.
Emerging
Markets Risk
– In addition to developed markets, the
FundX
ETF,
Aggressive
ETF
and Conservative
ETF
may invest in Underlying ETFs may invest in emerging markets, which are markets
of countries in the initial stages of industrialization and that generally have
low per capita income. In addition to the risks of foreign securities in
general, countries in emerging markets are generally more volatile and can have
relatively unstable governments, social and legal systems that do not protect
shareholders, economies based on only a few industries and securities markets
that trade a small number of issues, which could reduce liquidity. Additional
risks of emerging markets include differences in nationalization, embargo,
expropriation and acts of war. In addition, clearance and settlement procedures
may be different in foreign countries and, in certain markets, on certain
occasions; such procedures have been unable to keep pace with the volume of
securities transactions, thus making it difficult to conduct such transactions.
The Underlying ETFs may be required to establish special custody or other
arrangements before making certain investments in those countries.
Emerging
market countries tend to have economic, political and legal systems that are
less fully developed and are less stable than those of more developed countries.
They are often particularly sensitive to market movements because their market
prices tend to reflect speculative expectations. Low trading volumes may result
in a lack of liquidity and in extreme price volatility. Investors should be able
to tolerate sudden, sometimes substantial, fluctuations in the value of their
investments. Emerging market countries may have policies that restrict
investment by foreigners or that prevent foreign investors from withdrawing
their money at will. Emerging market investments also face risks related to
market manipulation, limited reliable access to capital, political risk,
atypical foreign investment structures, lack of shareholder rights and remedies,
and incomplete or inaccurate auditing and reporting standards.
Interest
Rate and Credit Risk
– The Underlying ETFs comprising the Flexible
ETF
and the Conservative
ETF’s portfolios
may hold bonds and other fixed-income securities. Underlying ETFs of this type
invest a portion of their assets in bonds, notes and other fixed-income and
convertible securities, as well as preferred stock. Generally, the value of a
fixed-income portfolio will decrease when interest rates rise and increase when
interest rates fall. Therefore, an Underlying ETF’s NAV will fluctuate in
response to changes in interest rates. The longer the duration of a bond, the
more a change in interest rates affects the bond’s price. Short-term and
long-term interest rates may not move the same amount and may not move in the
same direction. It is likely there will be less governmental action in the near
future to maintain low interest rates, or that governmental actions will be less
effective in maintaining low interest rates. The negative impact on fixed income
securities from the resulting rate increases for that and other reasons could be
swift and significant, including falling market values and reduced liquidity.
Substantial redemptions from bond and other income funds may worsen that impact.
Other types of securities also may be adversely affected from an increase in
interest rates. In addition to interest rate risk, changes in the
creditworthiness of an issuer of fixed-income securities and the market’s
perception of that issuer’s ability to repay principal and interest when due can
also affect the value of fixed-income securities held by an Underlying
ETF.
High-Yield
Securities (Junk Bonds) Risk
– The Flexible
ETF and
the Conservative
ETF may
invest in Underlying ETFs that focus their investments in securities rated below
investment grade. Fixed‑income securities receiving the lowest investment grade
rating may have speculative characteristics, and, like securities rated below
investment grade, when compared to higher-grade securities, may have a weakened
capacity to make principal and interest payments in adverse economic conditions
or other circumstances. High-yield, high risk and lower-rated securities are
subject to additional risk factors, such as increased possibility of default,
decreased liquidity and fluctuations in value due to public perception of the
issuer of such securities.
Foreign
Securities Risk
– One or more Underlying ETFs may invest in the securities of foreign companies.
As a result, such Underlying ETF would be subject to foreign securities risk.
Foreign securities risk entails risk relating to political, social and economic
developments abroad and differences between U.S. and foreign regulatory
requirements and market practices. Securities that are denominated in foreign
currencies are subject to the further risk that the value of the foreign
currency will fall in relation to the U.S. dollar and/or will be affected by
volatile currency markets or actions of U.S. and foreign governments or central
banks.
Non-Diversification
Risk
– While the Funds themselves are diversified, some of the Underlying ETFs may
invest in a limited number of issuers and therefore, may be non-diversified.
Because such an Underlying ETF focuses its investments in a limited number of
issuers, its NAV and total return may fluctuate or decline more in times of
weaker markets than a more diversified fund.
Sector
Emphasis Risk
– It is anticipated that the
FundX
ETF, Aggressive ETF
and
Conservative ETF
will invest in Underlying ETFs with focused investments or that have a
particular emphasis on one or more sectors. In the case of an Underlying ETF
that focuses its investments in a particular industry or sector, events may
occur that impact that industry or sector more significantly than the stock
market as a whole. Furthermore, each industry or sector possesses particular
risks that may not affect other industries or sectors.
Short
Sales Risk
– Some of the Underlying ETFs in which the FundX
ETF and
Aggressive ETF invest
will engage in short sales, which may cause an Underlying ETF’s investment
performance to suffer if it is required to close out a short position earlier
than it had intended. This would occur if the lender required such Underlying
ETF to deliver the securities it borrowed at the commencement of the short sale
and it was unable to borrow the securities from other securities lenders.
Furthermore, until an Underlying ETF replaces a security borrowed, or sold
short, it must pay to the lender amounts equal to any dividends that
accrue
during the period of the short sale. This could cause a Fund’s performance to
suffer to the extent it invests in such an Underlying ETF.
Leverage
Risk
– Some Underlying ETFs may borrow money for leveraging. Interest expenses may
exceed the income from the assets purchased with such borrowings. While the
interest obligation resulting from borrowing will be fixed (although they may
fluctuate with changing market rates of interest depending on the terms of the
relevant agreement), the NAV per share of the Underlying ETF will tend to
increase more when its portfolio securities increase in value and to decrease
more when its portfolio assets decrease in value than would otherwise be the
case if it did not borrow funds.
Underlying
ETFs Risk
– The risks associated with the Funds include the risks related to each
Underlying ETF in which the Funds invest. Although the Funds seek to reduce the
risk of your investment by diversifying among ETFs that invest in stocks and, in
some cases, bonds, there are inherent risks of investing in various asset
classes as described throughout this section. For instance, there are market
risks related to stocks and, in some cases, bonds, as well as the risks of
investing in a particular Underlying ETF, such as risks related to the
particular investment management style and that the Underlying ETF may
underperform other similarly managed funds. To the extent that an Underlying ETF
actively trades its securities, the Funds will experience a higher-than-average
portfolio turnover ratio and increased trading expenses, and may generate higher
short-term capital gains. Investments in the Funds result in greater expenses to
you than if you were to invest directly in the Underlying ETFs. Additionally,
because the Underlying ETFs may be managed using different investment styles,
the Funds could experience overlapping security transactions. For example, one
Underlying ETF could take a long position in a security, while another
Underlying ETF is taking a short position in the same security, thereby
effectively canceling out the effect of either position. Similarly, one
Underlying ETF may be purchasing securities at the same time other portfolio
managers may be selling those same securities. This may lead to higher
transaction expenses and may generate higher short-term capital gains compared
to a Fund using a single investment management style. Finally, there can be no
assurance that any mutual fund, including an Underlying ETF, will achieve its
investment objective.
