Strategy. The Fund is an actively managed exchange-traded fund (ETF) that primarily invests in passively managed ETFs (Underlying ETFs), including affiliated ETFs that use the sub-advisers models or indices. The Funds sub-adviser, Ned Davis Research, Inc. (NDR or the Sub-Adviser), developed models and indicators that are quantitative and are based on data from multiple disciplines, including macroeconomic, fundamental, technical, and sentiment areas (each described more below). The models and indicators are used by the Funds portfolio managers to allocate across the equity, fixed income, and commodity asset classes, as well as determine the investments in the Underlying ETFs. The Underlying ETFs principally invest in equity securities, bonds (both long- and short-term), commodities and money markets. NDR constructs the Funds portfolio using … Show more… The Fund is an actively managed exchange-traded fund (ETF) that primarily invests in passively managed ETFs (Underlying ETFs), including affiliated ETFs that use the sub-advisers models or indices. The Funds sub-adviser, Ned Davis Research, Inc. (NDR or the Sub-Adviser), developed models and indicators that are quantitative and are based on data from multiple disciplines, including macroeconomic, fundamental, technical, and sentiment areas (each described more below). The models and indicators are used by the Funds portfolio managers to allocate across the equity, fixed income, and commodity asset classes, as well as determine the investments in the Underlying ETFs. The Underlying ETFs principally invest in equity securities, bonds (both long- and short-term), commodities and money markets. NDR constructs the Funds portfolio using its 360 Approach, a comprehensive methodology designed to provide a holistic view of the global markets, including equities, bonds, commodities, and money markets, guiding the Funds asset allocation. NDRs 360 Approach draws on a wide range of data from leading market data providers, including Bloomberg, Refinitiv, S&P, Haver, MSCI, and others, to provide the raw data inputs. The raw data inputs include: macroeconomic information, index constituents, company and aggregate fundamentals, and pricing on indices and individual securities. NDR aggregates and analyzes the data to generate a holistic market perspective. The Funds portfolio managers base investment decisions on a range of indicators, metrics, and data points selected by NDRs research team. Rather than focusing on a single factor, they assess the overall picture created by the data. When most indicators suggest a particular trend, the collective weight of that data may carry greater significance in guiding their decisions. NDRs 360 Approach comprises the following four traditional investment pillars: 1. Macroeconomic 2. Fundamental 3. Technical 4. Sentiment The first two pillars, macroeconomic and fundamental, provide a broad, long-term view of the markets and are slower to change, informing the Sub-Advisers strategic outlook. Fundamental analysis evaluates key financial metrics of individual companies, such as earnings and cash flow, to identify trends in corporate health, sector performance, and economic growth. When aggregated and combined with macroeconomic data, these insights provide a deeper understanding of corporate performance within the broader economy, offering the Sub-Adviser a comprehensive outlook on market behavior. NDR uses this analysis to forecast asset class and market trends. The next two pillars, technical and sentiment, offer a tactical outlook and move more quickly. These pillars reflect the global equity, commodity, and bond markets often rapid and ongoing adjustments to new information. NDR uses its analysis of these two pillars to assess current market conditions, seeking to identify short-term trends, price patterns, and shifts in investor behavior. By integrating these four pillars, NDRs 360 Approach seeks to implement a balanced perspective that captures both the long-term strategic and short-term tactical elements of market behavior, with a goal of enabling well-informed investment decisions. NDRs 360 Approach Underlying ETF selection processes NDR uses its 360 Approach to allocate the Funds portfolio across a mix of equity, long- and short-term bonds, and commodity ETFs. The selection and allocation of these Underlying ETFs are driven by NDRs analysis of multiple indicators across four investment pillars: macroeconomic, fundamental, technical, and sentiment. NDR has developed quantitative models to assess the relationships between asset classes and these factors, allowing it to allocate greater weight to the asset class with, in its assessment, the highest probability of outperforming while reducing weight in areas with lower potential. In particular, the Fund will invest across the following asset types: Equity ETFs Long-Term Bond ETFs Short-Term Bond ETFs Commodity ETFs U.S. large caps Long-term U.S. Treasury bonds Short-term U.S. Treasury securities Broad-based commodities (e.g., energy, metals, agriculture, and livestock sectors) U.S. small caps International bonds (excluding the U.S.) Short-term fixed income investments U.S. growth Emerging market bonds Ultra-short-term U.S. Treasury securities U.S. value U.S. high yield corporate bonds Emerging markets U.S. investment grade corporate bonds International developed markets Asset Allocation Determinations NDR makes allocation decisions between equities and fixed-income using its 360 Approach, which considers both macroeconomic and technical pillars. Within each asset class, NDR bases allocations on indicators such as trend-following, rate-of-change, and overbought/oversold conditions (each, defined below). NDRs model selects investment products with the strongest technical strength for implementation. Additionally, the Fund may invest, to a limited extent, in commodity ETFs. NDR evaluates commodity ETFs based on technical, macroeconomic, and sentiment indicators. For example, if NDRs models indicate that macroeconomic and technical conditions favor bonds over equities, the portfolio may allocate a higher percentage to bond ETFs. Conversely, if equity indicatorssuch as trend-following and macroeconomic conditionsreflect equity strength, the Fund may increase its weighting toward equity ETFs. Asset Classes Potential Contributions to Long-Term Capital Appreciation Each asset type in the Funds portfolio contributes to long-term capital appreciation. Equity ETFs provide exposure to U.S. and international markets, including large caps, small caps, growth, value, and emerging markets, and are selected based on NDRs analysis of sectors and styles most likely to outperform. Bond ETFs, such as U.S. Treasury, international, high-yield, and investment-grade corporate bonds, offer both income and capital growth potential (which typically occurs due to decreases in interest rates or improving credit fundamentals for a specific security or sector), helping manage risk and provide returns during market volatility. Commodity ETFs, covering energy, metals, agriculture, and livestock sectors, may capture opportunities in favorable market conditions. Dynamic Allocation Strategy NDRs allocation strategy is dynamic, meaning the Funds allocation between equity, bond, commodity ETFs and money markets may shift significantly based on changing market conditions. The strategy uses a target allocation of 60% global equities and 40% global bonds, but NDRs model may dictate allocations that deviate significantly from this target. It is possible that the Fund may allocate up to 100% of its assets to equities or bonds. As a result of the Funds dynamic allocation strategy, the Funds portfolio will be subject to a high portfolio turnover rate. Portfolio Attributes The Funds portfolio will generally hold approximately between 5 and 20 Underlying ETFs. The Fund may also hold cash or cash equivalents. The Sub-Adviser reviews the Funds portfolio for potential reallocation on at least a monthly basis. Show less