Motley Fool Next Index ETF (TMFX) Exchange: NYSE ARCA

The Next Fund is an exchange-traded fund(“ETF”) and employs a “passive management” – or indexing – investment approach designed totrack the total return performance, before fees and expenses, of the Next Index. Motley Fool Asset Management, LLC (the “Adviser”)serves as the investment adviser to the Next Fund. The Next Index was developed by The Motley Fool, LLC (“TMF”), anaffiliate of the Adviser. The Next Index The Next Index was established by TMF in 2021 and is a proprietary, rules-based index designed to track the performance of mid- and small-capitalization U.S. companies that have been recommended by TMF’s analysts and newsletters. TMF’s “recommendation universe” includes all companies domiciled in the United States that are either active recommendations of a newsletter published by TMF or are among the 150 highest rated U.S. companies in TMF’s analyst opinion database, subject to universe continuity rules. Tobe eligible for inclusion in the Next Index, a security must first meet the existing eligibility criteria of the Motley Fool 100Index, a proprietary, rules-based index designed to track the performance of the 100 largest, most liquid U.S. companies thathave been recommended by TMF’s analysts and newsletters. However, the Next Index excludes the 100 largest securitiesthat meet the Motley Fool 100 Index eligibility criteria, subject to universe continuity rules, and consists of the nextlargest companies with a 3-month average daily value traded greater than or equal to $1 million. The selection universe consistsof companies of all market capitalizations. For this purpose, the Adviser defines small- and mid-capitalization companies as companieshaving capitalizations similar to, or less than, the companies in the Russell Midcap Index. To create the Motley Fool 100 Index,the largest 100 companies (based on market capitalization, but not restricted to any capitalization constraints) are selected.Given that the selection universe is dynamic, there is no guarantee that the smallest companies that make up the top 100 willalways fit the definition of large capitalization, or that the first company (or companies) outside the top 100 will not fit thedefinition of large capitalization. Historically, the market capitalization weighting methodology has resulted in the Motley Fool100 Index, under commonly accepted definitions, having attributes of a large capitalization index, and the Next Index having attributesof a small- and mid-capitalization index. With respect to universe continuity, theNext Index is constructed utilizing a buffering methodology. The buffer is intended to reduce index turnover from movements inconstituent weightings that could result in a company dropping out of the index only to be added back with the next rebalance.Specifically, stocks ranked in the top 105 positions based on TMF’s analyst opinion database (70% of the 150-stock target)are automatically included in the candidate universe. Additionally, companies that were previously eligible based on their TMFanalyst ratings will still be included as long as their rank is equal to or better than 195 (130% of the 150-stock target). Stocksare then added based on conviction score rank until the 150-stock target is reached. Once the eligible universe is determined,inclusion in the Motley Fool 100 Index and the Next Index are determined jointly based on market capitalization and index continuityrules. A buffer of 30% of the Motley Fool 100 Index membership target - or 30 stocks - is used to prevent frequent turnover aroundthe Motley Fool 100 Index/Next Index cutoff. Specifically, stocks ranked in the top70 positions based on firm-level market capitalization (70% of the 100-stock target) are automatically included in the candidateuniverse for the Motley Fool 100 Index. Additionally, companies that were previously included in the Motley Fool 100 Index willstill be included as long as their market capitalization rank is equal to or better than 130 (130% of the 100-stock target). Stocksare then added to the Motley Fool 100 Index based on conviction score rank until the 100-stock target is reached. The remainingstocks are included in the Next Index. Each selected company’s share of the Next Index (or “weighting”) is set to equal the company’s share of all Next Index companies’ aggregate market value. The Next Index is reconstituted and rebalanced quarterly. The Next Index will typically include 150 – 450 companies at any one time. The Next Index is calculated and administeredby Solactive AG (the “Index Calculation Agent”), which is not affiliated with the Next Fund, the Adviser or TMF. Additionalinformation regarding the Next Index, including its value, is available on the websites of the Next Index at www.foolindices.comand the Index Calculation Agent, at www.solactive.com. The Next Fund’s Investment Strategy Under normal circumstances, at least 80% of the Next Fund’s total assets (exclusive of any collateral held from securities lending) will be invested in the component securities of the Next Index. The Adviser expects that, over time, if it has sufficient assets, the correlation between the Next Fund’s performance and that of the Next Index, before fees and expenses, will be 95% or better. The Next Fund will generally use a “replication” strategy to achieve its investment objective, meaning it generally will invest in all of the component securities of the Next Index. However, the Next Fund may use a “representative sampling” strategy, meaning it may invest in a sample of the securities in the Next Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Next Index as a whole, when the Adviser believes it is in the best interests of the Next Fund (e.g., when replicating the Next Index involves practical difficulties or substantial costs, a Next Index constituent becomes temporarily illiquid, unavailable or less liquid, or as a result of legal restrictions or limitations that apply to the Next Fund but not to the Next Index). The Next Fund generally may invest up to 20% of its total assets (exclusive of any collateral held from securities lending) in securities or other investments not included in the Next Index, but which the Adviser believes will help the Next Fund track the Next Index. For example, the Next Fund may invest in securities that are not components of the Next Index to reflect various corporate actions and other changes to the Next Index (such as reconstitutions, additions and deletions). The Next Fund is non-diversified for the purposes of the Investment Company Act of 1940, as amended (“1940 Act”), which means that the Next Fund may invest in fewer securities at any one time than a diversified fund. To the extent the Next Index concentrates (i.e., holds more than 25% of its total assets) in the securities of a particular industry, the Next Fund will concentrate its investments to approximately the same extent as the Next Index. The Next Fund may also seek to increase its income by lending securities. The Next Fund has elected to be, and intends to qualify each year for treatment as a regulated investment company (“RIC”) under Subchapter M of Subtitle A, Chapter 1, of the Internal Revenue Code of 1986, as amended (the “Code”).