SmartETFs Dividend Builder ETF (DIVS) Exchange: NYSE ARCA

Overview of Principal Investment Strategies  The Fund seeks to track the performance, before fees and expenses, of the Benchmark Index. The Benchmark Index was developed by Reality Shares, Inc., the parent company of the Adviser. The Benchmark Index is comprised of listed index options on the S&P 500 Index and listed options on exchange traded funds (“ETFs”) designed to track the S&P 500 Index. The Benchmark Index is designed to provide exposure to the aggregate value of ordinary dividends expected to be paid on the securities included in the S&P 500 Index (“S&P 500 Securities”). These are sometimes referred to as “expected dividend values.” The Adviser believes expected dividend values generally correspond to the aggregate value of actual dividend payments on the S&P 500 Securities. These are sometimes referred to as “actual dividend values.” Unlike more traditional products, the Fund does not seek to produce returns based on the appreciation in the stock market price of S&P 500 Securities. Instead, the Fund, by investing in the options included in the Benchmark Index, seeks to produce returns based primarily on increases in the expected dividend values of S&P 500 Securities. The Benchmark Index is described in more detail below.  Description of the Benchmark Index  An option contract is a type of financial contract in which the purchaser of the contract has the right, but not the obligation, to buy (call) or sell (put) a financial asset, such as an index or ETF, at an agreed-upon price, known as the “strike price,” during a specific time period or on a specific exercise date. The seller of an option contract has a corresponding obligation to sell or buy, as applicable, the financial asset at the strike price during the option period or on the exercise date. A put option gives the purchaser of the option the right to sell, and the issuer of the option the obligation to buy, the underlying asset during the option period. A call option gives the purchaser of the option the right to buy, and the seller of the option the obligation to sell, the underlying asset during the option period.  The price of an option included in the Benchmark Index reflects several factors, including:  ■    aggregate trading prices of the S&P 500 Securities,  ■    exposure to interest rate changes, and  ■    expected dividend values.  The Benchmark Index consists of a series of option contracts that, when combined together, are designed to eliminate the effect of changes in the trading prices of S&P 500 Securities and the effect of interest rate changes on the prices of the option contracts included in the Benchmark Index. As a result, the value of the Benchmark Index is designed to change based primarily on changes in the expected dividend values reflected in the options' prices. These option combinations are designed to reflect expected dividend values and eliminate the Benchmark Index's exposure to changes in the trading prices of S&P 500 Securities as illustrated below.   This combination of option contracts is often referred to as a “jelly roll.” A typical jelly roll is created by buying and selling four options at the same time, at the same strike price, on the same underlying asset; in this case, either options on the S&P 500 Index or options on an S&P 500 Index ETF. The first combination consists of selling a call and buying a put at the same strike price with a longer-dated maturity (the “Longer-Dated Combination”). The second combination consists of buying a call and selling a put at the same strike price but with a shorter-dated maturity (the “Shorter-Dated Combination”). The simultaneous purchase of the Shorter-Dated Combination and Longer-Dated Combination at the same strike price is designed to eliminate the effect of changes in the trading prices of the S&P 500 Securities on the price of each option. As a result, changes in the aggregate trading prices of S&P 500 Securities should not change the value of the Benchmark Index.  The Shorter-Dated Combination and Longer-Dated Combination do not, however, eliminate exposure to interest rate changes or changes in the expected dividend values reflected in the prices of the options. The Benchmark Index includes additional offsetting option contracts designed to eliminate the options' exposure to interest rate changes, leaving exposure to the expected dividend values in the prices of each option contract. The value of the Benchmark Index therefore is designed to change in accordance with changes in the expected dividend values reflected in the prices of the option contracts, without the effect of trading prices or interest rate changes. As market expectations for dividends change over time, changes in the expected dividend values reflected in the options' prices between the expiration of the Shorter-Dated Combination and the expiration of the Longer-Dated Combination change the value of the Benchmark Index.  Before making an investment in the Fund you should know:  ■    The Fund will generally have a positive rate of return if the actual future growth in dividends exceeds the expected growth in dividends as reflected in the market prices at which the Fund buys and sells the option contracts that are used to implement the Fund's investment strategy.  ■    The Fund generally will have a zero rate of return, excluding fees and transaction costs, if the actual future growth in dividends equals the expected growth in dividends as reflected in the market prices at which the Fund buys and sells the option contracts that are used to implement the Fund's investment strategy, even though actual dividends may have grown during the holding period of this investment.  ■    The Fund generally will have a negative rate of return if the actual future growth in dividends is below the expected growth in dividends as reflected in the market prices at which the Fund buys and sells the option contracts that are used to implement the Fund's investment strategy, even though actual dividends may have grown during the holding period of this investment.  ■    Unlike more traditional products, the Fund does not seek returns based on appreciation in the stock market price of equity securities. This means that the returns on your Fund investment are not intended to correlate to the returns of the overall stock market (for example, the value of your Fund investment may go down when overall equity markets go up, or vice versa).  ■    The Fund does not produce qualified dividend income and is not an appropriate investment if you are seeking dividend income.  ■    The investment returns of the Fund are treated for tax purposes as ordinary income or capital gains or losses, as applicable. See the section of this Prospectus entitled “Taxes” for more information.  Correlation of Actual and Expected Dividend Values  The Adviser's research indicates there historically has been a high correlation between the aggregate value of actual dividend payments made on S&P 500 Securities and the expected dividend value reflected in the prices of S&P 500 Index options, and accordingly, the Benchmark Index. While actual dividend value and expected dividend value may at times differ significantly, the following diagrams present three scenarios illustrating the potential impact of changes in the value of actual dividend payments on the expected dividend values reflected in the prices of the option combinations and how this may change the value of the Benchmark Index. The following diagrams do not represent all market scenarios, but are presented to show the potential relationship between actual dividend values and expected dividend values in accordance with the Adviser's research. The diagrams do not represent the actual performance of the Fund.  The Black Dot in each diagram represents the starting (or purchased) expected dividend value reflected in the prices of the option combinations included in the Benchmark Index. The Gray Dot represents the actual dividend value on the same day. The Square reflects the point in time when the actual dividend value and expected dividend value converge.  Scenario 1: Actual dividend value increases and exceeds expected dividend value.  In this scenario, actual dividend value grows over time and pulls the expected dividend value reflected in the prices of the option combinations up from the starting (or purchased) value. It is expected the Benchmark Index value will increase commensurate to a level where the expected dividend value reflected in the prices of the option combinations exceed the starting (or purchased) value.  Scenario 2: Actual dividend value decreases and expected dividend value also decreases.  In this scenario, actual dividend value decreases over time and pulls the expected dividend value reflected in the prices of the option combinations below the starting (or purchased) value. It is expected the Benchmark Index value will decrease commensurate to a level where the expected dividend value reflected in the prices of the option combinations fall from the starting (or purchased) value.   Scenario 3: Actual dividend value increases but is below expected dividend value.  In this scenario, actual dividend value increases but to a level that is still below the expected dividend value reflected in the prices of the option combinations. It is expected the Benchmark Index value will decrease.   Under normal circumstances, at least 80% of the Fund's assets (other than collateral held from securities lending, if any) will be invested in the options included in the Benchmark Index. The Fund generally uses a representative sampling investment approach to track the performance of the Benchmark Index. This means that the Fund invests in a subset, or “sample,” of the options included in the Benchmark Index and whose performance characteristics match the general performance characteristics of the Benchmark Index as a whole. For this reason, the statements made herein concerning the option contracts included in the Benchmark Index and the performance of the Benchmark Index apply to the Fund unless otherwise expressly noted.  Investments in Other Instruments  The Fund reserves the right to invest up to 20% of its assets in equity securities and other derivative instruments relating to the Benchmark Index that the Adviser believes will help the Fund track the Benchmark Index (and not for the purpose of producing dividend income). In simplest terms, a “derivative” is an instrument, such as swap contract or futures contract, whose value is derived from an underlying reference asset, such as an interest rate or index. The Fund may engage in swap transactions in order to gain exposure to the expected dividend value of S&P 500 Securities or to eliminate the impact to the Fund's portfolio of price fluctuations associated with S&P 500 Securities. The Fund may enter into interest rate swap transactions and futures transactions designed to eliminate the impact of changing interest rates on the value of the Fund's investments.  Diversification The Fund is considered to be “non-diversified” under the Investment Company Act of 1940, as amended, and may invest in fewer instruments or in the securities of fewer issuers than a diversified fund. To the extent the Fund's Benchmark Index concentrates (i.e., holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as its Benchmark Index.