0002077057 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:C000264573Member 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:AuthorizedParticipantConcentrationRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:CashTransactionRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:CyberSecurityRisk.Member 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:EquityRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:ForeignInvestmentRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:IndustryConcentrationRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:InitialPublicOfferingIpoRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:IssuerRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:LargeShareholderRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:ManagementRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:MarketDisruptionRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:MarketRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:MarketTradingRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:NewFundRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member oef:RiskNondiversifiedStatusMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:OperationalRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:PrivatelyPlacedAndRestrictedEquitySecuritiesRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:PrivateInvestmentsLiquidityAndRedemptionsRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:PrivateInvestmentValuationRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:SharesMayTradeAtPricesDifferentThanNavMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member cik0002077057:SmallAndMediumcapitalizationCompaniesRiskMember 2026-11-03 2026-11-03 0002077057 cik0002077057:S000095795Member oef:RiskLoseMoneyMember 2026-11-03 2026-11-03 iso4217:USD pure false 2026-11-01 485APOS 0002077057 N-1A Founder Funds Trust 2026-11-03 Summary Information Investment Objective The Founders 100 ETF (the “Fund”) is designed for investors with a long-term time horizon (generally 5+ years) seeking capital appreciation. Fund Fees and Expenses This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund (“Shares”). You may pay other fees, such as broker commissions and other fees to financial intermediaries, which are not reflected in the table and example below. Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0075 0 0.0075 “Other Expenses” are based on estimated amounts for the current fiscal year. Example. This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your Shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. This example does not include brokerage commissions that investors may pay to buy and sell Shares. Although your actual costs may be higher or lower, your costs, based on these assumptions, would be: 77 242 Portfolio Turnover. The Fund pays transaction costs, such as commissions, when it purchases and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate will cause the Fund to incur additional transaction costs and may result in higher taxes when Shares are held in a taxable account. These costs, which are not reflected in the Total Annual Fund Operating Expenses or in the example, may affect the Fund’s performance. The Fund commenced operations on December 18, 2025. Portfolio turnover information is presented in the Financial Highlights section of this Prospectus. Principal Investment Strategies The Fund is an actively managed broad-market exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing at least 90% of its investments in Founder-Led Companies, including publicly traded and privately held companies. No more than 10% of its investments may be in non-Founder-Led Companies. Of the Fund’s publicly traded investments, at least 80% will be selected using its rules-based methodology and up to 20% may be selected using its discretionary methodology, including Founder-Led IPOs and other Founder-Led securities. Private equity investments will be selected separately at the Adviser’s discretion. The Fund may invest in common stock, preferred stock (including convertible preferred equity), and other equity securities, but will not invest in debt securities. The Fund will not acquire an illiquid investment if the acquisition would cause illiquid investments to exceed 15% of its net assets, as required by Rule 22e-4 under the 1940 Act. Founder Factor investing is the signature element of the Adviser’s investment strategy. The Fund may invest in equity securities of publicly traded and privately held companies, including privately placed and restricted equity securities acquired directly or through secondary transactions. The Fund does not impose a separate percentage limit on private investments; all investments are subject to applicable law, the Fund’s investment restrictions and its liquidity risk management program. Private investments may include common stock and preferred stock, including convertible preferred equity, of companies of any capitalization. The Adviser seeks to broaden the investable universe and evaluate additional Founder-Led Companies at valuations it believes offer compelling long-term return potential, consistent with the Fund’s long-term horizon (generally 5+ years). The Adviser defines a “Founder” as a person who has profound influence on a company’s identity and trajectory from its nascent