The Fund is an actively managed ETF and thus does notseek to replicate the performance of a specific index. Instead, the Fund uses an active management strategy to meet its investment objective.Consequently, investors should not expect the Fund’s returns to track the returns of any index or market for any period of time.TheFund, under normal circumstances, invests at least 80% of its assets (net assets plus borrowings for investment purposes) in debt securitieswhose interest is, in the opinion of bond counsel for the issuer at the time of issuance, exempt from federal income tax (“MunicipalBonds”). The Fund typically invests at least 80% of its net assetsin Municipal Bonds that are rated investment grade by at least one independent rating agency (i.e., within the highest four quality ratingsby Moody’s Investors Service, Inc., Standard & Poor’s Ratings Services or Fitch Ratings, Inc.). If independent ratingagencies assign different ratings to the same security, the Fund will use the higher rating for purposes of determining the security’scredit quality. The Fund generally will maintain a dollar-weighted average duration of zero to three years. Municipal Bonds are issued by or on behalf of the Districtof Columbia, states, territories, commonwealths and possessions of the United States and their political subdivisions and agencies, authoritiesand instrumentalities. The Fund may not invest more than 20% of its net assets in tax-exempt securities subject to the federal alternativeminimum tax. The Fund may invest more than 25%of its total assets in Municipal Bonds that are related in such a way that an economic, business or political development or change affectingone such security could also affect the other securities. However, the Fund’s investments will be diversified among a minimum often different sectors of the Municipal Bond market, such as education, transportation and local general obligation. The Fund’s investmentswill be diversified among at least 15 different states, with no more than 30% of the Fund’s securities invested in municipal securitiesfrom a single state. Some of the Fund’s earnings may be subject to federal tax and most may be subject to state and local taxes.MacKay Shields LLC’s (the “Subadvisor”)investment process begins with an assessment of macro factors that may impact the Municipal Bond market, including tax rates, U.S. Treasuryrates, and global economic data, as well as other regulatory, tax, governmental, and technical factors that may impact the Municipal Bondmarket. Additionally, the Subadvisor may give consideration to certain environmental, social and governance (“ESG”) criteriawhen evaluating an investment opportunity. Following the assessment of these factors, the Subadvisor develops an investment strategy toposition the Fund among various sectors of the Municipal Bond market and different states. The Subadvisor then employs a fundamental,“bottom-up” credit research analysis to select individual Municipal Bonds. The Subadvisor may sell a security if it no longer believesthe security will contribute to meeting the investment objective of the Fund. In considering whether to sell a security, the Subadvisormay evaluate, among other things, the condition of the economy and meaningful changes in the issuer’s financial condition.
