Strategy. The Fund seeks long-term growth of capital. The Fund pursues its objective by providing exposure to the returns of the S&P 500 Price Return Index (the Index ) while implementing a hedging strategy to reduce downside exposure. Hedging means structuring a portfolio to seek to reduce the risk of loss of an existing position. The Fund, under normal circumstances, invests at least 80% of its net assets (including borrowings for investment purposes) in investments that provide exposure to the Index and in an underlying fund which tracks the Index. The Fund invests approximately half of its assets in in the LVIP SSGA S&P 500 Index Fund (the Underlying Fund ), which is advised by the Funds Adviser, and approximately half … Show more… The Fund seeks long-term growth of capital. The Fund pursues its objective by providing exposure to the returns of the S&P 500 Price Return Index (the Index ) while implementing a hedging strategy to reduce downside exposure. Hedging means structuring a portfolio to seek to reduce the risk of loss of an existing position. The Fund, under normal circumstances, invests at least 80% of its net assets (including borrowings for investment purposes) in investments that provide exposure to the Index and in an underlying fund which tracks the Index. The Fund invests approximately half of its assets in in the LVIP SSGA S&P 500 Index Fund (the Underlying Fund ), which is advised by the Funds Adviser, and approximately half of its assets in exchange-traded index options. As of September 1, 2023, a significant portion of the Funds investment exposure comprised companies in the information technology sector. The Fund is not designed to track the performance of the Index. The Funds hedging strategy, sub-advised by Milliman Financial Risk Management LLC ( Milliman or the Sub-Adviser ), seeks to provide limited downside protection against Index decreases while retaining the potential for limited gains if the Index appreciates. Opportunistically, the Sub-Adviser will rebalance the options portfolio to protect capital or capture portfolio gains experienced by the Fund, depending on the performance of the Index relative to the Funds options holdings. There is no guarantee the Fund will be successful in implementing this strategy. Shareholders will experience investment results that are very different than if the Fund held its options until expiration. An option contract gives the purchaser of the option, in exchange for the premium paid, the right to purchase (for a call option) or sell (for a put option) the underlying asset at a specified price (the strike price ) on a specified date (the expiration date ). The Fund intends to implement its hedging strategy by using options, including Flexible Exchange Options ( FLEX Options ) as well as standardized exchange-traded index options, with approximately one-year expiration dates at initiation. The Sub-Adviser seeks to select the strike price for each option contract such that if the options were exercised on the expiration date, the Funds net asset value ( NAV ) would be provided with limited downside protection and limited gain potential on the price return of the Index. The Funds NAV will depend largely on the value of the options, which is based principally upon the value of the Index and the time remaining until the expiration date of the options. As the value of the Index changes and the expiration date of the options (the final day of the term of the options) approaches, the value of the options, and therefore the Funds NAV, will change. At the expiration or rebalance of the options portfolio, the Sub-Adviser will purchase a new portfolio of options that seeks to provide limited downside protection against Index decreases while retaining some potential for gains if the Index appreciates. The amount of potential gain will depend on market conditions at the time of purchase, such as interest rates and expected volatility. The gain potential and limited downside protection are prior to taking into account expenses incurred by the Fund, such as advisory fees, transaction fees, and any extraordinary expenses. As with all funds, the Funds expenses will reduce the potential for gains and limited downside protection. There is no guarantee that the Sub-Adviser will be successful in its attempt to provide limited downside protection or gains. The Fund does not seek to achieve the full one-year investment outcomes of the options portfolio and will not seek to provide a set level of investment outcomes over a stated time period. Unlike funds that utilize a defined outcome investment strategy, the Fund does not seek to provide shareholders with downside protection or upside potential over any specified time period. Options Portfolio. The Fund will invest in options that reference the Index with rotating expiration dates of approximately one year. As described above, the Fund does not seek to achieve the full, one-year investment outcomes of the options, as the Sub-Adviser intends to opportunistically rebalance the options portfolio prior to the expiration date of the options. The combination of options contracts within the Options Portfolio will generally consist of the following: 1. purchased one-year near-zero calls that, in combination with the investment in the Underlying Fund, provide market exposure. 2. purchased one-year at-the-money puts that provide limited downside protection. 3. sold one-year puts with a strike price 10% out-of-the money to help establish the limited downside protection and fund the purchase of calls and puts. 4. sold out-of-the-money calls to help fund the purchase of calls and puts. The above description is a summary for illustrative purposes and necessarily does not reflect all factors that could potentially affect the Funds strategy. The Sub-Adviser seeks to select the strike price and expiration date for each option contract so that the Fund is provided with limited downside protection and some potential for gains on the price performance of the Indexs share price over the term of the options contract, as follows: In the event that the Index decreases in value by less than 10% over the term of the Options Portfolio, without any rebalancing, the Options Portfolio seeks to provide an investment return of approximately 0%. In the event that the Index decreases in value by more than 10% over the term of the Options Portfolio, without any rebalancing, the Options Portfolio seeks to provide investment return that is approximately 10% higher than the return experienced by the Index. In the event that the Index increases in value over the term of the Options Portfolio, without any rebalancing, the Options Portfolio seeks to provide investment returns that match the price performance of the Index, up to a maximum percentage return the Fund can achieve for the term