Strategy. The Fund is an exchange-traded fund (ETF) that uses a passive management (or indexing) approach to track the performance, before fees and expenses, of the Index. The Index was developed in 2023 by Clouty, Inc. (Clouty) and is administered by Solactive AG (the Index Provider). Solactive Clouty Tune Index : The Index is a rules-based index that seeks to provide exposure to a global portfolio of companies identified as being engaged (i.e., conducts business activities) in the music, media, and entertainment industries, as described in more detail below. The Indexs construction consists of two parts (each as described in more detail below): (1) an analysis using the FactSet Revere Business and Industry Classification System (FactSet RBICS) (which covers companies globally) … Show more… The Fund is an exchange-traded fund (ETF) that uses a passive management (or indexing) approach to track the performance, before fees and expenses, of the Index. The Index was developed in 2023 by Clouty, Inc. (Clouty) and is administered by Solactive AG (the Index Provider). Solactive Clouty Tune Index : The Index is a rules-based index that seeks to provide exposure to a global portfolio of companies identified as being engaged (i.e., conducts business activities) in the music, media, and entertainment industries, as described in more detail below. The Indexs construction consists of two parts (each as described in more detail below): (1) an analysis using the FactSet Revere Business and Industry Classification System (FactSet RBICS) (which covers companies globally) to identify companies as music, media, and entertainment companies; and (2) a digital music streaming revenue analysis (which is U.S.-focused) that identifies companies in any industry (not just music, media, and entertainment), whose equity securities price changes typically align with digital music consumption patterns. To qualify for inclusion in the Index under either analysis, companies must have a minimum market capitalization of $1 billion and an average daily traded volume of $15 million over the most recent six-month period. Part 1: FactSet RBICs (Global Music, Media, and Entertainment Companies) : Approximately 80% of the Index will be comprised of companies identified as being engaged in the music, media, and entertainment business using the FactSet RBICS sub-industry classifications. For this portion of the Index, the potential universe consists of equity securities of companies located throughout the world, including both developed and emerging markets. To qualify for inclusion in the Index, companies must be classified in accordance with the FactSet RBICS sub-industry classifications as being engaged in a range of business activities relating to the music industry, which may include media and entertainment companies, telecommunications companies, wireless communication service providers, amusement and recreation companies, technology manufacturers, and internet-based companies, among others. FactSet RBICS is a comprehensive structured taxonomy designed to offer precise classification of global companies. The Index, using the FactSet RBICS analysis, will include global companies in one the following twelve primary subindustries: Events, Tickets and Mixed-Type Recreation Media Download and Streaming Digital Content Sites Radio Broadcasting General Entertainment and Programming Mixed Delivery Radio and Television Broadcasting Television, Film and Video General Entertainment Content Providers and Sites Music Television Stations Media and Entertainment Industry Software Performing Arts and Exhibitions US TV Cable and Broadcast Networks The composition of this 80% of the Index results in 40 companies, identified as the largest companies (by market capitalization) which satisfy the FactSet RBICS classifications as a music, media, and/or entertainment company. The complete list of companies that are contained in the Index are set forth in the statutory prospectus under Additional Information about the Index. The Fund, in investing in the equity securities of companies comprising the Index, may invest in foreign securities directly or via depositary receipts (e.g., American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)). Part 2: Digital Music Streaming Consumption - Revenues Correlation Analysis (U.S.-Listed Companies - Any Industry) : The remaining 20% of the Index is constructed using a return correlation statistical analysis. This portion of the Index seeks to identify companies whose securities returns are positively correlated with the revenues generated from music streaming (e.g., songs played on a computer or smartphone (without purchasing for download)) of the top 500 songs across all digital service providers (e.g., online music marketplaces). That is, the Index looks for companies whose equity securities price changes align with digital music consumption patterns. For example, music streaming revenue tends to spike during the holiday season, so the Index may seek to invest in companies whose securities prices also spike during such periods. For this portion of the Index, only companies whose equity securities are traded on U.S. exchanges will be eligible. The Indexs return correlation statistical analysis examines data over the most recent 180-day period to select the securities of ten companies. For each U.S.-listed company, the Index analyzes a series of data points about the companys equity securities over the period. The analysis considers trends over the period (e.g., is the securitys price increasing, steady, decreasing?). The analysis also considers variations in data results, like seasonal variations and cyclical variations (e.g., variations that repeat, but which are not seasonal). Based on the analysis results, the Index selects up to ten companies (not otherwise selected via Part 1) with a strong correlation to music streaming consumption patterns. Index Reconstitutions The Indexs components are selected on a semi-annual basis on the first Wednesday of May and November (or the next business day if this falls on a non-business day) (the Selection Day) and adjustments, if any, are made on the following business day. Ten days following the Selection Day (or the next business day), the Index components are reconstituted. Index Construction The Index is comprised of 50 securities 40 securities selected via the global FactSet RBICs process, and 10 securities selected via the U.S. digital music streaming consumption revenue correlation analysis process. Duplicate selections (e.g., the same security from Parts 1 and 2) are not permitted. The weights of the Index components are determined on the Selection Day and each component is equally weighted. An Index component selected will be removed from the Index if, on Selection Day, it does not meet that portion of the Indexs initial criteria (i.e., market cap of $1 billion and a minimum six-month average daily traded volume of $15 million). The Funds Investment Strategy : In seeking to obtain exposures comparable to those of the Index, under normal market conditions, the Fund will invest substantially all of its net assets in the securities that make up the Index (either directly or via depositary receipts). That is, the Fund will generally use a replication strategy to achieve its investment objective, meaning it generally will invest in all of the Index components. However, the Fund may use a representative sampling strategy, meaning it may invest in a sample of the Index components whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole, when the Funds investment 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 component 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). Under normal circumstances, the Fund will invest at least 80% of its net assets, plus borrowings for investment purposes, in companies in the music, media, and entertainment industries. The Funds 80% policy is non-fundamental and can be changed without shareholder approval. However, Fund shareholders would be given at least 60 days notice prior to any such change. The Fund also may invest in securities or other investments not included in the Index, but which the Funds investment adviser believes will help the Fund track the Index. For example, the Fund may invest in securities that are not Index Components to reflect various corporate actions and other changes to the Index (such as reconstitutions, additions, and deletions). The Fund will concentrate its investments in a particular industry or group of industries (i.e., hold more than 25% of its total assets in the securities of a particular industry or group of related industries) to approximately the same extent as the Index is so concentrated. Show less