Strategy. The Fund is an actively-managed exchange-traded fund (ETF) that seeks to achieve its investment objective by utilizing an investment strategy enhanced by the use of artificial intelligence, as described below. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amounts of any borrowings for investment purposes) in securities of U.S.-listed large capitalization companies. The Fund defines large capitalization companies as those that, at the time of investment, have a minimum market capitalization equal to or greater than the minimum market capitalization of a widely recognized index of large capitalization companies based upon the composition of the index at the time of investment (the Universe). The Fund invests in equity securities of such companies, including … Show more… The Fund is an actively-managed exchange-traded fund (ETF) that seeks to achieve its investment objective by utilizing an investment strategy enhanced by the use of artificial intelligence, as described below. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amounts of any borrowings for investment purposes) in securities of U.S.-listed large capitalization companies. The Fund defines large capitalization companies as those that, at the time of investment, have a minimum market capitalization equal to or greater than the minimum market capitalization of a widely recognized index of large capitalization companies based upon the composition of the index at the time of investment (the Universe). The Fund invests in equity securities of such companies, including common stock, American Depositary Receipts (ADRs), and Global Depositary Receipts (GDRs). 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 QRAFT Technologies, Inc. (Qraft). Qraft is a South Korea-based provider of artificial intelligence investment systems and currently offers services to various financial institutions in Korea. Qraft has licensed its 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 database generated by Qrafts AI Quantitative Investment System (QRAFT AI), which automatically evaluates and filters data according to parameters supporting a particular investment thesis. For the Funds database, QRAFT 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 Database). QRAFT 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 300 to 350 stocks based on the average of the distribution of each stocks relative superiority of price appreciation for inclusion in the database. QRAFT 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 included in the database are then weighted pursuant to a methodology designed to maximize risk-adjusted return as compared to other companies, and the final portfolios are then delivered to the U.S. Large Cap Database for use by the Adviser. QRAFT AI repeats such processes every four weeks, and the Adviser makes or changes investments in the Fund based on the newly generated information. The Fund expects to hold 300 to 350 companies in its portfolio. While it is anticipated that the Adviser will purchase and sell securities based on recommendations by the U.S. Large Cap Database, the Adviser has full discretion over investment decisions for the Fund. Therefore, the Adviser has full decision-making power not only if it identifies a potential technical issue or error with the U.S. Large Cap Database, but also if it believes that the recommended portfolio does not further the Funds investment objective or fails to take into account company events such as corporate actions, mergers and spin-offs. Additionally, the Adviser has discretion over the amount of cash maintained in the Funds portfolio and the reinvestment of dividends in the Funds portfolio, subject to the Funds distribution requirements as a regulated investment company (RIC) under Subchapter M of the Internal Revenue Code of 1986, as amended (the Internal Revenue Code). See Federal Income Taxes in the Funds Statement of Additional Information (the SAI) for a more complete discussion. Notwithstanding the foregoing, the Fund limits the weighting of a single company to 10%, at the time of rebalance, and no more than 40% of the Funds assets may be invested in securities with a more than 5% weighting in the Funds portfolio. Because the U.S. Large Cap Database is adjusted every four weeks, the Adviser expects that the Fund will frequently purchase and sell shares of securities. While investing in a particular market sector is not a strategy of the Fund, its portfolio may be significantly invested in one or more sectors as a result of the security selection decisions made pursuant to its strategy. As of August 1, 2025, a significant portion of the Funds assets consisted of securities of companies in the Technology Sector, although this may change from time to time. Show less