Investment Risks - RiverNorth Active Income ETF
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Jul. 29, 2025 |
| Closed-End Fund Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Closed-End
Fund Risk. The Fund invests in closed-end investment companies or funds.
The shares of many closed-end funds, after their initial public offering, frequently
trade at a price per share that is less than the NAV per share, the difference representing
the “market discount” of such shares. This market discount may be due in
part to the investment objective of long-term appreciation, which is sought by many closed-end
funds, as well as to the fact that the shares of closed-end funds are not redeemable
by the holder upon demand to the issuer at the next determined NAV, but rather, are subject
to supply and demand in the secondary market. A relative lack of secondary market purchasers
of closed-end fund shares also may contribute to such shares trading at a discount to
their NAV. |
The
Fund may invest in shares of closed-end funds that are trading at a discount to NAV or at a premium to NAV. There can be no assurance
that the market discount on shares of any closed-end fund purchased by the Fund will ever decrease. In fact, it is possible that
this market discount may increase and the Fund may suffer realized or unrealized capital losses due to further decline in the
market price of the securities of such closed-end funds, thereby adversely affecting the NAV of the Fund’s shares. Similarly,
there can be no assurance that any shares of a closed-end fund purchased by the Fund at a premium will continue to trade at a
premium or that the premium will not decrease subsequent to a purchase of such shares by the Fund.
Closed-end
funds may issue senior securities (including preferred stock and debt obligations) for the purpose of leveraging the closed-end
fund’s common shares in an attempt to enhance the current return to such closed-end fund’s common shareholders. The
Fund’s investment in the common shares of closed-end funds that are financially leveraged may create an opportunity for
greater total return on its investment, but at the same time may be expected to exhibit more volatility in market price and NAV
than an investment in shares of investment companies without a leveraged capital structure.
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| Market Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Market
Risk. The value of the Fund’s investments may increase or decrease
in response to expected, real or perceived economic, political or financial events in
the U.S. or global markets. The frequency and magnitude of such changes in value cannot
be predicted. Certain securities and other investments held by the Fund may experience
increased volatility, illiquidity, or other potentially adverse effects in response to
changing market conditions, inflation, changes in interest rates, lack of liquidity in
the bond or equity markets, volatility in the equity markets, unexpected trading activity
among retail investors, market disruptions caused by local or regional events such as
war, acts of terrorism, the spread of infectious illness (including epidemics and pandemics)
or other public health issues, geopolitical events, recessions or other events or adverse
investor sentiment or other political, regulatory, economic and social developments,
and developments that impact specific economic sectors, industries or segments of the
market. These risks may be magnified if certain events or developments adversely interrupt
the global supply chain; in these and other circumstances, such risks might affect companies
worldwide due to increasingly interconnected global economies and financial markets. |
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| ETF Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | ETF
Risk. The Fund is an ETF and thus is subject to the risks of being structured as
an ETF including certain risks noted below. |
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| Authorized Participants, Market Makers, and Liquidity Providers Concentration Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ○ | Authorized
Participants, Market Makers, and Liquidity Providers Concentration Risk. The Fund
has a limited number of financial institutions that may act as Authorized Participants
(“APs”). In addition, there may be a limited number of market makers and/or
liquidity providers in the marketplace. To the extent either of the following events
occur, Shares may trade at a material discount to NAV and possibly face delisting: (i)
APs exit the business or otherwise become unable to process creation and/or redemption
orders and no other APs step forward to perform these services, or (ii) market makers
and/or liquidity providers exit the business or significantly reduce their business activities
and no other entities step forward to perform their functions. |
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| Costs of Buying or Selling Shares [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ○ | Costs
of Buying or Selling Shares. Due to the costs of buying or selling Shares, including
brokerage commissions imposed by brokers and bid-ask spreads, frequent trading of Shares
may significantly reduce investment results and an investment in Shares may not be advisable
for investors who anticipate regularly making small investments. |
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| Shares May Trade at Prices Other Than NAV [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ○ | Shares
May Trade at Prices Other Than NAV. As with all ETFs, Shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price
of Shares will approximate the Fund’s NAV, there may be times when the market price
of Shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount)
due to supply and demand of Shares or during periods of market volatility. This risk
is heightened in times of market volatility, periods of steep market declines, and periods
when there is limited trading activity for Shares in the secondary market, in which case
such premiums or discounts may be significant. |
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| Trading [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ○ | Trading.
