Strategy. The FundX ETF is a fund-of-funds and as such invests primarily in exchange traded funds (ETFs) (Underlying ETFs). The Underlying ETFs, in turn, invest primarily in individual securities such as common stocks. Because markets change, the Advisor manages the Funds portfolio using an active investment strategy called Upgrading, which seeks to capture global market trends. The Advisor invests in the Underlying ETFs that it considers to be in sync with current market leadership. The Advisor sells an Underlying ETF when it believes that the Underlying ETF is no longer performing in sync with current market leadership or if a new Underlying ETF is judged more attractive than a current holding. The Advisor classifies the pool of Underlying ETFs into five … Show more… The FundX ETF is a fund-of-funds and as such invests primarily in exchange traded funds (ETFs) (Underlying ETFs). The Underlying ETFs, in turn, invest primarily in individual securities such as common stocks. Because markets change, the Advisor manages the Funds portfolio using an active investment strategy called Upgrading, which seeks to capture global market trends. The Advisor invests in the Underlying ETFs that it considers to be in sync with current market leadership. The Advisor sells an Underlying ETF when it believes that the Underlying ETF is no longer performing in sync with current market leadership or if a new Underlying ETF is judged more attractive than a current holding. The Advisor classifies the pool of Underlying ETFs into five risk/return categories, listed here from what it perceives to have the highest to lowest risk: Sector Equity (including single-country Emerging Markets) Underlying ETFs Aggressive Equity Underlying ETFs Core Equity Underlying ETFs Total Return Underlying ETFs Bond Underlying ETFs Under normal market conditions, the FundX ETF will invest predominantly in Core Equity Underlying ETFs, which generally invest in diversified portfolios of equity securities of well-established U.S. and foreign companies with a wide range of market capitalizations. Core Equity Underlying ETFs may also invest in fixed income securities. Core Equity Underlying ETFs allow the Fund to participate in broad market leadership trends, such as the rotation between growth and value stocks, large- and small-cap stocks, and international and domestic stocks. The FundX ETF may purchase, without limit, shares of Underlying ETFs that invest in domestic, international and global securities. To a lesser extent the FundX ETF may also invest a portion of its assets in Sector and Aggressive Equity Underlying ETFs, which may invest in more concentrated portfolios or in small-cap, mid-cap or less-seasoned companies, or may make significant use of complex investment techniques, such as leverage, short sales and margin. Sector and Aggressive Equity Underlying ETFs may be riskier than Core Equity Underlying ETFs, but may hold the potential for higher reward. Sector and Aggressive Equity Funds allow the Fund to participate in more specialized stock market leadership trends, such as rotations between specific sectors or within emerging markets. The FundX ETF may hold up to 50% of its assets in Underlying ETFs that focus on emerging markets. The FundX ETF may engage in securities lending activities to increase its income. See More about the Funds Investment Objectives, Strategies and Risks The Advisors Process for Classifying the Underlying ETFs for more information on this system. Show less