stages; this includes one or more individuals who conceptualize a new business and bring it into commercial operation as well as those who take over an existing idea or early-stage company and propel it to significant success and scale. The Adviser defines a “Founder-Led Company” as a business managed by a “Founder Chief,” defined as a Founder serving as a Chief officer, most often as Chief Executive Officer (CEO), Chief Technology Officer (CTO), Chief Scientific Officer (CSO), or Chief Medical Officer (CMO). The Adviser defines a “Founder-Led IPO” as a Founder-Led or Founder-Run Company making an initial public offering (“IPO”) of its securities to the public on a stock exchange for the first time and has been trading one year or less. The Adviser defines the “Founder Factor” as investing in companies based on their Founder-Led status. Under normal market conditions, the Fund will not concentrate (invest >25% of its total assets) in any single GICS Industry Group, with the exception of Software, Semiconductors and Semiconductor Equipment, Technology Hardware Storage and Peripherals, IT Services, Electronic Equipment Instruments and Components, Communications Equipment, Diversified Financials, or Interactive Media & Services, which are not subject to this concentration restriction. The Fund is currently concentrated in Software. To capture the growth of the general economy and also to reduce sector risk, Fund securities will be selected from across five or more GICS Sectors, most commonly but not limited to the Technology, Financials, Consumer Discretionary, Communication Services, Health Care, Industrials, and Real Estate sectors, and Fund securities will be selected from across 20 or more GICS Industries, most commonly but not limited to the Software, Capital Markets, Interactive Media and Services, Financial Services, Semiconductor, Oil & Gas, Communications Equipment, and Hotels Restaurants and Leisure industries. The Fund may invest in small-, medium-, and large-capitalization companies. The Fund may invest in foreign companies, which the Adviser defines as company with a headquarters outside the U.S., but only if the securities are listed on a U.S. exchange. The U.S.-exchange listing requirement applies to the Fund’s publicly traded securities and does not apply to permitted private investments. Private companies may be based in the US or outside the US, subject to applicable legal and regulatory requirements. Portfolio Construction The Adviser employs two complementary approaches to portfolio construction. The rules-based and discretionary allocation percentages described in this Portfolio Construction section apply only to publicly traded investments. Private equity investments, if any, will be evaluated and selected separately at the Adviser’s discretion. The Fund’s aggregate requirement to invest at least 90% in Founder-Led Companies applies across publicly traded and privately held investments combined. <table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-family: Arial,sans-serif">•</td> <td style="font-family: Arial,sans-serif">Primary Selection (Rules-Based) for 80% or More of Public Investments: The Adviser applies a proprietary, rules-based fundamental methodology to select 100 of the largest 200 founder-led companies for inclusion in the Fund.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; padding-bottom: 8pt; font-family: Arial,sans-serif">•</td> <td style="padding-bottom: 8pt; font-family: Arial,sans-serif">Secondary Selection (Discretionary) for 20% or Less of Public Investments: The Adviser uses a similar proprietary fundamental methodology—though not strictly rules-based—to identify and include founder-led IPOs and other founder-led companies beyond the top 100.</td></tr> </table> The systematic, rules-based framework is designed to help the Adviser make wise investment decisions, better navigate market cycles, and remove emotional decision making in the investment process at: <table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-family: Arial,sans-serif">•</td> <td style="padding-right: 8.25pt; font-family: Arial,sans-serif">Market Highs, when pride, greed, and irrational exuberance tend to override good judgment, leading to overconfidence in the Adviser’s stock picking ability, a loss of focus on identifying the Founders most likely to execute on their vision and create long-term value for shareholders, a long-lasting extrapolation of positive trends, and excessive risk taking in the pursuit of higher returns, despite soaring valuations and other potential warning signs;</td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-family: Arial,sans-serif">•</td> <td style="padding-right: 8.25pt; font-family: Arial,sans-serif">Market Lows, when widespread fear, doubt, and the pain of losses can lead to short-term or myopic thinking, panic, and poor decision making including the temptation to drift from the consistent execution of the investment philosophy and fundamental research process of collecting and analyzing data objectively on a timely basis including the decision to sell at or near the bottom.