Neuberger Berman ETF Trust
|
Neuberger
Berman Option Strategy ETF |
|
Shares of
the Fund are not individually redeemable. Shares of the Fund will be listed on
NYSE Arca, Inc. (“Exchange”).
Prospectus January 12, 2024
These
securities have not been approved or disapproved by the Securities and Exchange
Commission, and the Securities and Exchange Commission has not determined if
this prospectus is accurate or complete. Any representation to the contrary is a
criminal offense.
Contents
NEUBERGER BERMAN
ETF TRUST
| Neuberger Berman Option Strategy ETF |
1 |
|
11 | |
|
11 | |
|
21 | |
|
22 | |
|
22 | |
|
24 | |
|
25 | |
|
|
|
|
| |
|
27 | |
|
27 | |
|
27 | |
|
27 | |
|
28 | |
|
28 | |
|
28 | |
|
29 | |
|
30 | |
|
31 |
Neuberger Berman
Option Strategy ETF
The Fund seeks long-term growth of capital and
income generation.
These
tables below describe the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Shares”). You may pay other fees, such as
brokerage commissions and other fees to financial intermediaries, which are not
reflected in the table and example below.
|
|
|
|
|
|
|
|
|
|
Management
fees |
|
|
Other expenses1 |
|
|
Total annual operating expenses |
|
|
Fee waivers and/or expense
reimbursement |
|
|
Total annual operating expenses after fee waivers
and/or expense reimbursement2 |
|
|
1 |
|
|
2 |
|
The
expense example can help you compare costs among funds. The example assumes that
you invested $10,000 for the periods shown, that you redeemed all of your shares
at the end of those periods, that the Fund earned a hypothetical 5% total return
each year, and that the Fund’s expenses were those in the table. Actual
performance and expenses may be higher or lower.
|
1
Year |
3
Years |
5
Years |
10
Years |
|
$ |
$ |
$ |
$ |
The Fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund shares are held in a taxable account. These costs, which are not
reflected in annual operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, when it operated as a mutual
fund, the Fund’s portfolio turnover rate was 19 % of the average value of its
portfolio.
The Fund
seeks to achieve its goal primarily through a strategy of writing collateralized
put options on U.S. indices, including the S&P 500® Index and
other indices in the S&P 500® suite of indices, and exchange
traded funds (“ETFs”). The Fund attempts to generate returns through the receipt
of option premiums from selling puts, as well as through investments in fixed
income instruments, which collectively are intended to reduce volatility
relative to what it would be if the Fund held the underlying equity index on
which the options are written. The Fund’s investments in fixed income
instruments may be of any duration, may include variable and floating rate
instruments, and may include U.S. Treasury securities and other securities
issued by the U.S. government and its agencies and instrumentalities, debt
securities issued by corporations or trust entities, cash and cash equivalents,
structured notes, mortgage-backed securities and asset-backed securities. The
Fund also may invest in money market mutual funds and
ETFs.
1
Option Strategy ETF
In
a put writing strategy, the Fund (as the seller of the option) receives premiums
from the purchaser of the option in exchange for providing the purchaser with
the right to sell the underlying instrument to the Fund at a specific price
(i.e., the strike price). If the market price of the instrument underlying the
option exceeds the strike price, it is anticipated that the option would go
unexercised and the Fund would earn the full premium upon the option’s
expiration or a portion of the premium upon the option’s early termination. If
the market price of the instrument underlying the option drops below the strike
price, it is anticipated that the option would be exercised and the Fund would
pay the option buyer the difference between the market value of the underlying
instrument and the strike price.
As an
example, it is anticipated when the Fund writes a put option on the S&P 500
Index at a specific strike price and the S&P 500 goes above that strike
price and the option is not exercised (i.e., in a rising market), the premium
collected may be less than the S&P 500’s gains depending on the amount of
the premium and the S&P 500’s gains. Conversely, it is anticipated
when the Fund writes a put option on the S&P 500 Index at a specific strike
price and the S&P 500 goes below that strike price and the option is
exercised (i.e., in a falling market), the premium collected may offset all or a
portion of the S&P 500’s losses depending on the amount of the premium and
the S&P 500’s losses. Finally, it is anticipated when the Fund
writes a put option on the S&P 500 Index at a specific strike price and the
S&P 500 stays at that strike price and the option is not exercised (i.e., in
a flat market), the Fund would keep the premium collected.
The
Portfolio Managers will select option investments based on their estimate of
current and future market volatility levels, underlying instrument valuations
and perceived market risks. Further, the Portfolio Managers will evaluate
relative option premiums in determining preferred option contract terms, such as
strike prices and expiration dates.
At
the time of writing (selling) a put option, the aggregate investment exposure,
as measured on a notional basis (i.e., the value of the underlying instrument at
its strike price), of the options written by the Fund will generally be equal to
100% of the Fund’s total assets. The Fund’s aggregate investment exposure, as
measured on a notional basis, may be greater than 100% of the Fund’s total
assets from time to time but it will not exceed 125% of its total assets.
The
Fund’s fixed income instruments will be primarily investment grade and are
intended to provide liquidity and preserve capital and will serve as collateral
for the Fund’s investments in options. The Fund considers fixed income
instruments to be investment grade if, at the time of investment, they are rated
within the four highest categories by at least one independent credit rating
agency or, if unrated, are determined by the Portfolio Managers to be of
comparable quality. The premiums received by the Fund for writing options will
generally be invested in fixed income instruments, money market mutual funds and
ETFs in order to seek to partially offset any liabilities the Fund incurs from
writing options. Because the Fund will use options to gain exposure to the
equity markets, and because options will not require the Fund to deposit the
full notional amount of the investment, the Fund will also invest a significant
amount of its total assets in fixed income instruments, money market mutual
funds and ETFs. Its investments in options generally will not constitute a
significant amount of its total assets, however, the aggregate investment
exposure of its investments in options, as discussed above, generally will be
equal to 100% of its total assets.
While
the Fund may invest in both American-style and European-style options, for
efficient portfolio management the Portfolio Managers generally prefer
European-style options, which can be exercised only at expiration, as opposed to
American-style options, which can be exercised at any time prior to the option’s
expiration. The Fund may purchase and write call options on securities and
indices, including writing (selling) both covered (i.e., where the Fund holds an
equivalent position in the instrument underlying the option) and uncovered calls
(i.e., where the Fund does not own the instrument underlying the option and must
purchase the underlying instrument to meet its call obligations). The Fund may
also purchase put options, including purchasing puts on security indices and put
spreads on indices (i.e., buying and selling an equal number of puts on the same
index with differing strike prices or expiration dates).
In an effort to achieve its goal, the Fund may
engage in active and frequent trading.
Most of the Fund’s performance depends on what
happens in the equity, fixed income and options markets, the Portfolio Managers’
evaluation of those developments, and the success of the Portfolio Managers in
implementing the Fund’s investment strategies. The Fund’s use of derivative
instruments will result in leverage, which amplifies the risks that are
associated with these markets. The markets’ behavior can be difficult to
predict, particularly in the short term. There can be no guarantee that the Fund
will achieve its goal. The Fund may take temporary defensive and cash management
positions; to the extent it does, it will not be pursuing its principal
investment strategies.
2
Option Strategy ETF
The actual risk exposure taken
by the Fund in its investment program will vary over time, depending on various
factors including the Portfolio Managers’ evaluation of issuer, political,
regulatory, market, or economic developments. There can be no guarantee that the
Portfolio Managers will be successful in their attempts to manage the risk
exposure of the Fund or will appropriately evaluate or weigh the multiple
factors involved in investment decisions, including issuer, market and/or
instrument-specific analysis and valuation.
Each
of the following risks, which are described in alphabetical order and not in
order of any presumed importance, can significantly affect the Fund’s
performance. The relative importance of, or potential exposure as a result of,
each of these risks will vary based on market and other investment-specific
considerations.
Call Risk. Upon the issuer’s desire to call a
security, or under other circumstances where a security is called, including
when interest rates are low and issuers opt to repay the obligation underlying a
“callable security” early, the Fund may have to reinvest the proceeds in an
investment offering a lower yield and may not benefit from any increase in value
that might otherwise result from declining interest rates.
Credit Risk. Credit risk is the risk that issuers,
guarantors, or insurers may fail, or become less able or unwilling, to pay
interest and/or principal when due. Changes in the actual or perceived
creditworthiness of an issuer or a downgrade or default affecting any of the
Fund’s securities could affect the Fund’s performance by affecting the credit
quality or value of the Fund’s securities. Generally, the longer the maturity
and the lower the credit quality of a security, the more sensitive it is to
credit risk.
Derivatives Risk. Use of derivatives, such as options, is a
highly specialized activity that can involve investment techniques and risks
different from, and in some respects greater than, those associated with
investing in more traditional investments, such as stocks and bonds. Derivatives
can be highly complex and highly volatile and may perform in unanticipated ways.
Derivatives can create leverage, and the Fund could lose more than the amount it
invests; some derivatives can have the potential for unlimited losses.
Derivatives may at times be highly illiquid, and the Fund may not be able to
close out or sell a derivative at a particular time or at an anticipated price.
Derivatives can be difficult to value and valuation may be more difficult in
times of market turmoil. The value of a derivative instrument depends largely on
(and is derived from) the value of the reference instrument underlying the
derivative. There may be imperfect correlation between the behavior of a
derivative and that of the reference instrument underlying the derivative. An
abrupt change in the price of a reference instrument could render a derivative
worthless. Derivatives may involve risks different from, and possibly greater
than, the risks associated with investing directly in the reference instrument.
Suitable derivatives may not be available in all circumstances, and there can be
no assurance that the Fund will use derivatives to reduce exposure to other
risks when that might have been beneficial. Derivatives involve counterparty
risk, which is the risk that the other party to the derivative will fail to make
required payments or otherwise comply with the terms of the derivative. When the
Fund uses derivatives, it will likely be required to provide margin or
collateral; these practices are intended to satisfy contractual undertakings and
regulatory requirements and will not prevent the Fund from incurring losses on
derivatives. The need to provide margin or collateral could limit the Fund’s
ability to pursue other opportunities as they arise. Ongoing changes to
regulation of the derivatives markets and actual and potential changes in the
regulation of funds using derivative instruments could limit the Fund’s ability
to pursue its investment strategies. New regulation of derivatives may make them
more costly, or may otherwise adversely affect their liquidity, value or
performance.
3
Option Strategy ETF
ETF Risk. As
an exchange-traded fund (“ETF”), the Fund is subject to the following risks:
4
Option Strategy ETF
High Portfolio Turnover Risk. The Fund may engage in
active and frequent trading and may have a high portfolio turnover rate, which
may increase the Fund’s transaction costs, may adversely affect the Fund’s
performance and may generate a greater amount of capital gain distributions to
shareholders than if the Fund had a low portfolio turnover
rate.
Interest Rate Risk. In general, the value of
investments with interest rate risk, such as debt securities, will move in the
direction opposite to movements in interest rates. If interest rates rise, the
value of such securities may decline. Typically, the longer the maturity or
duration of a debt security, the greater the effect a change in interest rates
could have on the security’s price. Thus, the sensitivity of the Fund’s debt
securities to interest rate risk will increase with any increase in the duration
of those securities.
Issuer-Specific Risk. An individual security
may be more volatile, and may perform differently, than the market as a
whole.
Large Shareholder
Risk. Certain large shareholders, including Authorized Participants, may
from time to time own a substantial amount of the Fund’s shares. There is no
requirement that these shareholders maintain their investment in the Fund. There
is a risk that such large shareholders or that the Fund’s shareholders generally
may redeem all or a substantial portion of their investments in the Fund in a
short period of time, which could have a significant negative impact on the
Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result
in tax consequences to shareholders and impact the Fund’s ability to implement
its investment strategy.
Leverage Risk. Leverage amplifies changes in the Fund’s
net asset value and may make the Fund more volatile. Derivatives may create
leverage and can result in losses to the Fund that exceed the amount originally
invested and may accelerate the rate of losses or magnify the risks of other
portfolio investments. There can be no assurance that the Fund’s use of any
leverage will be successful and the Fund may need to dispose of some of its
holdings at unfavorable times or prices. The Fund’s investment exposure can
exceed its net assets, sometimes by a significant
amount.