ETF
Trading Risk
– Because the Funds invest in ETFs, they are subject to additional risks that do
not apply to conventional funds, including the risk that the market price of the
ETF’s shares may trade at a discount to their NAV. Also, an active secondary
trading market for an ETF’s shares may not develop or be maintained, or trading
of an ETF’s shares may be halted if the listing exchange deems such action
appropriate. This could lead to a lack of market liquidity, thereby forcing a
Fund to sell its shares in an Underlying ETF for less than the shares’ NAV.
Further, an ETF’s shares may be delisted from the securities exchange on which
they trade. ETFs are also subject to the risks of the underlying securities or
sectors the ETF is designed to track.
Portfolio
Turnover Risk
– As funds-of-funds, the FundX Funds do not typically pay transaction costs,
such as commissions when buying and selling funds. However, to the extent a Fund
buys and sells ETFs, it may be subject to certain transactions costs. High
portfolio turnover involves correspondingly greater expenses to a Fund,
including brokerage commissions or dealer mark-ups and other transaction costs
on the sale of securities and reinvestments in other securities. Such sales also
may result in adverse tax consequences to a Fund’s shareholders. The trading
costs and tax effects associated with portfolio turnover may adversely affect a
Fund’s performance. All of the Funds have portfolio turnover rates in excess of
100%.
Securities
Lending Risk. There
are certain risks associated with securities lending, including the risk that
the borrower may fail to return the securities in a timely manner or the loss of
certain rights in the collateral deposited if the borrower fails. As a result, a
Fund may lose money. The Fund may also lose money in the event of a decline in
the value of the collateral provided for loaned securities or a decline in value
of an investment made with cash as collateral. These events could lead to
adverse tax consequences for a Fund.
Market
Events Risk.
Local, regional, or global events such as war, acts of terrorism, the spread of
infectious illness or other public health issues, recessions, or other events
could have a significant impact on the market generally and on specific
securities. Periods of market volatility may occur in response to pandemics or
other events outside of our control. These types of events could adversely
affect the Fund’s performance. Economies and financial markets throughout the
world are increasingly interconnected. Economic, financial or political events,
trading and tariff arrangements, public health events, terrorism, technology and
data interruptions, natural disasters, and other circumstances in one or more
countries or regions could be highly disruptive to, and have profound impacts
on, global economies or markets. As a result, whether or not a fund invests in
securities of issuers located in or with significant exposure to the countries
directly affected, the value and liquidity of a fund’s investments may go down.
Securities markets may also be susceptible to market manipulation or other
fraudulent trade practices, which could disrupt the orderly functioning of these
markets or adversely affect the value of securities traded in these markets,
including a fund’s securities.
The
COVID-19 pandemic caused substantial market disruption and dislocation around
the world, including in the United States. There have been periods of extreme
volatility, and periods where there have been no buyers for certain securities.
Some sectors of the economy and individual issuers have experienced particularly
large losses. The pandemic has reduced liquidity of particular investments and
asset classes; resulted in significant disruptions to business operations,
including business closures; strained healthcare systems; disrupted supply
chains, consumer demand and employee availability; and restricted travel. These
conditions may continue for an extended period of time, or worsen. The pandemic
may result in a sustained domestic or global economic downturn or recession.
Developing or emerging market countries may be more adversely impacted. The
ultimate economic fallout from the pandemic, and the long-term impact on
economies, markets, industries and individual issuers, may not be fully
known.
A
worldwide increase in inflation began in mid-2021, with many countries seeing
their highest inflation rates in decades. This has been attributed to various
causes, including pandemic-related economic dislocation; post-pandemic consumer
demand for goods and services; and the fiscal and monetary stimulus provided in
2020 and 2021 by governments and central banks around the world in response to
the pandemic. Unexpected recovery in demand through 2021 ultimately led to
historic and broad supply shortages (including chip shortages and energy
shortages) amid increasing consumer demand. Worldwide construction sectors were
also hit.
The
Russian invasion of Ukraine further exacerbated the situation, increasing global
oil prices, natural gas, fertilizer, and food prices. Higher gasoline prices
were a major contributor to inflation. Central banks responded by aggressively
increasing interest rates. The Federal Reserve raised the federal funds rate
seven times in 2022 in its efforts to tame inflation, bringing the fed rate to a
range of 4.25%-4.50%. The Fed’s rate rises may affect demand in
interest-rate-sensitive sectors of the market.
Moving
into 2023, global markets continued to face headwinds due to persistent
inflation, and weakness in corporate profits as consumer confidence remained
low. The consensus view was that a recession, although likely mild, would likely
hit both sides of the Atlantic even if inflation had peaked. During a recession,
businesses usually experience decreased demand for their products or services.
As a result, they may cut back on production, which could lead to layoffs and
reduced consumer spending. The market’s reaction to such actions may result in
higher volatility in asset prices, which may affect the value and liquidity of
the Funds’ holdings. Other infectious illness outbreaks in the future may result
in similar impacts.
Portfolio
Holdings Information
A
description of the Funds’ policies and procedures with respect to disclosure of
their portfolio holdings is available in the Funds’ Statement of Additional
Information (“SAI”) and on the Funds’ website at
www.fundxfunds.com.
MANAGEMENT
OF THE FUNDS
Investment
Advisor
One
Capital Management, LLC is the investment advisor to the Funds. Prior to
February 4, 2022, the Funds’ investment advisor was FundX Investment Group,
LLC. The Advisor is located at 13075 Townsgate Road, Suite 350, Westlake
Village, California 91361. As
of December 31, 2023, the Advisor had approximately $6.02 billion in assets
under management.
The
Advisor supervises each Fund’s investment activities and determines which
investments are purchased and sold by the Funds. The Advisor also furnishes each
Fund with office space and certain administrative services and provides most of
the personnel needed by the Funds. The
Funds have entered into an investment advisory agreement with the Adviser. For
the services it provides the Funds, the Funds pay the Adviser a unitary
management fee based on each Fund’s average daily net assets at the annual rates
as shown in the table below:
|
|
|
|
| |
| Annual
Advisory Fee |
FundX
ETF |
1.00%
on assets up to $500 million, 0.90% on assets between $500 million and
$750 million, 0.80% on assets between $750 million and $1 billion, and
0.70% on assets over $1 billion. |
FundX
Aggressive ETF |
1.00%
on assets up to $500 million, 0.90% on assets between $500 million and
$750 million, 0.80% on assets between $750 million and $1 billion, and
0.70% on assets over $1 billion. |
FundX
Flexible ETF |
0.70% |
FundX
Conservative ETF |
1.00%
on assets up to $500 million, 0.90% on assets between $500 million and
$750 million, 0.80% on assets between $750 million and $1 billion, and
0.70% on assets over $1 billion. |
From
the unitary management fees, the Adviser pays most of the expenses of the Funds,
including the cost of transfer agency, custody, fund administration, legal,
audit and other services. However, under each Advisory Agreement, the Adviser is
not responsible for interest expenses, brokerage commissions and other trading
expenses, taxes and other extraordinary costs such as litigation and other
expenses not incurred in the ordinary course of business. The Adviser is
responsible for the day-to-day management of the Funds in accordance with the
Funds’ investment objective and policies.
