Strategy. The Fund employs a passive management or indexing investment approach designed to track the performance of the Index. The Vident U.S. Quality Index TM The Index is a rules-based, systematic strategy index comprised of equity securities principally traded in the U.S. market of issuers domiciled in the United States. The starting universe of eligible companies in the Index consists of U.S.-listed common stock of U.S. companies with market capitalizations of at least $100 million. Companies eligible for inclusion must also meet certain minimum liquidity requirements. The companies remaining in the Index universe are placed into one of three market capitalization segments: Giant (companies in the top 40% by market capitalization at the time of purchase), Large (companies in the top … Show more… The Fund employs a passive management or indexing investment approach designed to track the performance of the Index. The Vident U.S. Quality Index TM The Index is a rules-based, systematic strategy index comprised of equity securities principally traded in the U.S. market of issuers domiciled in the United States. The starting universe of eligible companies in the Index consists of U.S.-listed common stock of U.S. companies with market capitalizations of at least $100 million. Companies eligible for inclusion must also meet certain minimum liquidity requirements. The companies remaining in the Index universe are placed into one of three market capitalization segments: Giant (companies in the top 40% by market capitalization at the time of purchase), Large (companies in the top 40-70% range by market capitalization at the time of purchase) and SMID (also known as small/mid-capitalization companies, which are the remaining companies in the bottom 30% of the Index universe). Companies are assessed across a variety of proprietary corporate governance criteria with risks flagged. The number of flagged risks are summed to form a companys Corporate Governance Score. Companies with lower Corporate Governance Scores receive lower potential allocations. The proprietary corporate governance criteria are broadly designed to identify issues relating to board structure, incentives alignment, and shareholder rights. At the time of each semi-annual reconstitution, the Index employs a multi-factor model for scoring and ranking stocks based on certain quality and momentum factors, and the stocks in the Index are weighted based on these factors and subject to certain adjustments and limitations, including the following constraints: the maximum allocation to a Giant market-capitalization company is 2%; the maximum allocation to a Large market-capitalization company is 1%; and the maximum allocation to a SMID market-capitalization company is 0.5%. The Indexs allocation and weighting to a company is subject to certain liquidity thresholds. All companies eligible for inclusion receive an initial weight of 0.10%, and then the maximum weighting by market-capitalization segment is applied. Further adjustments are then made based on the companys Corporate Governance Score and the companys quality and momentum attributes, as described below. The Indexs maximum allocation to a company may be adjusted downward by as much as 100% based on the companys Corporate Governance Score ( i.e. , the Index uses the Corporate Governance Score to reduce potential weightings to companies with less favorable rankings relative to their market segment peers). The Indexs maximum allocation to a company may be increased by 25% if that company ranks in the top 25th percentile within its market-capitalization segment ( e.g. , if a companys initial allocation is 2%, then the allocation would be 2.5%). The Indexs allocation to a market cap segment, at the time of the semi-annual reconstitution, will be within 5% of the initial cap weighted universes allocation to that segment. A companys weighting is further adjusted by considering the companys quality and momentum attributes, based on a proprietary multi-factor model for scoring and ranking stocks. The model combines factors into two distinct factor composites, each seeking to score different stock attributes. These factor composites can be broadly categorized into the following groupings: quality and momentum. For stocks in the Giant and Large market cap segment, quality is defined as profitability and profitability growth. The components account for current and historical gross profits, return on invested capital, cash flows, and margins of companies in each segment. For stocks in SMID market cap segment, two additional composites are utilized: cost of capital and use of capital. These composites account for characteristics such as leverage, credit strength, debt, and equity issuance. All rules are systematized and rely on data available at the end of each rebalancing period. The Index is reconstituted and rebalanced semi-annually in February and August. As of November 28, 2025, the Index was comprised of 122 component securities and had significant exposure to the information technology, financials, industrials, and health care sectors. The Index was created on November 30, 2022, by Vident Financial, LLC, the former parent company of Vident Asset Management (Vident or the Adviser) for use by the Fund. The Adviser now also serves as the Funds index provider. The Funds Investment Strategy Under normal circumstances, at least 80% of the net assets, plus borrowings for investment purposes, of the Fund will be invested in equity securities that are principally traded in the United States. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund will generally use a replication strategy to achieve its investment objective, meaning it may invest in all of the component securities of the Index, but may, when the adviser believes it is in the best interests of the Fund, 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. Vident, the Funds investment adviser, expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better. To the extent the Index concentrates ( i.e. , holds more than 25% of its total assets) in the securities of a particular industry or group of related industries, the Fund will concentrate its investments to approximately the same extent as the Index. Show less