The Fund uses a passive management (or indexing) approach to track the performance, before fees and expenses, of the Index. The Index follows a rules-based methodology (described generally below) designed to track the performance of global equity securities of companies listed on major country exchanges which are materially or principally engaged in the generation, transmission, and processing of data using light-based signaling for artificial intelligence (“AI”) computing. The equity securities in which the Fund may invest include ordinary shares and American Depository Receipts (“ADRs”).

To determine the universe of Index constituents, the Index follows a non-discretionary, rules-based methodology developed by VettaFi LLC (the “Index Provider”). The Index is owned, calculated, administered, and published by the Index Provider. The Fund’s sponsor, Aura ETFs Inc. (“Aura”), has no role in the development, maintenance, or administration of the Index or its methodology, and neither Aura nor the Adviser is affiliated with the Index Provider.

VettaFi AI Photonics Index

The Index’s initial investible universe consists of global equity securities listed on one of the country securities exchanges listed below (the “Universe”). The Index includes equity securities of companies involved in the following sub-themes (each, an “Optical and Photonic Company” and collectively, “Optical and Photonic Companies”):

Companies that trade on the following country exchanges qualify for inclusion: Australia, Austria, Belgium, Canada, China, Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, United Kingdom and United States.  

A company must meet one of the following criteria to be considered an Optical and Photonic Company:

To be included in the Index, a company must have a market capitalization of at least US$100 million (US$80 million for current constituents) a minimum free float of 20%, a three-month average daily traded value of at least US$1 million, and have traded on at least 22 days during the three-month period prior to and including the selection date. The Index consists of the 25 highest-ranked eligible securities, ranked first by engagement classification (principally engaged before materially engaged) and then, within each engagement classification, by market capitalization.

Rebalancing Review and Index Weighting

The Index is rebalanced and reconstituted quarterly generally on the third Wednesday of January, April, July, and October based on data as of the last business day of the month prior to the date of such rebalance and reconstitution.

On each selection day, the following weighting methodology is used and it separately weights Optical and Photonic Companies that are principally engaged, materially engaged and pre-revenue.

Securities with a weight greater than 5% are capped at an aggregate of 45% of the Index.

The Fund’s Investment Strategy

Under normal circumstances, the Fund will invest at least 80% of the Fund’s net assets (plus borrowings for investment purposes) in Optical and Photonic Companies, as defined above.

The Fund attempts to invest all, or substantially all, of its assets in the component securities that make up the Index. The Fund will generally use a “replication” strategy to achieve its investment objective, meaning it generally will invest in all of the component securities of the Index. However, the Fund may use a “representative sampling” strategy, meaning it may invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole, when the Adviser believes it is in the best interests of the Fund. For example, representative sampling may be used when replicating the Index involves practical difficulties or substantial costs, an Index constituent becomes temporarily illiquid, unavailable, or less liquid, or as a result of legal restrictions or limitations that apply to the Fund but not to the Index.

The Fund’s investments may include micro-, small-, medium- and large-capitalization companies.

The Fund is non-diversified.

To the extent the Index concentrates (i.e., holds more than 25% of its total assets) in the securities of a particular industry or group of related industries, the Fund will concentrate its investments to approximately the same extent as the Index. As of April 30, 2026, the Index is concentrated in the Semiconductors & Semiconductor Equipment, Technology Hardware & Equipment groups of industries.