Strategy. The Fund is an actively-managed exchange-traded fund (ETF) that seeks to achieve its investment objective, under normal circumstances, by investing in swap agreements and engaging in short sales on the Amplify ETF that provide inverse (opposite) or short exposure to the value of the Amplify ETF. The Fund will enter into short positions of Amplify ETF, including swap agreements and/or short sales, with major global financial institutions for a specified period ranging from a day to more than one year whereby the Fund and the global financial institution will agree to exchange the return (or differentials in rates of return) earned or realized on the Amplify ETF. The gross returns to be exchanged or swapped between the parties is calculated … Show more… The Fund is an actively-managed exchange-traded fund (ETF) that seeks to achieve its investment objective, under normal circumstances, by investing in swap agreements and engaging in short sales on the Amplify ETF that provide inverse (opposite) or short exposure to the value of the Amplify ETF. The Fund will enter into short positions of Amplify ETF, including swap agreements and/or short sales, with major global financial institutions for a specified period ranging from a day to more than one year whereby the Fund and the global financial institution will agree to exchange the return (or differentials in rates of return) earned or realized on the Amplify ETF. The gross returns to be exchanged or swapped between the parties is calculated with respect to a notional amount, e.g. , the return on or change in value of a particular dollar amount representing the Amplify ETF. The Amplify ETF is an actively managed ETF that seeks to provide total return by investing at least 80% of its net assets (plus borrowings for investment purposes) in the equity securities of companies actively involved in the development and utilization of transformational data sharing technologies. In selecting these companies relevant to the Amplify ETFs investment theme, the Amplify ETFs portfolio managers invest at least 80% of the Amplify ETFs net assets (plus borrowings for investment purposes) in equity securities of companies actively involved in the development and utilization of blockchain technologies. The blockchain is a peer-to-peer shared, distributed ledger that facilitates the process of recording transactions and tracking assets in a business network. Blockchain technologies, while initially associated with digital commodities, can be used to track tangible, intangible and digital assets and companies in all business sectors. Accordingly, companies engaged in the use or development of blockchain technologies are involved in digitizing the economy. The Fund obtains short exposure to these companies through its use of swap agreements or short sales on the Amplify ETF. Under normal circumstances, the Amplify ETFs portfolio consists of 40 to 60 companies. The Fund will not invest in digital assets (including bitcoin or other cryptocurrencies) directly or indirectly through the use of derivatives. The Fund also will not invest in initial coin offerings. Because the Fund will not invest directly in any digital assets, it will not track price movements of any digital assets. The Fund, however, has indirect exposure to equity securities actively involved in the development and utilization of blockchain technologies by virtue of its use of short sales and swap agreements that provide short exposure to the Amplify ETF. 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 Amplify ETF. At the close of the markets each trading day, the Adviser positions the Funds portfolio so that its exposure to the Amplify ETF is consistent with the Funds investment objective. The impact of the Amplify ETFs price movements during the day will affect whether the Funds portfolio needs to be re-positioned. For example, if the price of the Amplify ETF 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 price of the Amplify ETF 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. The Fund intends to roll its swap positions, meaning that the Fund will enter into new swap positions with a later expiration date as the current positions approach expiration. The Fund will incur costs, as a result of swap fees to intermediaries or margin for loans on short sales, that the Amplify ETF will not incur. These fees might impact the Funds ability to achieve the Funds investment objective. The Fund expects that its cash balances maintained in connection with the use of financial instruments will typically be held in U.S. government securities, U.S. agency securities, money market funds, or repurchase agreements. The Fund may also gain inverse exposure to the Amplify ETF by 1) directly shorting the securities of the Amplify ETF or 2) shorting the individual securities held in the Amplify ETFs portfolio, if the Fund is unable to obtain sufficient short exposure through directly shorting the securities of the Amplify ETF. When the Fund shorts a security, it borrows shares of the security, which it then sells. The Fund closes out a short sale by purchasing the same number of shares of the security that the Fund borrowed and returning those shares to the entity that lent the securitys shares to the Fund initially. The Fund is considered to be non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. 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 -100% of the return of the Amplify ETF over the same period. The Fund will lose money if the Amplify ETFs performance is flat over time, and as a result of daily rebalancing, the Amplify ETFs volatility and the effects of compounding, it is even possible that the Fund will lose money over time while the Amplify ETFs performance decreases over a period longer than a single day. THE FUND, ETF SERIES SOLUTIONS, DEFIANCE ETFS, LLC, AND VIDENT INVESTMENT ADVISORY, LLC ARE NOT AFFILIATED WITH THE AMPLIFY ETF, AMPLIFY ETF TRUST, AMPLIFY INVESTMENTS LLC, OR TOROSO INVESTMENTS, LLC. Show less