Strategy. The Morningstar Developed Markets ex-US Factor Tilt Index SM (the Underlying Index) is designed to reflect the performance of developed equity markets excluding the U.S. with increased exposure to size and value factors relative to the Morningstar Developed Markets ex-US Index (the Parent Index), a float-adjusted market-capitalization weighted index of companies incorporated in developed market countries, excluding the U.S. The Underlying Index seeks to achieve increased exposures to size and value factors, or a factor tilt, by adjusting the Parent Indexs constituent weights to achieve a slightly greater weight on companies with smaller market capitalizations or lower valuations, as determined by Morningstar, Inc. (the Index Provider), pursuant to its index methodology. The Underlying Index is designed to include companies with … Show more… The Morningstar Developed Markets ex-US Factor Tilt Index SM (the Underlying Index) is designed to reflect the performance of developed equity markets excluding the U.S. with increased exposure to size and value factors relative to the Morningstar Developed Markets ex-US Index (the Parent Index), a float-adjusted market-capitalization weighted index of companies incorporated in developed market countries, excluding the U.S. The Underlying Index seeks to achieve increased exposures to size and value factors, or a factor tilt, by adjusting the Parent Indexs constituent weights to achieve a slightly greater weight on companies with smaller market capitalizations or lower valuations, as determined by Morningstar, Inc. (the Index Provider), pursuant to its index methodology. The Underlying Index is designed to include companies with enhanced risk-return characteristics relative to the broader developed international equity market by featuring size and value risk premiums, which NTI believes have been historically demonstrated over a full market cycle. As of December 31, 2025 , the Underlying Index was comprised of 2,759 issues with market capitalizations ranging from $ 405.351 million to $ 420.029 billion. The Underlying Index is reconstituted on a semi-annual basis and is rebalanced quarterly. The Fund generally reconstitutes and rebalances its portfolio in accordance with the Underlying Index. NTI uses a passive or indexing approach to try to achieve the Funds investment objective. Unlike many investment companies, the Fund does not try to beat the index it tracks and does not seek temporary defensive positions when markets decline or appear overvalued. NTI uses a representative sampling strategy to manage the Fund. Representative sampling is investing in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index. The Fund reserves the right to invest in substantially all of the securities in its Underlying Index in approximately the same proportions (i.e., replication) if NTI determines that it is in the best interest of the Fund. Under normal circumstances, the Fund will invest at least 80% of its total assets (exclusive of collateral held from securities lending) in the securities of the Underlying Index and in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) (collectively Depositary Receipts) based on the securities in the Underlying Index. The Fund may also invest up to 20% of its assets in cash and cash equivalents, including shares of money market funds advised by NTI or its affiliates, futures contracts, options on futures contracts and forward currency contracts, as well as securities not included in the Underlying Index, but which NTI believes will help the Fund track its Underlying Index. The Underlying Index is sponsored by the Index Provider, an organization that is independent of the Fund and NTI. The Index Provider determines the composition and relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index. The Fund may lend securities representing up to one-third of the value of the Funds total assets (including the value of the collateral received). From time to time the Fund may focus its investments ( i.e., invest more than 15% of its total assets) in one or more particular countries or geographic regions. As of December 31, 2025 , the Fund focused its investments in Japan. Industry Concentration Policy. The Fund will concentrate its investments (i.e., hold 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. As of December 31, 2025, the Underlying Index was concentrated in the Financial sector. The components of the Underlying Index, and the degree to which these components represent certain industries or sectors, may change over time. Show less