Although Shares are listed for trading on Cboe BZX Exchange, Inc. (the “Exchange”)
and may be traded on U.S. exchanges other than the Exchange, there can be no assurance
that Shares will trade with any volume, or at all, on any stock exchange. In stressed
market conditions, the liquidity of Shares may begin to mirror the liquidity of the Fund’s
underlying portfolio holdings, which can be significantly less liquid than Shares, and
this could lead to differences between the market price of the Shares and the underlying
value of those Shares. |
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| Swap Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Swap
Risk. The Fund may invest in total return swap agreements. The degree to which
the Fund may invest in these instruments is not limited, although maximum notional amounts
are generally set by counterparties. These agreements are considered derivatives. Total
return swaps could result in losses if the reference index, security, or investments
do not perform as anticipated. The use of swaps may not always be successful; using swaps
could lower Fund total return, their prices can be highly volatile, and the potential
loss from the use of swaps can exceed the Fund’s initial investment in such instruments.
Also, the other party to a swap agreement could default on its obligations or refuse
to cash out the Fund’s investment at a reasonable price, which could turn an expected
gain into a loss. |
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| Borrowing Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Borrowing
Risk. The Fund may borrow amounts up to one-third of the value of its
total assets, but it will not borrow more than 5% of the value of its total assets except
to satisfy redemption requests or for other temporary purposes. Such borrowings would
result in increased expense to the Fund and, while they are outstanding, would magnify
increases or decreases in the value of Fund shares. The Fund will not purchase additional
portfolio securities while outstanding borrowings exceed 5% of the value of its total
assets. |
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| Convertible Security Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Convertible
Security Risk. Convertible securities are subject to fixed-income securities
risks and conversion value-related equity risks. The market value of convertible securities
and other debt securities tends to fall when prevailing interest rates rise. The value
of convertible securities also tends to change whenever the market value of the underlying
common or preferred stock fluctuates. |
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| Correlation Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Correlation
Risk. Because the Fund allocates its investments among different asset
classes, the Fund is subject to correlation risk. Although the prices of equity securities
and fixed-income securities, as well as other asset classes, often rise and fall at different
times so that a fall in the price of one may be offset by a rise in the price of the
other, in down markets the prices of these securities and asset classes can also fall
in tandem. |
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| Emerging Markets Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Emerging
Markets Risk. Investment in emerging market securities involves greater
risk than that associated with investment in securities of issuers in developed foreign
countries. These risks include volatile currency exchange rates, periods of high inflation,
increased risk of default, greater social, economic and political uncertainty and instability,
less governmental supervision and regulation of securities markets, weaker auditing and
financial reporting standards, lack of liquidity in the markets, and the significantly
smaller market capitalizations of emerging market issuers. |
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| Equity Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Equity
Risk. To the extent the Fund invests in common stocks, preferred stocks,
convertible securities, rights and warrants, it will be exposed to equity risk. Equity
markets may experience volatility and the value of equity securities may move in opposite
directions from each other and from other equity markets generally. Preferred stocks
often behave more like fixed income securities. If interest rates rise, the value of
preferred stocks having a fixed dividend rate tends to fall. The value of convertible
securities fluctuates with the value of the underlying stock. Convertible stocks can
also fluctuate based on the issuer’s credit rating or creditworthiness and may
be subject to call or redemption by the issuer. Rights and warrants do not necessarily
