Strategy. The Index is a rules-based index that consists of a tiered, modified market capitalization-weighted portfolio of U.S.-listed equity securities, including depository receipts, of companies whose products and services are economically tied to the markets adoption of 5G networking and communication technologies. MV Index Solutions GmbH (the Index Provider) screens U.S.-listed equity securities, including depositary receipts, for inclusion in the Index by reviewing descriptions of a companys primary business activities in regulatory filings, analyst reports and industry-specific trade publications for indications of companies economic ties to the development or implementation of 5G networking and communication technologies. The Index Provider assigns each company so identified into one of the four following categories: Companies that provide core cellular network equipment such as carrier-grade … Show more… The Index is a rules-based index that consists of a tiered, modified market capitalization-weighted portfolio of U.S.-listed equity securities, including depository receipts, of companies whose products and services are economically tied to the markets adoption of 5G networking and communication technologies. MV Index Solutions GmbH (the Index Provider) screens U.S.-listed equity securities, including depositary receipts, for inclusion in the Index by reviewing descriptions of a companys primary business activities in regulatory filings, analyst reports and industry-specific trade publications for indications of companies economic ties to the development or implementation of 5G networking and communication technologies. The Index Provider assigns each company so identified into one of the four following categories: Companies that provide core cellular network equipment such as carrier-grade routers, antennas, or other equipment or semiconductors used in 5G networks. At each Index rebalance date, this category is assigned an aggregate weight of 40% of the Index, with individual companies limited to 5% and any excess weight reallocated to companies in the category with a weight below 5%. Companies that are organized as cellphone tower or data center real estate investments trusts (REITs), mobile network operators or providers of optical fiber cables. At each Index rebalance date, this category is assigned an aggregate weight of 30% of the Index, with individual companies limited to 3% and any excess weight reallocated to companies in the category with a weight below 3%. Companies that provide hardware and software for mobile network operators and media companies or network testing and bandwidth optimization equipment. At each Index rebalance date, this category is assigned an aggregate weight of 15% of the Index, with individual companies limited to 3% and any excess weight reallocated to companies in the category with a weight below 3%. Companies that provide enhanced mobile broadband modems capable of increased bandwidth for end-user devices or infrastructure or cloud-based services supporting REITs or mobile network operators. At each Index rebalance date, this category is assigned an aggregate weight of 15% of the Index, with individual companies limited to 1% and any excess weight reallocated to companies in the category with a weight below 1%. Companies included in the Index must also have a market capitalization of at least $150 million, except for REITs and mobile network operators, which must have market capitalizations of at least $1 billion, and must meet certain liquidity, free-float and trading cost thresholds. The Index may include small-, mid- and large-capitalization companies. The Index is rebalanced and reconstituted semi-annually. To reduce turnover, existing Index components will not be removed from the Index solely for not meeting the minimum market capitalization or liquidity criteria unless they do not meet such requirements for two consecutive reconstitutions. Additionally, components that were previously removed from the Index must meet such requirements for two consecutive reconstitutions to be eligible for re-entry into the Index. As of December 31, 2021, the Index consisted of 87 constituents, which had a median total market capitalization of $10.6 billion, total market capitalizations ranging from $107.3 million to $2.9 trillion and were concentrated in the information technology and communication services sectors. The components of the Index and the percentages represented by various sectors in the Index may change over time. The Fund will concentrate its investment in a particular industry or group of industries ( i.e. , hold 25% or more of its total assets in the stocks of a particular industry or group of industries) to approximately the same extent as the Index is so concentrated. The Fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments, such as swap agreements, securities of the Index, and exchange-traded funds ("ETFs") that track the Index and other financial instruments that provide daily leveraged exposure to the Index or to ETFs that track the Index. The financial instruments in which the Fund most commonly invests are swap agreements and futures contracts which are intended to produce economically leveraged investment results. The Fund may invest in the securities of the Index, a representative sample of the securities in the Index that has aggregate characteristics similar to those of the Index, an ETF that tracks the Index or a substantially similar index, and may utilize derivatives, such as swaps or futures on the Index or on an ETF that tracks the same Index or a substantially similar index, that provide leveraged exposure to the above. The Fund seeks to remain fully invested at all times, consistent with its stated investment objective, but may not always have investment exposure to all of the securities in the Index, or its weighting of investment exposure to securities or industries may be different from that of the Index. In addition, the Fund may invest directly or indirectly in securities not included in the Index. The Fund will attempt to achieve its investment objective without regard to overall market movement or the increase or decrease of the value of the securities in the Index. At the close of the markets each trading day, Rafferty rebalances the Funds portfolio so that its exposure to the Index is consistent with the Funds investment objective. The impact of the Indexs movements during the day will affect whether the Funds portfolio needs to be re-positioned. For example, if the Index has risen on a given day, net assets of the Fund should rise, meaning that the Funds exposure will need to be increased. Conversely, if the Index has fallen on a given day, net assets of the Fund should fall, meaning the Funds exposure will need to be reduced. This re-positioning strategy typically results in high portfolio turnover. On a day-to-day basis, the Fund is expected to hold ETFs and money market funds, deposit accounts with institutions with high quality credit ratings, and/or short-term debt instruments that have terms-to-maturity of less than 397 days and exhibit high quality credit profiles, including U.S. government securities and repurchase agreements. The terms daily, day, and trading day, refer to the period from the close of the markets on one trading day to the close of the markets on the next trading day. The Fund is non-diversified, meaning that a relatively high percentage of its assets may be invested in a limited number of issuers of securities. Additionally, the Funds investment objective is not a fundamental policy and may be changed by the Funds Board of Trustees without shareholder approval. Because of daily rebalancing and the compounding of each days return over time, the return of the Fund for periods longer than a single day will be the result of each days returns compounded over the period, which will very likely differ from 200% of the return of the Index over the same period. The Fund will lose money if the Index performance is flat over time, and as a result of daily rebalancing, the Indexs volatility and the effects of compounding, it is even possible that the Fund will lose money over time while the Index's performance increases over a period longer than a single day. Show less