European
Market Risk. (BetaBuilders
Europe ETF, BetaBuilders International Equity ETF, Diversified Return Emerging
Markets Equity ETF and Diversified
Return International Equity ETF) A Fund’s performance will be affected by
political, social and economic conditions in Europe, such as
growth of the economic output (the gross national product), the rate of
inflation, the rate at which capital is reinvested into
European economies, the success of governmental actions to reduce budget
deficits, the resource self-sufficiency of European countries
and interest and monetary exchange rates between European countries. European
financial markets may experience volatility due to
concerns about high government debt levels, credit rating downgrades, rising
unemployment, the future of the euro as a common
currency, possible restructuring of government debt and other government
measures responding to those concerns, and fiscal
and monetary controls imposed on member countries of the European Union. The
risk of investing in Europe may be heightened due to
steps taken by the United Kingdom to exit the European Union. On January 31,
2020, the United Kingdom officially withdrew
from the European Union. On December 30, 2020, the European Union and the United
Kingdom signed the EU-UK Trade and
Cooperation Agreement (TCA), an agreement on the terms governing certain aspects
of the European Union’s and the United Kingdom’s
relationship, many of which are still to be determined, including those related
to financial services. Notwithstanding the TCA,
significant uncertainty remains in the market regarding the ramifications of the
United Kingdom’s withdrawal from the European Union. The
impact on the United Kingdom and European economies and the broader global
economy could be significant, resulting in
increased volatility and illiquidity, currency fluctuations, impacts on
arrangements for trading and on other existing cross-border cooperation
arrangements (whether economic, tax, fiscal, legal, regulatory or otherwise),
and in potentially lower growth for companies in the
United Kingdom, Europe and globally, which could have an adverse effect on the
value of a Fund’s investments. In addition, if one or
more other countries were to exit the European Union or abandon the use of the
euro as a currency, the value of investments tied to
those countries or the euro could decline significantly and
unpredictably.
Risk
of Investing in Japan. (BetaBuilders
International Equity ETF, BetaBuilders Japan ETF and Diversified Return
International Equity ETF) Japan may be
subject to political, economic, nuclear, and labor risks, among others. Any of
these risks, individually or in the aggregate, can
impact an investment made in Japan.
Economic
Risk.
The growth of Japan’s economy has recently lagged that of its Asian neighbors
and other major developed economies. Since the
year 2000, Japan’s economic growth rate has remained relatively low, and it may
remain low in the future. Furthermore,
the Japanese economic growth rate could be impacted by Bank of Japan monetary
policies, rising interest rates, tax
increases, budget deficits, consumer confidence and volatility in the Japanese
yen. The Japanese economy is heavily dependent
on international trade and has been adversely affected in the past by trade
tariffs, other protectionist measures,
competition from emerging economies and the economic conditions of its trading
partners. Japan is also heavily dependent on oil
imports, and higher commodity prices could therefore have a negative impact on
the Japanese economy. In addition, Japan's
economy has in the past and could in the future be significantly impacted by
natural disasters.
Political
Risk.
Historically, Japan has had unpredictable national politics and may experience
frequent political turnover. Future political
developments may lead to changes in policy that might adversely affect a Fund’s
investments. In addition, China has become an
important trading partner with Japan. Japan’s political relationship with China,
however, is strained and delicate. Should
political tension increase, it could adversely affect the Japanese economy and
destabilize the region as a
whole.
Large
Government Debt Risk. The Japanese
economy faces several concerns, including large government deficits. These
concerns may cause a
slowdown of the Japanese economy.
Currency
Risk.
The Japanese yen has fluctuated widely at times and any increase in its value
may cause a decline in exports that could weaken
the Japanese economy. The Japanese government has, in the past, intervened in
the currency markets to attempt to maintain
or reduce the value of the yen. Japanese intervention in the currency markets
could cause the value of the yen to fluctuate
sharply and unpredictably and could cause losses to investors.
Labor
Risk.
Japan has an aging workforce and has experienced a significant population
decline in recent years. Japan’s labor market appears to be
undergoing fundamental structural changes, as a labor market traditionally
accustomed to lifetime employment adjusts
to meet the need for increased labor mobility, which may adversely affect
Japan’s economic competitiveness.
Security
Risk.
Japan’s relations with its neighbors, particularly China, North Korea, South
Korea and Russia, have at times been strained due to
territorial disputes, historical animosities and defense concerns. Most
recently, the Japanese government has shown concern
over the increased nuclear and military activity by North Korea and China.
Strained relations may cause uncertainty in
the Japanese markets and adversely affect the overall Japanese economy in times
of crisis.
India
Risk. (Diversified Return
Emerging Markets Equity ETF) Government actions, bureaucratic obstacles and
inconsistent economic reform within the
Indian government have had a significant effect on the economy and could
adversely affect market conditions, economic growth and
the profitability of private enterprises. Global economic developments may
inhibit the flow of foreign capital on which India is
dependent to sustain its growth. Large portions of many Indian companies remain
in the hands of individuals and
