Strategy. The Fund generally will invest at least 80% of its total assets in the components that comprise the Underlying Index. Strictly in accordance with its guidelines and mandated procedures, Research Affiliates, LLC (RA or the Index Provider) or its agent compiles and calculates the Underlying Index, which is designed to measure the performance of U.S. dollar-denominated, investment grade corporate bonds that are SEC-registered securities, Section 3(a)(2) securities under the Securities Act of 1933 (Securities Act), or Rule 144A securities under the Securities Act and whose issuers are public companies domiciled in the United States. The Underlying Index selects and weights securities based on the Fundamental Index approach developed by RA that uses four fundamental factors of company size: book value … Show more… The Fund generally will invest at least 80% of its total assets in the components that comprise the Underlying Index. Strictly in accordance with its guidelines and mandated procedures, Research Affiliates, LLC (RA or the Index Provider) or its agent compiles and calculates the Underlying Index, which is designed to measure the performance of U.S. dollar-denominated, investment grade corporate bonds that are SEC-registered securities, Section 3(a)(2) securities under the Securities Act of 1933 (Securities Act), or Rule 144A securities under the Securities Act and whose issuers are public companies domiciled in the United States. The Underlying Index selects and weights securities based on the Fundamental Index approach developed by RA that uses four fundamental factors of company size: book value of assets, gross sales, gross dividends and cash flow. Only non-convertible, non-exchangeable, non-zero, non-sinkable, fixed coupon investment grade corporate bonds qualify for inclusion in the Underlying Index. As of October 31, 2025, the Underlying Index was comprised of 790 constituents. The Fund does not purchase all of the securities in the Underlying Index; instead, the Fund utilizes a sampling methodology to seek to achieve its investment objective. Concentration Policy. The Fund will concentrate its investments (i.e., invest more than 25% of the value of its net assets) in securities of issuers in any one industry or group of industries only to the extent that the Underlying Index reflects a concentration in that industry or group of industries. The Fund will not otherwise concentrate its investments in securities of issuers in any one industry or group of industries. Show less