</td></tr> </table> The Adviser applies its two complementary approaches using the following multi-step process: <table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-family: Arial,sans-serif">•</td> <td style="padding-right: 8.25pt; font-family: Arial,sans-serif">First, the Adviser defines the investable universe. The Adviser creates a list of Founder-Led equities and REIT securities trading on a US exchange with free-float market caps above $1 billion and adds Founder-Led IPOs with market caps estimated above $100 million.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-family: Arial,sans-serif">•</td> <td style="padding-right: 8.25pt; font-family: Arial,sans-serif">Second, the Adviser applies a screen to identify all Founder-Led Companies that meet Founder ETF’s proprietary fundamental criteria including income statement, balance sheet, statement of cash flow, valuation, and other quantitative and qualitative metrics. Next, the Adviser applies a second screen to identify other securities, including Founder-Led IPOs, which meet proprietary fundamental but not rules-based criteria.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-family: Arial,sans-serif">•</td> <td style="padding-right: 8.25pt; font-family: Arial,sans-serif">Third, if greater or fewer than 100 companies meet the Founder-Led Company proprietary fundamental criteria, respectively, the Adviser will apply a progression of more or less stringent screens until 100 securities are identified for investment. At the Adviser’s discretion, other securities including Founder-Led IPOs will be identified for investment based on fundamental, but not rules-based, criteria.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-family: Arial,sans-serif">•</td> <td style="padding-right: 8.25pt; font-family: Arial,sans-serif">Fourth, for rebalances, the Adviser applies a modified market cap weighting with a maximum initial position size of 7.5% to all companies identified for purchase. If the initial weighting results in less than an 80% allocation to Founder-Led Companies meeting the fundamental rules-based criteria, at the Adviser’s discretion, other securities including Founder-Led IPOs will be sized down to 20% of assets or less. No single security will represent more than 7.5% of the Fund’s total assets, except for Founder-Led IPO shares, which the Adviser may, at its discretion, retain without reducing to the 7.5% limit on a rebalance day. Any single position may float higher or lower intra-quarter. While at least 80% of the Fund’s assets will be selected using the rules-based methodology, the allocation may float higher or lower intra-quarter. While Founder-Led Companies will be re-evaluated quarterly for ongoing inclusion in the Fund, Founder-Led IPOs will typically be held for one year or more in order to give these businesses time to mature and reveal their long-term potential. To actively manage downside risk, any holding may be sold, trimmed, bought, or added to at any time at the Adviser’s discretion.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-family: Arial,sans-serif">•</td> <td style="padding-right: 8.25pt; font-family: Arial,sans-serif">Finally, to make timely, well-informed investment decisions, the Adviser intends to rebalance and reconstitute the Fund quarterly, on or around late February, May, August, and November, following the public release of substantial new quarterly information, including earnings press releases, regulatory filings, investor presentations, and conference call transcripts. Additionally, the Adviser will rebalance and reconstitute the Fund at the Adviser’s discretion, most often due to corporate actions including, but not limited to, changes in management, mergers and acquisitions (“M&A”), and divestitures or if the number of securities in the Fund falls to 95 intra-quarter.</td></tr> </table> At the Adviser’s discretion, a security held by the Fund of a company being acquired may be sold after the acquisition announcement or held until the acquisition closes. If sold, the security may be replaced by a new security or not replaced until the next quarterly rebalancing and reconstitution with the cash proceeds reinvested on a pro rata basis. If a Founder announces plans to step down or step away from their Chief role and no co-Founder serves in a Chief role or plans to assume a Chief role, at the Adviser’s discretion, the security may be sold. After a period of time away, if a Founder returns to a Chief role, the security of that company may be repurchased at the discretion of the Adviser. The Fund is “non-diversified” under the Investment Company Act of 1940 (“1940 Act”) because the fund sets a maximum weight of 7.5% per security so will not commonly meet the requirements of the diversification rule, which requires at least 75% of assets to be composed of securities with a maximum weight of 5% per security. The Fund is designed for investors who share our long-term fundamental investment philosophy. The philosophy is not about timing the market but about maintaining consistent exposure to the market’s most compelling secular growth stories based on the consistent and timely analysis of objective data across market cycles. The Adviser recognizes that stocks with high earnings growth and premium valuations relative to peers may be volatile in the short run but benefit from the power of time and innovation longer term. Based on this philosophy, the Fund may not be appropriate for investors with a short-term investment time horizon (less than 5 years), who have a low tolerance for volatility, or who