Motley Fool Mid Cap Growth ETF (TMFM) Exchange: BATS

The Mid-Cap Growth Fund is an actively-managedexchange-traded fund (“ETF”) and pursues its investment objective by using a quality growth investing style. The Mid-CapGrowth Fund invests in a focused portfolio of the common stocks of high-quality companies organized in the United States that areengaged in a broad range of industries. Under normal market conditions, theMid-Cap Growth Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in securitiesissued by United States companies having mid-market capitalizations. For this purpose, Motley Fool Asset Management, LLC (the“Adviser”) currently defines mid-market capitalization companies as having similar market capitalizations to the companiesin the Russell Midcap® Growth Total Return Index, which is used for the purpose of determining range and not fortargeting portfolio management. As of October 31, 2021, the average dollar-weighted market cap of the Russell Midcap Growth Indexwas approximately $30.5 billion. The median market cap was approximately $13.6 billion and the largest stock included in the indexhad a market cap of approximately $65.2 billion. Under normal circumstances, the Mid-Cap Growth Fund seeks to stay fully investedand does not attempt to time the market. In identifying investments for the Mid-CapGrowth Fund, the Adviser looks for securities of companies that have high quality businesses with strong market positions, manageableleverage, robust streams of free cash flow, and trade at attractive prices. In managing the Mid-Cap Growth Fund’s investmentportfolio, the Adviser regularly reviews and adjusts the Mid-Cap Growth Fund’s allocations to maintain a diversified mixof investments that the Adviser believes offer the best overall potential for long-term growth of capital. The Mid-Cap Growth Fundwill sell securities in which it has invested based upon the Adviser’s analysis of fundamental investment criteria, includingits assessment of the current value of a security relative to the security’s current market price, business fundamentalsrelating to the issuer, and developments affecting the issuer’s business prospects and risks. The Mid-Cap Growth Fund prefers to investin high-quality businesses when possible. To identify these high-quality businesses, the Adviser engages in research to evaluateeach company under consideration using four criteria: management, culture, and incentives; the economics of the business; competitiveadvantage; and trajectory. The Adviser’s approach employs a long-term mindset and a balance of qualitative and quantitativefactors. Management, Culture, and Incentives.The Adviser believes that management isa key element to long-term success at most businesses. Among the factors the Adviser considers are: manager and board of directorfit, the clarity of vision and strategies, main-line culture and turnover, ownership in the business, the sensibility of incentives,capital allocation choices and results, external transparency and candor, and overall treatment of stakeholders. Economics of the Business.The Adviser believes that the economicperformance of a business is a signal for quality. The Adviser’s process looks at the company’s long-term return oncapital, the scalability of its business model, relative and absolute margins, business and product cyclicality, and other keyperformance indicators to gain insight into its potential for future performance. Competitive Advantage.The Adviser seeks companies that offercertain characteristics that allow them to generate and sustain outsized returns on capital on an absolute basis as well as incomparison to their peers. Competitive advantages may include pricing power, geographic barriers to entry, network effects, regulatorybarriers to entry and superior brands, among others. The Adviser also assesses the strength of the supporting capabilities eachcompany possesses that reinforce these advantages to result in unique positioning. TrajectoryCompanies often display superior economicsover the short term due to favorable product cycles, customer preference, temporary or tactical advantages or other reasons. Asthe Adviser’s desire is to own companies in the Mid-Cap Growth Fund that can be kept in the portfolio for many years, a corepart of the Adviser’s process is to consider what the company might look like over a period of ten or more years. The Adviserconsiders whether the company seems likely to grow, to increase profitability through additional products or other offerings, andif it has optionality and the financial capacity that may make it a larger, stronger business in the future than it might be today. The Mid-Cap Growth Fund’s investmentportfolio is focused, generally composed of at least 30 investment positions, with the 10 largest positions representing not morethan 60% of the Mid-Cap Growth Fund’s net assets. To limit the risks associated with highly concentrated holdings, the Mid-CapGrowth Fund generally does not invest more than 5% of its net assets in securities of any one issuer at the time of purchase. Ifa portfolio holding grows to be greater than 5% of the Mid-Cap Growth Fund’s net assets the Adviser may not add additionalcapital to the position. However, the Adviser may maintain an allocation above 5% indefinitely, provided it continues to meet theAdviser’s investment criteria. While investing in a particular sectoris not a principal investment strategy of the Mid-Cap Growth Fund, its portfolio may be significantly invested in a sector as aresult of the portfolio management decisions made pursuant to its principal investment strategy. Currently, the Mid-Cap GrowthFund is significantly invested in the industrials sector, consumer discretionary sector, health care sector, and information technologysector, which means it will be more affected by the performance of such sectors than a fund that is not so significantly invested.The Fund may also seek to increase its income by lending portfolio securities. The Mid-Cap Growth Fund has elected tobe, and intends to continue to qualify each year for treatment as a regulated investment company (“RIC”) under SubchapterM of Subtitle A, Chapter 1, of the Internal Revenue Code of 1986, as amended (the “Code”).