Liquidity
Risk. From time to time, the
trading market for a particular investment in which the Fund invests, or a
particular type of instrument in which the Fund is invested, may become less
liquid or even illiquid. Illiquid investments frequently can be more difficult
to purchase or sell at an advantageous price or time, and there is a greater
risk that the investments may not be sold for the price at which the Fund is
carrying them. Certain investments that were liquid when the Fund purchased them
may become illiquid, sometimes abruptly. Additionally, market closures due to
holidays or other factors may render a security or group of securities (e.g.,
securities tied to a particular country or geographic region) illiquid for a
period of time. An inability to sell a portfolio position can adversely affect
the Fund’s value or prevent the Fund from being able to take advantage of other
investment opportunities. Market prices for such securities or other investments
may be volatile. During periods of substantial market volatility, an investment
or even an entire market segment may become illiquid, sometimes abruptly, which
can adversely affect the Fund’s ability to limit losses.
5
Option Strategy ETF
Market Capitalization Risk. To the extent the Fund
gains exposure to securities of small-, mid-, or large-cap companies, it takes
on the associated risks. At times, any of these market capitalizations may be
out of favor with investors. Compared to small- and mid-cap companies, large-cap
companies may be unable to respond as quickly to changes and opportunities and
may grow at a slower rate. Compared to large-cap companies, small- and mid-cap
companies may depend on a more limited management group, may have a shorter
history of operations, less publicly available information, less stable
earnings, and limited product lines, markets or financial resources. The
securities of small- and mid-cap companies are often more volatile, which at
times can be rapid and unpredictable, and less liquid than the securities of
larger companies and may be more affected than other types of securities by the
underperformance of a sector, during market downturns, or by adverse publicity
and investor perceptions.
Market Volatility Risk. Markets may be volatile
and values of individual securities and other investments, including those of a
particular type, may decline significantly in response to adverse issuer,
political, regulatory, market, economic or other developments that may cause
broad changes in market value, public perceptions concerning these developments,
and adverse investor sentiment or publicity. Geopolitical and other risks,
including environmental and public health risks may add to instability in world
economies and markets generally. Changes in value may be temporary or may last
for extended periods. If the Fund sells a portfolio position before it reaches
its market peak, it may miss out on opportunities for better
performance.
Model Risk. To a significant extent, the Fund’s
performance will depend on the success of implementing and managing the
investment models that assist in allocating the Fund’s assets. Models that have
been formulated on the basis of past market data may not be indicative of future
price movements. Models rely on data inputs and such data may be incorrect or
incomplete making the model unreliable. Models may not be reliable or produce
unexpected results if unusual or disruptive events cause market moves the nature
or size of which are inconsistent with the historic performance of individual
markets and their relationship to one another or to other macroeconomic events.
Models also may have hidden biases or exposure to broad structural or sentiment
shifts. In the event that actual events fail to conform to the assumptions
underlying such models, losses could be incurred. The performance of the
investment models may be impacted by software or other technology malfunctions,
programming inaccuracies, and similar
circumstances.
Mortgage- and
Asset-Backed Securities Risk. The value of mortgage- and asset-backed
securities, including collateralized mortgage instruments, will be influenced by
the factors affecting the housing market or the assets underlying the
securities. These securities tend to be more sensitive to changes in interest
rates than other types of debt securities. In addition, investments in mortgage-
and asset-backed securities may be subject to prepayment risk and extension
risk, call risk, credit risk, valuation risk, and illiquid investment risk,
sometimes to a higher degree than various other types of debt securities. These
securities are also subject to the risk of default on the underlying mortgages
or assets, particularly during periods of market downturn, and an unexpectedly
high rate of defaults on the underlying assets will adversely affect the
security’s value.
Other Investment Company Risk. To the extent the Fund invests in other
investment companies, including money market funds and exchange-traded funds
(ETFs), its performance will be affected by the performance of those other
investment companies. Investments in other investment companies are subject to
the risks of the other investment companies’ investments, as well as to the
other investment companies’ expenses.
Prepayment and
Extension Risk. The Fund’s performance could be affected if borrowers pay back
principal on certain debt securities, such as mortgage- or asset-backed
securities, before (prepayment) or after (extension) the market anticipates such
payments, shortening or lengthening their duration. Due to a decline in interest
rates or an excess in cash flow into the issuer, a debt security might be called
or otherwise converted, prepaid or redeemed before maturity. As a result of
prepayment, the Fund may have to reinvest the proceeds in an investment offering
a lower yield, may not benefit from any increase in value that might otherwise
result from declining interest rates, and may lose any premium it paid to
acquire the security. Conversely, rising market interest rates generally result
in slower payoffs or extension, which effectively increases the duration of
certain debt securities, heightening interest rate risk and increasing the
magnitude of any resulting price declines.
6
Option Strategy ETF
Recent Market
Conditions. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. National economies are substantially interconnected, as are
global financial markets, which creates the possibility that conditions in one
country or region might adversely impact issuers in a different country or
region. However, the interconnectedness of economies and/or markets may be
diminishing, which may impact such economies and markets in ways that cannot be
foreseen at this time.
7
Option Strategy ETF
Structured Note Risk. Structured notes are
notes where the principal and/or interest is determined by reference to the
performance of a specific asset, benchmark asset, financial instrument, market
or interest rate. Generally, investments in such notes are used as a substitute
for positions in underlying indicators and involve many of the same risks
associated with a direct investment in the underlying indicator the notes seek
to replicate. Structured notes may be exchange traded or traded over-the-counter
and privately negotiated. Structured notes can have risks of both fixed income
securities and derivatives transactions, including leverage risk. The interest
and/or principal payments that may be made on a structured note may vary widely,
depending on a variety of factors, including changes in the value of one or more
specified reference instruments. The performance of structured notes will not
replicate exactly the performance of the underlying indicator that the notes
seek to replicate due to transaction costs and other expenses. Structured notes
are subject to counterparty risk, which is the risk that the issuer of the
structured note will not fulfill its contractual obligation to complete the
transaction with the Fund. Investments in structured notes, including
credit-linked notes, involve risks including interest rate risk, credit risk,
liquidity risk and market risk. Structured notes may be illiquid and may have a
limited trading market, making it difficult to value them or sell them at an
acceptable price.
U.S. Government Securities
Risk. Although the Fund may hold securities that carry U.S. government
guarantees, these guarantees do not extend to shares of the Fund itself and do
not guarantee the market prices, including due to changes in interest rates, of
the securities. Furthermore, not all securities issued by the U.S. government
and its agencies and instrumentalities are backed by the full faith and credit
of the U.S. Treasury. Securities not backed by the full faith and credit of the
U.S. Treasury carry at least some risk of non-payment or
default.
Variable and Floating Rate Instruments Risk.
The market
prices of instruments with variable and floating interest rates are generally
less sensitive to interest rate changes than are the market prices of
instruments with fixed interest rates. Variable and floating rate instruments
may decline in value if market interest rates or interest rates paid by such
instruments do not move as expected. Certain types of floating rate instruments,
such as interests in bank loans, may be subject to greater liquidity risk than
other debt securities, may have restrictions on resale and may lack an active
market.
A summary of the Fund’s
additional principal investment risks is as follows:
Operational and
Cybersecurity Risk. The Fund and its service providers, and
your ability to transact with the Fund, may be negatively impacted due to
operational matters arising from, among other problems, human errors, systems
and technology disruptions or failures, or cybersecurity incidents.
Cybersecurity incidents may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary information, or cause the Fund or its
service providers, as well as the securities trading venues and their service
providers, to suffer data corruption or lose operational functionality.
Cybersecurity incidents can result from deliberate attacks or unintentional
events. It is not possible for the Manager or the other Fund service providers
to identify all of the cybersecurity or other operational risks that may affect
the Fund or to develop processes and controls to completely eliminate or
mitigate their occurrence or effects. Most issuers in which the Fund invests are
heavily dependent on computers for data storage and operations, and require
ready access to the internet to conduct their business. Thus, cybersecurity
incidents could also affect issuers of securities in which the Fund invests,
leading to significant loss of value.
Risk
Management. Risk is an essential part of investing. No risk management program
can eliminate the Fund’s exposure to adverse events; at best, it may only reduce
the possibility that the Fund will be affected by such events, and especially
those risks that are not intrinsic to the Fund’s investment program. The Fund
could experience losses if judgments about risk prove to be
incorrect.
Valuation
Risk. The Fund may not be able to sell an investment at the price at
which the Fund has valued the investment. Such differences could be significant,
particularly for illiquid securities and securities that trade in relatively
thin markets and/or markets that experience extreme volatility. If market or
other conditions make it difficult to value an investment, the Fund may be
required to value such investments using more subjective methods, known as fair
value methodologies. Using fair value methodologies to price investments may
result in a value that is different from an investment’s most recent price and
from the prices used by other funds to calculate their NAVs. The Fund uses
pricing services to provide values for certain securities and there is no
assurance that the Fund will be able to sell an investment at the price
established by such pricing services. The Fund’s ability to value its
investments in an accurate and timely manner may be impacted by technological
issues and/or errors by third party service providers, such as pricing services
or accounting agents.
8
Option Strategy ETF
The following bar chart and
table provide an indication of the risks of investing in the Fund. The Fund will
adopt the performance history of its predecessor fund, Neuberger Berman U.S.
Equity Index PutWrite Strategy Fund. The information shown below is for the
predecessor fund. The bar chart shows how the performance of the Fund’s Shares
has varied from year to year, as represented by the performance of the
predecessor fund’s Institutional Class. The returns in the bar chart do not
reflect any applicable sales charges of the predecessor fund. If sales charges
were reflected, returns would be lower than those shown.
The
table below the bar chart shows what the returns would equal if you averaged out
actual performance over various lengths of time and compares the returns with
the returns of one or more broad-based market indices. The
indices, which are described in “Description of Indices” in the prospectus, have
characteristics relevant to the Fund’s investment
strategy.
Returns of the predecessor
fund would have been lower if the Manager had not reimbursed certain expenses
and/or waived a portion of the investment management fees during certain of the
periods shown.
While
the Fund’s shares would have substantially similar annual returns to the
Institutional Class shares of the predecessor mutual fund, their performance may
differ from that shown because the Fund has lower expenses than the predecessor
fund’s Institutional Class shares. Performance for the Fund’s Shares has not
been adjusted to reflect the Fund’s Shares’ lower expenses than those of the
predecessor fund’s Institutional Class shares. Performance for the predecessor
fund is based on the NAV per share of the predecessor fund shares rather
than on market-determined prices.
|
|
1 Year |
5 Years |
Since Inception
( |
|
Return Before Taxes |
|
|
|
|
Return After Taxes on Distributions |
|
|
|
|
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
|
|
50% Cboe® S&P 500 One-Week PutWrite
Index/50% Cboe® S&P 500 PutWrite Index |
|
|
|
|
S&P 500® Index (reflects no deduction
for fees, expenses or taxes) |
|
|
|
|
|
9
Option Strategy ETF
INVESTMENT MANAGER
Neuberger
Berman Investment Advisers LLC (“NBIA” or the “Manager”) is the Fund’s
investment manager.
PORTFOLIO
MANAGERS
The Fund is managed by Derek Devens, CFA (Managing Director
of NBIA), Rory Ewing (Managing Director of NBIA) and Eric Zhou (Senior Vice
President of NBIA). Mr. Devens joined the firm in 2016 and has managed the Fund
since its inception in 2016, and Mr. Ewing joined the firm in 2016 and has been
an Associate Portfolio Manager of the Fund since February 2019. Mr. Zhou joined
the firm in 2016 and has been an Associate Portfolio Manager of the Fund since
February 2022.
BUYING
AND SELLING SHARES
The
Fund issues and redeems Shares at its NAV only in a large specified number of
Shares each called a “Creation Unit,” or multiples thereof, and only with
authorized participants who have entered into contractual arrangements with the
Fund’s distributor.
Individual
Shares (rather than Creation Units) of the Fund may only be purchased and sold
on a national securities exchange through a broker or dealer at market price and
most investors will buy and sell Shares of the Fund on such an exchange. These
transactions do not involve the Fund. The prices at which individual Shares may
be purchased and sold on a national securities exchange through brokers are
based on market prices and, because Shares will trade at market prices rather
than at NAV, individual Shares of the Fund may trade at a price greater than or
less than NAV. Shares of the Fund are listed on NYSE Arca, Inc.
An
investor 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 (ask) when buying or
selling Shares in the secondary market (the “bid-ask spread”). Most investors
will incur customary brokerage commissions and charges when buying and selling
shares of the Fund through a broker/dealer.
Recent information, including information about the
Fund’s NAV, market price, premiums and discounts, and bid-ask spreads, is
included on the Fund’s website at www.nb.com/ETF.