prefer to invest in stocks trading at discount valuations versus peers. By investing in a Founder Factor strategy, the Fund tends to follow a growth investment style, investing in companies expected to grow sales and earnings at a faster rate than peers, often driven by innovation, market share increases, disruptive ideas, and expanding addressable markets. The Founder Factor tends to identify Founders, Founder-Led Companies, and Founder-Led Stocks with common enduring characteristics: Founders tend to be irreverent visionaries, inspiring leaders, independent thinkers, charismatic communicators, relentless operators, and courageous problem solvers who persevere through challenges with passion and unwavering commitment. Founders often attract and unite top talent around a compelling purpose, the moral authority to take bold risks and quickly pivot towards success, and the expert intuition to leverage the unique capabilities of their businesses and teams to create sustained competitive advantages (i.e. economic moats), which have the potential to generate superior risk-adjusted returns over time. Founder-Led Companies tend to challenge the status quo and disrupt industries with groundbreaking ideas and strategies. Founder-Led Companies tend to “grow up” with venture cultures that emphasize speed, scale, innovation, analytics, continuous learning, resilience, and an unrelenting desire to create something new and useful for customers. Founder-Led Companies generally hold more patents, invest more in research and development (R&D), invest in more capital expenditures (capex), participate in more mergers & acquisitions (M&A), grow sales and earnings at a faster pace, pay fewer dividends, repurchase fewer shares, and run balance sheets with more cash than debt. The Adviser concludes that Founder-Led Stocks are capable of generating superior risk-adjusted returns. Based on our signature Founder Factor investment strategy and growth investment style, respectively, the Fund may be unsuitable for investors who have a risk tolerance inconsistent with this strategy or style. Prospective investors should carefully consider their financial situation and consult a financial advisor before investing. The Shares will change in value, and you could lose money by investing in the Fund. Authorized Participant Concentration Risk. The Fund relies on a limited number of authorized participants (APs) to engage in creation or redemption transactions, with no obligation for APs to submit orders or maintain an active trading market for Shares. This may result in a diminished trading market, causing Shares to trade at a premium or discount to the Fund’s NAV, or face trading halts or delisting. The risk is heightened for securities traded outside collateralized settlement systems, where APs may need to post collateral, a capability not all APs possess. If APs exit the business or cannot process creation or redemption orders, and no other AP steps forward, trading liquidity may be significantly impacted. This risk is further elevated for Funds holding non-U.S. securities, which may have lower trading volumes or face extended market closures or trading halts, potentially hindering the APs’ ability to create or redeem Creation Units effectively. Cash Transaction Risk. The Fund may use cash for certain creation and redemption transactions instead of in-kind securities, requiring it to sell portfolio investments to meet redemption proceeds. This may trigger capital gains, leading to higher annual capital gain distributions than if in-kind redemptions were used. Cash transactions may also widen bid-ask spreads or increase premiums/discounts to the Fund’s NAV, and incur additional costs, such as portfolio transaction costs, which could reduce the Fund’s NAV if not offset by authorized participant transaction fees. Cyber Security Risk. The Fund faces operational risks from cyber security breaches, which may involve unauthorized access, hacking, malicious software, ransomware, or denial-of-service attacks. Such breaches, whether targeting the Fund or its third-party service providers (e.g., adviser, administrator, custodian), trading counterparties, or issuers in which the Fund invests, could lead to loss of proprietary information, data corruption, operational disruptions, or unauthorized access to confidential data. These incidents may prevent normal business operations, result in regulatory penalties, reputational damage, additional compliance costs, or financial losses. Cyber security breaches affecting issuers in the Fund’s portfolio may also negatively impact the value of those investments. Equity Risk. Equity risk is the risk that the value of equity securities, such as common stocks and REIT investments, will decline due to general economic conditions, market dynamics, or company-specific factors. These conditions include changes in interest rates, periods of market turbulence, prolonged economic decline, or cyclical changes that may depress the price of most or all equities held by the Fund. Additionally, negative investor sentiment toward specific industries or sectors may lead to reduced valuations as investors exit those areas. Equity risk also encompasses challenges faced by large-capitalization companies, which may adapt more slowly to competitive pressures or have limited growth potential, potentially