Rayliant Quantitative Developed Market Equity ETF (RAYD) Exchange: NYSE ARCA

The Fund invests, under normal circumstances, at least80% of its net assets plus any borrowings for investment purposes in equity securities of developed market companies. This investmentpolicy may be changed by the Fund upon 60 days’ prior written notice to shareholders. The Adviser considers a company to be a developedmarket company if it is organized or maintains its principal place of business in a developed markets country. The Adviser considersa country to be a developed markets country if the country is represented in the MSCI World Index or another widely recognized developedmarkets index. As of November 30, 2021, the MSCI World Index consisted of the following 23 developed markets countries: Austria, Australia,Belgium, Canada, Denmark, Finland, France, Hong Kong, Germany, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal,Singapore, Spain, Sweden, Switzerland, United Kingdom and the United States. The Fund's investment allocation to countries and regionstends to closely approximate the country and region allocations of the MSCI World Index, which may focus its exposure inone or more countries or regions. Developed markets are often characterized by high levels of gross domestic product (GDP) per capitaand mature financial institutions. The equity securities in which the Fund investsare primarily common stocks and depositary receipts, including unsponsored depositary receipts, but may also include preferred stocks,exchange-traded funds (“ETFs”), and securities of other investment companies. The Fund may invest in securities of companieswith any market capitalization with a particular focus on mid- and large-capitalization securities. The Fund is primarily made up of stocks from developedmarkets that are selected using a quantitative investment approach with human discretion. In quantitative investment strategies, investmentdecisions are made using large amounts of data and computer models. However, the Adviser has the discretion to adjust trades based onnews, liquidity, or additional insights from the Adviser’s portfolio management team. The Adviser’s quantitative investmentmodel allocates more weight to stocks for which the model identifies the potential for higher future returns, taking into account risk(i.e., risk-adjusted returns), and less weight to stocks for which the model identifies the potential for lower future risk-adjustedreturns. The Adviser’s portfolio management team may adjust portfolio weights for the Fund based on their own analysis of the securitiesin the Fund’s investment universe in order to enhance evaluations made by the quantitative model. In addition to excluding stocksin specific countries as a result of the Fund’s investment models, the Adviser may avoid investing in a given country for whichthe transaction costs of investing exceed the benefits of investing in that country. Due to its investment strategy, the Fund may buyand sell securities frequently.The Adviser uses data from a variety of sources, including data purchased from vendors and data accessedby the Adviser from alternative sources (e.g., data collected from public websites). Such data are collected at varying frequencies (e.g.,daily price data, quarterly financial statements) and considered over varying horizons, ranging from months to years, depending on thenature of the data in question. The Adviser employs a proprietary data cleaning process, whereby data obtained from vendors and othersources is inspected for errors, processed to make information obtained from different sources useful in comparing various companies,sectors, and markets, and formatted for inclusion in the Adviser’s database and for use in its models. The Adviser monitors itsdata and models through a combination of automated and manual checks. The Adviser pays for data used in the strategy’s models. The Adviser also takes into account certain environmental,social, and governance (“ESG”) criteria in choosing and weighting investments in the Fund, basing its evaluation on a combinationof third-party data and proprietary metrics. ESG considerations that will impact the quantitative ranking of stocks include (but arenot limited to) evaluations of firms’ financial reporting practices (e.g., reducing the weight of companies suspected of manipulativeaccounting) and the degree of alignment between a firm’s managers and shareholders (e.g., whether managers are prone to wastefullyreinvest the company’s earnings rather than distributing earnings to shareholders). Governance characteristics will lead to eitheran increase or decrease of weight in a stock, depending on whether the Adviser determines that the company exhibits good or bad governance,respectively, on the basis of that characteristic. In addition, the Fund will screen out the stock of companies that are identified bythe Adviser as having extremely poor environmental performance (e.g., firms with exceedingly high CO2 emissions, energy intensity, waterintensity, and waste generation). Such exclusions will be made regardless of the expected future returns of stocks failing to meet theFund’s ESG screening criteria. Because the Fund’s universe of stocks is large relative to the number of companies expectedby the Adviser to fail their ESG criteria, the Adviser does not expect screening on ESG to have a significant impact on the Fund’sability to meet its investment objective.