Fund's portfolio holdings, and the extent to
which it concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of investing in the Fund.
The Shares will change in value, and you could lose money by investing in the Fund. The Fund may not achieve its investment objective.
Market Risk. Securities in the Underlying Index are subject to market fluctuations. You should anticipate that the value of the Shares will decline, more or less, in correlation with any
decline in value of the securities in the Underlying Index. Additionally, natural or environmental disasters,
widespread disease or other public health issues, war, military conflicts, acts of terrorism, economic
crises or other events could result in increased premiums or discounts to the Fund’s net asset value (“NAV”).
Index Risk.
Unlike many investment companies, the Fund does not utilize an investing strategy that seeks returns in excess of the Underlying Index. Therefore, the Fund would not necessarily buy or sell a security unless that security is added or removed,
respectively, from the Underlying Index, even if that security generally is underperforming. Additionally, the Fund rebalances its portfolio in accordance with the Underlying Index, and, therefore, any changes to the Underlying
Index’s rebalance schedule will result in corresponding changes to the Fund’s rebalance schedule.
Foreign Investment Risk. Investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S.
securities. Foreign securities may have relatively low market liquidity, greater market volatility,
decreased publicly available information and less reliable financial information about issuers, and inconsistent and potentially less stringent accounting, auditing and financial reporting requirements and standards of practice, including recordkeeping
standards, comparable to those applicable to domestic issuers. Foreign securities also are subject to the
risks of expropriation, nationalization, political instability or other adverse political or economic developments and the difficulty of enforcing obligations in other countries. Investments in foreign securities also may be subject to dividend withholding or confiscatory taxes,
currency blockage and/or transfer restrictions and higher transactional costs. To the extent the Fund
invests in securities denominated in foreign currencies, fluctuations in the value of the U.S. dollar
relative to the values of other currencies may adversely affect investments in foreign securities and may negatively impact the Fund’s returns.
From
time to time, certain companies in which the Fund invests may operate in, or have dealings with, countries subject to sanctions or embargoes imposed by the U.S. government and the United Nations and/or in countries the U.S. government identified as
state sponsors of terrorism. One or more of these companies may be subject to constraints under U.S. law or
regulations that could negatively affect the company’s performance. Additionally, one or more of these companies could suffer damage to its reputation if the market identifies it as a company that invests or deals with countries that the U.S. government
identifies as state sponsors of terrorism or subjects to sanctions.
Emerging Markets Investment Risk. Investments in the securities of issuers in emerging market countries involve risks often not associated with investments in the securities of issuers in
developed countries. Securities in emerging markets may be subject to greater price fluctuations than
securities in more developed markets. Companies in emerging market countries generally may be subject to
less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. In addition, information about such companies may be less available and reliable.
Emerging markets usually are subject to greater market volatility, political, social and economic instability, uncertainty regarding the existence of trading markets and more governmental limitations on foreign investment than are
more developed markets. Securities law in many emerging market countries is relatively new and unsettled.
Therefore, laws regarding foreign investment in emerging market securities, securities regulation, title to securities, and shareholder
rights may change quickly and unpredictably, and
the ability to bring and enforce actions, or to obtain information needed to pursue or enforce such
actions, may be limited. In addition, the enforcement of systems of taxation at federal, regional and local
levels in emerging market countries may be inconsistent and subject to sudden change. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures,
and lack of timely information. In addition, lack of relevant data and reliable public information,
including financial information, about securities in emerging markets may contribute to incorrect
weightings and data and computational errors when the Index Provider selects securities for inclusion in the Underlying Index or rebalances the Underlying Index.
Equity Risk. Equity risk is the risk that the value of equity securities, including common stocks, may fall due to both changes in general economic conditions that impact the market as a whole,
as well as factors that directly relate to a specific company or its industry. Such general economic
conditions include changes in interest rates, periods of market turbulence or instability, or general and prolonged periods of economic decline and cyclical change. It is possible that a drop in the stock market may depress the price of most or all of the
common stocks that the Fund holds. In addition, equity risk includes the risk that investor sentiment
toward one or more industries will become negative, resulting in those investors exiting their investments
in those industries, which could cause a reduction in the value of companies in those industries more broadly. The value of a company's common stock may fall solely because of factors, such as an increase in production costs, that
negatively impact other companies in the same region, industry or sector of the market. A company's common
stock also may decline significantly in price over a short period of time due to factors specific to that company, including decisions made by its management or lower demand for the company's products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated dividend payments, may depress
the value of common stock.
Mid-Capitalization Company Risk. Investing in securities of mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies' securities may be more volatile and less liquid
than those of more established companies and may have returns that vary, sometimes significantly, from the
overall securities market. Mid-capitalization companies tend to have less experienced management as well as limited product and market diversification and financial resources compared to larger capitalization companies. Often
mid-capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.
Geographic Concentration Risk. The Fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single country or a limited number of
countries. Adverse economic, political or social conditions in those countries may therefore have a significant negative impact on the Fund’s investment performance. For example, a natural or other disaster could occur in a
country or geographic region in which the Fund invests, which could affect the economy or particular
business operations of companies in that specific country or geographic region and adversely impact the
Fund’s investments in the affected region.
China Investment Risk. Investments in companies located or operating in Greater China (normally considered to be the geographical area that includes mainland China, Hong Kong, Macau and Taiwan) involve risks and considerations not typically
associated with investments in the U.S. and other Western nations, such as greater government control over
the economy; political, legal and regulatory uncertainty; nationalization, expropriation, or confiscation of property; lack of willingness or ability of the Chinese government to support the economies and markets of the Greater China
region; lack of publicly available information and difficulty in obtaining information necessary for
investigations into and/or litigation against Chinese companies, as