XSVM

About XSVM

TheFund generally will invest at least 90% of its total assets in securities that comprise the Underlying Index.Strictlyin accordance with its guidelines and mandated procedures, S&PDow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the UnderlyingIndex, which is designed to measure the performance of 120 stocks in the S&P SmallCap 600®Index (the “Parent Index”) that have relatively high “value” and “momentum” scores. In general, avalue stock tends to trade at a lower price relative to its company’s fundamentals and thus may be considered undervalued by investorsand momentum is the tendency of an investment to exhibit persistence in its relative performance. A “momentum style” of investingemphasizes investing in securities that have had better recent performance compared to other securities.Inselecting constituent securities for the Underlying Index, the Index Providerfirst calculates the value score of each stock in the Parent Index by evaluating each stock’s: (i) book value-to-price ratio,calculated using the company’s latest book value per share divided by its price; (ii) earnings-to-price ratio, calculated usingthe company’s trailing 12-month earnings per share dividedby its price; and (iii) sales-to-price ratio, calculated using the company’s trailing 12-month sales per share divided by itsprice. TheIndex Provider selects the 240 securities with the highest-rankingvalue scores and ranks them by momentum score. A security’s momentum score is based on upward price movements of the security ascompared to other eligible securities within the remaining constituent universe. The Index Provider calculates a security's momentum scoreby evaluating the percentage change in the stock’s price over the last 12 months, excluding the most recent month, and applyingan adjustment based on the security’s volatility over that period. After ranking the remaining constituent universeby momentum score,the Index Provider generally selects the 120 highest-ranking securitiesfor inclusion in the Underlying Index. The component securities are weighted by value score.Asof June 30, 2023, the Underlying Index was comprised of 119constituents with market capitalizations ranging from $192.45 millionto $5.58 billion. TheFund employs a “full replication” methodology in seeking to track theUnderlying Index, meaning that the Fund generally invests in all of the securities comprising the Underlying Index in proportion to theirweightings in the Underlying Index.TheFund intends to be “diversified,” as defined in theInvestment Company Act of 1940, as amended (the “1940 Act”), to the extent that the Underlying Index is diversified. The Fundmay become “non-diversified” as defined in the 1940 Act solely as a result of a change in relative market capitalization orindex weighting of one or more constituents of the Underlying Index. Should the Fund become “non-diversified,” it will nolonger be required to meet certain diversification requirements under the 1940 Actand may invest a greater portion of its assets in securities ofa small group of issuers or in any one individual issuer than can a diversified fund. Shareholder approval will not be sought when theFund crosses from diversified to non-diversified status solely due to a change in relative market capitalization or index weighting ofone or more constituents of the Underlying Index. In seeking to track the Underlying Index, the Fund was managed as diversified as ofApril 30, 2023.ConcentrationPolicy. TheFund will concentrate its investments (i.e., invest 25% or more of the value of its total assets) in securities of issuers in any oneindustry or group of industries only to the extent that the Underlying Index reflects a concentration in that industry or group of industries.The Fund will not otherwise concentrate its investments in securities of issuers in any one industry or group of industries.