of the Options Portfolio, which depends on prevailing market conditions at the time the Fund purchases the options. The Funds NAV is dependent on the value of the options, which is based principally upon the price of the Index and the time remaining until the expiration date of the options. As the price of the Index changes and time moves towards the expiration date of the options, the value of the options, and therefore the Funds NAV, will change. The Sub-Adviser anticipates the Funds NAV will move in the same direction as the price movements of the Index. However, there is no guarantee that the Funds NAV will move in the same direction as the price movements of the Index and it is not expected for the Funds NAV to directly correlate on a day-to-day basis with the returns experienced by the Index. A component of an options value is the number of days remaining until its expiration date. The amount of time remaining until the option contracts expiration date affects the limited downside protection on the Funds NAV, which may not be in full effect until the expiration date of the Funds options contracts. Therefore, while changes in the price of the Index will result in changes to the Funds NAV, the Sub-Adviser generally anticipates that the rate of change in the Funds NAV will be less than that experienced by the Index until the expiration date of the options contracts. Because the Funds investment strategy is not designed to hold the Options Portfolio to its expiration date, shareholders will experience investment results that are very different than if the Fund held the Options Portfolio for its contract term. Shareholders may realize losses on price decreases of the Index of less than the limited downside protection and may lose their entire investment. These potential losses are possible even if a shareholder remained in the Fund for a one-year period after an Options Portfolio was established, as it is likely that the Options Portfolio will rebalance during that time. The Options Portfolio is designed to provide limited downside protection against Index losses and provide for limited gain potential based upon the price of the Index at the time the option contracts are initiated by the Fund. The Sub-Adviser will seek to realize gains experienced by the Fund (which are limited to the maximum gain potential) due to price movements of the Index or realize the limited downside protection used by the Fund due to price movements of the Index by rebalancing the Funds Options Portfolio and the Funds upside potential and limited downside protection. However, the degree to which a shareholder may benefit from the Options Portfolios Index upside potential and limited downside protection against Index losses will depend on the time at which the investor purchases Shares of the Fund. At any given time after Sub-Adviser rebalances the Options Portfolio there may be limited upside potential or downside protection remaining due to the price performance of the Index (and therefore, the value of the options). If the price of the Index is near or has exceeded the strike prices of the Funds Options Portfolio, such investor may have little to no upside potential until if and when the Sub-Adviser determines to rebalance the Funds Options Portfolio, and would still remain vulnerable to significant downside risk before the sought-after, limited downside protection began. Similarly, if the Index has decreased in price significantly to equal or exceed the Funds anticipated, limited downside protection, the shareholder would also remain vulnerable to significant downside risk and would receive no benefit from this protection. If a shareholder purchases Shares after the limited downside protection has been used and prior to the Fund rebalancing its Options Portfolio, a shareholder may lose their entire investment. Rebalancing Strategy. The Funds rebalancing strategy seeks to help the Fund offset the timing risks inherent in owning an options package for one year. The successful implementation of the rebalancing strategy is not guaranteed. The Funds options strategy seeks to provide some amount of exposure to the price performance of the Index while providing limited downside protection for Index decreases. The value of the Fund's options is derived from, in part, the value of the Index. Without rebalancing, if the Index level increases in value to a point at or near the strike price of the sold options, the Fund would have little or no potential for gains for the remainder of the options contract term, and if the Indexs level decreases in value by more than the limited downside protection amount for the Funds options, the Fund may have no remaining potential for limited downside protection. By rebalancing, the Fund will renew its potential to increase in a market environment where the value of the Index is steadily increasing and its potential to benefit from limited downside protection in a market environment where the Index is steadily decreasing. To rebalance its options holdings, the Fund may, at the end of each month, sell the then-current options and immediately enter into new options contracts with a term of approximately one year. The Sub-Adviser will determine whether to rebalance the options portfolio based on various factors, including, but not limited to, the price movements of the Index, the changes in the Funds NAV, market volatility, and the time remaining until the expiration of the options contracts. To the extent the Fund's NAV increases (generally by at least 2%) or decreases (generally by at least 1%) from the Fund's NAV at the commencement of the term of the existing Options Portfolio, the Sub-Adviser will seek to realize any gains experienced by the Fund or limited downside protection used by the Fund by resetting the Fund's Options Portfolio and, in doing so, reset the Fund's upside potential and limited downside protection. The Funds rebalancing investment strategy may cause the Fund to have a higher portfolio turnover rate than funds that do not actively rebalance. The Funds rebalancing strategy may not be successful in providing either limited downside protection or gain participation. Investors will not be notified of rebalancing in the Options Portfolio. The Sub-Adviser may also purchase and sell options that have the same or similar strike prices and expiration dates over the course of the month as the then-current Options Portfolio as necessary to manage any purchases or redemptions. The following chart contains a hypothetical illustration of the Funds rebalancing mechanism. The chart is provided for illustrative purposes only. There is no guarantee that the Fund will be successful in its attempt to rebalance the Funds Options Portfolio. The chart is not intended to predict or project the performance or operationality of the Fund. Show less