move in parallel with the price of the underlying stock and the market for rights and
warrants may be limited. Rights and warrants have no voting rights, receive no dividends
and have no rights with respect to the assets of the issuer. |
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| ETF Risks [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | ETF
Risks. ETFs may trade at a discount to the aggregate value of the underlying securities
and frequent trading of ETFs by the Fund can generate brokerage expenses. ETFs do not
sell individual shares directly to investors and only issue their shares in large blocks
known as “creation units.” The investor purchasing a creation unit may sell
the individual shares on a secondary market. Therefore, the liquidity of ETFs depends
on the adequacy of the secondary market. Shareholders of the Fund will indirectly be
subject to the fees and expenses of the individual ETFs in which the Fund invests and
these fees and expenses are in addition to the fees and expenses that Fund shareholders
directly bear in connection with the Fund’s own operations. |
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| Exchange-Traded Note Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Exchange-Traded
Note Risk. The Fund may invest in ETNs, which are notes representing unsecured debt
of the issuer. ETNs are typically linked to the performance of an index plus a specified
rate of interest that could be earned on cash collateral. The value of an ETN may be
influenced by time to maturity, level of supply and demand for the ETN, volatility and
lack of liquidity in underlying markets, changes in the applicable interest rates, changes
in the issuer’s credit rating and economic, legal, political or geographic events
that affect the referenced index. There may be restrictions on the Fund’s right
to redeem its investment in an ETN, and there may be limited availability of a secondary
market. |
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| Fixed Income Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Fixed
Income Risk. The Fund may invest, directly or indirectly, through Underlying Funds
in fixed income securities, including high yield securities, also known as “junk
bonds.” Fixed income securities increase or decrease in value based on changes
in interest rates. If interest rates increase, the value of the Fund’s fixed income
securities generally declines. On the other hand, if interest rates fall, the value of
the fixed income securities generally increases. Junk bonds are not considered to be
investment grade. Junk bonds may provide greater income and opportunity for gain, but
entail greater risk of loss of principal. The issuer of a fixed income security may not
be able to make interest and principal payments when due. With regard to junk bond issuers,
the issuer’s capacity to pay interest and repay principal in accordance with the
terms of the obligation may be more at risk. Some of the related risks of fixed income
securities include: |
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| Credit Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ○ | Credit
Risk. The risk that the issuer of a fixed income security may not be able to make
interest and principal payments when due. The Fund could also be delayed or hindered
in its enforcement of rights against an issuer, guarantor or counterparty. |
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| High Yield Securities/Junk Bond Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ○ | High
Yield Securities/Junk Bond Risk. High yield securities may provide greater income
and opportunity for gain, but entail greater risk of loss of principal. The market for
such securities may not be liquid at all times. In a relatively illiquid market, the
Fund may not be able to acquire or dispose of such securities quickly and, as such, the
Fund may experience adverse price movements upon liquidation of its investments. |
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| Government Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ○ | Government
Risk. The U.S. government’s guarantee of ultimate payment of principal and
timely payment of interest on certain U.S. government securities owned by the Fund does
not imply that the Fund’s shares are guaranteed or that the price of the Fund’s
shares will not fluctuate. All U.S. government obligations are subject to interest rate
risk. |
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| Interest Rate Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ○ | Interest
Rate Risk. The risk that the Fund’s share price and total return will vary
in response to changes in interest rates. If rates increase, the value of the Fund’s
investments generally will decline, as will the value of your investment in the Fund.
