Strategy. The Funds adviser, Exchange Traded Concepts, LLC (the Adviser), uses an investment process based on a proprietary artificial intelligence security selection process that extracts patterns from analyzing data, as discussed below, developed by LG Management Development Institute Co. Ltd. (LG Management). LG Management is a South Korean company, which is owned by LG Corporation. LG Management conducts research on artificial intelligence technologies and seeks to utilize such technologies throughout LG Corporations various lines of business. LG Management has licensed the proprietary artificial intelligence security selection process to the Adviser for purposes of managing the Fund. In pursuing the Funds investment objective, the Adviser consults a multi-agent artificial intelligence database generated by LG AI Research (LG AI), which automatically evaluates and … Show more… The Funds adviser, Exchange Traded Concepts, LLC (the Adviser), uses an investment process based on a proprietary artificial intelligence security selection process that extracts patterns from analyzing data, as discussed below, developed by LG Management Development Institute Co. Ltd. (LG Management). LG Management is a South Korean company, which is owned by LG Corporation. LG Management conducts research on artificial intelligence technologies and seeks to utilize such technologies throughout LG Corporations various lines of business. LG Management has licensed the proprietary artificial intelligence security selection process to the Adviser for purposes of managing the Fund. In pursuing the Funds investment objective, the Adviser consults a multi-agent artificial intelligence database generated by LG AI Research (LG AI), which automatically evaluates and filters data according to parameters supporting a particular investment thesis. For the database, LG AI selects and weights portfolios of companies in the Universe listed on the New York Stock Exchange and NASDAQ to provide a balanced exposure to a variety of factors affecting the U.S. market including, but not limited to, quality (generally, a companys profitability), size (market capitalization), value (comparison of a companys market value versus its book value), momentum (a securitys recent price returns compared to the overall market over time), and volatility (a securitys systematic risk as compared to the market as a whole) (the U.S. Large Cap Core Database). LG AI first estimates each stocks relative superiority of price appreciation ( i.e. , increase in stock price) over the rest of the pool of companies for the next four week investment period using deep learning technologies ( i.e. , exposure to and processing of large amounts of data) and the distribution of each stocks relative superiority of price appreciation for the same period using deep learning architectures such as Bayesian neural networks that estimate the uncertainty of its forecast, and selects the top 100 stocks based on the average of the distribution of each stocks relative superiority of price appreciation for inclusion in the U.S. Large Cap Core Database. LG AI compresses such data and evaluates how each individual factor would change and/or affect a company over time, identifying the companies that have the greatest potential to outperform their U.S. large cap peers over the next four-week period. The stocks are then weighted pursuant to a methodology that considers stock-specific factors (including market cap and volatility) and aims to maximize the portfolios risk adjusted return. The final portfolio is then delivered to the U.S. Large Cap Core Database for use by the Adviser. LG AI repeats such processes every four weeks and the Adviser may make changes to the Funds portfolio based on the newly generated information. Show less