Under
an investment advisory agreement with the Funds, each Fund compensates the
Advisor for its investment advisory services as shown in the table below. Prior
to the Reorganizations, the Adviser entered into an advisory agreement with the
Trust, on behalf of the Predecessor Funds. The management fee paid by the
Predecessor Funds were not a unitary management fee. For the fiscal year ended
September 30,
2023,
the following net management fees were paid as a percentage of average daily net
assets. The “net” management fee reflects the amount received because the
Advisor was required to waive a portion, or in some cases all, of its fees
pursuant to the expense limitation agreement described below:
|
|
|
|
|
|
|
| |
| Annual
Advisory Fee |
Net
Advisory Fee Received (after waivers or
recoupments) |
FundX
Upgrader Fund |
1.00%
on assets up to $500 million, 0.90% on assets between $500 million and
$750 million, 0.80% on assets between $750 million and $1 billion,
and 0.70% on assets over $1 billion. |
1.00% |
FundX
Aggressive Upgrader Fund |
1.00%
on assets up to $500 million, 0.90% on assets between $500 million and
$750 million, 0.80% on assets between $750 million and $1 billion,
and 0.70% on assets over $1 billion. |
1.00% |
FundX
Flexible Income Fund |
0.70% |
0.70% |
FundX
Conservative Upgrader Fund |
1.00%
on assets up to $500 million, 0.90% on assets between $500 million and
$750 million, 0.80% on assets between $750 million and $1 billion,
and 0.70% on assets over $1 billion. |
1.00% |
A
discussion regarding the basis of the Board’s approval of the investment
advisory agreement with the Advisor is available in the Predecessor Funds’
Annual Report
to shareholders for the most recent period ended September 30.
The
Trust
Prior
to the close of business on August 1, 2014, each Fund was a series of
Professionally Managed Portfolios. As of the close of business on August 1,
2014, each Fund was reorganized into a new Trust, the FundX Investment Trust
(the “Trust”). The business of the Trust and each Fund is managed under the
oversight of the Funds’ Board of Trustees. Additional information about the
Board, as well as the Trust’s executive officers, may be found in the Funds’
SAI.
Portfolio
Managers
Investment
decisions for each of the Funds are made by an investment committee consisting
of senior portfolio managers and experienced investment professionals within the
Advisor’s organization. No one person is solely responsible for the day-to-day
management of a Fund’s portfolio. The members of the investment committee are
listed in the table below.
|
|
|
|
|
|
|
| |
Name |
Title |
Tenure
with the Advisor* |
Janet
Brown |
Portfolio
Manager |
1978 |
Martin
DeVault |
Portfolio
Manager |
1992 |
Sean
McKeon |
Portfolio
Manager |
1990 |
*
The Advisor to the Funds was FundX Investment Group, LLC from 2001 – 2022 and is
One Capital Management, LLC from 2022 – present.
Each
member of the investment committee is jointly and primarily responsible for the
day-to-day management of the Funds’ portfolios. There is no lead portfolio
manager. There are no limitations or restrictions on any one portfolio manager’s
role relative to the other portfolio managers on the investment committee. Each
portfolio manager generally serves as a research analyst. The investment
committee discusses investment ideas and the overall structure of a portfolio
using the Upgrading investment strategy. Investment decisions are then made
collectively by the investment committee.
The
Funds’ SAI provides additional information about the portfolio managers’
compensation, other accounts they manage and their ownership of securities in
the Funds.
SHAREHOLDER
INFORMATION
Shares
are or will be listed for secondary trading on the Exchange. When you buy or
sell the Shares on the secondary market, you will pay or receive the market
price. You may incur customary brokerage commissions and charges and may pay
some or all of the spread between the bid and the offered price in the secondary
market on each leg of a round trip (purchase and sale) transaction. The shares
will trade on the Exchange at prices that may differ to varying degrees from the
daily NAV of the shares. The Exchange is generally open Monday through Friday
and is closed weekends and the following holidays: New Year’s Day, Martin Luther
King, Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Juneteenth National
Independence Day, Independence Day, Labor Day, Thanksgiving Day and Christmas
Day.
NAV
per share for a Fund is computed by dividing the value of the net assets of a
Fund (i.e., the value of its total assets less total liabilities) by its total
number of shares outstanding. Expenses and fees, including management and
distribution fees, if any, are accrued daily and taken into account for purposes
of determining NAV. NAV is determined each business day, normally as of the
close of regular trading of the New York Stock Exchange (ordinarily 4:00 p.m.,
Eastern time).
When
determining NAV, the value of a Fund’s portfolio securities is based on market
prices of the securities, which generally means a valuation obtained from an
exchange or other market (or based on a price quotation or other equivalent
indication of the value supplied by an exchange or other market) or a valuation
obtained from an independent pricing service. If a security’s market price is
not readily available or does not otherwise accurately reflect the fair value of
the security, the security will be valued by another method that the Board
believes will better reflect fair value in accordance with the Trust’s valuation
policies and procedures. Fair value pricing may be used in a variety of
circumstances, including, but not limited to, situations when the value of a
security in a Fund’s portfolio has been materially affected by events occurring
after the close of the market on which the security is principally traded but
prior to the close of the Exchange (such as in the case of a corporate action or
other news that may materially affect the price of a security) or trading in a
security has been suspended or halted. Accordingly, a Fund’s NAV may reflect
certain portfolio securities’ fair values rather than their market
prices.
Fair
value pricing involves subjective judgments and it is possible that a fair value
determination for a security will materially differ from the value that could be
realized upon the sale of the security.
Frequent
Purchases and Redemptions of Shares
Unlike
frequent trading of shares of a traditional open-end mutual fund’s (i.e., not
exchange-traded) shares, frequent trading of Shares of the Funds on the
secondary market does not disrupt portfolio management, increase the Funds’
trading costs, lead to realization of capitalization gains, or otherwise harm
the Funds’ shareholders because these trades do not involve the Funds directly.
Certain institutional investors are authorized to purchase and redeem the Funds’
shares directly with the Funds. Because these trades are effected in-kind (i.e.,
for securities, and not for cash), they do not cause any of the harmful effects
noted above that may result from frequent cash trades. Moreover, the Funds
impose transaction fees on in-kind purchases and redemptions of Creation Units
to cover the custodial and other costs incurred by the Funds in effecting
in-kind trades. These fees increase if an investor substitutes cash in part or
in whole for Creation Units, reflecting the fact that the Funds’ trading costs
increase in those circumstances. For these reasons, the Board has determined
that it is not necessary to adopt policies and procedures to detect and deter
frequent trading and market-timing in shares of the Funds.
DIVIDENDS,
DISTRIBUTIONS, AND TAXES
Fund
Distributions
The
Funds intend to pay out dividends, if any, and distribute any net realized
capital gains to its shareholders at least annually.
