DISV

About DISV

To achieve the International Small Cap Value ETF’s investmentobjective, the Advisor implements an integrated investment approach that combines research, portfoliodesign, portfolio management, and trading functions. As further described below, the Portfolio’s design emphasizes long-term driversof expected returns identified by the Advisor’s research, while balancing risk through broad diversificationacross companies, sectors, and countries. The Advisor’s portfolio management and trading processesfurther balance those long-term drivers of expected returns with shorter-term drivers of expected returnsand trading costs.The Portfolio, using a market capitalization weighted approach,is designed to purchase securities of small, non-U.S. companies in countries with developed markets thatthe Advisor determines to be lower relative price stocks at the time of purchase. A company’s marketcapitalization is the number of its shares outstanding times its price per share. Under a market capitalizationweighted approach, companies with higher market capitalizations generally represent a larger proportionof the Portfolio than companies with relatively lower market capitalizations. The Portfolio may emphasizecertain stocks, including smaller capitalization companies, lower relative price stocks, and/or higherprofitability stocks as compared to their representation in the small-cap value segment of developednon-U.S. markets. An equity issuer is considered to have a low relative price (i.e., a value stock) primarilybecause it has a low price in relation to its book value. In assessing relative price, the Advisor mayconsider additional factors such as price to cash flow or price to earnings ratios. An equity issueris considered to have high profitability because it has high earnings or profits from operations in relationto its book value or assets. The criteria the Advisor uses for assessing relative price and profitabilityare subject to change from time to time.The Portfolio intends to purchase securitiesof small value companies associated with developed market countries that the Advisor has designated asapproved markets. As a non-fundamental policy, under normal circumstances, the Portfolio will investat least 80% of its net assets in securities of small companies in the particular markets in which itinvests. The Advisor determines the maximum market capitalization of a small company with respect toeach country in which the Portfolio invests. In the countries or regions authorized for investment, theAdvisor first ranks eligible companies listed on selected exchanges based on the companies’ marketcapitalizations. The Advisor then determines the universe of eligible securities by defining the maximummarket capitalization of a small company that may be purchased by the Portfolio with respect to eachcountry or region. Based on market capitalization data as of December 31, 2024, for the Portfolio, themarket capitalization of a small company in any country in which the Portfolio invests would be below$8,786 million. This threshold will vary by country or region. For example, based on market capitalizationdata as of December 31, 2024, the Advisor would consider a small company in Switzerland to have a marketcapitalization below $8,729 million, a small company in Norway to have a market capitalization below$1,602 million, and a small company in Japan to have a market capitalization below $2,434 million. Thesethresholds will change due to market conditions.The Advisor may also increaseor reduce the Portfolio’s exposure to an eligible company, or exclude a company, based on shorter-termconsiderations, such as a company’s price momentum, short-run reversals, and investment characteristics.In assessing a company’s investment characteristics, the Advisor considers ratios such as recentchanges in assets divided by total assets. The criteria the Advisor uses for assessing a company’sinvestment characteristics are subject to change from time to time. In addition, the Advisor seeks toreduce trading costs using a flexible trading approach that looks for opportunities to participate inthe available market liquidity, while managing turnover and explicit transaction costs.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, or by entering into equity swap agreements. The Portfolio also may purchase or sell futurescontracts and options on futures contracts for foreign and U.S. equity securities and indices to increaseor decrease equity market exposure based on actual or expected cash inflows to or outflows from the Portfolio.Because many of the Portfolio’s investments may be denominated in foreign currencies, the Portfoliomay enter into foreign currency exchange transactions, including foreign currency forward contracts,in connection with the settlement of a foreign securities or to transfer cash balances from one currencyto another currency.The Portfolio may lend its portfolio securities to generateadditional income.The Portfolio is an actively managed exchange-traded fundand does not seek to replicate the performance of a specific index and may have a higher degree of portfolioturnover than such index funds.