underperforming other market segments. Issuer-specific risks, such as increased production costs, poor management decisions, lower demand for products or services, or adverse events like unfavorable earnings reports or failure to make anticipated dividend payments, may cause significant price declines in a company’s stock. While large-capitalization companies are generally less volatile than smaller-capitalization companies, their value may not rise as much, reflecting a trade-off between lower risk and potentially lower returns. Foreign Investment Risk. Investments in the securities of companies headquartered outside of the U.S. or with foreign operations carry additional risks compared to the securities of companies that primarily operate in the U.S., including lower market liquidity, higher volatility, less reliable financial information, and less stringent accounting and auditing standards. Risks also include expropriation, nationalization, political instability, adverse economic developments, dividend withholding, currency restrictions, and higher transaction costs. Companies dealing with countries subject to U.S. or U.N. sanctions, or identified as state sponsors of terrorism, may face legal constraints or reputational damage, potentially harming their performance and the Fund’s investments. Industry Concentration Risk. In following its methodology, the Fund may concentrate (invest >25% of its total assets) in securities of issuers operating in a single GICS Industry Group. By concentrating its investments in a GICS Industry Group, the Fund faces more risks than if it were diversified broadly over numerous industry groups. Such industry-based risks, any of which may adversely affect the companies in which the Fund invests, may include, but are not limited to, the following: general economic conditions or cyclical market patterns that could negatively affect supply and demand in a particular industry group; competition for resources; adverse labor relations; political or world events; obsolescence of technologies; and increased competition or new product introductions that may affect the profitability or viability of companies in an industry group. In addition, at times, such industry groups may be out of favor and underperform other industry groups or the market as a whole. The Fund’s investments may be concentrated in the following GICS Industry Groups, each of which carries distinct risks that may adversely affect the Fund’s performance: Software Industry Group Risk. Software companies face intense competition, rapid technological innovation, and short product lifecycles, which can lead to product obsolescence and pricing pressure. Significant R&D spending is required to remain competitive, and failure to develop or acquire successful new products may impair growth. Intellectual property protection is critical; patent disputes, infringement claims, or loss of exclusivity can materially reduce profitability. Many software firms have limited operating histories and are subject to volatile earnings. Cybersecurity threats, data breaches, and regulatory scrutiny over privacy or antitrust issues may result in substantial costs, fines, or reputational damage. Semiconductors & Semiconductor Equipment Industry Group Risk. Semiconductor companies are highly cyclical, with demand fluctuating based on global economic conditions, consumer electronics trends, and enterprise spending. Capital-intensive manufacturing requires ongoing investment in advanced fabrication facilities, and supply chain disruptions—particularly for rare materials or equipment—can halt production. Rapid technological advancement (e.g., smaller process nodes, AI accelerators) shortens product lifecycles and increases obsolescence risk. Geopolitical tensions, export controls, and trade restrictions may limit access to key markets or customers. High customer concentration (e.g., reliance on a few major foundry clients or device makers) amplifies earnings volatility. Technology Hardware, Storage & Peripherals Industry Group Risk. Companies in this industry face rapid product obsolescence due to evolving standards in computing, storage, and connectivity. Inventory risk is elevated—excess stock becomes obsolete quickly, while component shortages (especially semiconductors) can delay launches and erode margins. Intense price competition from low-cost manufacturers and original equipment manufacturers (OEMs) pressures profitability. Shifts toward cloud-based infrastructure and software-defined solutions may reduce demand for traditional hardware. Product defects, quality issues, or security vulnerabilities can trigger costly recalls, warranty claims, and loss of customer confidence. IT Services Industry Group Risk. IT services providers are exposed to project execution risks, including cost overruns, scope changes, and client budget cuts during economic slowdowns. Competitive bidding and fixed-price contracts can compress margins. Rapid adoption of cloud, AI, and automation technologies may disrupt traditional service models, requiring continuous workforce reskilling and technology investment. Dependence on skilled labor makes firms vulnerable to talent shortages, wage inflation, and immigration policy changes. Cybersecurity incidents at client sites or within vendor networks can lead to liability and reputational