Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing.
Market Risk. The market price of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. Securities may decline in value due to factors affecting securities markets generally or particular industries represented in those markets.
Equity Securities Risk. Equity prices may fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of equity securities may fluctuate from day to day.
Insurance Industry Risk. Many factors can significantly affect companies in the insurance industry, including changes in interest rates, general economic conditions, premium rate caps, competition, and changes in government regulation or tax law. Different segments of the industry may also be affected by actuarial miscalculations and catastrophic events such as natural disasters, as well as the availability and cost of reinsurance.
Concentration Risk. Because the Fund's assets will be concentrated in an industry or group of industries to the extent the P&C Insurance Index is so concentrated, the Fund is subject to loss due to adverse occurrences that may affect that industry or group of industries.
Passive Strategy/Index Risk. The Fund is managed with a passive investment strategy, attempting to track the performance of a rules-based index regardless of the current or projected performance of the Index or of its constituent securities. As a result, the Fund's performance may be less favorable than that of a portfolio managed using an active investment strategy.
Non-Diversification Risk. The Fund is non-diversified, which means it may invest a greater percentage of its assets in a particular issuer than a diversified fund. Non-diversification increases the risk that the value of the Fund could go down because of the poor performance of a single investment or limited number of investments.
New Fund and ETF Structure Risk. The Fund is recently organized with no operating history. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns, and there can be no assurance that an active secondary trading market will develop or be maintained.
Porter & Co. P&C Insurance Index. The Porter & Co. P&C Insurance Index (the "P&C Insurance Index") is a rules-based equity index that measures the performance of US-listed property and casualty insurance companies that demonstrate an underwriting profit. The Index is calculated and administered by VettaFi and is sponsored by Porter & Company, LLC, an organization that is independent of, and unaffiliated with, the Porter & Company Property & Casualty Index ETF (PCPC) and its investment adviser, Tuttle Capital Management, LLC. Eligible companies must be primarily engaged in property and casualty insurance underwriting or reinsurance and must meet the Index's size, liquidity, revenue, return on equity, and underwriting profitability requirements, including a minimum market capitalization of $1.5 billion, a three-year average return on equity of at least 5%, and a combined ratio of 99% or below. Up to 20 eligible companies are selected and weighted by the inverse of their combined ratio, with no single constituent exceeding a 10% weight. The Index is reconstituted and rebalanced annually in June. The full index methodology is published by VettaFi and is available at vettafi.com.
Combined ratio is a measure of underwriting profitability, calculated as incurred losses, loss adjustment expenses, and underwriting expenses divided by net earned premiums. A combined ratio below 100% indicates an underwriting profit.
Indices are unmanaged, do not reflect the deduction of fees, expenses, or transaction costs, and are not available for direct investment.
Porter & Co. Leading Underwriters Property and Casualty list. The Porter & Co. Leading Underwriters Property and Casualty list is the annual ranking of eligible publicly traded property and casualty insurance underwriters and reinsurers produced by the Index's screening process. Each year, US-listed companies that satisfy the Index's eligibility requirements are ranked by combined ratio, from lowest to highest, with lower combined ratios indicating stronger underwriting profitability. The top 20 ranked companies on that list are included in the P&C Insurance Index. The list is updated annually in connection with the Index's June reconstitution.