TAX
INFORMATION
Unless
you invest in the Fund through a tax-advantaged retirement plan or account or
are a tax-exempt investor, you will be subject to tax on Fund distributions to
you of ordinary income and/or net capital gains. Those distributions generally
are not taxable to such a plan or account or a tax-exempt investor, although
withdrawals from certain retirement plans and accounts generally are subject to
federal income tax.
PAYMENTS
TO INVESTMENT PROVIDERS AND OTHER FINANCIAL INTERMEDIARIES
If
you purchase shares of the Fund through a broker/dealer or other financial
intermediary, such as a bank, brokerage firm, workplace retirement program, or
financial adviser (who may be affiliated with the Manager), the Fund and/or
Neuberger Berman BD LLC and/or its affiliates may pay the intermediary for the
sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker/dealer or other financial intermediary and
its employees to recommend the Fund over another investment. Ask your financial
intermediary or visit its website for more information.
10
Option Strategy ETF
Derivatives. A derivative is generally a
financial contract the value of which depends on, or is derived from, changes in
the value of one or more “reference instruments,” such as underlying assets
(including securities), reference rates, indices or events. Derivatives may
relate to stocks, bonds, credit, interest rates, commodities, currencies or
currency exchange rates, or related indices. A derivative may also contain
leverage to magnify the exposure to the reference instrument. Derivatives may be
traded on organized exchanges and/or through clearing organizations, or in
private transactions with other parties in the over-the-counter (“OTC”) market
with a single dealer or a prime broker acting as an intermediary with respect to
an executing dealer. Derivatives may be used for hedging purposes and
non-hedging (or speculative) purposes. Some derivatives require one or more
parties to post “margin,” which means that a party must deposit assets with, or
for the benefit of, a third party, such as a futures commission merchant, in
order to initiate and maintain the derivatives position. Margin is typically
adjusted daily, and adverse market movements may require a party to post
additional margin.
Call Options. A call option gives the purchaser
the right to buy an underlying asset or other reference instrument at a
specified price, regardless of the instrument’s market price at the time.
Writing (selling) a call option obligates the writer (seller) to sell the
underlying asset or other reference instrument to the purchaser at a specified
price if the purchaser decides to exercise the option. A call option is
“covered” if the writer (seller) simultaneously holds an equivalent position in
the security underlying the option. If the holder exercises an uncovered call
option, the seller of the option may have to buy the underlying asset at the
current market price to fulfill its obligation. The writer (seller) receives a
premium when it writes a call option. Purchasing a call option gives the
purchaser the right to buy the underlying asset or other reference instrument
from the writer (seller) at a specified price if the purchaser decides to
exercise the option. The purchaser pays a premium when it purchases a call
option.
Put Options. A put option gives the purchaser
the right to sell an underlying asset or other reference instrument at a
specified price, regardless of the instrument’s market price at the time.
Writing (selling) a put option obligates the writer (seller) to buy the
underlying asset or other reference instrument from the purchaser at a specified
price if the purchaser decides to exercise the option. The writer (seller)
receives a premium when it writes a put option. Purchasing a put option gives
the purchaser the right to sell the underlying asset or other reference
instrument to the writer (seller) at a specified price if the purchaser decides
to exercise the option. The purchaser pays a premium when it purchases a put
option.
Fixed Income Securities. Debt securities may
consist of fixed and floating rate obligations of various credit quality and
duration and may be issued by: corporate entities; trusts; domestic issuers,
including securities issued or guaranteed as to principal or interest by the
U.S. government or any of its agencies or instrumentalities; foreign issuers,
including foreign governments and supranational entities; and municipal issuers,
including within the U.S. and its territories. Such obligations may include:
bonds, loans, inflation-linked debt securities, when-issued and forward-settling
securities, commercial paper, mortgage-backed securities and other asset-backed
securities, and hybrid securities (including convertible securities).
This section provides additional information
about the Fund’s principal investment risks described in the Fund Summary
section. The following risks are described in alphabetical order and not in
order of any presumed importance or potential exposure.
Call
Risk. Upon the issuer’s desire to call a security, or under other
circumstances where a security is called, including when interest rates are low
and issuers opt to repay the obligation underlying a “callable security” early,
the Fund may have to reinvest the proceeds in an investment offering a lower
yield or other less favorable characteristics. This may reduce the amount of the
Fund’s distributions. In addition, the Fund may not benefit from any increase in
value in the securities that might otherwise result from declining interest
rates. The likelihood of a call also may impact the price of a security.
11
Credit
Risk. Credit risk is the risk that issuers, guarantors, or insurers may
fail, or become less able or unwilling, to pay interest and/or principal when
due. Changes in the actual or perceived creditworthiness of an issuer, factors
affecting an issuer directly (such as management changes, labor relations,
collapse of key suppliers or customers, or material changes in overhead costs),
factors affecting the industry in which a particular issuer operates (such as
competition or technological advances) and changes in general social, economic
or political conditions can increase the risk of default by an issuer, which may
affect a security’s credit quality or value. A downgrade or default affecting
any of the Fund’s securities could affect the Fund’s performance by affecting
the credit quality or value of the Fund’s securities.
Generally, the longer the maturity and the lower
the credit quality of a security, the more sensitive it is to credit risk. In
addition, lower credit quality may lead to greater volatility in the price of a
security and may negatively affect a security’s liquidity. Ratings represent a
rating agency’s opinion regarding the quality of a security and are not a
guarantee of quality, and do not protect against a decline in the value of a
security. In addition, rating agencies may fail to make timely changes to credit
ratings in response to subsequent events and a rating may become stale in that
it fails to reflect changes in an issuer’s financial condition. The credit
quality of a security or instrument can deteriorate suddenly and rapidly, which
may negatively impact its liquidity and value. The securities in which the Fund
invests may be subject to credit enhancement (for example, guarantees, letters
of credit, or bond insurance). Entities providing credit or liquidity support
also may be affected by credit risk. Credit enhancement is designed to help
assure timely payment of the security; it does not protect the Fund against
losses caused by declines in a security’s value due to changes in market
conditions.
Derivatives Risk. Use of derivatives is a
highly specialized activity that can involve investment techniques and risks
different from, and in some respects greater than, those associated with
investing in more traditional investments, such as stocks and bonds. Derivatives
can be highly complex and highly volatile and may perform in unanticipated ways.
Derivatives can create leverage, which can magnify the impact of a decline in
the value of the reference instrument underlying the derivative, and the Fund
could lose more than the amount it invests. Derivatives can have the potential
for unlimited losses, for example, where the Fund may be called upon to deliver
a security it does not own. Derivatives may at times be highly illiquid, and the
Fund may not be able to close out or sell a derivative at a particular time or
at an anticipated price. Derivatives can be difficult to value and valuation may
be more difficult in times of market turmoil. The value of a derivative
instrument depends largely on (and is derived from) the value of the reference
instrument underlying the derivative. There may be imperfect correlation between
the behavior of a derivative and that of the reference instrument underlying the
derivative, and the reference instrument may not perform as anticipated. An
abrupt change in the price of a reference instrument could render a derivative
worthless. Derivatives may involve risks different from, and possibly greater
than, the risks associated with investing directly in the reference instrument.
Suitable derivatives may not be available in all circumstances, and there can be
no assurance that the Fund will use derivatives to reduce exposure to other
risks when that might have been beneficial. Derivatives may involve fees,
commissions, or other costs that may reduce the Fund’s gains or exacerbate
losses from the derivatives. In addition, the Fund’s use of derivatives may have
different tax consequences for the Fund than an investment in the reference
instruments, and those differences may increase the amount and affect the timing
of income recognition and character of taxable distributions payable to
shareholders. Thus, the Fund could be required at times to liquidate other
investments in order to satisfy its distribution requirements. Certain aspects
of the regulatory treatment of derivative instruments, including federal income
tax, are currently unclear and may be affected by changes in legislation,
regulations, or other legally binding authority. In October 2020, the SEC
adopted Rule 18f-4 under the 1940 Act which regulates the use of derivatives for
certain funds registered under the Investment Company Act (“Rule 18f-4”). The
Fund has adopted a Rule 18f-4 Policy which provides, among other things, that
unless the Fund qualifies as a “limited derivatives user” as defined in Rule
18f-4, the Fund is subject to a comprehensive derivatives risk management
program, to comply with certain value-at-risk based leverage limits and to
provide additional disclosure both publicly and to the SEC regarding its
derivatives positions.
Derivatives
involve counterparty risk, which is the risk that the other party to the
derivative will fail to make required payments or otherwise comply with the
terms of the derivative. Counterparty risk may arise because of market
activities and developments, the counterparty’s financial condition (including
financial difficulties, bankruptcy, or insolvency), or other reasons. Not all
derivative transactions require a counterparty to post collateral, which may
expose the Fund to greater losses in the event of a default by a counterparty.
Counterparty risk is generally thought to be greater with OTC derivatives than
with derivatives that are exchange traded or centrally cleared. However,
derivatives that are traded on organized exchanges and/or through clearing
organizations involve the possibility that the futures commission merchant or
clearing organization will default in the performance of its
obligations.
12
When
the Fund uses derivatives, it will likely be required to provide margin or
collateral; these practices are intended to satisfy contractual undertakings and
regulatory requirements and will not prevent the Fund from incurring losses on
derivatives. The need to provide margin or collateral could limit the Fund’s
ability to pursue other opportunities as they arise. Derivatives that have
margin requirements involve the risk that if the Fund has insufficient cash or
eligible margin securities to meet daily variation margin requirements, it may
have to sell securities or other instruments from its portfolio at a time when
it may be disadvantageous to do so. The Fund normally will remain obligated to
meet margin requirements until a derivatives position is closed.
Ongoing changes to regulation
of the derivatives markets and actual and potential changes in the regulation of
funds using derivative instruments could limit the Fund’s ability to pursue its
investment strategies. New regulation of derivatives may make them more costly,
or may otherwise adversely affect their liquidity, value or
performance.
Although
the Fund may use derivatives to attempt to hedge against certain risks, the
hedging instruments may not perform as expected and could produce losses.
Additional
risks associated with certain types of derivatives are discussed below:
Options. The use of options involves investment strategies and
risks different from those associated with ordinary portfolio securities
transactions. The prices of options are volatile and are influenced by, among
other things, actual and anticipated changes in the value of the underlying
instrument, or in interest or currency exchange rates, including the anticipated
volatility of the underlying instrument (known as implied volatility), which in
turn are affected by the performance of the issuer of the underlying instrument,
by fiscal and monetary policies and by national and international political and
economic events. As such, prior to the exercise or expiration of the option, the
Fund is exposed to implied volatility risk, meaning the value, as based on
implied volatility, of an option may increase due to market and economic
conditions or views based on the sector or industry in which issuers of the
underlying instrument participate, including company-specific factors.
By writing put options, the Fund takes on the risk of
declines in the value of the underlying instrument, including the possibility of
a loss up to the entire strike price of each option it sells, but without the
corresponding opportunity to benefit from potential increases in the value of
the underlying instrument. When the Fund writes a put option, it assumes the
risk that it must purchase the underlying instrument at a strike price that may
be higher than the market price of the instrument. If there is a broad market
decline and the Fund is not able to close out its written put options, it may
result in substantial losses to the Fund. By writing a call option, the Fund may
be obligated to deliver instruments underlying an option at less than the market
price. In the case of an uncovered call option, there is a risk of unlimited
loss. When an uncovered call is exercised, the Fund must purchase the underlying
instrument to meet its call obligations and the necessary instruments may be
unavailable for purchase. Additionally, volatility in the market for equity
securities, which has been dramatically increased recently for certain stocks,
can meaningfully increase the risk of loss associated with options. When the
Fund writes a covered call option, it gives up the opportunity to profit from a
price increase in the underlying instrument above the strike price. If a covered
call option that the Fund has written is exercised, the Fund will experience a
gain or loss from the sale of the underlying instrument, depending on the price
at which the Fund purchased the instrument and the strike price of the option.
The Fund will receive a premium from writing options, but the premium received
may not be sufficient to offset any losses sustained from exercised options. In
the case of a covered call, the premium received may be offset by a decline in
the market value of the underlying instrument during the option period. If an
option that the Fund has purchased is never exercised or closed out, the Fund
will lose the amount of the premium it paid and the use of those
funds.