Dividend
Reinvestment Service
Brokers
may make available to their customers who own Shares the Depository Trust
Company (“DTC”) book-entry dividend reinvestment service. If this service is
available and used, dividend distributions of both income and capital gains will
automatically be reinvested in additional whole shares of the Funds. Without
this service, investors would receive their distributions in cash. In order to
achieve the maximum total return on their investments, investors are encouraged
to use the dividend reinvestment service. To determine whether the dividend
reinvestment service is available and whether there is a commission or other
charge for using this service, consult your broker. Brokers may require the
Funds’ shareholders to adhere to specific procedures and timetables. If this
service is available and used, dividend distributions of both income and
realized gains will be automatically reinvested in additional whole shares of
the Funds purchased in the secondary market.
Tax
Information
Below
the Funds have summarized some important U.S. federal income tax considerations
generally applicable to investments in the Funds. The summary is based on
current tax law, which may be changed by legislative, judicial or administrative
action. Please consult your tax advisor about the tax consequences of an
investment in Shares, including the possible application of foreign, state, and
local tax laws.
Each
Fund intends to elect and to qualify each year for treatment as a regulated
investment company (“RIC”) within the meaning of Subchapter M of the Internal
Revenue Code of 1986, as amended. If it meets certain minimum distribution
requirements, a RIC is not subject to tax at the fund level on income and gains
from investments that are timely distributed to shareholders. However, the
Funds’ failure to qualify as a RIC or to meet minimum distribution requirements
would result (if certain relief provisions were not available) in fund-level
taxation and consequently a reduction in income available for distribution to
shareholders.
Unless
you are a tax-exempt entity or your investment in Shares is made through
tax-deferred retirement account, such as an individual retirement account, you
need to be aware of the possible tax consequences when the Funds makes
distributions, you sell Shares, and you purchase or redeem Creation Units (APs
only).
Taxes
on Distributions
The
Funds will generally make distributions of dividends from any net investment
income and capital gains annually. Dividends of net investment income and
distributions from the Funds’ net short-term capital gains are taxable to you as
ordinary income or, in some cases, as qualified dividend income. Distributions
from the Funds’ net capital gain (the excess of its net long-term capital gains
over its net short-term capital losses) are generally taxable to non-corporate
shareholders at rates of up to 20%, regardless of how long the shareholders held
their respective shares in the Funds. You will be taxed in the same manner
whether you receive your dividends and capital gain distributions in cash or
reinvest them in additional Shares.
Distributions
that the Funds report as “qualified dividend income” may be eligible to be taxed
to non-corporate shareholders at rates of up to 20% if requirements, including
holding period requirements, are satisfied. In general, the Funds may report its
dividends as qualified dividend income to the extent derived
from
dividends paid to the Funds by U.S. corporations or certain foreign corporations
that are either incorporated in a U.S. possession or eligible for tax benefits
under certain U.S. income tax treaties. In addition, dividends that the Funds
receive in respect of stock of certain foreign corporations may be qualified
dividend income if that stock is readily tradable on an established U.S.
securities market. A portion of the dividends received from the Funds (but none
of its capital gain distributions) may qualify for the dividends received
deduction for corporations.
A
tax of 3.8% applies to all or a portion of net investment income of U.S.
individuals with income exceeding specified thresholds, and to all or a portion
of undistributed net investment income of certain estates and trusts. Net
investment income generally includes for this purpose dividends and capital gain
distributions paid by the Funds and gain on the redemption of Shares.
Any
dividend or capital gain distribution paid by the Funds has the effect of
reducing the NAV per share on the ex-dividend date by the amount of the dividend
or capital gain distribution. You should note that a dividend or capital gain
distribution paid on shares purchased shortly before that dividend or capital
gain distribution was declared will be subject to income taxes even though the
dividend or capital gain distribution represents, in substance, a partial return
of capital to you. This is known as “buying a dividend” and should be avoided by
taxable investors.
Although
distributions are generally taxable when received, certain distributions
declared in October, November, or December to shareholders of record on a
specified date in such a month but paid the following January are taxable as if
received in December of the year in which the dividend is declared.
The
Funds will send you a report annually summarizing the amount and tax aspects of
your distributions. The Funds will be required to report to the Internal Revenue
Service (“IRS”) all distributions of taxable income and capital gains as well as
gross proceeds from the redemption of Shares, except in the case of exempt
shareholders, which includes most corporations. The Funds will also be required
to report tax basis information for such Shares and indicate whether these
Shares had a short-term or long-term holding period. If a shareholder has a
different basis for different Shares in the same account (e.g., if a shareholder
purchased shares in the same account at different times for different prices),
the Funds calculate the basis of the shares sold using its default method unless
the shareholder has properly elected to use a different method. The Funds’
default method for calculating basis is first-in, first-out (“FIFO”). A
shareholder may elect, on an account-by-account basis, to use a method other
than FIFO by following procedures established by the Funds or its administrative
agent. If such an election is made on or prior to the date of the first exchange
or redemption of shares in the account and on or prior to the date that is one
year after the shareholder receives notice of the Funds’ default method, the new
election will generally apply as if the FIFO method had never been in effect for
such account. Shareholders should consult their tax advisers concerning the tax
consequences of applying the Funds’ default method or electing another method of
basis calculation. Shareholders also should carefully review any cost basis
information provided to them and make any additional basis, holding period or
other adjustments that are required when reporting these amounts on their
federal income tax returns.
Taxes
on Sale of Shares
Each
sale of Shares may be a taxable event. A sale may result in a capital gain or
loss to you. Any capital gain or loss generally will be treated as short-term if
you held the shares 12 months or less, except that any capital loss on a sale of
shares held for six months or less is treated as a long-term capital loss to the
extent of capital gain distributions paid with respect to such shares. Any
capital gain or loss generally will be treated as long-term if you held the
shares for longer than 12 months. If you redeem your Shares, it is considered a
taxable event for you. Depending on the purchase price and the redemption
price of the shares you redeem, you may have a gain or a loss on the
transaction. You are responsible for any tax liabilities generated by your
transaction. All or a portion of any loss realized upon a taxable disposition of
Shares will be disallowed if you purchase other substantially identical shares
within 30 days before or
after
the disposition. In such a case, the basis of the newly purchased shares will be
adjusted to reflect the disallowed loss. The ability to deduct capital losses
may be limited depending on your circumstances.
Taxes
on Purchases and Redemptions of Creation Units
An
AP having the U.S. dollar as its functional currency for U.S. federal income tax
purposes who exchanges securities for Creation Units generally recognizes a gain
or a loss. The gain or loss will be equal to the difference between the value of
the Creation Units at the time of the exchange and the exchanging AP’s aggregate
basis in the securities delivered, plus the amount of any cash paid for the
Creation Units. An AP who exchanges Creation Units for securities will generally
recognize a gain or loss equal to the difference between the exchanging AP’s
basis in the Creation Units and the aggregate U.S. dollar market value of the
securities received, plus any cash received for such Creation Units. The IRS may
assert, however, that a loss that is realized upon an exchange of securities for
Creation Units may not be currently deducted under the rules governing “wash
sales” (for an AP who does not mark-to-market its holdings) or on the basis that
there has been no significant change in economic position. Persons exchanging
securities or non-U.S. currency for Creation Units should consult their own tax
advisor with respect to the tax treatment of any creation or redemption
transaction and whether the wash sale rules apply and when a loss might be
deductible.
