CONCENTRATION RISK. The Fund will be concentrated in an industry or a group of industries to the extent that the Index is so concentrated. To the extent the Fund has significant exposure in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political development may affect the value of the Fund’s investments more than if the Fund were more broadly diversified. A significant exposure makes the Fund more susceptible to any single occurrence and may subject the Fund to greater market risk than a fund that is more broadly diversified.

PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES INDUSTRY RISK. Companies in the pharmaceuticals, biotechnology & life sciences industry may be adversely affected by extensive government regulation (including drug and device approval, manufacturing and marketing requirements, and reimbursement and pricing rules); the expiration or loss of, or challenges to, patent protection and other intellectual property rights; intense competition (including from generic drugs and biosimilar products); rapid product obsolescence and technological change; high research and development costs with uncertain outcomes; lengthy, complex, and uncertain regulatory approval processes and the risk of clinical trial delays or failures; product liability and other litigation risk; and dependence on a limited number of products, customers, suppliers, or key personnel. Changes in governmental healthcare policy, reimbursement rates, or pricing controls could materially adversely affect the revenues and profitability of these companies. As a result, the value of securities issued by companies in the pharmaceuticals, biotechnology & life sciences industry may be more volatile, and the Fund may be more susceptible to market, regulatory, and industry-specific risks than funds that invest in a broader range of industries.

CURRENCY RISK. Changes in currency exchange rates affect the value of investments denominated in a foreign currency, and therefore the value of such investments in the Fund’s portfolio. The Fund’s net asset value could decline if a currency to which the Fund has exposure depreciates against the U.S. dollar or if there are delays or limits on repatriation of such currency. Currency exchange rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning.

DEPOSITARY RECEIPTS RISK. Depositary receipts represent equity interests in a foreign company that trade on a local stock exchange. Depositary receipts may be less liquid than the underlying shares in their primary trading market. Any distributions paid to the holders of depositary receipts are usually subject to a fee charged by the depositary. Holders of depositary receipts may have limited voting rights, and investment restrictions in certain countries may adversely impact the value of depositary receipts because such restrictions may limit the ability to convert the equity shares into depositary receipts and vice versa. Such restrictions may cause the equity shares of the underlying issuer to trade at a discount or premium to the market price of the depositary receipts.

EQUITY SECURITIES RISK. Equity securities are subject to changes in value, and their values may be more volatile than those of other asset classes. Equity securities prices fluctuate for several reasons, including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant equity market, such as market volatility, or when political or economic events affecting an issuer occur. Common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. Common stocks generally subject their holders to more risks than preferred stocks and debt securities because common stockholders’ claims are subordinated to those of holders of preferred stocks and debt securities upon the bankruptcy of the issuer.

HIGH PORTFOLIO TURNOVER RISK. The Index’s quarterly rebalance and reconstitution schedule may cause the Fund to experience a high rate of portfolio turnover. A high portfolio turnover rate increases transaction costs, which may increase the Fund’s expenses. High portfolio turnover may also cause adverse tax consequences for investors in the Fund due to an increase in short-term capital gains.

Errors in the Index. Losses or costs associated with any Index Provider or agent errors generally will be borne by the Fund and its shareholders. To correct any such error, the Index Provider or its agents may carry out an unscheduled rebalance of the Index or other modification of Index constituents or weightings. When the Fund in turn rebalances its portfolio, any transaction costs and market exposure arising from such portfolio rebalancing will be borne by the Fund and its shareholders. Unscheduled rebalances also expose the Fund to additional tracking error risk. Errors with respect to the quality, accuracy and completeness of the data used to compile the Index may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, particularly where the Index is less commonly used as a benchmark by funds or advisers. For example, during a period where the Index contains incorrect constituents, the Fund, in tracking the Index, would have market exposure to such constituents and would be underexposed to the Index’s other constituents. Such errors may negatively impact the Fund and its shareholders.

INTERNATIONAL CLOSED MARKET TRADING RISK. The Fund may invest in securities that trade on non-U.S. exchanges that are closed when the Fund’s primary listing exchange is open. As such, the current price of an underlying security may deviate from the last quoted price of the underlying security (i.e., the Fund’s quote from the closed foreign market). This may result in premiums or discounts to the Fund’s net asset value that may be greater than those experienced by other exchange-traded funds. In addition, shareholders may not be able to purchase and sell shares of the Fund on days when the net asset value of the Fund could be significantly affected by events in the relevant foreign markets.