Changing interest rates may have unpredictable effects on the markets and the Fund’s
investments. Any future declines in interest rates could cause the Fund’s earnings
to fall below the Fund’s expense ratio, resulting in a decline in the Fund’s
share price. Securities with longer maturities tend to produce higher yields, but are
more sensitive to changes in interest rates and are subject to greater fluctuations in
value. |
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| Sovereign Obligation Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ○ | Sovereign
Obligation Risk. The Underlying Funds may invest in sovereign debt obligations. The
issuer of the sovereign debt or the governmental authorities that control the repayment
of the debt may be unable or unwilling to repay principal or interest when due, and the
Underlying Funds may have limited recourse in the event of a default. |
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| Foreign Investing Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Foreign
Investing Risk. Investments in foreign securities may be affected by
currency controls and exchange rates, different accounting, auditing, financial reporting,
and legal standards and practices, expropriation, changes in tax policy, greater market
volatility, less publicly available information, less stringent investor protections,
differing securities market structures, higher transaction costs, and various administrative
difficulties, such as delays in clearing and settling portfolio transactions or in receiving
payment of dividends. These risks may be heightened in connection with investments in
emerging or developing countries. |
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| Investment Style Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Investment
Style Risk. The Fund is managed by allocating the Fund’s assets
to Underlying Funds. Underlying Funds charge their own management and operating fees.
This may cause the Fund to underperform funds that do not allocate their assets to Underlying
Funds. |
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| Large Shareholder Purchase and Redemption Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Large
Shareholder Purchase and Redemption Risk. The Fund may experience adverse effects
when certain large shareholders purchase or redeem large amounts of shares of the Fund.
Such large shareholder redemptions may cause the Fund to sell its securities at times
when it would not otherwise do so, which may negatively impact the Fund’s NAV and
liquidity. Similarly, large purchases of the Fund’s shares may also adversely affect
the Fund’s performance to the extent that the Fund is delayed in investing new
cash and is required to maintain a larger cash position than it ordinarily would. In
addition, a large redemption could result in the Fund’s current expenses being
allocated over a smaller asset base, leading to an increase in the Fund’s expense
ratio. |
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| Liquidity Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Liquidity
Risk. When there is little or no active trading market for specific types
of investments, it can become more difficult to sell the investments in a timely manner
at or near their perceived value. In such a market, the value of such investments and
the Fund’s share price may fall dramatically, even during periods of declining
interest rates. Investments that are illiquid or that trade in lower volumes may be more
difficult to value. Investments in foreign securities tend to have greater exposure to
liquidity risk than domestic securities. Liquidity risk also may refer to the risk that
the Fund will not be able to pay redemption proceeds within the allowable time period
stated in this Prospectus because of unusual market conditions, an unusually high volume
of redemption requests, or other reasons. To meet redemption requests, the Fund may be
forced to sell investments at an unfavorable time and/or under unfavorable conditions,
which may adversely affect the Fund’s share price. |
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| Management Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Management
Risk. The risk that the Adviser’s judgments about the attractiveness,
value and potential appreciation of a particular asset class or individual security in
which the Fund invests may prove to be incorrect and there is no guarantee that the Adviser’s
judgment will produce the desired results. |
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| Preferred Stock Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Preferred
Stock Risk. Preferred stock represents the senior residual interest in the assets
of an issuer after meeting all claims, with priority to corporate income and liquidation
payments over the issuer’s common stock. As such, preferred stock is inherently
more risky than the bonds and other debt instruments of the issuer, but less risky than
its common stock. There is no assurance that dividends on preferred stocks in which the
Fund invests will be declared or otherwise made payable. When interest rates fall below
the rate payable on an issue of preferred stock or for other reasons, the issuer may
redeem the preferred stock, generally after an initial period of call protection in which
the stock is not redeemable. Preferred stocks may be significantly less liquid than many
other securities, such as U.S. government securities, corporate debt and common stock. |
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| REIT Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | REIT
Risk. The value of equity REITs may be affected by changes in the value and
vacancy rate of the underlying property owned by the REITs, while the value of mortgage
REITs may be affected by the quality of any credit extended. Investment in REITs involves
risks similar to those associated with investing in small capitalization companies, and
REITs (especially mortgage REITs) are subject to interest rate risks. Mortgage REITs
