Strategy. The Fund will normally invest at least 80% of its net assets (plus borrowings for investment purposes) in securities of the Index. Because the Index is comprised of securities issued by other investment companies (as opposed to operating companies), the Fund operates in a manner that is commonly referred to as a fund of funds, meaning that it invests its assets in shares of funds that are included in the Index. The Index seeks to measure the performance of the common stock (or its equivalent) of the top 60 U.S. exchange -listed closed -end funds (the Underlying Funds), as selected and ranked according to factors employed by the Index methodology that are designed to result in a portfolio that produces … Show more… The Fund will normally invest at least 80% of its net assets (plus borrowings for investment purposes) in securities of the Index. Because the Index is comprised of securities issued by other investment companies (as opposed to operating companies), the Fund operates in a manner that is commonly referred to as a fund of funds, meaning that it invests its assets in shares of funds that are included in the Index. The Index seeks to measure the performance of the common stock (or its equivalent) of the top 60 U.S. exchange -listed closed -end funds (the Underlying Funds), as selected and ranked according to factors employed by the Index methodology that are designed to result in a portfolio that produces high current income (the Methodology). The Index universe is not limited by the types of securities or other instruments in which an Underlying Fund may invest, nor the investment strategy an Underlying Fund may employ. Thus, the Underlying Funds may invest in a variety of securities including, but not limited to, equity securities (both dividend and non -dividend paying), foreign securities (including depositary receipts), taxable investment grade fixed income securities, investment grade municipal securities, taxable high yield fixed income securities and high yield municipal securities (commonly referred to as junk bonds), preferred securities, convertible securities, commodities, real -estate related securities, including real estate investment trusts (REITs), and derivatives. The Underlying Funds may employ different investment strategies including, but not limited to, dividend strategies, global and international strategies, covered call option strategies, balanced strategies, limited duration strategies, tax and risk -managed strategies, sector strategies, real estate, energy, utility, commodity, natural resources and other equity or income -oriented strategies. The initial Index universe begins with all closed -end funds whose shares are listed and trade on one of the following U.S. securities exchanges: the Nasdaq Stock Market , the New York Stock Exchange, NYSE American, or the CBOE Exchange. From this initial universe, eligible constituents are then considered for inclusion based on its respective Tier classification, with funds qualifying as either a Tier 1 Fund or Tier 2 Fund. To be considered a Tier 1 Fund, a fund must meet the following criteria: have net assets of at least $500 million; have a six -month average daily traded value of at least $1 million; have a fund yield that is greater than or equal to 1.2 times the median fund yield of dividend -paying funds within the closed -end fund universe; have a trading price differential to NAV ( i.e. , a trading price premium or discount to NAV) that is not in the top 25 th percentile of the closed -end fund universe (with funds with premiums and smaller discounts rated more highly than those with larger discounts); and have an expense ratio that is less than or equal to 6%. To be considered a Tier 2 Fund, a fund must meet the following criteria: have net assets of at least $250 million; have a fund average daily traded value of at least $800,000; have a fund yield that is greater than or equal to the median fund yield of dividend -paying funds within the closed -end fund universe; have a trading price differential to NAV that is not in the top 10 th percentile of the closed -end fund universe; and have an expense ratio that is less than or equal to 6%. A combined rank score for each eligible Index constituent is then calculated based on the following criteria and calculated in accordance with the Index methodology: fund yield (descending); fund trading premium/discount (ascending); and fund average daily traded value (descending). Each fund is then assigned an overall rank based on its combined rank score. The Index selects the Tier 1 Funds with a rank of 1 through 60. However, if fewer than 60 Tier 1 Funds are selected, the Index includes the Tier 2 Funds with the best overall rank not already selected as Tier 1 Funds until the Index either reaches a total of 60 constituents or the list of eligible Tier 2 Funds is exhausted. While the Index seeks to have 60 components, that number is a maximum limit and not a fixed target. Index constituents are weighted according to a modified fund -yield weighted methodology. The initial Index weights are determined as follows: the top 30 Underlying Funds as determined by ranking Fund Yield in descending order are each assigned a weight of 3%; and all remaining Underlying Funds are given equal weights such that the combined weights add up to 100%. Initial weights are adjusted at the semi -annual rebalance to comply with the following ongoing maximum weight constraints: no constituent may exceed 3.5%; no constituent outside the top 30 may exceed 2%; no constituent may exceed the ratio of 10 days of a constituents fund average daily traded value divided by 110% of the Funds net assets; and no constituent may exceed the ratio of 2.7% of a constituents net assets divided by 100% of the Funds net assets. The Index weight adjustment is conducted such that any excess weight from a constituent exceeding its max weight is redistributed proportionally to other eligible constituents. The Index is rebalanced and reconstituted semi -annually , effective on the trading day following the third Friday in January and July. The rebalance and reconstitution of the Index is conducted using reference data as of the third Friday of the month prior (December and June, respectively). The Index but may be adjusted more frequently for specific corporate events, as detailed in the Methodology. The Index is unmanaged and cannot be invested in directly. The Fund employs a passive management investment strategy in seeking to achieve its investment objective. The Fund generally will use a replication methodology, meaning it will invest in all of the Underlying Funds comprising the Index in proportion to the weightings in the Index. However, the Fund may utilize a sampling methodology under various circumstances where it may not be possible or practicable to purchase all of the Underlying Funds in the Index. Diversification Status. The Fund is classified as a diversified company under the Investment Company Act of 1940, as amended (the 1940 Act). Show less