ETF Risk. As an exchange-traded fund (“ETF”),
the Fund is subject to the following risks:
Authorized Participants Concentration
Risk. The Fund has a limited number of
financial institutions that may act as Authorized Participants. To the extent
they exit the business or are otherwise unable to proceed in creation and
redemption transactions with the Fund and no other Authorized Participant is
able to step forward to create or redeem, shares of the Fund may be more likely
to trade at a premium or discount to net asset value (“NAV”) and possibly face
trading halts or delisting. Authorized Participant concentration risk may be
heightened for ETFs, such as the Fund, that invest in securities issued by
non-U.S. issuers or other securities or instruments that have lower trading
volumes.
13
Cash Transactions Risk. Unlike certain ETFs, the Fund may effect its creations
and redemptions in cash or partially in cash. As a result, an investment in the
Fund may be less tax-efficient than an investment in other ETFs. Other ETFs
generally are able to make in-kind redemptions and avoid realizing gains in
connection with transactions designed to raise cash to meet redemption requests.
If the Fund effects a portion of redemptions for cash, it may be required to
sell portfolio securities in order to obtain the cash needed to distribute
redemption proceeds, which also involves transaction costs. If the Fund
recognizes gain on these sales, this generally will cause the Fund to recognize
gain it might not otherwise have recognized if it were to distribute portfolio
securities in-kind, or to recognize such gain sooner than would otherwise be
required. The Fund generally intends to distribute these gains to shareholders
to avoid being taxed on this gain at the Fund level and otherwise comply with
the special tax rules that apply to it. This strategy may cause shareholders to
be subject to tax on gains they would not otherwise be subject to, or at an
earlier date than, if they had made an investment in a different ETF. To the
extent any costs associated with cash transactions are not offset by any
transaction fees payable by an authorized participant, the Fund’s performance
could be negatively impacted.
Premium/Discount Risk. The NAV of the Fund’s shares will generally
fluctuate with changes in the market value of the Fund’s securities holdings.
The market prices of Fund shares will generally fluctuate in accordance with
changes in the Fund’s NAV and supply and demand of shares on the secondary
market. It cannot be predicted whether Fund shares will trade below, at or above
their NAV. As a result, shareholders of the Fund may pay more than NAV when
purchasing shares and receive less than NAV when selling Fund shares. This risk
is heightened in times of market volatility or periods of steep market declines.
In such market conditions, market or stop-loss orders to sell the ETF shares may
be executed at market prices that are significantly below NAV. The market prices
of Fund shares may deviate significantly from the NAV of the shares during
periods of market volatility or if the Fund’s holdings are or become more
illiquid. Disruptions to creations and redemptions may result in trading prices
that differ significantly from the Fund’s NAV. In addition, market prices of
Fund shares may deviate significantly from the NAV if the number of Fund shares
outstanding is smaller or if there is less active trading in Fund shares.
Investors purchasing and selling Fund shares in the secondary market may not
experience investment results consistent with those experienced by those
creating and redeeming directly with the Fund.
Secondary Market Trading Risk. Investors
buying or selling shares in the secondary market will normally pay brokerage
commissions, which are often a fixed amount and may be a significant
proportional cost for investors buying or selling relatively small amounts of
shares. In addition, secondary market investors will incur the cost of the
difference between the price that an investor is willing to pay for shares (the
bid price) and the price at which an investor is willing to sell shares (the ask
price). This difference in bid and ask prices is often referred to as the
“spread” or “bid/ask spread.” The bid/ask spread, which increases the cost of
purchasing and selling Fund shares, varies over time for shares based on trading
volume and market liquidity, and is generally lower if the Fund’s shares have
more trading volume and market liquidity and higher if the Fund’s shares have
little trading volume and market liquidity. Increased market volatility may
cause increased bid/ask spreads.
Although
Fund shares are listed for trading on the Exchange, there can be no assurance
that an active trading market for such shares will develop or be maintained or
that the Fund’s shares will continue to be listed. Trading in Fund 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 is
subject to trading halts caused by extraordinary market volatility pursuant to
Exchange “circuit breaker” rules. There can be no assurance that the
requirements of the Exchange necessary to maintain the listing of any Fund will
continue to be met or will remain unchanged or that the shares will trade with
any volume, or at all.
14
High Portfolio Turnover Risk. The Fund may
engage in active and frequent trading and may have a high portfolio turnover
rate, which may increase the Fund’s transaction costs, may adversely affect the
Fund’s performance and may generate a greater amount of capital gain
distributions to shareholders than if the Fund had a low portfolio turnover
rate.
Interest Rate Risk. In general, the value
of investments with interest rate risk, such as debt securities, will move in
the direction opposite to movements in interest rates. If interest rates rise,
the value of such securities may decline. Interest rates may change in response
to the supply and demand for credit, changes to government monetary policy and
other initiatives, inflation rates, and other factors. Debt securities have
varying levels of sensitivity to changes in interest rates. Typically, the
longer the maturity (i.e., the term of a debt security) or duration (i.e., a
measure of the sensitivity of a debt security to changes in market interest
rates, based on the entire cash flow associated with the security) of a debt
security, the greater the effect a change in interest rates could have on the
security’s price. For example, if interest rates increase by 1%, a debt security
with a duration of two years will decrease in value by approximately 2%. Thus,
the sensitivity of the Fund’s debt securities to interest rate risk will
increase with any increase in the duration of those securities. Short-term
securities tend to react to changes in short-term interest rates, and long-term
securities tend to react to changes in long-term interest rates. Short-term and
long-term interest rates, and interest rates in different countries, do not
necessarily move in the same direction or by the same amount. The link between
interest rates and debt security prices tends to be weaker with lower-rated debt
securities than with investment grade debt securities.
Issuer-Specific
Risk. An individual security may be more volatile, and may perform
differently, than the market as a whole. The value of an issuer’s securities may
deteriorate because of a variety of factors, including disappointing earnings
reports by the issuer, unsuccessful products or services, loss of major
customers, major litigation against the issuer, perceived poor management
performance, changes in economic or political conditions or in government
regulations affecting the issuer or the competitive environment. Certain
unanticipated events, such as natural disasters, may have a significant adverse
effect on the value of an issuer’s securities.
Large Shareholder
Risk. Certain large shareholders, including Authorized Participants, may
from time to time own a substantial amount of the Fund’s shares. There is no
requirement that these shareholders maintain their investment in the Fund. There
is a risk that such large shareholders or that the Fund’s shareholders generally
may redeem all or a substantial portion of their investments in the Fund in a
short period of time, which could have a significant negative impact on the
Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result
in tax consequences to shareholders and impact the Fund’s ability to implement
its investment strategy. The Fund’s ability to pursue its investment objective
after one or more large scale redemptions may be impaired and, as a result, the
Fund may invest a larger portion of its assets in cash or cash
equivalents.
Leverage
Risk. Leverage amplifies changes in the Fund’s net asset value and may
make the Fund more volatile. Derivatives may create leverage and can result in
losses to the Fund that exceed the amount originally invested and may accelerate
the rate of losses or magnify the risks of other portfolio investments. For
certain instruments or transactions that create leverage, or have embedded
leverage, relatively small market fluctuations may result in large changes in
the value of such investments. In addition, the costs that the Fund pays to
engage in these practices are additional costs borne by the Fund and could
reduce or eliminate any net investment profits. Unless the profits from engaging
in these practices exceed the costs of engaging in these practices, the use of
leverage will diminish the investment performance of the Fund compared with what
it would have been had the Fund not used leverage. There can be no assurance
that the Fund’s use of any leverage will be successful. The Fund’s investment
exposure can exceed its net assets, sometimes by a significant amount. When the
Fund uses leverage or utilizes certain of these practices, it may need to
dispose of some of its holdings at unfavorable times or prices in order to
satisfy regulatory or other requirements.
Liquidity Risk. From
time to time, the trading market for a particular investment or type of
investment in which the Fund invests is or may become less liquid or even
illiquid. Illiquid investments frequently can be more difficult to purchase or
sell at an advantageous price or time. An illiquid investment means any
investment that the Fund reasonably expects cannot be sold or disposed of in
current market conditions in seven calendar days or less without the sale or
disposition significantly changing the market value of the investment. Judgment
plays a greater role in pricing these investments than it does in pricing
investments having more active markets, and there is a greater risk that the
investments may not be sold for the price at which the Fund is carrying them.
The Fund may receive illiquid securities as a result of its investment in
securities involved in restructurings. Certain investments that were liquid when
the Fund purchased them may become illiquid, sometimes abruptly, particularly
during periods of increased market volatility, adverse investor perception,
economic uncertainty or changes in interest rates. Additionally, market closures
due to holidays or other factors may render a security or group of securities
(e.g., securities tied to a particular country or geographic region) illiquid
for a period of time, which can be extensive. An inability to sell a portfolio
position can adversely affect the Fund’s value or prevent the Fund from being
able to take advantage of other investment opportunities. Market prices for such
securities or other investments may be volatile. Market participants attempting
to sell the same or a similar investment at the same time as the Fund could
decrease the liquidity of such investments, especially during times of market
volatility. During periods of substantial market volatility, an investment or
even an entire market segment may become illiquid, sometimes abruptly, which can
adversely affect the Fund’s ability to limit losses.
15
Unexpected episodes of illiquidity, including due to market
or political factors, instrument or issuer-specific factors and/or unanticipated
outflows or other factors, may limit the Fund’s ability to pay redemption
proceeds within the allowable time period. To meet redemption requests during
periods of illiquidity, the Fund may be forced to sell securities at an
unfavorable time and/or under unfavorable conditions.
Market Capitalization Risk (Small-, Mid- and Large-Cap
Companies Risk). To the extent the Fund gains exposure to securities of
small-, mid-, or large-cap companies, it takes on the associated risks. At
times, any of these market capitalizations may be out of favor with investors.
Compared to small- and mid-cap companies, large-cap companies may be unable to
respond as quickly to changes and opportunities and may grow at a slower rate.
As such, the return on investment in securities of large-cap companies may be
less than the return on investment in securities of small- and/or mid-cap
companies. Compared to large-cap companies, small- and mid-cap companies may
depend on a more limited management group, may have a shorter history of
operations, less publicly available information, less stable earnings, and
limited product lines, markets or financial resources. The securities of small-
and mid-cap companies may fluctuate more widely in price than the market as a
whole, which at times can be rapid and unpredictable, may be difficult to sell
when the economy is not robust or during market downturns, and may be more
affected than other types of securities by the underperformance of a sector,
during market downturns, or by adverse publicity and investor perceptions. There
may also be less trading in small- or mid-cap securities, which means that buy
and sell transactions in those securities could have a larger impact on a
security’s price than is the case with large-cap securities and the Fund may not
be able to liquidate a position at a particular time.
Market
Volatility Risk. Markets may be volatile and values of individual
securities and other investments, including those of a particular type, may
decline significantly in response to adverse issuer, political, regulatory,
market, economic or other developments that may cause broad changes in market
value, public perceptions concerning these developments, and adverse investor
sentiment or publicity. Changes in the financial condition of a single issuer
may impact a market as a whole. Changes in value may be temporary or may last
for extended periods. If the Fund sells a portfolio position before it reaches
its market peak, it may miss out on opportunities for better performance.
Geopolitical risks, including terrorism, tensions or open conflict between
nations, or political or economic dysfunction within some nations that are major
players on the world stage or major producers of oil, may lead to overall
instability in world economies and markets generally and have led, and may in
the future lead, to increased market volatility and may have adverse long-term
effects. Similarly, environmental and public health risks, such as natural
disasters or epidemics, or widespread fear that such events may occur, may
impact markets and economies adversely and cause market volatility in both the
short- and long-term.
Model Risk. To a significant extent, the Fund’s
performance will depend on the success of implementing and managing the
investment models that assist in allocating the Fund’s assets. Fund performance
will also be affected by the fundamental analysis and inputs used by models
regarding investments. Models may be employed that turn out not to be
well-suited to prevailing market conditions. Models that have been formulated on
the basis of past market data may not be indicative of future price movements.
Models rely on data inputs and such data may be incorrect or incomplete making
the model unreliable. Models may not be reliable or produce unexpected results
if unusual or disruptive events specific to particular corporations, or major
events external to the operation of markets, cause market moves the nature or
size of which are inconsistent with the historic performance of individual
markets and their relationship to one another or to other macroeconomic events.
Models also may have hidden biases or exposure to broad structural or sentiment
shifts. In the event that actual events fail to conform to the assumptions
underlying such models, losses could be incurred. The performance of the
investment models may be impacted by software or other technology malfunctions,
programming inaccuracies, power loss, and similar events or circumstances, which
may be difficult to detect and may be beyond the control of the
Fund.
