Strategy. Overview The Fund uses a passive management (or indexing) approach to track the performance, before fees and expenses, of the Index. The Index is constructed using a rules-based methodology that identifies companies in the banking industry with publicly traded ordinary shares listed on major stock exchanges in developed European markets, as classified by BITA GmbH (the Index Provider). Index Overview: The Indexs initial universe consists of all publicly listed equity securities for which sufficient relevant information is available from public sources. The initial universe is screened using the following criteria, which are based on each companys financial information for the most recent quarter: A. Banking Industry: To be eligible for inclusion, a company must be classified as operating within the … Show more… Overview The Fund uses a passive management (or indexing) approach to track the performance, before fees and expenses, of the Index. The Index is constructed using a rules-based methodology that identifies companies in the banking industry with publicly traded ordinary shares listed on major stock exchanges in developed European markets, as classified by BITA GmbH (the Index Provider). Index Overview: The Indexs initial universe consists of all publicly listed equity securities for which sufficient relevant information is available from public sources. The initial universe is screened using the following criteria, which are based on each companys financial information for the most recent quarter: A. Banking Industry: To be eligible for inclusion, a company must be classified as operating within the banking industry according to a rules-based methodology defined by the Index Provider. This classification is determined by applying the following predefined criteria: According to BITAs thematic data methodology, to be eligible companies must have a Thematic Exposure Score of at least 50%. A companys total Thematic Exposure Score is equivalent to the sum of the revenue derived by the company from relevant products, services, and business activities (PSA), as a proportion of the companys total revenue. BITA approaches the construction and research of Themes through the mapping of PSA into a set of granular Sub-Themes designed to facilitate the construction of heavily focused index and data products. The universe includes companies whose PSA are integral to the banking ecosystem. These companies operate across the following Sub-Themes: ? ?Retail, SME & Digital Banking : Companies that provide deposit and lend services to individuals and small-to-medium-sized enterprises (SMEs). This includes checking and savings accounts, personal and auto loans, residential mortgage origination and servicing (held on-balance-sheet), and business lending. The Sub-Theme also includes companies that operate fully digital banking platforms, mobile apps, and online channelsprovided these services are delivered under a regulated banking license. ? Corporate & Institutional Banking : Companies that offer tailored financial products and services to large corporations, public-sector entities, and institutions. These activities include syndicated and structured loans, trade and commodity finance, escrow and fiduciary services, and large-scale treasury and deposit solutions. This sub-theme captures the institutional-facing activities of full-service banks with national or international footprints. ? Payments & Cash Management : Companies that operate bank-owned or interbank payment systems and deliver cash-management services to retail and corporate clients as regulated banking institutions. This includes domestic and international wire transfers, real-time gross settlement (RTGS), automated clearing house (ACH) services, bank-issued debit and credit card programs, and corporate receivables and payables solutions. ? Treasury, Risk & Compliance Operations : Companies that manage internal banking functions necessary to maintain financial stability, regulatory compliance, and prudent risk oversight. Activities include asset-liability and liquidity management, credit and market risk modeling, capital adequacy planning, regulatory reporting, and anti-money-laundering (AML) and know-your-customer (KYC) processes. These functions are core to the operations of licensed banks and are integral to ensuring the resilience of the financial system. B. Market Capitalization : Companies must have a market capitalization of at least $2 billion. C. Developed European Markets : To be eligible for inclusion, a companys shares must be publicly listed on one of the European countries and exchanges named here, i.e. , major stock exchanges in developed European markets,(listed alphabetically by country): Austria (Wiener Borse); Belgium (Euronext Brussels); Denmark (Nasdaq Copenhagen); Finland (Nasdaq Helsinki); France (Euronext Paris Exchange); Germany (Deutsche Borse); Ireland (Euronext Irish Stock Exchange); Italy (Borsa Italiana); Netherlands (Euronext Amsterdam); Norway (Euronext Oslo Brs); Portugal (Euronext Lisbon); Spain (Bolsas y Mercados Espanoles); Sweden (Nasdaq Stockholm); Switzerland (SIX Swiss Exchange); and United Kingdom (London Stock Exchange). D. Ordinary Shares : The Index includes only ordinary shares of eligible companies. Ordinary shares represent ownership in a company and typically give shareholders the right to vote and receive dividends. Companies that meet the foregoing screens are included in the Index. The Index is expected to be comprised of between 50 and 70 constituents; however, the number of constituents will vary over time. As of market close October 9, 2025, the Index contained 60 constituents. The Index is reconstituted and rebalanced quarterly (reconstitution means the Index is updated with new eligible companies based on current data; rebalancing means the weights of the companies in the Index are adjusted). In addition, the Index Provider may determine to substitute an Index constituent or make an extraordinary adjustment to the Index if it determines an extraordinary event has occurred. The determination date for regular adjustments takes place on the first Friday of the rebalancing month. On each determination day, Index constituents are weighted according to their free-float market capitalization (i.e., the total market value of a companys shares that are readily available for public trading, excluding shares held by insiders or controlling shareholders). In addition, the Index methodology includes the following capping constraints to limit the amount that an issuer or issuers can make up of the Index: (1) no single issuer may exceed 25% of the Index weight; and (2) all issuers with individual weights above 4.5% may not, in the aggregate, exceed 45% of the total Index weight. To the extent the Index is concentrated in a particular industry, the Fund is expected to be concentrated in that industry. It is expected that the Index will be concentrated in the banking industry or group of industries. The Index is owned, calculated, administered, and disseminated by the Index Provider. The Index Provider is not affiliated with the Funds investment adviser, Tidal Investments LLC (the Adviser). The Funds Investment Strategy Under normal circumstances, the Fund will invest at least 80% of the Funds net assets (plus borrowings for investment purposes) in component securities that make up the Index. The Fund attempts to invest all, or substantially all, of its assets in the component securities that make up the Index. The Fund will generally use a replication strategy to achieve its investment objective, meaning it generally will invest in all of the component securities of the Index. However, the Fund may use a representative sampling strategy, meaning it may invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole, when the Adviser believes it is in the best interests of the Fund. For example, representative sampling may be used when replicating the Index involves practical difficulties or substantial costs, an Index constituent 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. The Fund will invest in listed equity securities, which may include common stocks, business trust shares, American Depositary Receipts (ADRs), which are securities listed on US exchanges that represent shares of foreign companies, and other equity investments or ownership interests in business enterprises. The Fund is classified as non-diversified, which means the Fund may invest a larger percentage of its assets in the securities of a smaller number of issuers than a diversified fund. Show less