MARKET MAKER RISK. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund Shares due to a limited number of market makers. Decisions by market makers or APs to reduce their role or step away from these activities in times of market stress could inhibit the effectiveness of the arbitrage process in maintaining the relationship between the underlying values of the Fund’s portfolio securities and the Fund Share price. The Fund may rely on a small number of third-party market makers to provide a market for the purchase and sale of Fund Shares. Any trading halt or other problem relating to the trading activity of these market makers could result in a dramatic change in the spread between the Fund’s NAV and the price at which the Fund Shares are trading on the Exchange, which could result in a decrease in value of Fund Shares. This reduced effectiveness could result in Fund Shares trading at a discount to NAV and also in greater than normal intraday bid-ask spreads for Fund Shares.

MICRO, SMALL AND/OR MID CAPITALIZATION COMPANIES RISK. Micro, small and/or mid capitalization companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price volatility than large capitalization companies as a result of several factors, including limited trading volumes, fewer products or financial resources, management inexperience and less publicly available information. Accordingly, such companies are generally subject to greater market risk than large capitalization companies.

NON-CORRELATION RISK. The Fund’s return may not match the return of the Index for a number of reasons. The Fund incurs operating expenses not applicable to the Index, and may incur costs in buying and selling securities, especially when rebalancing the Fund’s portfolio holdings to reflect changes in the composition of the Index. In addition, the Fund’s portfolio holdings may not exactly replicate the securities included in the Index or the ratios between the securities included in the Index. Additionally, in order to comply with its investment strategies and policies, the Fund portfolio may deviate from the composition of the Index. Accordingly, the Fund’s return may underperform the return of the Index.

OPERATIONAL RISK. The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of the Fund’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. The Fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect the Fund’s ability to meet its investment objective. Although the Fund and Adviser seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.

PEPTIDE COMPANIES RISK. Peptide Companies may be subject to substantial risks associated with the pharmaceuticals, biotechnology & life sciences industry, including extensive research and development costs, lengthy and uncertain regulatory approval processes, clinical trial failures, product safety concerns, intellectual property disputes, manufacturing complexities, supply chain disruptions, and rapid technological change. Peptide Companies are heavily dependent on patents and intellectual property rights and may face competition from producers of generic alternatives. Additionally, changes in regulatory process or views (such as permitting compounding of unapproved peptides) may lower barriers to entry and could pose reputational risk impacting demand for peptide products. The current perceived commercial value of peptides is concentrated in a limited number of uses (such as obesity and diabetes treatments) and any change in sentiment or alternative treatment may impact Peptide Companies broadly. Peptide Companies may not be able to increase supply to meet demands, particularly for newly-issued products, which may cause shortages. Certain Peptide Companies may have limited operating histories, concentrated product pipelines, or dependence on a small number of products, customers, suppliers, or strategic partners. The value of securities issued by these companies may be highly volatile and may be significantly affected by clinical, regulatory, scientific, competitive, market, or political developments. Changes in medical insurance coverage policies or changes to coverage from programs such as Medicare may significantly impact the revenue of Peptide Companies. Certain other Peptide Companies may have diversified product lines in addition to involvement in peptides and factors unrelated to peptides may have greater impact on the values of securities issued by these companies than peptide-related developments. In addition, advances in alternative therapeutic modalities, including small molecules, biologics, gene therapies, cell therapies, or other emerging technologies, could reduce demand for or adversely affect the commercial prospects of peptide-based products. The market for peptide-based products is relatively new and rapidly evolving, with the potential for sudden changes in scientific developments, consumer demand, competition, or regulation, any of which could adversely affect Peptide Companies and the Fund. As a result, the Fund may be more susceptible to market, regulatory, and industry-specific risks than funds that invest in a broader range of industries.

TRADING ISSUES RISK. Although Fund Shares are listed for trading on a national securities exchange, and may be traded on other U.S. exchanges, there can be no assurance that Fund Shares will trade with any volume, or at all, on any stock exchange. In stressed market conditions, the liquidity of Fund Shares may begin to mirror the liquidity of the Fund’s underlying portfolio holdings, which can be significantly less liquid than Fund Shares. Trading in Fund Shares on the Exchange may be halted due to market conditions or for reasons that, in the view of the Exchange, make trading in Fund Shares inadvisable. In addition, trading in Fund Shares on the Exchange is subject to trading halts caused by extraordinary market volatility pursuant to the Exchange’s “circuit breaker” rules. There can be no assurance that the requirements of the Exchange necessary to maintain the listing of the Fund will continue to be met or will remain unchanged. The Fund may have difficulty maintaining its listing on the Exchange in the event the Fund’s assets are small, the Fund does not have enough shareholders, or if the Fund is unable to proceed with creation and/or redemption orders.

NON-DIVERSIFICATION RISK. The Fund is classified as “non-diversified” under the 1940 Act. As a result, the Fund is only limited as to the percentage of its assets which may be invested in the securities of any one issuer by the diversification requirements imposed by the Internal Revenue Code of 1986, as amended (the “Code”). The Fund may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the Fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly invested in certain issuers.