entity or the Federal Deposit Insurance Corporation. If the value of the assets of the Fund goes down, you could lose money.
The following is a summary of the principal risks of investing in the Fund.
Enhanced Index Strategy Risk. A fund employing an enhanced index strategy related to a particular reference index may be underweight or overweight particular securities, sectors or industries within such reference index, and as a result, may underperform its index. By employing an enhanced index strategy, the Fund may be more susceptible to adverse developments concerning a particular security or industry because the Fund will select securities from those within such index and not use any defensive strategies to mitigate its risk exposure.
The ability of the Fund to outperform the performance of the index may be affected by, among other things,
changes in securities markets, the manner in which performance of the index is calculated, changes in the
composition of the index, the amount and timing of cash flows into and out of the Fund, commissions, portfolio
expenses, and any differences in the pricing of securities by the Fund and the index. Since the Fund employs an
“optimization” strategy, the Fund is subject to an increased risk of tracking error, in that the
securities selected in the aggregate for the Fund may perform differently than the underlying
index.
Equity Securities Risk. The Fund invests primarily in equity securities and is therefore subject to the risk that stock prices will fall and may underperform other asset classes. Individual stock prices fluctuate from day-to-day and may decline significantly. The prices of individual stocks may be negatively affected by poor company results or other factors affecting individual prices, as well as industry and/or economic trends and developments affecting industries or the securities market as a whole.
ESG Investment Risk. The Fund’s adherence to its social criteria and application of related analyses when selecting investments may negatively impact the Fund’s performance, including relative to similar funds that use different criteria, or to funds that do not adhere to such criteria or apply such analyses. Social criteria screening limits the availability of investment opportunities for the
Fund. If the Fund changes its social criteria or a company stops meeting the Fund’s social criteria, the
Fund will sell the affected investments even if this means the Fund loses money. The employment of an
independent social research service to assess social criteria could also negatively impact the Fund’s
performance, as such service may cause different outcomes in assessing the Fund’s social criteria than if
the Fund were to not use such
service or were to select a different research service. Additionally, the Fund’s adherence to its
social criteria and application of related analyses in connection with identifying and selecting investments
may require subjective analysis and may be more difficult if data about a particular company or market is
limited. The Fund’s social criteria may be dependent upon information and data that may be incomplete,
inaccurate or unavailable. The Fund may invest in companies that do not reflect the beliefs and values of any
particular investor. Socially responsible norms differ by country and region, and a company’s practices
or the Fund’s assessment of such may change over time.
Foreign Investment Risk. Investment in foreign securities involves risks due to several factors, such as illiquidity, the lack of public information, changes in the
exchange rates between foreign currencies and the U.S. dollar, unfavorable political, social and legal developments, or economic and financial instability. Foreign companies are not subject to the U.S. accounting and financial reporting standards and may have riskier settlement procedures. U.S. investments that are denominated in foreign currencies or that are traded in foreign markets, or securities of U.S. companies that have significant foreign operations may be subject to foreign investment risk.
Large- and Mid-Cap Company Risk. Investing in large- and mid-cap companies carries the risk that due to current market conditions these companies may be out of favor with investors. Large-cap companies may be unable to respond quickly to new competitive challenges or attain the high growth rate of successful smaller companies. Stocks of mid-cap companies may be more volatile than those of larger companies due to, among other reasons, narrower product lines, more limited financial resources and fewer experienced managers.
Geographic Risk. If
the Fund invests a significant portion of its assets in issuers located in a single country, a limited number
of countries, or a particular geographic region, it assumes the risk that economic, political and social
conditions in those countries or that region may have a significant impact on its investment
performance.
Currency Risk. Because the Fund’s foreign investments are generally held in foreign currencies, the Fund could experience gains or losses based solely on changes in the exchange rate between foreign currencies and the U.S. dollar. Such gains or losses may be substantial.
Market Risk. The Fund’s share price can fall because of weakness in the broad market, a particular industry, or specific holdings or due to adverse political or economic developments here or abroad, changes in investor