PSYK ETF (PSYK) Exchange: NYSE ARCA

The Fund uses a “passive management” (or indexing) approach to track the performance, before fees and expenses, of the Index. Enhanced Consciousness IndexThe Index is a rules-based index that tracks the performance of a portfolio of companies that have business activity in the fields of psychedelic treatment used to address medical conditions in legal pharmacological applications under the applicable country’s laws. Psychedelic drugs are a group of substances that are used to change and enhance sensory perceptions, thought processes, and energy levels. If fewer than 25 psychedelic treatment companies qualify for inclusion in the Index, the Index will also include medical cannabis companies. Medical cannabis refers to the use of parts of the cannabis plant for the treatment of a variety of diseases or medical conditions. The Index uses a natural language processing algorithm to review publicly available data to identify companies that have business activity in the fields of psychedelic treatment (or medical cannabis, if applicable). Construction of the Index begins with the universe of equity securities and depositary receipts (including depositary receipts of companies in developed or emerging markets) that have their primary listing on an exchange in the United States or Canada, have a market capitalization of at least $100 million ($80 million for companies already included in the Index), and meet certain liquidity thresholds (collectively, the “Index Universe”). Companies are selected for inclusion in the Index by Solactive AG (“Solactive”), using ARTIS®, Solactive’s proprietary natural language processing algorithm. ARTIS uses key words to review large volumes of publicly available data, such as company annual reports, published business descriptions, company publications, and financial news reports, which Solactive believes will identify and classify companies as having business activity in the fields of psychedelic treatment or medical cannabis and then ranks the companies based on the number and quality of key word “hits” in the company’s data. The ARTIS classification system considers the frequency, relevance, and context of key words found in the company’s data. The ARTIS classification system is different than traditional classification systems because it utilizes natural language processing, such as key word searching, whereas traditional classifications systems may utilize backward looking metrics, such as a company’s past profits or revenue, to determine the classification of a company. Solactive then reviews the rankings provided by ARTIS for relevance and removes companies that were incorrectly identified as psychedelic treatment companies (or medical cannabis, if applicable). At the time of each reconstitution of the Index, the top ranked 25 psychedelic treatment companies are added successively by their ranking and weighted based on their market capitalization. If there are fewer than 25 psychedelic treatment companies included in the Index after this process, medical cannabis companies are added successively and weighted based on their market capitalization until there is a minimum of 25 Index components. Index constituents are weighted based on their market capitalization, subject to a minimum weighting of 0.2% for all Index components and a maximum weighting of 7% for psychedelic treatment companies and 4% for medical cannabis companies. For companies that have a market capitalization greater than $100 billion, the maximum weighting of that company is 2.5%. Additionally, the aggregate weight of companies with an individual weight greater than 5% is capped at 45%, and any remaining companies are capped at 4.5%.The Index tracks companies that are involved in the development of regulated and controlled pharmaceuticals and therapies, under the applicable country’s laws, in the psychedelics and medical cannabis industries that could potentially be used to confront specific illnesses that are not being fully addressed with currently available treatments. To date, no psychedelic drug product other than ketamine has received marketing approval on the basis of safety and efficacy from the U.S. Food and Drug Administration (“FDA”) or Health Canada (Canada’s governmental agency responsible for national health policy) and, accordingly, may not be commercially marketed or sold. Companies with business operations in these fields include companies that develop pharmaceuticals and therapies using psychedelics or medical cannabis for the potential treatment of medical conditions. Psychedelics, sometimes referred to as hallucinogens, are substances that alter perception, mood, and cognitive processes. Ketamine is a dissociative drug that is sometimes labeled a psychedelic and may produce psychedelic effects. Ketamine-based products have been approved by the FDA for certain therapeutics. Medical cannabis, including hemp, is used for a variety of commercial products because it may contain chemical compounds, such as tetrahydrocannabinol (“THC”) and cannabidiol (“CBD”) or have other properties that researchers are exploring as potential treatments for certain health conditions and wellness uses. The Index is reconstituted annually on the first Wednesday in March based on information as of ten business days before the scheduled reconstitution date. The Index is rebalanced quarterly on the first Wednesday in each March, June, September, and December.As of June 30, 2021, the Index was composed of 25 constituents, 17 of which were classified by Solactive as psychedelic treatment companies and eight of which were classified by Solactive as medical cannabis companies. The Index was developed in 2021 and is owned by Elemental Advisors LLC (the “Index Provider”). The Index is administered and calculated by Solactive, the Index calculation agent. The Index Provider is independent of Solactive, the Fund, and the Fund’s investment adviser.The Fund’s Investment StrategyThe Fund will not invest directly in or hold ownership in any companies that engage in psychedelics- or cannabis-related business unless permitted by national and local laws of the relevant jurisdiction, including U.S. federal and state laws. Accordingly, the Fund does not currently invest (directly or indirectly) in companies located in the United States if their psychedelics- or cannabis-related business activities are illegal under U.S. federal law, even if such activities are legal under state law. The Fund will generally use a “replication” strategy to achieve its investment objective, meaning the Fund will generally invest in all of the component securities of the Index in the same approximate proportions as in the Index. However, the Fund may use a “representative sampling” strategy, meaning it may invest in a sample of the securities in the Index whose risk, return, and other characteristics closely resemble the risk, return, and other characteristics of the Index as a whole, when the Fund’s adviser believes it is in the best interests of the Fund (e.g., when replicating the Index involves practical difficulties or substantial costs, an Index constituent becomes temporarily illiquid, unavailable, or less liquid, or as a result of legal restrictions or limitations that apply to the Fund but not to the Index). To the extent the Index concentrates (i.e., holds more than 25% of its total assets) in the securities of a particular industry or group of related industries, the Fund will concentrate its investments to approximately the same extent as the Index. The Fund expects to invest a significant portion of its assets in small- and mid-cap companies. The Fund is considered to be non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund.