MAGQ

About MAGQ

The Fund seeks daily leveraged investmentresults, before fees and expenses, that correspond to two times the inverse (-2X) of the performance of the Magnificent Seven ETF overa single trading day. The Fund does not seek to achieve its stated investment objective for a period of time different than a tradingday. The terms “daily,” “day,” and “trading day,” refer to the period from the close of the marketson one trading day to the close of the markets on the next trading day. The Magnificent Seven ETF is anactively managed ETF that seeks, as its investment objective, the growth of capital. Roundhill Financial Inc. (“Roundhill”or the “Adviser”) serves as the investment adviser to Magnificent Seven ETF, as well as serving as investment adviser to theFund. The Magnificent Seven ETF offers exposure to, in equal weight following each rebalance, the seven stocks commonly referred to as“Magnificent Seven.” It is currently anticipated that the Magnificent Seven ETF’s holdings will not change over thecourse of the year. However, in the event that different securities are understood to comprise the “Magnificent Seven,” theMagnificent Seven ETF’s portfolio may change to reflect that understanding. As of February 28, 2024, the Magnificent SevenETF’s portfolio was composed of the following securities: Alphabet Inc., Amazon.com, Inc., Apple Inc., Meta Platforms, Inc., MicrosoftCorporation, NVIDIA Corporation and Tesla Inc. At each portfolio rebalance, the Adviser equally weights each security. In seeking to achieve its investmentobjective, the Fund will invest in derivatives instruments, such as swap agreements and futures contracts, that provide exposure to thereturns of the Magnificent Seven ETF. Such derivative instruments may provide the desired exposure by utilizing one or more of the followingas their reference asset: (i) the Magnificent Seven ETF; (2) a basket of or the individual securities comprising the Magnificent SevenETF; or (3) an index of securities that is substantially similar to the holdings of the Magnificent Seven ETF. The Fund will attempt to achieveits investment objective without regard to overall market movement or the increase or decrease of the value of the Magnificent Seven ETF.At the close of the markets each trading day, Roundhill rebalances the Fund’s portfolio so that its exposure to the MagnificentSeven ETF is consistent with the Fund’s investment objective. The impact of the Magnificent Seven ETF’s movements during theday will affect whether the Fund’s portfolio needs to be re-positioned. For example, if the value of the Magnificent Seven ETF hasincreased on a given day, net assets of the Fund should decrease, meaning that the Fund’s exposure will need to be decreased. Conversely,if the Magnificent Seven ETF has decreased in value on a given day, net assets of the Fund should increase, meaning the Fund’s exposurewill need to be increased. This re-positioning strategy typically results in high portfolio turnover. On a day-to-day basis, the Fundis expected to hold ETFs and money market funds, deposit accounts with institutions with high quality credit ratings, and/or short-termdebt instruments that have terms-to-maturity of less than 397 days and exhibit high quality credit profiles, including U.S. governmentsecurities and repurchase agreements. The Fund seeks to remain fully investedat all times, consistent with its stated investment objective, but may not always have precise exposure to the Magnificent Seven ETF (forinstance, if the Fund holds derivatives contracts that reference the securities held by the Magnificent Seven ETF or an index of securitiesthat is substantially similar to the holdings of the Magnificent Seven ETF). While the Fund’s exposure would be substantially similarto direct exposure to the Magnificent Seven ETF, the basket of securities or index it uses as the reference asset may assign slightlydifferent weights to the stocks comprising the Magnificent Seven ETF. The Fund will concentrate its investments(i.e., hold 25% or more of its total assets in the stocks of a particular industry or group of industries) in the industry or groupof industries comprising the information technology sector. The Fund is classified as “non-diversified”under the Investment Company Act of 1940 (the “1940 Act”). Because of daily rebalancingand the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the resultof each day’s returns compounded over the period, which will very likely differ from -2X of the return of the Magnificent SevenETF over the same period. The Fund will lose money if the Magnificent Seven ETF’s performance is flat over time, and as a resultof daily rebalancing, the Magnificent Seven ETF’s volatility and the effects of compounding, it is even possible that the Fund willlose money over time while the Magnificent Seven ETF’s performance decreases over a period longer than a single day.