are also subject to prepayment risk. Because REITs incur expenses like management fees,
investments in REITs also add an additional layer of expenses. In addition, REITs could
possibly fail to (i) qualify for favorable tax treatment under applicable tax law, or
(ii) maintain their exemptions from registration under the Investment Company Act of
1940, as amended (the “1940 Act”). |
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| Security Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Security
Risk. The risk that the value of the Fund may decrease in response to the activities
and financial prospects of individual securities in the Fund’s portfolio. |
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| Short Sale Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Short
Sale Risk. Positions in shorted securities are speculative and more risky than
long positions (purchases) in securities. Short selling will also result in higher transaction
costs (such as interest and dividends), and may result in higher taxes, which reduce
the Fund’s return. Generally, the short sales in which the Fund may invest will
not be “against the box,” meaning the Fund will not own the shorted security,
so theoretically the potential loss resulting from short sales is unlimited. |
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| Smaller Company Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Smaller
Company Risk. The Fund, directly or indirectly through Underlying Funds, may
invest in smaller capitalization companies (companies with market capitalizations of
$1 billion or less). The earnings and prospects of smaller companies are more volatile
than those of larger companies. Smaller companies also may experience higher failure
rates than larger companies. In addition, the securities of smaller companies may trade
less frequently and in smaller volumes than the securities of larger companies, which
may disproportionately affect their market price, tending to make them fall more in response
to selling pressure than is the case with larger companies. Finally, smaller companies
may have limited markets, product lines or financial resources and may lack management
experience. |
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| Structured Notes Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Structured
Notes Risk. Structured notes are subject to a number of fixed income risks including
general market risk, interest rate risk, and the risk that the issuer on the note may
fail to make interest and/or principal payments when due, or may default on its obligations
entirely. In addition, as a result of the imbedded derivative features, structured notes
generally are subject to more risk than investing in a simple note or bond issued by
the same issuer. |
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| Tax Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Tax
Risk. With respect to federal income taxes, any distributions to shareholders
that represent income from taxable securities will generally be taxable as ordinary income,
while other distributions, such as capital gains, are taxable to the same extent they
would be for any mutual fund. Distributions also are generally subject to state taxes
with certain exceptions (e.g. some states may have an exception where a portion of the
Fund’s income is attributable to municipal securities issued in the state in which
you reside). New federal or state governmental action could adversely affect the tax-exempt
status of municipal securities held by the Fund, resulting in higher tax liability for
shareholders and potentially hurting Fund performance as well. |
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| Underlying Fund Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Underlying
Fund Risk. The Fund will incur higher and duplicative expenses, including advisory
fees, when it invests in Underlying Funds. There is also the risk that the Fund may suffer
losses due to the investment practices of the Underlying Funds (such as the use of derivatives).
The ETFs in which the Fund invests that attempt to track an index may not be able to
replicate exactly the performance of the indices they track, due to transaction costs
and other expenses of the ETFs. The shares of closed-end funds frequently trade at a
discount to their NAV. There can be no assurance that the market discount on shares of
any closed-end fund purchased by the Fund will ever decrease, and it is possible that
the discount may increase. In addition, certain closed-end funds utilize leverage in
their portfolios. This use of leverage could subject the Underlying Fund, and indirectly,
the Fund, to increased risks including increased volatility in the price of the Underlying
Fund shares. |
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| Valuation Risk [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
| ● | Valuation
Risk. Unlike publicly traded common stock that trades on national exchanges, there
is no central exchange for loans or fixed-income instruments to trade. Loans and fixed-income
instruments generally trade on an “over-the-counter” market, which may be
anywhere in the world where the buyer and seller can settle on a price. Due to the lack
of centralized information and trading, the valuation of loans or fixed-income instruments
may carry more risk than that of common stock. Additionally, fair valuation of the Fund’s
investments involves subjective judgment, and the Fund’s ability to value its investments
may be impacted by technological issues and/or errors by pricing services or other third-party
service providers. |
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| Risk Lose Money [Member] |
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| Prospectus [Line Items] |
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| Risk [Text Block] |
As with any investment, there is a risk that you could
lose all or a portion of your investment in the Fund.
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