harm. Consolidation among clients reduces bargaining power and increases revenue concentration risk. Electronic Equipment, Instruments & Components Industry Group Risk. Manufacturers in this industry face supply chain complexity and component shortages, particularly for specialized materials and semiconductors. Short product cycles driven by innovation in automation, IoT, and testing equipment increase R&D and inventory risk. Global trade policies, tariffs, and export controls can disrupt sourcing and raise costs. High customer concentration, especially in industrial, automotive, or medical sectors, exposes firms to demand volatility. Quality control failures or regulatory non-compliance (e.g., safety or environmental standards) may result in recalls, fines, or loss of certifications. Communications Equipment Industry Group Risk. Companies developing networking and telecommunications hardware face rapid obsolescence as new standards (e.g., 5G, Wi-Fi 7, optical networking) emerge. Large-scale R&D and capital expenditures are required to support next-generation infrastructure, with execution risk in product rollout and carrier adoption. Supply chain constraints, particularly for advanced chips and components, can delay shipments. National security concerns and government restrictions on equipment vendors (especially in strategic markets) may limit revenue opportunities. Patent disputes are frequent, and margin pressure arises from competition with low-cost providers and integrated network operators. Diversified Financials Industry Group Risk. Diversified Financials face elevated risks from macroeconomic cycles that swing interest rates, credit spreads, and consumer spending—compressing lending margins while volatility hits trading and advisory fees; stringent regulatory oversight (Basel III, CFPB, SEC) drives compliance costs and caps on fees or leverage; credit and counterparty exposures spike in recessions, with consumer-finance delinquencies and capital-markets inventory losses; market liquidity dries up during stress, amplifying mark-to-market hits; cybersecurity threats target digital-lending and payment networks; fintech disruptors erode traditional margins in brokerage and lending; and geopolitical tensions or concentrated equity stakes in conglomerates add tail risks—mitigated through revenue diversification, robust capital buffers, advanced analytics, hedging, and selective fintech partnerships. Interactive Media & Services Industry Group Risk. Interactive Media & Services is highly exposed to regulatory and antitrust scrutiny over data dominance, privacy, and content moderation, risking multibillion-dollar fines or forced breakups; advertising revenue (~80–90 % of total) cycles with macro conditions and faces headwinds from cookie deprecation and retail-media shifts; user engagement can evaporate from algorithm missteps or rival innovations; evolving privacy laws (GDPR, CCPA, DMA) curb targeting efficiency; content-liability erosion threatens safe-harbor protections and triggers advertiser boycotts; infrastructure outages or AI failures disrupt service; and geopolitical bans or local-data mandates fragment scale—offset by diversified ad formats, non-ad revenue streams, heavy trust & safety investment, contextual-targeting pivots, and substantial cash reserves for legal and strategic flexibility. Initial Public Offering (IPO) Risk. The Fund’s participation in IPOs involves risks due to limited operating histories and less public information, complicating valuation and increasing volatility. IPOs may face speculative trading, oversubscription, or liquidity issues, and post-IPO price declines can occur if fundamentals weaken or lock-up periods end, leading to insider selling that impacts share prices. Issuer Risk. The Fund’s investment in at least 95 issuers exposes it to the risk that a decline in a single issuer’s equity value, due to factors like poor management or reduced demand for its goods or services, could negatively impact the Fund’s portfolio value. Large Shareholder Risk. Large shareholders, including Authorized Participants, may hold substantial Fund Shares and are not required to maintain their investment. Large redemptions could affect the Fund’s NAV, liquidity, and brokerage costs, leading to tax consequences or hindering the Fund’s ability to achieve its investment strategy. Management Risk. As an actively managed ETF, the Fund’s performance depends on the Adviser’s ability to implement its investment strategies effectively. The loss of key personnel or ineffective management could adversely affect the Fund’s performance. The Adviser, being newly formed, lacks experience managing an ETF, which may limit its effectiveness and impact the Fund’s performance. Market Disruption Risk. Geopolitical tensions, conflicts, terrorism, policy changes, sanctions, tariffs, or trade disputes may impact the Fund’s NAV, global markets, volatility, liquidity, and investor confidence, with unpredictable effects on the Fund’s performance. Market Risk. The Fund’s securities are subject to market fluctuations driven by economic downturns, natural disasters, public health crises, wars, or terrorism, which may increase premiums or discounts to the Fund’s NAV. Strained U.S.