Strategy. The Fund normally invests at least 80% of its total assets in securities that comprise the Funds benchmark index. For purposes of this policy, the term assets means net assets plus the amount of any borrowings for investment purposes. The Morningstar US Small-Mid Cap Moat Focus Index is comprised of small- and medium-capitalization companies as defined by Morningstar, Inc. (Morningstar or the Index provider), that Morningstar determines have sustainable competitive advantages based on a proprietary methodology that considers quantitative and qualitative factors (wide and narrow moat companies). The quantitative factors used by Morningstar to identify competitive advantages currently include historical and projected returns on invested capital relative to cost of capital. The qualitative factors used by Morningstar to identify competitive … Show more… The Fund normally invests at least 80% of its total assets in securities that comprise the Funds benchmark index. For purposes of this policy, the term assets means net assets plus the amount of any borrowings for investment purposes. The Morningstar US Small-Mid Cap Moat Focus Index is comprised of small- and medium-capitalization companies as defined by Morningstar, Inc. (Morningstar or the Index provider), that Morningstar determines have sustainable competitive advantages based on a proprietary methodology that considers quantitative and qualitative factors (wide and narrow moat companies). The quantitative factors used by Morningstar to identify competitive advantages currently include historical and projected returns on invested capital relative to cost of capital. The qualitative factors used by Morningstar to identify competitive advantages currently include customer switching cost ( i.e. , the costs of customers switching to competitors), internal cost advantages, intangible assets ( e.g. , intellectual property and brands), network effects ( i.e. , whether products or services become more valuable as the number of customers grows) and efficient scale ( i.e. , whether the company effectively serves a limited market that potential rivals have little incentive to enter into). Wide moat companies are those that Morningstar believes will maintain their competitive advantage(s) for at least 20 years. Narrow moat companies are those that Morningstar believes will maintain their competitive advantage(s) for at least 10 years. Wide and narrow moat companies are selected from the universe of companies represented in the Morningstar US Small-Mid Cap Index SM (the Parent Index), a broad market index representing small- and medium-capitalization U.S. companies (which are defined by Morningstar as those between the 70% and 97% market capitalization range of the eligible universe of companies). For purposes of the Parent Index, Morningstar considers those companies in the bottom 70% - 90% of total U.S. market cap to be medium-capitalization companies and those companies in the bottom 90% - 97% to be small-capitalization companies. The Index targets a select group of equity securities of wide and narrow moat companies, which are those companies that, according to Morningstars equity research team, are attractively priced based on pre-defined factors as of each index review. Morningstar utilizes a momentum screen, in which momentum represents a securitys 12-month price change. A momentum signal is used to exclude 20% of the wide and narrow moat stocks in the Parent Index with the worst 12-month momentum based on a 12-month price change of each stock. Out of the companies in the Parent Index that Morningstar determines are wide or narrow moat companies and display 12-month momentum in the top 80%, Morningstar selects companies to be included in the Index as determined by the ratio of the issuers common stock price to Morningstars estimate of fair value. Morningstars fair value estimates are calculated using standardized, proprietary valuation models. The Funds 80% investment policy is non-fundamental and may be changed without shareholder approval upon 60 days prior written notice to shareholders. As of December 31, 2025, the US Small-Mid Cap Moat Focus Index included 106 securities of companies with a full market capitalization range of between approximately $4.30 billion and $83.08 billion and a weighted average full market capitalization of $25.70 billion. These amounts are subject to change. The Morningstar US Small-Mid Cap Moat Focus Index is divided into two equally-weighted sub-portfolios, and each is reconstituted and rebalanced semi-annually on alternating quarters. The Fund, using a passive or indexing investment approach, attempts to approximate the investment performance of the Morningstar US Small-Mid Cap Moat Focus Index by investing in a portfolio of securities that generally replicates the Morningstar US Small-Mid Cap Moat Focus Index. Unlike many investment companies that try to beat the performance of a benchmark index, the Fund does not try to beat the Morningstar US Small-Mid Cap Moat Focus Index and does not seek temporary defensive positions that are inconsistent with its investment objective of seeking to track the Morningstar US Small-Mid Cap Moat Focus Index. The Fund may become non-diversified as defined under the Investment Company Act of 1940, as amended (the Investment Company Act of 1940), solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the Morningstar US Small-Mid Cap Moat Focus Index. This means that the Fund may invest a greater percentage of its assets in a limited number of issuers than would be the case if the Fund were always managed as a diversified management investment company. The Fund intends to be diversified in approximately the same proportion as the Morningstar US Small-Mid Cap Moat Focus Index. Shareholder approval will not be sought when the Fund crosses from diversified to non-diversified status due solely to a change in the relative market capitalization or index weighting of one or more constituents of the Morningstar US Small-Mid Cap Moat Focus Index. The Fund may concentrate its investments in a particular industry or group of industries to the extent that the Morningstar US Small-Mid Cap Moat Focus Index concentrates in an industry or group of industries. As of September 30, 2025, each of the industrials, information technology, consumer discretionary and health care sectors represented a significant portion of the Fund. Show less