Strategy. The Aggressive ETF 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 Aggressive ETFs 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 … Show more… The Aggressive ETF 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 Aggressive ETFs 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 Aggressive ETF will invest in Sector and Aggressive Equity Underlying ETFs, as well as in Core Equity Underlying ETFs. Sector and Aggressive Equity Underlying ETFs may invest in more concentrated portfolios or in small-cap, mid-cap, or less-seasoned companies, or in commodities such as precious metals, or in real estate, or may make significant use of complex investment techniques, such as leverage, short sales and margin. They may also include the use of derivative securities such as options, futures and swap contracts for hedging and/or speculative purposes. The Aggressive ETF will not take direct exposure in derivative instruments. Sector and Aggressive Equity Underlying ETFs may be riskier than Core Equity Underlying ETFs, but may provide the potential for higher reward. Sector and Aggressive Equity Underlying ETFs allow the Aggressive ETF to participate in more specialized stock market leadership trends, such as rotations between specific sectors or within emerging markets. The Aggressive ETF is not limited in the amount of its assets it holds in Underlying ETFs that focus on emerging markets. The Aggressive ETF may also invest 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 Funds allow the Fund to participate in broader stock market leadership trends, such as rotation between value and growth stocks, small- and large-cap stocks, and domestic and international stocks. The Aggressive ETF may purchase, without limit, shares of Underlying ETFs that invest in domestic, international and global securities. The Aggressive 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