USDU

About USDU

The Fund is an actively managed exchange-traded fund (“ETF”)that seeks to provide total returns, before fees and expenses, that exceed the performance of the Index. The Index is structured to potentiallybenefit as the U.S. dollar appreciates relative to a basket of global currencies. The Index tracks a long position in the U.S. dollarmeasured against a basket of developed and emerging market currencies which (i) have the highest liquidity in the currency markets and(ii) represent countries that make the largest contribution to trade flows with the United States. The Index also incorporates levelsand differences in short-term interest rates between the U.S. and the countries (or regions) represented by the foreign currencies. Toimplement its methodology, the Index combines a basket of one-month currency forward contracts between the U.S. dollar and the individualconstituent currencies of the Index and a U.S. dollar cash component invested at the 4-week Treasury Bill funding rate. The Fund will seek exposure to both the U.S. dollar and global currenciesheld by the Index through investing, under normal circumstances, at least 80% of its assets in money market securities and other liquidsecurities, such as short-term investment grade government and corporate debt securities, combined with currency forward contracts inthe individual constituent currencies of the Index (a currency forward contract is an agreement to buy or sell a specific currency ata future date at a price set at the time of the contract). If a sufficiently liquid futures contract on the Index or related index islater developed, the Fund may invest in such futures contract as a substitute for or in combination with forward contracts on the individualcurrencies. The Fund also may enter into repurchase agreements, which are transactions in which the Fund purchases securities or otherobligations from a bank or securities dealer and simultaneously commits to resell them to a counterparty at an agreed-upon date or upondemand and at a price reflecting a market rate of interest unrelated to the coupon rate or maturity of the purchased obligations. If,subsequent to an investment, the 80% requirement is no longer met, the Fund’s future investments will be made in a manner that willbring the Fund into compliance with this policy. The Fund’s positioning for a stronger U.S. dollar through a mixtureof securities and financial instruments is intended to provide a return reflective of the change in the value of the U.S. dollar relativeto the basket of global currencies while incorporating differences in money market rates between the U.S. and the countries (or regions)represented by the foreign currencies. The Fund can also generate return from investments into high quality, short-term U.S. fixed incomeinvestments held in support of its currency positions. The Fund expects its holdings to represent between 8 to 20 currencies at any giventime, with the euro expected to represent the largest exposure in the global basket of currencies. Since its inception, the Index hasincluded exposures to approximately 10 to 12 currencies per year. The Fund, similar to the Index, is not designed to benefit if the valueof the basket of global currencies appreciates relative to the U.S. dollar. The Fund generally will maintain a weighted average portfolio maturitywith respect to short-term investment grade government and corporate debt securities of two (2) years or less and money market securitiesof 180 days or less on average (not to exceed 18 months) and will not purchase any money market securities with a remaining maturityof more than 397 calendar days. The “average portfolio maturity” of the Fund will be the average of all current maturitiesof the individual securities in the Fund’s portfolio. The Fund’s actual portfolio duration may be longer or shorter dependingon market conditions.