16
Mortgage- and Asset-Backed Securities Risk. The
value of mortgage- and asset-backed securities, including collateralized
mortgage instruments, will be influenced by the factors affecting the housing
market or the assets underlying the securities. These securities differ from
more traditional debt securities because the principal is paid back over the
life of the security rather than at the security’s maturity; however, principal
may be repaid early if a decline in interest rates causes many borrowers to
refinance (known as prepayment risk), or repaid more slowly if a rise in rates
causes refinancings to slow down (known as extension risk). Thus, they tend to
be more sensitive to changes in interest rates than other types of debt
securities and as a result, these securities may exhibit additional volatility
during periods of interest rate turmoil. Asset-backed securities also may not
have the benefit of any security interest in the related assets. Mortgage- and
asset-backed securities may be “subordinated” to other interests in the same
pool and a holder of those “subordinated” securities would receive payments only
after any obligations to other more “senior” investors have been satisfied. In
addition, investments in mortgage- and asset-backed securities may be subject to
call risk, credit risk, valuation risk, and illiquid investment risk, sometimes
to a higher degree than various other types of debt securities. These securities
are also subject to the risk of default on the underlying mortgages or assets,
particularly during periods of market downturn, and an unexpectedly high rate of
defaults on the underlying assets will adversely affect the security’s value.
Further, such securities may have credit support, the utility of which could be
negatively affected by such conditions as well.
Operational and
Cybersecurity Risk. The Fund and its service providers, and your ability
to transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. Cybersecurity incidents can result
from deliberate attacks (e.g., malicious software coding, ransomware, or
“hacking”) or unintentional events (e.g., inadvertent release of confidential
information). A cybersecurity incident could, among other things, result in the
loss or theft of customer data or funds, customers or employees being unable to
access electronic systems (“denial of services”), loss or theft of proprietary
information or corporate data, physical damage to a computer or network system,
or remediation costs associated with system repairs. A cybersecurity incident
may not permit the Fund and its service providers to access electronic systems
to perform critical duties for the Fund, such as trading and calculating net
asset value. Any cybersecurity incident could have a substantial adverse impact
on the Fund and its shareholders.
The occurrence of any of these problems could
result in a loss of information, regulatory scrutiny, reputational damage and
other consequences, any of which could have a material adverse effect on the
Fund or its shareholders. The Manager, through its monitoring and oversight of
Fund service providers, endeavors to determine that service providers take
appropriate precautions to avoid and mitigate risks that could lead to such
problems. While the Manager has established business continuity plans and risk
management systems seeking to address these problems, there are inherent
limitations in such plans and systems, and it is not possible for the Manager or
the other Fund service providers to identify all of the cybersecurity or other
operational risks that may affect the Fund or to develop processes and controls
to completely eliminate or mitigate their occurrence or effects. Most issuers in
which the Fund invests are heavily dependent on computers for data storage and
operations, and require ready access to the internet to conduct their business.
Thus, cybersecurity incidents could also affect issuers of securities in which
the Fund invests, leading to significant loss of value.
Other Investment Company Risk. To the
extent the Fund invests in other investment companies, including money market
funds and exchange-traded funds (ETFs), its performance will be affected by the
performance of those other investment companies and to the allocation of its
assets among those other investment companies. Investments in other investment
companies are subject to the risks of the other investment companies’
investments, as well as to the other investment companies’ expenses. If the Fund
invests in other investment companies, the Fund may receive distributions of
taxable gains from portfolio transactions by that investment company and may
recognize taxable gains from transactions in shares of that investment company,
which could be taxable to the Fund’s shareholders when distributed to
them.
17
An ETF may trade in the secondary market at a price below
the value of its underlying portfolio, may not be liquid and may be halted by
the listing exchange. An actively managed ETF’s performance will reflect its
adviser’s ability to make investment decisions that are suited to achieving the
ETF’s investment objectives. A passively managed ETF may not replicate the
performance of the index it intends to track because of, for example, the
temporary unavailability of certain index securities in the secondary market or
discrepancies between the ETF and the index with respect to the weighting of
securities or the number of stocks held. A passively managed ETF may not be
permitted to sell poorly performing stocks that are included in its index.
Investing in ETFs could incur brokerage and other trading costs for the
Fund.
Prepayment and Extension
Risk. The Fund’s performance could be affected if borrowers pay back
principal on certain debt securities, such as mortgage- or asset-backed
securities, before (prepayment) or after (extension) the market anticipates such
payments, shortening or lengthening their duration. Due to a decline in interest
rates or an excess in cash flow into the issuer, a debt security might be called
or otherwise converted, prepaid or redeemed before maturity (i.e., a
prepayment). As a result of prepayment, the Fund may have to reinvest the
proceeds in an investment offering a lower yield, may not benefit from any
increase in value that might otherwise result from declining interest rates, and
may lose any premium it paid to acquire the security. Prepayments could also
create capital gains tax liability in some instances. Conversely, rising market
interest rates generally result in slower payoffs or extension, which
effectively increases the duration of certain debt securities, heightening
interest rate risk and increasing the magnitude of any resulting price declines.
If the Fund’s investments are locked in at a lower interest rate for a longer
period of time, the Fund may be unable to capitalize on securities with higher
interest rates or wider spreads.
Recent Market Conditions. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. National economies are substantially interconnected, as are
global financial markets, which creates the possibility that conditions in one
country or region might adversely impact issuers in a different country or
region. However, the interconnectedness of economies and/or markets may be
diminishing, which may impact such economies and markets in ways that cannot be
foreseen at this time.
Although interest rates were unusually low in recent years
in the U.S. and abroad, recently, the Federal Reserve and certain foreign
central banks raised interest rates as part of their efforts to address rising
inflation. In addition, ongoing inflation pressures could continue to cause an
increase in interest rates and/or negatively impact companies. It is difficult
to accurately predict the pace at which interest rates might increase, or the
timing, frequency or magnitude of any such increases in interest rates, or when
such increases might stop. Additionally, various economic and political factors
could cause the Federal Reserve or other foreign central banks to change their
approach in the future and such actions may result in an economic slowdown both
in the U.S. and abroad. Unexpected changes in interest rates could lead to
market volatility or reduce liquidity in certain sectors of the market.
Deteriorating economic fundamentals may, in turn, increase the risk of default
or insolvency of particular issuers, negatively impact market value, cause
credit spreads to widen, and reduce bank balance sheets. Any of these could
cause an increase in market volatility, reduce liquidity across various markets
or decrease confidence in the markets. Also, regulators have expressed concern
that changes in interest rates may cause investors to sell fixed income
securities faster than the market can absorb them, contributing to price
volatility. Over the longer term, the interest rate increases may present a
greater risk than has historically been the case due to the prior period of
relatively low interest rates and the effect of government fiscal and monetary
policy initiatives and potential market reaction to those initiatives, or their
alteration or cessation. Historical patterns of correlation among asset classes
may break down in unanticipated ways during times of high volatility, disrupting
investment programs and potentially causing losses.
Some countries, including
the U.S., have adopted more protectionist trade policies. Slowing global
economic growth, the rise in protectionist trade policies, changes to some major
international trade agreements, risks associated with the trade agreement
between the United Kingdom and the European Union, and the risks associated with
trade negotiations between the U.S. and China, could affect the economies of
many nations in ways that cannot necessarily be foreseen at the present time. In
addition, the current strength of the U.S. dollar may decrease foreign demand
for U.S. assets, which could have a negative impact on certain issuers and/or
industries.
Regulators in the U.S. have proposed and adopted a number of
changes to regulations involving the markets and issuers, some of which
implicate the Fund. The full effect of various newly adopted regulations is not
currently known. Additionally, it is not currently known whether any of the
proposed regulations will be adopted. However, due to the scope of regulations
being proposed and adopted, certain of these changes to regulation could limit
the Fund’s ability to pursue its investment strategies or make certain
investments, may make it more costly for it to operate, or adversely impact its
performance.
18
Tensions, war, or open conflict between nations, such as
between Russia and Ukraine, in the Middle East, or in eastern Asia could affect
the economies of many nations, including the United States. The duration of
ongoing hostilities and any sanctions and related events cannot be predicted.
Those events present material uncertainty and risk with respect to markets
globally and the performance of the Fund and its investments or operations could
be negatively impacted.
Certain illnesses spread rapidly and have the potential to
significantly and adversely affect the global economy. The impact of epidemics
and/or pandemics that may arise in the future could negatively affect the
economies of many nations, individual companies and the global securities and
commodities markets, including their liquidity, in ways that cannot necessarily
be foreseen at the present time and could last for an extended period of
time.
High public debt in the
U.S. and other countries creates ongoing systemic and market risks and
policymaking uncertainty. There is no assurance that the U.S. Congress will act
to raise the nation’s debt ceiling; a failure to do so could cause market
turmoil and substantial investment risks that cannot now be fully predicted.
Unexpected political, regulatory and diplomatic events within the U.S. and
abroad may affect investor and consumer confidence and may adversely impact
financial markets and the broader economy.
China’s economy, which had been sustained through
debt-financed spending on housing and infrastructure, appears to be experiencing
a significant slowdown and growing at a lower rate than prior years. Due to the
size of China’s economy, such a slowdown could impact a number of other
countries.
There is widespread
concern about the potential effects of global climate change on property and
security values. Certain issuers, industries and regions may be adversely
affected by the impact of climate change in ways that cannot be foreseen. The
impact of legislation, regulation and international accords related to climate
change may negatively impact certain issuers and/or industries.
A rise in sea levels, a
change in weather patterns, including an increase in powerful storms and large
wildfires, and/or a climate-driven increase in flooding could cause properties
to lose value or become unmarketable altogether. Unlike previous declines in the
real estate market, properties in affected zones may not ever recover their
value. The U.S. administration appears concerned about the climate change
problem and is focusing regulatory and public works projects around those
concerns. Regulatory changes and divestment movements tied to concerns about
climate change could adversely affect the value of certain land and the
viability of industries whose activities or products are seen as accelerating
climate change.
Losses related to climate
change could adversely affect corporate issuers and mortgage lenders, the value
of mortgage-backed securities, the bonds of municipalities that depend on tax or
other revenues and tourist dollars generated by affected properties, and
insurers of the property and/or of corporate, municipal or mortgage-backed
securities. Since property and security values are driven largely by buyers’
perceptions, it is difficult to know the time period over which these market
effects might unfold.
Risk
Management. Management undertakes certain analyses with the
intention of identifying particular types of risks and reducing the Fund’s
exposure to them. However, risk is an essential part of investing, and the
degree of return an investor might expect is often tied to the degree of risk
the investor is willing to accept. By its very nature, risk involves exposure to
the possibility of adverse events. Accordingly, no risk management program can
eliminate the Fund’s exposure to such events; at best, it may only reduce the
possibility that the Fund will be affected by adverse events, and especially
those risks that are not intrinsic to the Fund’s investment program. While the
prospectus describes material risk factors associated with the Fund’s investment
program, there is no assurance that as a particular situation unfolds in the
markets, management will identify all of the risks that might affect the Fund,
rate their probability or potential magnitude correctly, or be able to take
appropriate measures to reduce the Fund’s exposure to them. The Fund could
experience losses if judgments about risk prove to be incorrect. Measures taken
with the intention of decreasing exposure to identified risks might have the
unintended effect of increasing exposure to other risks.
19
Structured Note Risk. Structured notes are
notes where the principal and/or interest is determined by reference to the
performance of a specific asset, benchmark asset, financial instrument, market
or interest rate. Generally, investments in such notes are used as a substitute
for positions in underlying indicators and involve many of the same risks
associated with a direct investment in the underlying indicator the notes seek
to replicate. Structured notes may be exchange traded or traded over-the-counter
and privately negotiated. Structured notes can have risks of both fixed income
securities and derivatives transactions, including leverage risk. The interest
and/or principal payments that may be made on a structured note may vary widely,
depending on a variety of factors, including changes in the value of one or more
specified reference instruments. The performance of structured notes will not
replicate exactly the performance of the underlying indicator that the notes
seek to replicate due to transaction costs and other expenses. Structured notes
are subject to counterparty risk, which is the risk that the issuer of the
structured note will not fulfill its contractual obligation to complete the
transaction with the Fund. Investments in structured notes, including
credit-linked notes, involve risks including interest rate risk, credit risk and
market risk. Structured notes may be leveraged, increasing the volatility of
each structured note’s value relative to the change in the reference instrument.
Structured notes may also be less liquid and more difficult to price accurately
than less complex securities and instruments or more traditional debt
securities. The secondary market for structured notes could be illiquid making
them difficult to sell when the Fund determines to sell them. The possible lack
of a liquid secondary market for structured notes and the resulting inability of
the Fund to sell a structured note could expose the Fund to losses.
