DIHP

About DIHP

To achieve the International High Profitability ETF’sinvestment objective, the Advisor implements an integrated investment approach that combines research,portfolio design, portfolio management, and trading functions. As further described below, the Portfolio’sdesign emphasizes long-term drivers of expected returns identified by the Advisor’s research, whilebalancing risk through broad diversification across companies, sectors, and countries. The Advisor’sportfolio management and trading processes further balance those long-term drivers of expected returnswith shorter-term drivers of expected returns and trading costs.The Portfolio is designedto purchase securities of large non-U.S. companies that the Advisor determines to have high profitabilityrelative to other large capitalization companies in the same country or region, at the time of purchase.An equity issuer is considered to have high profitability because it has high earnings or profits fromoperations in relation to its book value or assets. The Portfolio may emphasizecertain stocks, including smaller capitalization companies, lower relative price stocks, and/or higherprofitability stocks as compared to their representation in the large-cap high profitability segmentsof developed non-U.S. markets. The Portfolio’s increased exposure to such stocks may be achievedby overweighting and/or underweighting eligible stocks based on their market capitalization, relativeprice, and/or profitability characteristics. An equity issuer is considered to have a low relative price(i.e., a value stock) primarily because it has a low price in relation to its book value. In assessingrelative price, the Advisor may consider additional factors such as price to cash flow or price to earningsratios. The criteria the Advisor uses for assessing relative price and profitability are subject to changefrom time to time.The Portfolio intends to purchase securities of large non-U.S.companies associated with developed market countries that the Advisor has designated as approved markets.As a non-fundamental policy, under normal circumstances, the Portfolio will invest at least 80% of itsnet assets in securities of companies in the particular non-U.S. markets in which the Portfolio invests.The Advisor determines the minimum market capitalization of a large company with respect to each countryor region in which the Portfolio invests. Based on market capitalization data as of December 31, 2024,the market capitalization of a large company in any country or region in which the Portfolio investswould be $1,331 million or above. This threshold will vary by country or region. For example, based onmarket capitalization data as of December 31, 2024, the Advisor considered a large company in the EuropeanEconomic and Monetary Union (the “EMU“) to have a market capitalization of at least $8,786million, a large company in Norway to have a market capitalization of at least $1,602 million and a largecompany in Switzerland to have a market capitalization of at least $8,729 million. These thresholds willchange due to market conditions.The Advisor may also increase or reducethe Portfolio’s exposure to an eligible company, or exclude a company, based on shorter-term considerations,such as a company’s price momentum and short-run reversals. In addition, the Advisor seeks to reducetrading costs using a flexible trading approach that looks for opportunities to participate in the availablemarket liquidity, while managing turnover and explicit transaction costs.ThePortfolio may gain exposure to companies in an approved market by purchasing equity securities in theform of depositary receipts, which may be listed or traded outside the issuer’s domicile country,or by entering into equity swap agreements. The Portfolio also may purchase or sell futures contractsand options on futures contracts for foreign and U.S. equity securities and indices to increase or decreaseequity market exposure based on actual or expected cash inflows to or outflows from the Portfolio. Becausemany of the Portfolio’s investments may be denominated in foreign currencies, the Portfolio mayenter into foreign currency exchange transactions, including foreign currency forward contracts, in connectionwith the settlement of a foreign securities or to transfer cash balances from one currency to anothercurrency.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.