Gain
or loss recognized by an AP upon an issuance of Creation Units in exchange for
securities, or upon a redemption of Creation Units, may be capital or ordinary
gain or loss depending on the circumstances. Any capital gain or loss realized
upon an issuance of Creation Units in exchange for securities will generally be
treated as long-term capital gain or loss if the securities have been held for
more than one year. Any capital gain or loss realized upon the redemption of a
Creation Unit will generally be treated as long-term capital gain or loss if the
Shares comprising the Creation Unit have been held for more than one year.
Otherwise, such capital gains or losses are treated as short-term capital gains
or losses.
The
Funds may include cash when paying the redemption price for Creation Units in
addition to, or in place of, the delivery of a basket of securities. The Funds
may be required to sell portfolio securities in order to obtain the cash needed
to distribute redemption proceeds. This may cause the Funds to recognize
investment income and/or capital gains or losses that it might not have
recognized if it had completely satisfied the redemption in-kind. As a result,
the Funds may be less tax efficient if it includes such a cash payment than if
the in-kind redemption process was used.
Non-U.S.
Investors
If
you are neither a resident nor a citizen of the United States or if you are a
foreign entity, distributions (other than capital gain distributions) paid to
you by the Funds will generally be subject to a U.S. withholding tax at the rate
of 30%, unless a lower treaty rate applies. The Funds may, under certain
circumstances, report all or a portion of a dividend as an “interest-related
dividend” or a “short-term capital gain dividend,” which would generally be
exempt from this 30% U.S. withholding tax, provided certain other requirements
are met.
Under
legislation generally known as “FATCA” (the Foreign Account Tax Compliance Act),
the Funds are required to withhold 30% of certain ordinary dividends it pays to
shareholders that are foreign entities and that fail to meet prescribed
information reporting or certification requirements.
Backup
Withholding
The
Funds (or financial intermediaries, such as brokers, through which shareholders
own Shares) generally is required to withhold and to remit to the U.S. Treasury
a percentage of the taxable distributions and the sale or redemption proceeds
paid to any shareholder who fails to properly furnish a correct taxpayer
identification number, who has under-reported dividend or interest income, or
who fails to certify that he, she or it is not subject to such
withholding.
Foreign
Taxes
To
the extent the Funds invest in foreign securities, they may be subject to
foreign withholding taxes with respect to dividends or interest the Funds
received from sources in foreign countries.
Additional
information concerning taxation of the Funds and its shareholders is contained
in the SAI. Tax consequences are not the primary consideration of the Funds
in making its investment decisions. If you have a tax-advantaged retirement
account, you will generally not be subject to federal taxation on any dividends
and capital gain distributions until you begin receiving your distributions from
your retirement account. You
should consult your own tax adviser concerning federal, state and local tax
considerations of an investment in the Funds.
DISTRIBUTION
Distributor
Quasar
Distributors, LLC, a wholly-owned broker-dealer subsidiary of Foreside Financial
Group, LLC, is located at 111 E. Kilbourn Avenue, Suite 2200, Milwaukee,
Wisconsin 53202, and is the distributor for the Shares. Quasar is a registered
broker-dealer and a member of the Financial Industry Regulatory Authority. The
Distributor distributes Creation Units for the Funds on an agency basis and does
not maintain a secondary market in Shares. The Distributor has no role in
determining the policies of the Funds or the securities that are purchased or
sold by the Funds.
Exchange
Shares
are not sponsored, endorsed, or promoted by the Exchange. The Exchange makes no
representation or warranty, express or implied, to the owners of the Shares. The
Exchange is not responsible for, nor has it participated in, the determination
of the timing of, prices of, or quantities of the Shares to be issued, or in the
determination or calculation of the equation by which the shares are
redeemable.
The
Exchange has no obligation or liability to owners of the Shares in connection
with the administration, marketing, or trading of the Shares. Without limiting
any of the foregoing, in no event shall the Exchange have any liability for any
lost profits or indirect, punitive, special, or consequential damages even if
notified of the possibility thereof.
The
Adviser and the Funds make no representation or warranty, express or implied, to
the owners of Shares or any members of the public regarding the advisability of
investing in securities generally or in the Funds particularly.
Premium/Discount
Information
Information
regarding how often Shares of a Fund traded on the Exchange at a price above
(i.e., at a premium) or below (i.e., at a discount) the NAV of the applicable
Fund will be available on the Funds’ website at www.fundxfunds.com.
Backup
Withholding
The
Funds (or financial intermediaries, such as brokers, through which shareholders
own Shares) generally is required to withhold and to remit to the U.S. Treasury
a percentage of the taxable distributions and the sale or redemption proceeds
paid to any shareholder who fails to properly furnish a correct taxpayer
identification number, who has under-reported dividend or interest income, or
who fails to certify that he, she or it is not subject to such
withholding.
Additional
information concerning the taxation of the Funds and its shareholders is
contained in the SAI. Taxes are not the primary consideration of the Funds in
making their investment decisions. Because everyone’s tax situation is unique,
always consult your tax professional about federal, state, local or foreign tax
consequences of an investment in the Funds.
INDEX
DESCRIPTIONS
The
Bloomberg
US Aggregate Bond Index (formerly
known as the Barclays Capital Aggregate Bond Index) is a market value-weighted
index that tracks the daily price and total return performance of fixed-rate,
publicly placed, dollar-denominated and non-convertible investment grade debt
issues with at least $100 million par amount outstanding and with at least one
year of final maturity. Returns include reinvested dividends, but reflect no
deduction for fees, expenses or taxes.
The
ICE
BofA US 3-Month US Treasury Bill Index
is comprised of a single U.S. Treasury Bill issue purchased at the beginning of
each month and held for a full month, at which time that issue is sold and
rolled into a newly selected issue. The issue selected each month is that having
a maturity date closest to, but not beyond 90 days from the rebalance date.
The
Standard
& Poor’s 500®
Index
is an unmanaged index generally representative of the market for the stocks of
large sized U.S. companies.
The
Morningstar
Global Market Large-Mid Cap Index
encompasses the top 97% of stocks by market capitalization and
includes 45 countries across both developed and emerging markets. The index
provides a meaningful global view across market capitalization, sectors,
and regions.
Direct
investment in an index is not possible.