U.S. Government Securities Risk. Although the
Fund may hold securities that carry U.S. government guarantees, these guarantees
do not extend to shares of the Fund itself and do not guarantee the market
prices, including due to changes in interest rates, of the securities.
Furthermore, not all securities issued by the U.S. government and its agencies
and instrumentalities are backed by the full faith and credit of the U.S.
Treasury. Some are backed by the issuer’s right to borrow from the U.S.
Treasury, while others are backed only by the credit of the issuing agency or
instrumentality. These securities carry at least some risk of non-payment or
default by the issuer. The maximum potential liability of the issuers of some
U.S. government securities may greatly exceed their current resources, including
their legal right to support from the U.S. Treasury. It is possible that these
issuers will not have the funds to meet their payment obligations in the future.
There is no assurance that the U.S. Government will provide financial support to
its agencies and instrumentalities if it is not obligated by law to do
so.
In recent periods, the values of U.S.
government securities have been affected substantially by increased demand for
them around the world. Increases or decreases in the demand for U.S. government
securities may occur at any time and may result in increased volatility in the
values of those securities. In recent years, credit rating agencies have shown
some concern about whether the U.S. government has the political will necessary
to service all of its outstanding and expected future debt, and some have
adjusted their ratings or outlook for U.S. government debt accordingly. These
developments, and the factors underlying them, could cause an increase in
interest rates and borrowing costs, which may negatively impact both the
perception of credit risk associated with the debt securities issued by the U.S.
and the government’s ability to access the debt markets on favorable terms. In
addition, these developments could create broader financial turmoil and
uncertainty, which could increase volatility in both stock and bond markets.
These events could result in significant adverse impacts on issuers of
securities held by the Fund.
Valuation
Risk. The Fund may not be able to sell an investment at the price at
which the Fund has valued the investment. Such differences could be significant,
particularly for illiquid securities and securities that trade in relatively
thin markets and/or markets that experience extreme volatility. If market or
other conditions make it difficult to value an investment, the Fund may be
required to value such investments using more subjective methods, known as fair
value methodologies. Using fair value methodologies to price investments may
result in a value that is different from an investment’s most recent closing
price and from the prices used by other funds to calculate their NAVs. Investors
who purchase or redeem Fund shares on days when the Fund is holding fair-valued
securities may receive fewer or more shares, or lower or higher redemption
proceeds, than they would have received if the Fund had not held fair-valued
securities or had used a different methodology. The value of foreign securities,
certain futures, fixed income securities, and currencies may be materially
affected by events after the close of the markets on which they are traded but
before the Fund determines its net asset value. The Fund uses pricing services
to provide values for certain securities and there is no assurance that the Fund
will be able to sell an investment at the price established by such pricing
services. Different pricing services use different valuation methodologies,
potentially resulting in different values for the same investments. As a result,
if the Fund were to change pricing services, or if a pricing service were to
change its valuation methodology, the value of the Fund’s investments could be
impacted. The Fund’s ability to value its investments in an accurate and timely
manner may be impacted by technological issues and/or errors by third party
service providers, such as pricing services or accounting agents.
20
Variable and Floating Rate Instruments Risk.
The market prices of instruments with variable and floating interest rates are
generally less sensitive to interest rate changes than are the market prices of
instruments with fixed interest rates. Variable and floating rate instruments
may decline in value if market interest rates or interest rates paid by such
instruments do not move as expected. Conversely, variable and floating rate
instruments will not generally rise in value if market interest rates decline.
Thus, investing in variable and floating rate instruments generally allows less
opportunity for capital appreciation and depreciation than investing in
instruments with a fixed interest rate. Certain types of floating rate
instruments, such as interests in bank loans, may be subject to greater
liquidity risk than other debt securities, may have restrictions on resale and
may lack an active market, which may make them more difficult to value or
sell.
As
discussed in the Statement of Additional Information, the Fund may engage in
certain practices and invest in certain securities in addition to those
described as its “principal investment strategies” in the Fund Summary section.
For example, should the Fund engage in borrowing or securities lending, or
should the Fund use derivatives or invest in foreign securities, it will be
subject to the additional risks associated with these practices and
securities.
Borrowing
money, securities lending, or using derivatives would create investment
leverage, meaning that certain gains or losses would be amplified, increasing
share price movements. With respect to borrowing, the Fund may borrow
money to obtain the collateral needed to borrow a security in order to effect a
short sale of that security. The cost to the Fund of borrowing may exceed the
profits attained on any such shorts positions. Similarly, the Fund may lend
securities and use the collateral obtained from the securities loans as the
collateral necessary to borrow a security on which the Fund is taking a short
position. Securities lending involves some risk of loss of the Fund’s rights in
the collateral should the borrower fail financially.
Foreign
securities, including those issued by foreign governments, involve risks in
addition to those associated with comparable U.S. securities, and can fluctuate
more widely in price, and may also be less liquid, than comparable U.S.
securities. Securities issued by U.S. entities with substantial foreign
operations may involve risks relating to political, economic, or regulatory
conditions in foreign countries.
As
part of its liquidity management practices, including for cash management
purposes or to facilitate short-term liquidity, the Fund may invest in reverse
repurchase agreements. In a reverse repurchase agreement, the Fund sells
portfolio securities to another party, such as a bank or broker-dealer, in
return for cash and agrees to repurchase the securities at an agreed-upon price
and date, which reflects an interest payment to that party. Reverse repurchase
agreements involve the risk that the other party will fail to return the
securities in a timely manner, or at all, which may result in losses to the
Fund. The Fund could lose money if it is unable to recover the securities and
the value of the cash collateral held by the Fund is less than the value of the
securities. These events could also trigger adverse tax consequences to the
Fund. Reverse repurchase agreements also involve the risk that the market value
of the securities sold will decline
below the price at which the Fund is obligated to repurchase them. Reverse
repurchase agreements may be viewed as a form of borrowing by the Fund. When the
Fund enters into a reverse repurchase agreement, any fluctuations in the market
value of either the securities transferred to another party or the securities in
which the proceeds may be invested would affect the market value of the Fund’s
assets. During the term of the agreement, the Fund may also be obligated to
pledge additional cash and/or securities in the event of a decline in the fair
value of the transferred security. The Manager monitors the creditworthiness of
counterparties to reverse repurchase agreements.
In
addition, the Fund may be an investment option for a Neuberger Berman fund that
is managed as a “fund of funds.” As a result, from time to time, the Fund may
experience relatively large redemptions or investments and could be required to
sell securities or to invest cash at a time when it is not advantageous to do
so.
In
anticipation of adverse or uncertain market, economic, political, or other
temporary conditions, including during periods of high cash inflows or outflows,
the Fund may temporarily depart from its goal and use a different investment
strategy (including leaving a significant portion of its assets uninvested) for
defensive purposes. Doing so could help the Fund avoid losses, but may mean lost
opportunities. In addition, in doing so, different factors could affect the
Fund’s performance and the Fund may not achieve its goal.
21
In
addition, to the extent the Fund is new or is undergoing a transition (such as a
change in strategy, rebalancing, reorganization, liquidation or experiencing
large inflows or outflows) or takes a temporary defensive position, it may
deviate from its principal investment strategies during such period.
The
Fund may change its goal without shareholder approval, although it does not
currently intend to do so.
Please
see the Statement of Additional Information for more information.
The Cboe® S&P 500 One-Week PutWrite Index is
designed to track the performance of a hypothetical strategy that sells an
at-the-money (ATM) S&P 500 Index (SPX) put option on a weekly basis. The
maturity of the written SPX put option is one week to expiry. The written SPX
put option is collateralized by a money market account invested in one-month
U.S. Treasury bills. The index rolls on a weekly basis, typically every
Friday.
The Cboe® S&P 500 PutWrite Index tracks the value of
a passive investment strategy, which consists of overlaying S&P 500 (SPX)
short put options over a money market account invested in one- and three-months
U.S. Treasury bills. The SPX puts are struck at-the-money and are sold on a
monthly basis.
The S&P 500® Index
is a float-adjusted market capitalization-weighted index that focuses on the
large-cap segment of the U.S. equity market, and includes a significant portion
of the total value of the market.
The 50% Cboe® S&P 500 One-Week PutWrite Index/50%
Cboe® S&P 500 PutWrite Index blended index is
composed of 50% Cboe® S&P 500
One-Week PutWrite Index (described above) and 50% Cboe®
S&P 500 PutWrite Index (described above) and is rebalanced
monthly.
Investment
Manager
Neuberger Berman Investment Advisers LLC (“Manager” or
“NBIA”), located at 1290 Avenue of the Americas, New York, NY 10104, is
the Fund’s investment manager and administrator. Neuberger Berman BD LLC
(“Distributor”), located at 1290 Avenue of the Americas, New York, NY 10104, is
the Fund’s distributor. Pursuant to a management agreement, the Manager is
responsible for choosing the Fund’s investments and handling its day-to-day
business. The services provided by the Manager as the investment manager and
administrator include, among others, overall responsibility for providing all
supervisory, management, and administrative services reasonably necessary for
the operation of the Fund, which may include, among others, compliance
monitoring, operational and investment risk management, legal and administrative
services and portfolio accounting services. The Manager carries out its duties
subject to the policies established by the Board of Trustees. The management
agreement establishes the fees the Fund pays to the Manager for its services as
the Fund’s investment manager and the expenses paid directly by the Fund.
Together, the Neuberger Berman affiliates manage approximately $439 billion in
total assets (as of 9/30/2023) and continue an asset management history that
began in 1939.
NBIA may engage one or more of foreign affiliates that are
not registered under the Investment Advisers Act of 1940, as amended
(“participating affiliates”) in accordance with applicable SEC no-action
letters. As participating affiliates, whether or not registered with the SEC,
the affiliates may provide designated investment personnel to associate with
NBIA as “associated persons” of NBIA and perform specific advisory services for
NBIA, including services for the Fund, which may involve, among other services,
portfolio management and/or placing orders for securities and other instruments.
The designated employees of a participating affiliate act for NBIA and are
subject to certain NBIA policies and procedures as well as supervision and
periodic monitoring by NBIA. The Fund will pay no additional fees and expenses
as a result of any such arrangements.
22
A discussion regarding the
basis for the Board of Trustees’ approval of the Fund’s investment advisory
agreements will be available in the Fund’s semi-annual report to shareholders
for the period ending February 29, 2024.
Neither this Prospectus
nor the Statement of Additional Information is intended to give rise to any
contract rights or other rights in any shareholder, other than any rights
conferred explicitly by federal or state securities laws that have not been
waived. The Fund enters into contractual arrangements with various parties,
including, among others, the Manager, who provide services to the Fund.
Shareholders are not parties to, or intended to be third party beneficiaries of,
those contractual arrangements. Where shareholders are not third party
beneficiaries of contractual arrangements, those contractual arrangements cannot
be enforced by shareholders acting on their own behalf.
The Manager has obtained
“manager of managers” exemptive relief from the SEC that permits the Manager,
subject to the approval of the Board of Trustees, to appoint an unaffiliated
subadviser or to change the terms of a subadvisory agreement with an
unaffiliated subadviser for the Fund without first obtaining shareholder
approval. The exemptive order permits the Fund to add or to change unaffiliated
subadvisers or to change the fees paid to such subadvisers from time to time
without the expense and delays associated with obtaining shareholder approval of
the change. Under this order, the Manager has ultimate responsibility (subject
to oversight by the Board) to oversee the subadvisers and recommend their
hiring, termination, and replacement. The Fund will notify shareholders of any
change in the identity of a subadviser or the addition of a subadviser to the
Fund.
The Fund will pay the
Manager a fee at the annual rate of 0.41% of the Fund’s average daily net assets
for investment advisory services. The Fund will pay the Manager a fee at the
annual rate of 0.09% of the Fund’s average daily net assets for administrative
services provided to the Fund.
Portfolio
Managers
Please
see the Statement of Additional Information for additional information about
each Portfolio Manager’s compensation, other accounts managed by each Portfolio
Manager, and each Portfolio Manager’s ownership of shares in the Fund(s) that he
or she manages.
Neuberger
Berman Option Strategy ETF
Derek Devens, CFA, is a Managing Director
of NBIA. Mr. Devens joined the firm in 2016 and is a Senior Portfolio Manager of
the Options Group. He has managed the Fund since its inception in 2016. Prior to
joining the firm, he was a member of the investment committee at another
investment adviser since 2010, where he also served as a portfolio manager since
2012.