-foreign relations, sanctions, or tariffs may also adversely affect issuers, impacting the Fund’s performance. Market Trading Risk. The Fund faces risks from a potential lack of an active market for Shares, secondary market trading losses, or disruptions in the creation/redemption process. Stressed market conditions may reduce liquidity, cause trading halts, or lead to Shares trading at a premium or discount to NAV, potentially resulting in significant losses or portfolio rebalancing challenges. New Fund Risk. As a recently organized investment company, the Fund lacks an extensive operating history, limiting the track record available for prospective investors to evaluate. Non-Diversified Fund Risk. As a non-diversified fund, the Fund may invest a greater portion of its assets in individual issuers, leading to greater price volatility and performance impacts from a small number of issuers compared to a diversified fund. Operational Risk. The Fund faces operational risks from human errors, processing issues, technology failures, or errors by service providers or counterparties. While controls and procedures aim to mitigate these risks, they may not address all potential issues, potentially leading to disruptions or losses. Privately Placed and Restricted Equity Securities Risk. The Fund may invest in equity securities that are not publicly traded, including private equity and other restricted securities. Such securities may be difficult to sell or subject to agreements that prohibit or limit transfer or disposition. They may have limited or no secondary markets, less publicly available information, uncertain valuations and greater financing, dilution, governance and business-failure risks. An investment may not be saleable promptly or at a price approximating the Fund’s valuation. The Fund may incur additional legal, custody, due diligence, monitoring and transaction expenses, and may lose its entire investment. Private Investments Liquidity and Redemptions Risk. Private and restricted equity securities may be classified as illiquid under Rule 22e-4, depending on relevant market, trading and investment-specific considerations. The Fund may not acquire an illiquid investment if, immediately after the acquisition, more than 15% of net assets would be invested in illiquid investments. The limit applies to all illiquid investments, whether publicly traded or privately held. If illiquid investments subsequently exceed 15% of net assets, the Fund will comply with applicable reporting, oversight and remediation requirements. Private securities may not be eligible for delivery in ordinary in-kind ETF creation or redemption baskets; cash or other basket arrangements may increase transaction costs, tax consequences, dilution and premiums or discounts to NAV. Private Investment Valuation Risk. Private investments generally lack readily available market quotations and must be fair valued in good faith pursuant to the Fund’s valuation procedures and Rule 2a-5. Valuations may depend on models, assumptions, issuer-provided information, comparable transactions or other unobservable inputs; they may be subjective, stale or materially different from prices realized in a sale or subsequent financing. Changes in estimates can cause abrupt changes in NAV and create uncertainty for market makers and investors. Shares May Trade at Prices Different than NAV. Shares trade on a stock exchange at prices at, above or below the Fund’s most recent NAV. The Fund’s NAV is calculated at the end of each business day and fluctuates with changes in the market value of the Fund’s holdings. The trading price of the Shares fluctuates continuously throughout trading hours on the exchange, based on both the relative market supply of, and demand for, the Shares and the underlying value of the Fund’s portfolio holdings. As a result, the trading prices of the Shares may deviate from the Fund’s NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV. Small- and Medium-Capitalization Companies Risk. Small- and medium-capitalization companies may be more volatile and more likely than large- capitalization companies to have narrower product lines, fewer financial resources, less management depth and experience and less competitive strength. Returns on investments in securities of small- and medium-capitalization companies could trail the returns on investments in securities of large-capitalization companies. Performance The Fund commenced operations on December 18, 2025. Because the Fund has a limited operating history, performance information for a full calendar year is not yet available. Financial information for the period ended December 31, 2025 is presented under “Financial Highlights.” When available, annual performance information will be accessible at www.FounderETFs.com. The Fund commenced operations on December 18, 2025. Because the Fund has a limited operating history, performance information for a full calendar year is not yet available. www.FounderETFs.com “Other Expenses” are based on estimated amounts for the current fiscal year. Founder ETFs, LLC (“Founder ETFs” or “Adviser”) pays all other expenses of the Fund (other than acquired fund fees and expenses, taxes and governmental fees, brokerage fees, commissions and other transaction expenses, certain foreign custodial fees and expenses, costs of borrowing money, including interest and extraordinary expenses (e.g. litigation and indemnification expenses).