FINANCIAL
HIGHLIGHTS
On
October 17, 2022, the FundX ETF and FundX Aggressive ETF acquired all of the
assets and liabilities of the FundX Upgrader Fund and FundX Aggressive Upgrader
Fund, respectively, in exchange for shares of beneficial interest of the
respective Funds. On October 9, 2023, the FundX Flexible ETF and FundX
Conservative ETF acquired all of the assets and liabilities of the FundX
Flexible Income Fund and FundX Conservative Upgrader Fund, respectively, in
exchange for shares of beneficial interest of the respective Funds. As a result
of such Reorganization, the Funds adopted the financial and performance history
of the Predecessor Funds. The following tables show the Funds’ financial
performance for the fiscal years shown. Certain information reflects financial
results for a single Fund share. “Total return” shows how much your investment
in a Fund would have increased or decreased during each period, assuming you had
reinvested all dividends and distributions. Information for the fiscal years
ended September 30, 2019 through September 30, 2023 was audited by Tait, Weller
& Baker LLP. Their report and the Funds’ financial statements are included
in the Funds’ most recent Annual Report to shareholders.
|
|
|
|
| |
XCOR |
FUNDX
ETF |
Growth
Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
FINANCIAL
HIGHLIGHTS For a capital share outstanding throughout each
year |
|
|
| Year
Ended September 30, |
|
| 2023 |
| 2022 |
| 2021 |
| 2020 |
| 2019 |
|
Net
asset value, beginning of year |
|
| $45.31 |
|
| $79.01 |
|
| $66.33 |
|
| $61.22 |
|
| $67.69 |
| |
INCOME
FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
| |
Net
investment income (loss)(1)(2) |
|
| 0.46 |
|
| 0.28 |
|
| (0.58) |
|
| (0.28) |
|
| (0.20) |
| |
Net
realized and unrealized gain (loss) on investments |
|
| 4.81 |
|
| (12.35) |
|
| 13.57 |
|
| 10.53 |
|
| (0.13) |
| |
Total
from investment operations |
|
| 5.27 |
|
| (12.07) |
|
| 12.99 |
|
| 10.25 |
|
| (0.33) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
LESS
DISTRIBUTIONS: |
|
|
|
|
|
|
|
|
|
|
| |
From
net investment income |
|
| (1.23) |
|
| — |
|
| — |
|
| — |
|
| — |
| |
From
net realized gain |
|
| — |
|
| (21.63) |
|
| (0.31) |
|
| (5.14) |
|
| (6.14) |
| |
Total
distributions |
|
| (1.23) |
|
| (21.63) |
|
| (0.31) |
|
| (5.14) |
|
| (6.14) |
| |
Net
asset value, end of year |
|
| $49.35 |
|
| $45.31 |
|
| $79.01 |
|
| $66.33 |
|
| $61.22 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Total
investment return (loss) on net asset value |
|
| 11.62 |
% |
| (22.46) |
% |
| 19.61 |
% |
| 17.55 |
% |
| 1.30 |
% |
|
Total
Investment return (loss) on market price(3) |
|
| N/A |
| N/A |
| N/A |
| N/A |
| N/A |
|
|
|
|
|
|
|
|
|
|
|
|
| |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
| |
Net
assets, end of year (millions) |
|
| $134.8 |
|
| $140.4 |
|
| $232.2 |
|
| $211.0 |
|
| $211.2 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
RATIO
OF EXPENSES TO AVERAGE NET ASSETS(4): |
|
|
|
|
|
|
|
|
|
|
| |
Before
fees waived and expenses absorbed |
|
| 1.02 |
% |
(5) |
1.30 |
% |
(5) |
1.26 |
% |
(5) |
1.29 |
% |
(5) |
1.28 |
% |
(5) |
After
fees waived and expenses absorbed(6) |
|
| 1.01 |
% |
(5) |
1.30 |
% |
(5) |
1.26 |
% |
(5) |
1.29 |
% |
(5) |
1.28 |
% |
(5) |
|
|
|
|
|
|
|
|
|
|
|
| |
RATIO
OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS(3): |
|
|
|
|
|
|
|
|
|
|
| |
Before
fees waived and expenses absorbed |
|
| 0.92 |
% |
(5) |
0.44 |
% |
(5) |
(0.77) |
% |
(5) |
(0.50) |
% |
(5) |
(0.37) |
% |
(5) |
After
fees waived and expenses absorbed(7) |
|
| 0.93 |
% |
(5) |
0.44 |
% |
(5) |
(0.77) |
% |
(5) |
(0.50) |
% |
(5) |
(0.37) |
% |
(5) |
Portfolio
turnover rate |
|
| 184 |
% |
| 185 |
% |
| 104 |
% |
| 175 |
% |
| 107 |
% |
|
(1)Recognition
of net investment income by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies in which the
Fund invests.
(2)Calculated
using the average shares outstanding method.
(3)Total
investment return (loss) on market price is calculated assuming an initial
investment made at the market price on the first day of the period, reinvestment
of dividends and distributions at market price during the period and redemption
at market price on the last day of the period.
(4)Does
not include expenses of investment companies in which the Fund
invests.
(5)Includes
interest expense of $320 or 0.00%, $2,500 or 0.00%, $56 or 0.00%, $2,872 or
0.00% and $1,069 or 0.00% of average net assets for the years end September 30,
2023, September 30, 2022, September 30, 2021, September 30, 2020 and September
30, 2019, respectively.
(6)Including
credits for expenses paid indirectly, the ratio of expenses to average net
assets would have been 1.01%, 1.27%, 1.24%, 1.26% and 1.25%, for the years ended
September 30, 2023, September 30, 2022, September 30, 2021, September 30, 2020
and September 30, 2019, respectively.
(7)Including
credits for expenses paid indirectly, the ratio of net investment income (loss)
to average net assets would have been 0.93%, 0.47%, (0.76)%, (0.47)% and
(0.34)%, for the years ended September 30, 2023, September 30, 2022, September
30, 2021, September 30, 2020 and September 30, 2019, respectively.
|
|
|
|
| |
XNAV |
FUNDX
AGGRESSIVE ETF |
Growth
Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
FINANCIAL
HIGHLIGHTS For a capital share outstanding throughout each
year |
|
|
| Year
Ended September 30, |
|
| 2023 |
| 2022 |
| 2021 |
| 2020 |
| 2019 |
|
Net
asset value, beginning of year |
|
| $ |
45.65 |
|
| $ |
75.45 |
|
| $68.77 |
|
| $59.06 |
|
| $73.48 |
| |
INCOME
FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
| |
Net
investment income (loss)(1)(2) |
|
| 0.57 |
|
| 0.42 |
|
| (0.26) |
|
| (0.31) |
|
| (0.29) |
| |
Net
realized and unrealized gain (loss) on investments |
|
| 6.23 |
|
| (9.45) |
|
| 7.99 |
|
| 12.24 |
|
| (3.79) |
| |
Total
from investment operations |
|
| 6.80 |
|
| (9.03) |
|
| 7.73 |
|
| 11.93 |
|
| (4.08) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
LESS
DISTRIBUTIONS: |
|
|
|
|
|
|
|
|
|
|
| |
From
net investment income |
|
| (0.73) |
|
| — |
|
| — |
|
| — |
|
| — |
| |
From
net realized gain |
|
| — |
|
| (20.77) |
|
| (1.05) |
|
| (2.22) |
|
| (10.34) |
| |
Total
distributions |
|
| (0.73) |
|
| (20.77) |
|
| (1.05) |
|
| (2.22) |
|
| (10.34) |
| |
Net
asset value, end of year |
|
| $ |
51.72 |
|
| $ |
45.65 |
|
| $75.45 |
|
| $68.77 |
|
| $59.06 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Total
investment return (loss) on net asset value |
|
| 14.95 |
% |
| (18.55) |
% |
| 11.22 |
% |
| 20.66 |
% |
| (3.05) |
% |
|
Total
Investment return (loss) on market price(3) |
|
| N/A |
| N/A |
| N/A |
| N/A |
| N/A |
|
|
|
|
|
|
|
|
|
|
|
|
| |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
| |
Net
assets, end of year (millions) |
|
| $ |
23.2 |
|
| $ |
24.7 |
|
| $36.5 |
|
| $35.1 |
|
| $35.8 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
RATIO
OF EXPENSES TO AVERAGE NET ASSETS(3): |
|
|
|
|
|
|
|
|
|
|
| |
Before
fees waived and expenses absorbed |
|
| 1.06 |
% |
(5) |
1.48 |
% |
(5) |
1.40 |
% |
(5) |
1.48 |
% |
(5) |
1.44 |
% |
(5) |
After
fees waived and expenses absorbed(6) |
|
| 1.01 |
% |
(5) |
1.35 |
% |
(5) |
1.35 |
% |
(5) |
1.35 |
% |
(5) |
1.35 |
% |
(5) |
|
|
|
|
|
|
|
|
|
|
|
| |
RATIO
OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS(3): |
|
|
|
|
|
|
|
|
|
|
| |
Before
fees waived and expenses absorbed |
|
| 1.07 |
% |
(5) |
0.55 |
% |
(5) |
(0.40) |
% |
(5) |
(0.65) |
% |
(5) |
(0.59) |
% |
(5) |
After
fees waived and expenses absorbed(7) |
|
| 1.12 |
% |
(5) |
0.68 |
% |
(5) |
(0.35) |
% |
(5) |
(0.52) |
% |
(5) |
(0.50) |
% |
(5) |
Portfolio
turnover rate |
|
| 184 |
% |
|
223 |
% |
|
184 |
% |
| 159 |
% |
| 187 |
% |
|
(1)Recognition
of net investment income by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies in which the
Fund invests.