Rory Ewing is a Managing Director of NBIA.
He joined the firm in 2016 and has been an Associate Portfolio Manager of the
Fund since February 2019. Mr. Ewing is an Associate Portfolio Manager and a
Research Analyst for the Options Group. Prior to joining the firm, he was most
recently a research analyst at another investment adviser since 2013. Mr. Ewing
has held several investment positions at different investment advisers.
Eric Zhou is a Senior Vice President of
NBIA. He joined the firm in 2016 and has been an Associate Portfolio Manager of
the Fund since February 2022. Mr. Zhou is a member of the Options Group. Prior
to joining the firm, he was a research analyst at another investment adviser
since 2014.
23
These financial highlights describe the performance of the
Fund for the fiscal periods indicated. The Fund has adopted the performance
history of the Institutional Class shares of the predecessor fund, which
operated as a mutual fund. The financial information shown below is for the
predecessor fund. The total returns in the table represent the rate that an
investor would have earned or lost on an investment in Institutional Class
shares in the predecessor mutual fund, which the Manager believes is an accurate
representation of how the Fund would have performed, assuming reinvestment of
all dividends and distributions. All figures have been derived from the
financial statements audited by Ernst & Young LLP, the Fund’s independent
registered public accounting firm. Their report, along with full financial
statements, appears in the predecessor fund’s most recent annual shareholder
report (see back cover).
Neuberger
Berman U.S. Equity Index PutWrite Strategy Fund — Institutional Class
|
YEAR ENDED OCTOBER 31, |
2019 |
2020 |
2021 |
2022 |
2023 |
|
PER-SHARE DATA ($) |
|||||
|
Data apply to a single share throughout each year
indicated. You can see what the Fund earned (or lost), what it distributed
to investors, and how its share price changed. |
|||||
|
Share price (NAV) at beginning of
period |
10.65 |
11.28 |
10.93 |
13.84 |
9.98 |
|
Plus: |
|||||
|
Income from investment operations |
|||||
|
Net investment income (loss)(3) |
0.18 |
0.14 |
0.01 |
0.32 |
0.58 |
|
Net gains (losses) —realized and
unrealized |
0.66 |
0.10 |
2.92 |
(1.61) |
0.55 |
|
Subtotal: income from investment
operations |
0.84 |
0.24 |
2.93 |
(1.29) |
1.13 |
|
Minus: |
|||||
|
Distributions to shareholders |
|||||
|
Income dividends |
0.21 |
0.16 |
0.01 |
0.28 |
0.63 |
|
Capital gain distributions |
– |
0.43 |
0.01 |
2.29 |
– |
|
Tax return of capital |
– | – | – | – |
0.01 |
|
Subtotal: distributions to
shareholders |
0.21 |
0.59 |
0.02 |
2.57 |
0.64 |
|
Equals: |
|||||
|
Share price (NAV) at end of year |
11.28 |
10.93 |
13.84 |
9.98 |
10.47 |
|
RATIOS (% OF AVERAGE NET ASSETS) |
|||||
|
The ratios show the Fund’s expenses and net investment
income (loss) —as they actually are as well as how they would have been if
certain expense reimbursement arrangements had not been in
effect. |
|||||
|
Net expenses —actual |
0.65 |
0.66 |
0.65 |
0.65 |
0.65 |
|
Gross expenses(1) |
0.76 |
0.74 |
0.69 |
0.70 |
0.70 |
|
Net investment income (loss) —actual |
1.65 |
1.31 |
0.09 |
2.87 |
5.49 |
|
OTHER DATA |
|||||
|
Total return shows how an investment in the Fund would
have performed over each year, assuming all distributions were reinvested.
The turnover rate reflects how actively the Fund bought and sold
securities. |
|||||
|
Total return (%)(2) |
7.99 |
2.22 |
26.82 |
(11.22) |
11.53 |
|
Net assets at end of year (in millions of
dollars) |
236.8 |
235.6 |
287.2 |
293.4 |
317.1 |
|
Portfolio turnover rate (%) |
31 |
41 |
38 |
43 |
19 |
|
(1) |
Shows
what this ratio would have been if there had been no expense
reimbursement. |
|
(2) |
Would
have been lower if the Manager had not reimbursed certain
expenses. |
|
(3) |
The
per share amounts have been calculated based on the average number of
shares outstanding during the fiscal
period. |
24
Neuberger
Berman BD LLC (“Distributor”), an affiliate of the Manager, serves as the Fund’s
distributor. Shares in less than Creation Units are not distributed by the
Distributor, and the Distributor does not maintain a secondary market in the
shares of the Fund.
State
Street Bank (“State Street”) serves as custodian and transfer agent for the
Fund. State Street maintains in separate accounts cash, securities and other
assets of the Fund, keeps all necessary accounts and records, and provides other
services.
25
Share
Price Calculations
The
net asset value per share of the Fund is the total value of Fund assets
attributable to shares of the Fund minus the liabilities attributable to the
Fund, divided by the total number of shares outstanding for that Fund. Because
the value of the Fund’s portfolio securities changes every business day, its
share price usually changes as well.
The
Fund normally calculates its share price on each day the New York Stock Exchange
(the “NYSE Exchange”) is open once daily as of 4:00 P.M., Eastern time. In the
event of an emergency or other disruption in trading on the NYSE Exchange, the
Fund’s share price would still normally be determined as of 4:00 P.M., Eastern
time. The NYSE Exchange is generally closed on all national holidays and Good
Friday; Fund shares will not be priced on those days or other days on which the
NYSE Exchange is scheduled to be closed. When the NYSE Exchange is closed for
unusual reasons, Fund shares will generally not be priced although the Fund may
decide to remain open and price Fund shares and in such a case, the Fund would
post a notice on www.nb.com/ETF.
The
Fund generally values its investments based upon their last reported sale
prices, market quotations, or estimates of value provided by an independent
pricing service as of the time as of which the Fund’s share price is calculated.
Equity securities (including securities issued by ETFs) and exchange-traded
derivative instruments held by the Fund generally are valued by one or more
independent pricing services approved by the Manager at the last reported sale
price or official closing price or, if there is no reported sale quoted on a
principal exchange or market for that security or official closing price, on the
basis of market quotations. Debt securities and certain derivative instruments
that do not trade on an exchange generally are valued by one or more independent
pricing services approved by the Manager on the basis of market quotations and
in the case of derivatives, market data about the underlying investments.
Short-term securities held by the Fund may be valued on the basis of amortized
cost, unless other factors indicate that amortized cost is not an accurate
estimate of the security’s value.
Investments
in non-exchange traded investment companies are valued using the respective
fund’s daily calculated net asset value per share. The prospectus for the fund
explains the circumstances under which the fund will use fair value pricing and
the effects of using fair value pricing.
If
a valuation for a security is not available from an independent pricing service
or if the Manager believes in good faith that the valuation does not reflect the
amount the Fund would receive on a current sale of that security, the Fund seeks
to obtain quotations from brokers or dealers. If such quotations are not readily
available, the Fund may use a fair value estimate made according to methods
approved by the Manager. Pursuant to Rule 2a-5 under the Investment Company Act
of 1940, as amended, the Board of Trustees designated the Manager as the Fund’s
valuation designee. As the Fund’s valuation designee, the Manager is responsible
for determining fair value in good faith for any and all Fund investments. The
Fund may also use these methods to value certain types of illiquid securities.
Fair value pricing generally will be used if the market in which a portfolio
security trades closes early or if trading in a particular security was halted
during the day and did not resume prior to the time as of which the Fund’s share
price is calculated.
The
Fund may also fair value securities that trade in a foreign market if
significant events that appear likely to affect the value of those securities
occur between the time the foreign market closes and the time as of which the
Fund’s share price is calculated. Significant events may include (1) corporate
actions or announcements that affect a single issuer, (2) governmental actions
that affect securities in one sector, country or region, (3) natural disasters
or armed conflicts that affect a country or region, or (4) significant domestic
or foreign market fluctuations.
For
certain foreign assets, after the relevant foreign markets have closed, a
third-party vendor supplies evaluated, systematic fair value pricing based upon
analysis of historical correlation of multiple factors. In the case of both
foreign equity and foreign income securities, in the absence of precise
information about the market values of these foreign securities as of the time
as of which the Fund’s share price is calculated, the Manager has determined on
the basis of available data that prices adjusted or evaluated in this way are
likely to be closer to the prices the Fund could realize on a current sale than
are the prices of those securities established at the close of the foreign
markets in which the securities primarily trade. Please see the Fund’s Statement
of Additional Information for additional detail about the Fund’s fair valuation
practices.
26
The
effect of using fair value pricing is that a portfolio security will be priced
based on the subjective judgment of the Manager, instead of being priced using
valuations from an independent pricing service. Fair value pricing can help to
protect the Fund by reducing arbitrage opportunities available to short-term
traders, but there is no assurance that fair value pricing will completely
prevent dilution of the Fund’s net asset value by such traders.
Trading
in securities on many foreign exchanges is normally completed before the Fund
calculates its net asset value. In addition, foreign markets may be open on days
when U.S. markets are closed. As a result, the value of foreign securities owned
by the Fund could change at times or on days when the Fund’s net asset value is
not calculated, when Fund shares do not trade, and when sales and redemptions of
Fund shares do not occur.
Shares
of the Fund may be purchased or redeemed directly from the Fund only in Creation
Units or multiples thereof. Only a broker-dealer (“Authorized Participant”) that
enters into an Authorized Participant Agreement with the Fund’s Distributor may
engage in creation and redemption transactions directly with the Fund. Purchases
and redemptions directly with the Fund must follow the Fund’s procedures, and
are subject to transaction fees, which are described in the SAI. Orders for such
transactions may be rejected or delayed if they are not submitted in good order
and subject to the other conditions set forth in this prospectus and the SAI.
Please see the SAI for more information about purchases and redemptions of
Creation Units.
Once
purchased (i.e., created) by an Authorized Participant, shares are listed on the
Exchange and trade in the secondary market. When you buy or sell the Fund’s
shares in the secondary market, you will pay or receive the market price. The
price at which you buy or sell Shares (i.e., the market price) may be more or
less than the NAV of the Shares. Unless imposed by your broker, there is no
minimum dollar amount you must invest in the Fund and no minimum number of
Shares you must buy. Shares can be bought and sold throughout the trading day
like other publicly traded securities. Most investors will buy and sell shares
through a broker and, thus, will incur customary brokerage commissions and
charges when buying or selling shares. Except
when aggregated in Creation Units, Shares are not redeemable by the
Fund.
The
secondary markets are closed on weekends and also are generally closed on the
following holidays: New Year’s Day, Martin Luther King, Jr. Day, Presidents’
Day, Good Friday, Memorial Day (observed), Juneteenth National Independence Day,
Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
For
more information on how to buy and sell shares of the Fund, call 877-628-2583 or
visit www.nb.com/ETF.
Information
showing the number of days the market price of the Fund’s shares was greater
than the Fund’s NAV per share (i.e., at a premium) and the number of days it was
less than the Fund’s NAV per share (i.e., at a discount) for various time
periods will be available by visiting the Fund’s website at www.nb.com/ETF. The
premium and discount information contained on the website will represent past
performance and cannot be used to predict future results.
Each
day the Fund is open for business, the Trust publicly disseminates the Fund’s
full portfolio holdings as of the close of the previous day through the Fund’s
website. A description of the Fund’s policies and procedures with respect to the
disclosure of the Fund’s portfolio holdings is available in the Fund’s Statement
of Additional Information (“SAI”). The holdings of the Fund can be found on the
Fund’s website at www.nb.com/ETF.
The
Trust’s Board of Trustees has determined not to adopt policies and procedures
designed to prevent or monitor for frequent purchases and redemptions of the
Fund’s shares because the Fund sells and redeems its shares at NAV only in
Creation Units pursuant to the terms of an Authorized Participant Agreement
between the Authorized Participant and the Distributor, and such direct trading
between the Fund and Authorized Participants is critical to ensuring that the
Fund’s shares trade at or close to NAV. Further, the vast majority of trading in
Fund shares occurs on the secondary market, which does not involve the Fund
directly and therefore does not cause the Fund to experience many of the harmful
effects of market timing, such as dilution and disruption of portfolio
management. In addition, the Fund imposes a transaction fee on Creation Unit
transactions, which is designed to offset transfer and other transaction costs
incurred by the Fund in connection with the issuance and redemption of Creation
Units and may employ fair valuation pricing to minimize potential dilution from
market timing. The Fund reserves the right to reject any purchase order at any
time and reserves the right to impose restrictions on disruptive, excessive, or
short-term trading.
