As with all investments, there are certain risks of
investing in the Fund. Fund Shares will change in value, and you could lose
money by investing in the Fund. The Fund's exposure to the
risks discussed below may be through the Fund's direct investments or indirect
through the Fund's investments in the underlying ETFs. An investment in the Fund is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government
Risk: The Fund's investments are subject to
changes in general economic conditions, general market fluctuations and the
risks inherent in investment in securities markets. Investment markets can be
volatile and prices of investments can change substantially due to various
factors including, but not limited to, economic growth or recession, changes in
interest rates, changes in the actual or perceived creditworthiness of issuers,
and general market liquidity. The Fund is subject to the risk that geopolitical
events will disrupt securities markets and adversely affect global economies and
markets. Local, regional or global events such as war, acts of terrorism, the
spread of infectious illness or other public health issues, or other events
could have a significant impact on the Fund and its investments.
Investing Risk: The market prices of equity
securities owned by the Fund may go up or down, sometimes rapidly or
unpredictably. The value of a security may decline for a number of reasons that
may directly relate to the issuer and also may decline due to general industry
or market conditions that are not specifically related to a particular company.
In addition, equity markets tend to move in cycles, which may cause stock prices
to fall over short or extended periods of time.
Allocation Risk: The Fund's investment
performance depends upon the successful allocation by the Adviser of the Fund's
assets among asset classes, geographical regions, industry sectors, and specific
issuers and investments. There is no guarantee that the Adviser's allocation
techniques and decisions will produce the desired results.
Risk: The Adviser uses quantitative models in
an effort to enhance returns and manage risk. Any imperfections, errors or
limitations in these models could limit any benefit to the Fund from the use of
the models, or could result in incorrect outputs or in investment outcomes
different from or opposite to those expected or desired by the Adviser. There
can be no assurance that the models will behave as expected in all market
conditions. In addition, computer programming used to create quantitative
models, or the data on which such models operate, might contain one or more
Funds Risk: The Fund is subject to
substantially the same risks as those associated with the direct ownership of
the securities represented by an underlying ETF in which it invests. Also, the
Fund bears its proportionate share of the fees and expenses of an underlying ETF
in which it invests. In addition, the shares of an underlying ETF may trade at a
premium or discount to their intrinsic value (i.e., the market value may differ from the net asset
value of an ETF's shares) for a number of reasons. For example, supply and
demand for shares of an underlying ETF or market disruptions may cause the
market price of the underlying ETF to deviate from the value of the underlying
ETF's investments, which may be exacerbated in less liquid markets.
ETF Risk: To the extent the Fund invests in an
affiliated underlying ETF, the Fund's investment performance and risks may be
directly related to the investment performance and risks of the affiliated ETF.
In addition, the Adviser may have an incentive to take into account the effect
on an affiliated ETF in which the Fund may invest in determining whether, and
under what circumstances, to purchase or sell shares in that affiliated ETF.
Although the Adviser takes steps to address the conflicts of interest, it is
possible that the conflicts could impact the Fund.
of Net Asset Value, Share Premiums and Discounts Risk: As with all exchange-traded funds, Fund Shares may
be bought and sold in the secondary market at market prices. The trading prices
of Fund Shares in the secondary market may differ from the Fund's daily net
asset value per share and there may be times when the market price of the shares
is more than the net asset value per share (premium) or less than the net asset
value per share (discount). This risk is heightened in times of market
volatility or periods of steep market declines.
Services Sector Risk: Communication services
companies are particularly vulnerable to the potential obsolescence of products
and services due to technological advancement and the innovation of competitors.
Companies in the communication services sector may also be affected by other