(2)Calculated
using the average shares outstanding method.
(3)Total
investment return (loss) on market price is calculated assuming an initial
investment made at the market price on the first day of the period, reinvestment
of dividends and distributions at market price during the period and redemption
at market price on the last day of the period.
(4)Does
not include expenses of investment companies in which the Fund
invests.
(5)Includes
interest expense of $0 or 0.00%, $322 or 0.00%, $100 or 0.00%, $1,013 or 0.00%
and $600 or 0.00% of average net assets for the years ended September 30, 2023,
September 30, 2022, September 30, 2021, September 30, 2020 and September 30,
2019, respectively.
(6)Including
credits for expenses paid indirectly, the ratio of expenses to average net
assets would have been 1.01%, 1.33%, 1.34%, 1.33% and 1.34%, for the years ended
September 30, 2023, September 30, 2022, September 30, 2021, September 30, 2020
and September 30, 2019, respectively.
(7)Including
credits for expenses paid indirectly, the ratio of net investment income (loss)
to average net assets would have been 1.12%, 0.71%, (0.33)%, (0.50)% and
(0.49)%, for the years ended September 30, 2023, September 30, 2022, September
30, 2021, September 30, 2020 and September 30, 2019, respectively.
|
|
|
|
| |
INCMX |
FLEXIBLE
INCOME FUND |
Fixed
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
FINANCIAL
HIGHLIGHTS For a capital share outstanding throughout each
year |
|
|
| Year
Ended September 30, |
|
| 2023 |
| 2022 |
| 2021 |
| 2020 |
| 2019 |
|
Net
asset value, beginning of year |
|
| $ |
24.93 |
|
| $ |
28.60 |
|
| $26.92 |
|
| $28.13 |
|
| $28.50 |
| |
INCOME
FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
| |
Net
investment income (loss)(1)(2) |
|
| 0.71 |
|
| 0.68 |
|
| 0.60 |
|
| 0.49 |
|
| 0.60 |
| |
Net
realized and unrealized gain (loss) on investments |
|
| (0.41) |
|
| (3.71) |
|
| 1.70 |
|
| (1.12) |
|
| 0.35 |
| |
Total
from investment operations |
|
| 0.30 |
|
| (3.03) |
|
| 2.30 |
|
| (0.63) |
|
| 0.95 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
LESS
DISTRIBUTIONS: |
|
|
|
|
|
|
|
|
|
|
| |
From
net investment income |
|
| (1.15) |
|
| (0.64) |
|
| (0.62) |
|
| (0.58) |
|
| (1.32) |
| |
From
net realized gain |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
| |
Total
distributions |
|
| (1.15) |
|
| (0.64) |
|
| (0.62) |
|
| (0.58) |
|
| (1.32) |
| |
Net
asset value, end of year |
|
| $ |
24.08 |
|
| $ |
24.93 |
|
| $28.60 |
|
| $26.92 |
|
| $28.13 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return |
|
| 1.18 |
% |
| (10.85) |
% |
| 8.63 |
% |
| (2.32 |
%) |
| 3.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
| |
Net
assets, end of year (millions) |
|
| $ |
58.9 |
|
| $ |
67.4 |
|
| $90.1 |
|
| $85.3 |
|
| $97.4 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
RATIO
OF EXPENSES TO AVERAGE NET ASSETS(3): |
|
|
|
|
|
|
|
|
|
|
| |
Before
fees recaptured/waived and expenses absorbed |
|
| 1.18 |
% |
(4) |
1.03 |
% |
(4) |
1.00 |
% |
(4) |
1.01 |
% |
(4) |
1.01 |
% |
(4) |
After
fees recaptured/waived and expenses absorbed(5) |
|
| 0.99 |
% |
(4) |
0.99 |
% |
(4) |
0.99 |
% |
(4) |
0.99 |
% |
(4) |
1.00 |
% |
(4) |
|
|
|
|
|
|
|
|
|
|
|
| |
RATIO
OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS(3): |
|
|
|
|
|
|
|
|
|
|
| |
Before
fees recaptured/waived and expenses absorbed |
|
| 2.69 |
% |
(4) |
2.37 |
% |
(4) |
2.10 |
% |
(4) |
1.75 |
% |
(4) |
2.14 |
% |
(4) |
After
fees recaptured/waived and expenses absorbed(6) |
|
| 2.88 |
% |
(4) |
2.41 |
% |
(4) |
2.11 |
% |
(4) |
1.77 |
% |
(4) |
2.15 |
% |
(4) |
Portfolio
turnover rate |
|
| 209 |
% |
|
158 |
% |
|
73 |
% |
| 262 |
% |
| 180 |
% |
|
(1)Recognition
of net investment income by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies in which the
Fund invests.
(2)Calculated
using the average shares outstanding method.
(3)Does
not include expenses of investment companies in which the Fund
invests.
(4)Includes
interest expense of $619 or 0.00%, $246 or 0.00%, $367 or 0.00%, $1,916 or 0.00%
and $10,082 or 0.01% of average net assets for the years ended September 30,
2023, September 30, 2022, September 30, 2021, September 30, 2020 and September
30, 2019, respectively.
(5)Including
credits for expenses paid indirectly, the ratio of expenses to average net
assets would have been 0.96%, 0.91%, 0.96%, 0.98% and 0.97%, for the years ended
September 30, 2023, September 30, 2022, September 30, 2021, September 30, 2020
and September 30, 2019, respectively.