27
Section
12(d)(1) of the 1940 Act restricts investments by investment companies in the
securities of other investment companies, including shares of the Fund.
Registered investment companies are permitted to invest in the Fund beyond the
limits set forth in Section 12(d)(1) in reliance on rules adopted by the SEC,
particularly Rule 12d1-4 under the 1940 Act, or any other applicable exemptive
relief.
The method by which Creation
Units of Fund shares are created and traded may raise certain issues under
applicable securities laws. Because new Creation Units of shares are issued and
sold by the Fund on an ongoing basis, a “distribution,” as such term is used in
the Securities Act, may occur at any point. Broker-dealers and other persons are
cautioned that some activities on their part may, depending on the
circumstances, result in their being deemed participants in a distribution in a
manner which could render them statutory underwriters and subject them to the
prospectus delivery requirement and liability provisions of the Securities
Act.
For
example, a broker-dealer firm or its client may be deemed a statutory
underwriter if it takes Creation Units after placing an order with the
Distributor, breaks them down into constituent shares and sells the shares
directly to customers or if it chooses to couple the creation of a supply of new
shares with an active selling effort involving solicitation of secondary market
demand for shares. A determination of whether one is an underwriter for purposes
of the Securities Act must take into account all the facts and circumstances
pertaining to the activities of the broker-dealer or its client in the
particular case, and the examples mentioned above should not be considered a
complete description of all the activities that could lead to a characterization
as an underwriter.
Broker-dealer
firms should also note that dealers who are not “underwriters” but are effecting
transactions in shares, whether or not participating in the distribution of
shares, are generally required to deliver a prospectus. This is because the
prospectus delivery exemption in Section 4(3) of the Securities Act is not
available in respect of such transactions as a result of Section 24(d) of the
1940 Act. As a result, broker-dealer firms should note that dealers who are not
“underwriters” but are participating in a distribution (as contrasted with
engaging in ordinary secondary market transactions) and thus dealing with the
shares that are part of an overallotment within the meaning of Section 4(3)(C)
of the Securities Act, will be unable to take advantage of the prospectus
delivery exemption provided by Section 4(3) of the Securities Act. For delivery
of prospectuses to exchange members, the prospectus delivery mechanism of Rule
153 under the Securities Act is only available with respect to transactions on a
national exchange.
Dealers
effecting transactions in the Fund’s shares, whether or not participating in
this distribution, are generally required to deliver a Prospectus. This is in
addition to any obligation of dealers to deliver a Prospectus when acting as
underwriters.
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Manager or an affiliate may pay the
intermediary for marketing activities or other services related to the sale or
promotion of the Fund. These payments may create a conflict of interest by
influencing the broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask your salesperson
or visit your financial intermediary’s website for more information.
28
Distributions—The Fund distributes net
investment income, if any, quarterly and net realized capital gains, if any,
annually. Gains from foreign currency transactions, if any, are normally
distributed in December. The Fund may make additional distributions, if
necessary, to avoid federal income or excise taxes.
Dividend Reinvestment Service - The Trust does
not provide dividend reinvestment services. Broker-dealers may make available
the Depository Trust Company book-entry Dividend Reinvestment Service for use by
beneficial owners of the Fund for reinvestment of their dividend distributions.
Beneficial owners should contact their broker to determine the availability and
costs of the service and the details of participation therein. Brokers may
require beneficial owners 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 Fund purchased in the secondary market.
How distributions are taxed—Except for
tax-advantaged retirement plans and other tax-exempt investors (collectively,
“exempt investors”) and except as noted below, all Fund distributions you
receive are generally taxable to you, regardless of whether you take them in
cash or reinvest them in additional Fund shares.
Fund
distributions to IRAs, Roth IRAs, and qualified retirement plans generally are
tax-free. Eventual withdrawals from a Roth IRA also may be tax-free, while
withdrawals from other retirement plans and accounts generally are subject to
federal income tax.
Distributions
generally are taxable to shareholders other than exempt investors in the year
they are received. In some cases, however, distributions received in January are
treated for federal income tax purposes as if they had been paid the previous
December 31. Your tax statement (see “Taxes and You”) will help clarify this for
you.
Distributions
of net investment income and the excess of net short-term capital gain over net
long-term capital loss (“dividends”) are taxed as ordinary income. However, for
individual and certain other non-corporate shareholders (each, an “individual
shareholder”) who satisfy certain holding period and other restrictions with
respect to their Fund shares on which the dividends are paid, the Fund’s
dividends attributable to “qualified dividend income” (generally, dividends the
Fund receives on stock of most U.S. and certain foreign corporations with
respect to which it satisfies those restrictions) are subject to maximum federal
income tax rates that are lower than the maximum rates for ordinary income
(“lower maximum rates”).
Distributions
of net capital gain (i.e., the excess of net long-term capital gain over net
short-term capital loss) are taxed as long-term capital gain and for individual
shareholders are subject to the lower maximum rates. The tax treatment of
capital gain distributions from the Fund depends on how long the Fund held the
securities it sold that generated the gain, not on when you bought your shares
of the Fund or whether you reinvested your distributions.
If,
for any taxable year, the Fund distributes an amount that exceeds the sum of its
investment company taxable income plus net capital gain for that year—which
might result from, among other things, the difference between book and tax
accounting treatment of certain derivatives and foreign currency
transactions—that excess generally will not be taxable (a so-called “return of
capital”), which will reduce your tax basis in your Fund shares. To the extent
that excess is greater than your tax basis, it will be treated as gain from a
redemption of your shares (taxed as described below).
Shareholders
should review any notice that accompanies a payment of dividends or other
distributions to determine whether any portion of the payment represents a
return of capital rather than a distribution of the Fund’s net income and/or
realized gains.
29
Additional tax—An individual shareholder’s
distributions from the Fund and net gains recognized on redemptions and
exchanges of Fund shares are subject to a 3.8% federal tax on the lesser of (1)
the individual’s “net investment income” (which generally includes distributions
from the Fund and net gains from the disposition of Fund shares) or (2) the
excess of the individual’s “modified adjusted gross income” over a specified
threshold amount. This tax is in addition to any other taxes due on that income.
You should consult your own tax professional regarding the effect, if any, this
tax may have on your investment in Fund shares.
Taxes
and You
The
taxes you actually owe on Fund distributions and share transactions can vary
with many factors, such as your marginal tax bracket, how long you held your
shares and, if you are an individual shareholder, whether you owe federal
alternative minimum tax.
How
can you figure out your tax liability on Fund distributions and share
transactions? One helpful tool is the tax statement that your broker sends you
after the end of each calendar year. It details the distributions you received
during the past year and shows their tax status. That statement, or a separate
statement from your broker, also covers your share transactions.
Most
importantly, consult your tax professional. Everyone’s tax situation is
different, and your tax professional should be able to help you answer any
questions you may have.
Buying
Shares Before a Distribution
The
money the Fund earns, either as net investment income or as net realized capital
gains, is reflected in its net asset value until it distributes the money. At
that time, the amount of the distribution is deducted from the net asset value.
Because of this, to the extent the Fund’s share price correlates with its net
asset value, if you buy shares of the Fund just before it makes such a
distribution, you may end up getting some of your investment back as a taxable
distribution. You can avoid this situation by waiting to invest until after the
record date for the distribution.
Generally,
if you are an exempt investor, there are no current tax consequences to you from
distributions.
Taxes
When Shares are Sold
Generally,
you will recognize taxable gain or loss if you sell or otherwise dispose of your
shares. Any gain arising from such a disposition generally will be treated as
long-term capital gain if you held the shares for more than one year; otherwise,
it will be classified as short-term capital gain. However, any capital loss
arising from the disposition of shares held for six months or less will be
treated as long-term capital loss to the extent of the amount of capital gain
dividends received with respect to such shares. In addition, all or a portion of
any loss recognized upon a disposition of shares may be disallowed under “wash
sale” rules if other shares of the same Fund are purchased (whether through
reinvestment of distributions or otherwise) within 30 days before or after the
disposition. If disallowed, the loss will be reflected in an adjustment to the
basis of the shares acquired.
A
person who purchases a Creation Unit by exchanging securities in-kind generally
will recognize a gain or loss equal to the difference between (i) the sum of the
market value of the Creation Units at the time of the exchange and any net
amount of cash received by the Authorized Participant in the exchange and (ii)
the sum of the purchaser’s aggregate basis in the securities surrendered and any
net amount of cash paid for the Creation Units. A person who redeems Creation
Units and receives securities in-kind from the Fund will generally recognize a
gain or loss equal to the difference between the redeemer’s basis in the
Creation Units, and the aggregate market value of the securities received and
any net cash received. The IRS, however, may assert that a loss realized upon an
in-kind exchange of securities for Creation Units or an exchange of Creation
Units for securities cannot be deducted currently under the rules governing
“wash sales,” or on the basis that there has been no significant change in
economic position. Persons effecting in-kind creations or redemptions should
consult their own tax adviser with respect to these matters.
30
The
Fund has the right to reject an order for Creation Units if the purchaser (or a
group of purchasers) would, upon obtaining the shares so ordered, own 80% or
more of the outstanding shares of the Fund and if, pursuant to section 351 of
the Code, the Fund would have a basis in the deposit securities different from
the market value of such securities on the date of deposit. The Fund also has
the right to require information necessary to determine beneficial share
ownership for purposes of the 80% determinations.
NYSE
Arca, Inc. Disclaimer
Shares
of the Fund are not sponsored, endorsed or promoted by NYSE Arca, Inc. (“NYSE
Arca”). NYSE Arca makes no representation or warranty, express or implied, to
the owners of the shares of the Fund or any member of the public regarding the
ability of the Fund to meet their investment objective. NYSE Arca is not
responsible for, nor has it participated in the determination of the timing of,
prices of, or quantities of shares of the Fund to be issued, nor in the
determination or calculation of the equation by which the shares are redeemable.
NYSE Arca has no obligation or liability to owners of the shares of the Fund in
connection with the administration, marketing or trading of the shares of the
Fund.
NYSE
Arca makes no warranty, express or implied, as to results to be obtained by the
Trust on behalf of the Fund as licensee, licensee’s customers and
counterparties, owners of the shares of the Fund, or any other person or entity
from the use of the subject index or any data included therein in connection
with the rights licensed as described herein or for any other use. Without
limiting any of the foregoing, in no event shall NYSE Arca have any liability
for any direct, indirect, special, punitive, consequential or any other damages
(including lost profits) even if notified of the possibility of such
damages.
31
NEUBERGER
BERMAN ETF TRUST
If you would like further details on the Fund,
you can request a free copy of the following documents:
Shareholder Reports and Form
N-CSR. The shareholder reports and Form N-CSR, which includes financial
statements, offer information about the Fund, including:
|
◾ |
a
discussion by the Portfolio Managers about strategies and market
conditions that significantly affected the Fund’s performance during the
last fiscal year or fiscal period |
|
◾ |
Fund performance data
and financial statements |
|
◾ |
portfolio
holdings. |
Statement of Additional Information
(SAI). The SAI contains more comprehensive information on the Fund,
including:
|
◾ |
various types of
securities and practices, and their risks |
|
◾ |
investment limitations
and additional policies |
|
◾ |
information about the
Fund’s management and business structure. |
The SAI is hereby incorporated by reference
into this prospectus, making it legally part of the prospectus.
Investment Manager: Neuberger Berman Investment Advisers LLC
Obtaining
Information
You can obtain a
shareholder report, SAI, and other information such as financial statements from
your financial intermediary, or from:
Neuberger Berman Investment
Advisers LLC
1290 Avenue of the Americas
New York, NY 10104
877-628-2583
Website: www.nb.com/ETF
1290 Avenue of the Americas
New York, NY 10104
877-628-2583
Website: www.nb.com/ETF
Reports
and other information about the Fund are available on the EDGAR Database on the
SEC’s website at http://www.sec.gov, and copies of this information may be
obtained, after paying a duplicating fee, by electronic request at the following
e-mail address: [email protected].
The
Fund’s current net asset value per share is made available at: www.nb.com/ETF.
The “Neuberger Berman” name and logo and “Neuberger Berman
Investment Advisers LLC” are registered service marks of Neuberger Berman Group
LLC. The individual Fund name in this prospectus is either a service mark or a
registered service mark of Neuberger Berman Investment Advisers LLC or Neuberger
Berman Group LLC. ©2024 Neuberger Berman BD LLC, distributor. All
rights reserved.
SEC File
Number: 811-23761
Z0354_01/24