DFGR

About DFGR

To achieve the Global 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, purchases a broadand diverse set of securities of U.S. and non-U.S. companies principally engaged in the real estate industry,including developed and emerging markets, with a particular focus on real estate investment trusts (“REITs”)and companies the Advisor considers to be REIT-like entities. The Portfolio invests in companies of allsizes. A company’s market capitalization is the number of its shares outstanding times its priceper share. Under a market capitalization weighted approach, companies with higher market capitalizationsgenerally represent a larger proportion of the Portfolio than companies with relatively lower marketcapitalizations. However, the Advisor may limit or fix the Portfolio’s exposure to a particularcountry or issuer. The Advisor may also adjust the representation in the Portfolio of an eligible company,or exclude 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. The Advisor also may limit or fix the Portfolio’sexposure to a particular country or issuer.As a non-fundamental policy, undernormal circumstances, at least 80% of the Portfolio’s net assets will be invested in securitiesof companies in the real estate industry. The Portfolio concentrates (i.e., invests more than 25% ofits 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 relatedloans or interests. The Portfolio also may invest in stapled securities, where one or more of the underlyingsecurities represents interests in a company or subsidiary in the real estate industry.ThePortfolio intends to purchase securities of companies associated with countries that the Advisor hasidentified as approved markets for investment for the Portfolio. The Portfolio intends to invest itsassets to gain exposure to at least three different countries, including the United States. (For a descriptionof the securities and countries approved for investment, see the “AdditionalInformation on Investment Objective and Policies—Approved Markets” sectionof the Prospectus). As of the date of the Prospectus, the Portfolio invests approximately 75% of itsnet assets in U.S. companies. This percentage will change due to market conditions.ThePortfolio may gain exposure to companies associated with approved markets by purchasing equity securitiesin the form of depositary receipts, which may be listed or traded outside the issuer’s domicilecountry. The Portfolio may purchase or sell futures contracts and options on futures contracts for equitysecurities and indices to increase or decrease equity market exposure based on actual or expected cashinflows to or outflows from the Portfolio.Because many of the Portfolio’sinvestments may be denominated in foreign currencies, the Portfolio may enter into foreign currency exchangetransactions, including foreign currency forward contracts, in connection with the settlement of foreignsecurities or to transfer cash balances from one currency to another currency.ThePortfolio 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.