Strategy. The Fund uses a passive management or indexing investment approach to track the performance, before fees and expenses, of the Index. USREX U.S. Diversified Real Estate Index The Index uses a rules-based methodology to provide diversified exposure to the liquid U.S. real estate market. Construction of the Index begins with the universe of U.S.-listed equity securities with a market capitalization of at least $750 million and meeting certain liquidity thresholds (the Equity Universe). Companies in the Equity Universe are then screened to keep only those that derive at least 85% of their income from ownership or management of real property. Companies that meet this criterion are then screened to remove companies that are externally managed or that have a low … Show more… The Fund uses a passive management or indexing investment approach to track the performance, before fees and expenses, of the Index. USREX U.S. Diversified Real Estate Index The Index uses a rules-based methodology to provide diversified exposure to the liquid U.S. real estate market. Construction of the Index begins with the universe of U.S.-listed equity securities with a market capitalization of at least $750 million and meeting certain liquidity thresholds (the Equity Universe). Companies in the Equity Universe are then screened to keep only those that derive at least 85% of their income from ownership or management of real property. Companies that meet this criterion are then screened to remove companies that are externally managed or that have a low percentage of their shares directly or indirectly available to the public. The companies remaining after the above screens constitute the Indexs investment universe. The Index is designed to ensure diversification by property type and by location, while favoring companies with prudent leverage ( i.e. , the debt-to-enterprise value ratio of real estate investments). Companies in the Indexs investment universe may not be included in the Index due to certain leverage levels. Individual securities are subject to a maximum weighting of 4% at the time of each reconstitution of the Index. The Index rules assign each company in the Index a classification (each, a Property Type) based on the percentage of the companys assets invested in a particular property type. The Property Types included in the Index and the weight allocated to each Property Type, as of each Index reconstitution date, are as follows: Residential 21.1% Hotel 7.1% Manufactured Home 2.1% Office 16.2% Health Care 8.5% Self-Storage 2.2% Industrial 13.9% Data Center 8.1% Home 0% Retail 13.2% Diversified 7.7% Alternative and specialty Property Types not shown above, e.g. , infrastructure, casinos, billboards, prisons, are excluded from the Index. The Index seeks to diversify the geographic exposure of each Property Type by weighting each company within a Property Type based on the value and location of each property owned by such company. For each of the Residential, Office, Industrial, Retail, and Diversified Property Types, the Index calculates a target weight for each of the largest metropolitan areas in the United States based on factors related to population and productivity (each, a Metro Area), generally assigning higher target weights to Metro Areas with larger populations and greater productivity. The Index seeks to weight companies in each such Property Type so as to allocate the target weight assigned to each Metro Area, if any. The Index also establishes target leverage levels by Property Type. Allocations to a company are reduced in proportion to the extent to which such companys leverage level exceeds the greater of (i) the target leverage level for the applicable Property Type or (ii) the weighted average leverage level for the applicable Property Type. The Index is reconstituted and rebalanced semi-annually in January and July. To reduce turnover, lower market capitalization and liquidity thresholds apply to companies included in the Index with respect to whether they are removed at the time of a reconstitution. The Index is expected to be primarily composed of companies that qualify as real estate investment trusts (REITs) but may also include real estate companies that are not tax-qualified REITs. The Index was created on January 9, 2018 by Vident Financial, LLC, the former parent company of Vident Asset Management (Vident or the Adviser), for use by the Fund. The Adviser now also serves as the Index provider. The Funds Investment Strategy Under normal circumstances, at least 80% of the Funds net assets, plus borrowings for investment purposes, will be invested in real estate companies principally traded on a U.S. exchange. The foregoing policy may be changed without shareholder approval upon 60 days written notice to shareholders. For purposes of the foregoing policy, the Fund defines real estate companies to mean companies that (i) earn a majority of their revenue or income from or have a majority of their assets invested in owning or managing real estate properties or (ii) are structured as REITs. The Fund will generally use a replication strategy to achieve its investment objective, meaning it generally will invest in all of the component securities of the Index in approximately the same proportion as in the Index. However, the Fund may use a representative sampling strategy, meaning it may invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole, when the Funds adviser believes it is in the best interests of the Fund ( e.g. , when replicating the Index involves practical difficulties or substantial costs, an Index constituent becomes temporarily illiquid, unavailable, or less liquid, or as a result of legal restrictions or limitations that apply to the Fund but not to the Index). The Fund generally may invest in securities or other investments not included in the Index, but which the Funds adviser believes will help the Fund track the Index. For example, the Fund may invest in securities that are not components of the Index to reflect various corporate actions and other changes to the Index (such as reconstitutions, additions, and deletions). To the extent the Index concentrates ( i.e. , holds more than 25% of its total assets) in the securities of a particular industry or group of related industries, the Fund will concentrate its investments to approximately the same extent as the Index. The Index, and consequently the Fund, is expected to generally be concentrated in real estate-related industries. Show less