MARKET RISK. Market risk is the risk that a particular security, or shares of the Fund in general, may fall in value. Securities are subject
to market fluctuations caused by such factors as economic, political, regulatory or market developments, changes in interest
rates and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments. In
addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues,
recessions, or other events could have a significant negative impact on the Fund and its investments. For example, the coronavirus disease
2019 (COVID-19) global pandemic and the aggressive responses taken by many governments, including closing borders, restricting
international and domestic travel, and the imposition of prolonged quarantines or similar restrictions, had negative impacts,
and in many cases severe impacts, on markets worldwide. While the development of vaccines has slowed the spread of the virus and
allowed for the resumption of reasonably normal business activity in the United States, many countries continue to impose lockdown
measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants
of the disease. As this global pandemic illustrated, such events may affect certain geographic regions, countries, sectors and industries
more significantly than others. These events also adversely affect the prices and liquidity of the Fund’s portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact
on the value of the Fund’s shares and result in increased market volatility. During any such events, the Fund’s shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on the Fund’s shares may widen.
OPERATIONAL RISK. The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of the Fund’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. The Fund relies on third-parties for a range of services, including custody.
Any delay or failure relating to engaging or maintaining such service providers may affect the Fund’s ability to meet its investment objective. Although the Fund and the Fund's investment advisor seek to reduce these operational risks through controls and procedures, there is
no way to completely protect against such risks.
PORTFOLIO TURNOVER RISK. High portfolio turnover may result in the Fund paying higher levels of transaction costs and may generate greater tax liabilities for shareholders. Portfolio turnover risk may cause the Fund’s performance to be less than expected.
PREMIUM/DISCOUNT RISK. The market price of the Fund’s shares will generally fluctuate in accordance with changes in the Fund’s net asset value as well as the relative supply of and demand for shares on the Exchange. The Fund’s investment advisor cannot predict whether shares will trade below, at or above their net asset value because the shares trade on the Exchange at market prices
and not at net asset value. Price differences may be due, in large part, to the fact that supply and demand forces at work in the
secondary trading market for shares will be closely related, but not identical, to the same forces influencing the prices of the holdings
of the Fund trading individually or in the aggregate at any point in time. However, given that shares can only be purchased and redeemed
in Creation Units, and only to and from broker-dealers and large institutional investors that have entered into participation agreements
(unlike shares of closed-end funds, which frequently trade at appreciable discounts from, and sometimes at premiums to, their net
asset value), the Fund’s investment advisor believes that large discounts or premiums to the net asset value of shares should not be sustained. During stressed market conditions, the market for the Fund’s shares may become less liquid in response to deteriorating liquidity in the market for the Fund’s underlying portfolio holdings, which could in turn lead to differences between the market price of the Fund’s shares and their net asset value and the bid/ask spread on the Fund’s shares may widen.
PREPAYMENT RISK. Prepayment risk is the risk that the issuer of a debt security will repay principal prior to the scheduled maturity date. Debt securities allowing prepayment may offer less potential for gains during a period of declining interest rates,
as the Fund may be required to reinvest the proceeds of any prepayment at lower interest rates. These factors may cause the value of an
investment in the Fund to change.
REPURCHASE AGREEMENT RISK. A repurchase agreement is an agreement to purchase a security from a party at one price and a simultaneous agreement to sell it back to the original party at an agreed-upon price, typically representing the purchase
price plus interest. Repurchase agreements are subject to the risk of failure. If the Fund's counterparty defaults on its obligations
and the Fund is delayed or prevented from recovering the collateral, or if the value of the collateral is insufficient, the Fund may realize
a loss.
SHORT SALES RISK. In connection with a short sale of a security or other instrument, the Fund is subject to the risk that instead of declining, the price of the security or other instrument sold short will rise. If the price of the security or other instrument
sold short increases between the date of the short sale and the date on which the Fund replaces the security or other instrument borrowed
to make the short sale, the Fund will experience a loss, which is theoretically unlimited since there is a theoretically unlimited
potential for the market price of a security or other instrument sold short to increase. In addition, as a series of an investment company
registered under the 1940 Act, the Fund must segregate liquid assets, or engage in other measures to “cover” open positions with respect to short sales. The Fund may nonetheless incur significant losses on short sales even if they are covered.
SIGNIFICANT EXPOSURE RISK. To the extent that the Fund invests a significant percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political
development may affect the value of the Fund’s investments more than if the Fund were more broadly diversified. A significant exposure makes the Fund more susceptible to any single occurrence and may subject the Fund to greater market risk than a fund that is more broadly
diversified.