DFAR

About DFAR

To achieve the US Real Estate ETF’s investment objective,the Advisor implements an integrated investment approach that combines research, portfolio design, portfoliomanagement, and trading functions.The Portfolio, using a market capitalization weighted approach, will concentrateinvestments in readily marketable equity securities of companies whose principal activities include ownership,management, development, construction, or sale of residential, commercial or industrial real estate.The Portfolio will principally invest in equity securities of companies in certain real estate investmenttrusts (“REITs”) and companies engaged in residential construction and firms, except partnerships,whose principal business is to develop commercial property. The Portfolio invests in companies of allsizes. A company’s market capitalization is the number of its shares outstanding times its price pershare. Under a market capitalization weighted approach, companies with higher market capitalizationsgenerally represent a larger proportion of the Portfolio than companies with relatively lower marketcapitalizations. The Advisor may adjust the representation in the Portfolio of an eligible company, orexclude a company, after considering such factors as free float, price momentum, short-run reversals,trading strategies, liquidity, size, relative price, profitability, and other factors that the Advisordetermines to be appropriate. An equity issuer is considered to have a low relative price (i.e., a valuestock) primarily because it has a low price in relation to its book value. In assessing relative price,the Advisor may consider additional factors such as price to cash flow or price to earnings ratios. Anequity issuer is considered to have high profitability because it has high earnings or profits from operationsin relation to its book value or assets. The criteria the Advisor uses for assessing relative price andprofitability are subject to change from time to time.As a non-fundamental policy,under normal circumstances, at least 80% of the Portfolio’s net assets will be invested in securitiesof U.S. companies in the real estate industry. The Portfolio concentrates (i.e., invests more than 25%of its net assets) its investments in securities of companies in the real estate industry. The Portfoliogenerally considers a company to be principally engaged in the real estate industry if the company (i)derives at least 50% of its revenue or profits from the ownership, management, development, construction,or sale of residential, commercial, industrial, or other real estate; (ii) has at least 50% of the valueof its assets invested in residential, commercial, industrial, or other real estate; or (iii) is organizedas a REIT or REIT-like entity. REITs and REIT-like entities are types of real estate companies that poolinvestors’ funds for investment primarily in income producing real estate or real estate related loansor interests. The Portfolio will make equity investments in securities listed on a securities exchangein the United States that is deemed appropriate by the Advisor.The Portfolio may purchaseor sell futures contracts and options on futures contracts for U.S. equity securities and indices toincrease or decrease equity market exposure based on actual or expected cash inflows to or outflows fromthe Portfolio.The Portfolio may lend its portfolio securities to generate additional income.ThePortfolio is an actively managed exchange-traded fund and does not seek to replicate the performanceof a specific index and may have a higher degree of portfolio turnover than such index funds.