JPMORGAN LONG/SHORT ETF (JPLS) Exchange: NYSE ARCA

DELISTED - The Fund seeks to profit from the relative returns of equity securities by maintaining long and short positions. It will do so based on a systematic investment process. The adviser believes it has identified (and will continue to identify) a set of investment return sources that have a low correlation to each other and to traditional markets and have distinct risk and return profiles (each a “return factor”). Under normal market conditions, the Fund employs the Equity Long/Short strategy to access certain return factors. The strategy involves simultaneously investing in equities (i.e., investing long) that the adviser believes are attractive based on relevant return factors and taking short positions in equity securities that the adviser believes are unattractive based on relevant return factors. As opposed to only holding long positions that the Fund’s adviser expects to outperform, taking short positions allows the Fund to more fully exploit insights in instruments that the adviser expects to underperform. Each return factor represents a potential source of investment return that results from, among other things, assuming a risk relating to the return factors described below or taking advantage of a behavioral bias. For example, a strategy relating to a momentum return factor would seek to exploit a behavioral bias present in the market, in which investors tend to purchase securities that have recently performed well, thereby helping to contribute to continued positive price movement, and sell securities that have recently performed poorly, thereby helping to contribute to continued negative price movement. The adviser believes that, in general, the Fund’s investment returns are attributable to the individual contributions of the various return factors. By employing this return factor based approach, the Fund seeks to provide positive total returns over time while maintaining a relatively low correlation with traditional markets. The exposure to individual return factors will vary based on the market opportunity of the individual return factors. For example, the return factors that the adviser may utilize include, but are not limited to, the following: Value — the Fund seeks to purchase “cheap” stocks based on the ratios of their price to certain company characteristics and take short positions in stocks that are relatively more expensive based on the same considerations Momentum — the Fund seeks to capture the tendency that a security’s recent performance may continue in the near future. This is achieved by purchasing stocks that have appreciated in value more (or depreciated less) than others and by taking short positions in stocks that have appreciated less (or depreciated more) Size — the Fund seeks to purchase small cap stocks and take short positions in large cap stocks Quality — the Fund seeks to buy high quality stocks and take short positions in lower ranked stocks Not all return factors will necessarily be utilized at one time, and additional return factors may be identified over time. The Fund will generally invest its assets globally to gain exposure, either directly or through the use of derivatives, to equity securities (across market capitalizations) in developed markets. The Fund will use both long positions (held directly or through the use of derivative instruments) and short positions (achieved primarily through the use of derivative instruments). The Fund generally will maintain a total net long market exposure under normal market conditions, meaning that the Fund’s aggregate exposure will be greater to instruments that the adviser expects to outperform. When the total net market exposure is long, the Fund’s overall long exposure will be greater than its short exposure (its exposure to instruments that the adviser expects to underperform). However, the Fund may have aggregate long, neutral, or aggregate short exposure to one or more sectors, individual markets and/or currencies based on the adviser’s view of whether a particular sector, market and/or currency is expected to outperform or underperform. To the extent that the Fund hedges its currency exposure into the U.S. dollar, it may reduce the effects of currency fluctuations. The adviser will make use of derivatives, including swaps, futures, options and forward contracts, in implementing its strategy. Under normal market conditions, the adviser currently expects that a significant portion of the Fund’s exposure will be attained through the use of derivatives in addition to its exposure through direct investment. Derivatives, which are instruments that have a value based on another instrument, exchange rate or index, will primarily be used as an efficient means of implementing a particular strategy in order to gain exposure to a desired return factor. For example, the Fund may use a total return swap1 to establish both long and short positions in order to gain the desired exposure rather than physically purchasing and selling short each instrument. Derivatives may also be used to increase gain, to effectively gain targeted exposure from its cash positions, to hedge various investments and/or for risk management. As a result of the Fund’s use of derivatives and also to serve as collateral, the Fund will hold a significant amount of JPMorgan money market funds and other short-term investments. The amount that may be invested in any one instrument will vary and generally depend on the return factors employed by the adviser at that time. There are no stated percentage limitations on the amount that can be invested in any one type of instrument, and the adviser may, at times, focus on a smaller number of instruments. The Fund is generally unconstrained by any particular capitalization, style or sector and, as a main investment strategy, may invest in any developed region or country. The Fund may have both long and short exposure to these instruments. Given the complexity of the investments and strategies of the Fund, the adviser will make use of quantitative models and information and data supplied by third parties to, among other things, help determine the portfolio’s weightings among various investments and construct sets of transactions and investments. The Fund will purchase a particular instrument when the adviser believes that such instrument will allow the Fund to gain the desired exposure to a return factor. Conversely, the Fund will consider selling a particular instrument when it no longer provides the desired exposure to a return factor. In addition, investment decisions will take into account a return factor’s contribution to the Fund’s overall volatility. In allocating assets, the adviser seeks to approximately balance risk to the individual return factors over the long term, although the exposure to individual return factors will vary based on, among other things, the opportunity the adviser sees in each individual return factor. The Fund’s investment strategies may involve active and frequent trading resulting in high portfolio turnover. 1 In this example, the total return swap is a contract in which one party makes payments based on a set rate while the other makes payments based on the return of the underlying assets. In our example, the swap will be based on the return of the designated long and short positions.