(6)Including
credits for expenses paid indirectly, the ratio of net investment income to
average net assets would have been 2.91%, 2.49%, 2.13%, 1.78% and 2.18%, for the
years ended September 30, 2023, September 30, 2022, September 30, 2021,
September 30, 2020 and September 30, 2019, respectively.
|
|
|
|
| |
RELAX |
CONSERVATIVE
FUND |
Balanced
Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
FINANCIAL
HIGHLIGHTS For a capital share outstanding throughout each
year |
|
|
| Year
Ended September 30, |
|
| 2023 |
| 2022 |
| 2021 |
| 2020 |
|
2019(1) |
|
Net
asset value, beginning of year |
|
| $ |
35.02 |
|
| $ |
47.79 |
|
| $41.43 |
|
| $40.43 |
|
| $41.40 |
| |
INCOME
FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
| |
Net
investment income (loss)(2)(3) |
|
| 0.97 |
|
| 0.33 |
|
| (0.60) |
|
| 0.19 |
|
| 0.27 |
| |
Net
realized and unrealized gain (loss) on investments |
|
| 0.42 |
|
| (5.09) |
|
| 6.60 |
|
| 2.20 |
|
| 0.63 |
| |
Total
from investment operations |
|
| 1.39 |
|
| (4.76) |
|
| 6.54 |
|
| 2.39 |
|
| 0.90 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
LESS
DISTRIBUTIONS: |
|
|
|
|
|
|
|
|
|
|
| |
From
net investment income |
|
| (0.92) |
|
| (0.68) |
|
| (0.18) |
|
| (0.46) |
|
| (0.16) |
| |
From
net realized gain |
|
| — |
|
| (7.33) |
|
| — |
|
| (0.93) |
|
| (1.71) |
| |
Total
distributions |
|
| (0.92) |
|
| (8.01) |
|
| (0.18) |
|
| (1.39) |
|
| (1.87) |
| |
Net
asset value, end of year |
|
| $ |
35.49 |
|
| $ |
35.02 |
|
| $47.79 |
|
| $41.43 |
|
| $40.43 |
| |
Total
return |
|
| 3.98% |
| (12.60) |
% |
| 15.83 |
% |
| 5.99 |
% |
| 28.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
| |
Net
assets, end of year (millions) |
|
| $ |
57.6 |
|
| $ |
67.8 |
|
| $89.6 |
|
| $83.4 |
|
| $99.3 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
RATIO
OF EXPENSES TO AVERAGE NET ASSETS(3): |
|
|
|
|
|
|
|
|
|
|
| |
Before
fees recaptured/waived and expenses absorbed |
|
| 1.49 |
% |
(5) |
1.35 |
% |
(5) |
1.31 |
% |
(5) |
1.33 |
% |
(5) |
1.35 |
% |
(5) |
After
fees recaptured/waived and expenses absorbed(6) |
|
| 1.35 |
% |
(5) |
1.35 |
% |
(5) |
1.31 |
% |
(5) |
1.35 |
% |
(5) |
1.35 |
% |
(5) |
|
|
|
|
|
|
|
|
|
|
|
| |
RATIO
OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS(3): |
|
|
|
|
|
|
|
|
|
|
| |
Before
fees recaptured/waived and expenses absorbed |
|
| 2.53 |
% |
(5) |
0.76 |
% |
(5) |
(0.16) |
% |
(5) |
0.48 |
% |
(5) |
0.66 |
% |
(5) |
After
fees recaptured/waived and expenses absorbed(7) |
|
| 2.67 |
% |
(5) |
0.76 |
% |
(5) |
(0.16) |
% |
(5) |
0.46 |
% |
(5) |
0.66 |
% |
(5) |
Portfolio
turnover rate |
|
| 219 |
% |
|
144 |
% |
|
84 |
% |
| 172 |
% |
| 151 |
% |
|
(1)On
July 26, 2019, shares of the FundX Tactical Upgrader Fund were reorganized into
shares of the FundX Conservative Upgrader Fund. Activity after July 26, 2019
reflects the Funds’ combined operations.
(2)Recognition
of net investment income by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies in which the
Fund invests.
(3)Calculated
using the average shares outstanding method.
(4)Does
not include expenses of investment companies in which the Fund
invests.
(5)Includes
interest expense of $810 or 0.00%, $364 or 0.00%, $152 or 0.00%, $3,077 or 0.00%
and $1,536 or 0.00% of average net assets for the years ended September 30,
2023, September 30, 2022, September 30, 2021, September 30, 2020 and September
30, 2019, respectively.
(6)Including
credits for expenses paid indirectly, the ratio of expenses to average net
assets would have been 1.32%, 1.30%, 1.28%, 1.33% and 1.32%, for the years ended
September 30, 2023, September 30, 2022, September 30, 2021, September 30, 2020
and September 30, 2019, respectively.
(7)Including
credits for expenses paid indirectly, the ratio of net investment income (loss)
to average net assets would have been 2.70%, 0.81%, (0.13)%, 0.48% and 0.69%,
for the years ended September 30, 2023, September 30, 2022, September 30, 2021,
September 30, 2020 and September 30, 2019, respectively.
PRIVACY
NOTICE
The
Funds collect non‑public information about you from the following
sources:
•Information
we receive about you on applications or other forms,
•Information
you give us orally, and
•Information
about your transactions with us or others.
We
do not disclose any non-public personal information about our shareholders or
former shareholders without the shareholder’s authorization, except as permitted
by law or in response to inquiries from governmental authorities. We may share
information with affiliated parties and unaffiliated third parties with whom we
have contracts for servicing the Fund. We will provide unaffiliated third
parties with only the information necessary to carry out their assigned
responsibility. We maintain physical, electronic and procedural safeguards to
protect your non-public personal information and require third parties to treat
your non-public information with the same high degree of
confidentiality.
In
the event that you hold shares of a Fund through a financial intermediary,
including, but not limited to, a broker-dealer, bank or trust company, the
privacy policy of your financial intermediary would govern how your nonpublic
personal information would be shared with unaffiliated third
parties.
FundX
ETF – XCOR
FundX
Aggressive ETF – XNAV
FundX
Flexible ETF – XFLX
FundX
Conservative ETF – XRLX
You
can find more information about the Funds in the following
documents:
•Statement
of Additional Information (“SAI”):
The SAI of the Funds provides more detailed information about the investments
and techniques of the Fund and certain other additional information. A current
SAI is on file with the SEC and is herein incorporated by reference into this
Prospectus. It is legally a part of the Prospectus.
•Annual
and Semi-Annual Reports: Additional
information about the Predecessor Funds’ investments is available in the
Predecessor Funds’ Annual
and Semi-Annual
Reports to shareholders. In the Predecessor Funds’ Annual Report, you will find
a discussion of market conditions and investment strategies that significantly
affected each Predecessor Fund’s performance during its last fiscal
year.
You
can obtain free copies of these documents, request other information, or make
general inquiries about the Funds by contacting the Funds at:
FundX
Funds
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
WI 53201‑0701
Telephone:
1-866-455‑FUND [3863]
www.fundxfunds.com
Shareholder
Reports and other information about the Funds are also available:
‑ Free
of charge from the Fund’s website at www.fundxfunds.com.
‑ Free
of charge from the SEC’s EDGAR database on the SEC’s website at
http://www.sec.gov.
(1940
Act File Number 811‑22951)