Strategy. The Fund is an actively managed exchange-traded fund (ETF) that, under normal market conditions, primarily invests, directly or indirectly, in fixed-income securities and other instruments with exposure to the U.S. bond market. Utilizing V-Mod (defined below), the Sub-Adviser actively manages the Funds exposure to the U.S. bond market based on the level of intraday volatility of the market. The Fund will consist of investments that represent the broad U.S. bond market. The Fund will be invested primarily in ETFs and bond funds that provide broad U.S. bond market exposure and high daily liquidity, as selected by the Sub-Adviser. The Funds portfolio is expected to emphasize U.S. debt sectors with holdings representing all maturities, sectors and credit ratings, including high yield … Show more… The Fund is an actively managed exchange-traded fund (ETF) that, under normal market conditions, primarily invests, directly or indirectly, in fixed-income securities and other instruments with exposure to the U.S. bond market. Utilizing V-Mod (defined below), the Sub-Adviser actively manages the Funds exposure to the U.S. bond market based on the level of intraday volatility of the market. The Fund will consist of investments that represent the broad U.S. bond market. The Fund will be invested primarily in ETFs and bond funds that provide broad U.S. bond market exposure and high daily liquidity, as selected by the Sub-Adviser. The Funds portfolio is expected to emphasize U.S. debt sectors with holdings representing all maturities, sectors and credit ratings, including high yield debt instruments (also known as junk bonds), although these allocations may be adjusted at any time in the Sub-Advisers discretion. The Funds portfolio components will be reviewed by the Sub-Adviser no less than quarterly to determine any changes to individual portfolio components and/or weights. The Sub-Adviser will utilize duration, sector, quality, and instrument type to provide diversification across the broad U.S. bond market. To actively manage volatility and adjust the exposure of the portfolio across the broad U.S. bond market, the Sub-Adviser will measure intraday volatility daily using a market volatility measurement and forecasting model (the V-Mod). The V-Mod is a third-party proprietary intraday volatility technology which provides daily updates to the Sub-Adviser based on a target volatility range of approximately 10%. The Funds actual volatility level for longer or shorter periods may be materially higher or lower than the target depending on market conditions. Volatility measures the range of returns of a security, fund or index, as indicated by the standard deviation of its returns. Higher volatility generally indicates higher risk and is often reflected by frequent and sometimes significant movements up and down in value. A volatility target does not provide any assurance about the maximum loss for an investor in the Fund. The Sub-Adviser will use its own trading discretion to determine the size and frequency of reallocations within the Fund portfolio, as informed by V-Mod. It is expected that the Fund will be rebalanced to adjust for market fluctuations no less than quarterly but could be more frequently as needed to maintain weights for volatility targets. When volatility increases above target intraday range, the Sub-Adviser may reduce bond exposure and reallocate up to 100% of portfolio investments to cash alternative positions, such as shorter-term nominal and inflation-protected Treasury bills (TIPs), notes and bonds, and other U.S. debt instruments of various issuer types and credit ratings and generally (but not limited to) less than three years remaining or effective maturity, and/or a measured duration of less than one year. When volatility decreases below target intraday range, the Sub-Adviser may increase the Funds overall bond exposure to up to 150% of the Funds net assets through investments in Treasury and other bond and interest rate futures. Although the Fund normally does not engage in any direct borrowing, leverage is inherent in the derivatives it trades. While Federal law limits bank borrowings to one-third of a funds assets (which includes the borrowed amount), the use of derivatives is not limited the same manner. Leverage magnifies exposure to the swings in prices of the reference asset underlying a derivative and results in increased volatility, which means the Fund will generally have the potential for greater gains, as well as the potential for greater losses, than a fund that does not use derivatives. The Fund may engage in active and frequent trading. Show less