Because the values of the Fund's investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than large capitalization companies.
Trading prices of shares are linked to the Fund’s next-computed NAV and will vary from NAV by a market-determined premium or discount, which may be zero. Trading prices of shares may be above, at or below NAV, and may vary significantly from anticipated levels. Trading in shares does not offer the opportunity to transact intraday based on current (versus end-of-day) determinations of the share value. Buyers and sellers of shares will not know the value of their purchases and sales until the Fund’s NAV is determined at the end of the trading day. Although limit orders can be used to control differences in trade price versus NAV (cost of trade execution), they cannot be used to control or limit execution price. Individual shares may only be purchased and sold on an Exchange through a broker and may not be purchased or redeemed directly from a Fund. Shares may be purchased or redeemed in transactions directly with a Fund only in Creation Unit quantities by or through Authorized Participants. There can be no guarantee that an active trading market for shares will develop or be maintained, or that their listing will continue or remain unchanged. The Basket is not intended to be representative of current Fund Positions and may vary significantly from the Fund Positions. Buying and selling shares on the Exchange may require the payment of brokerage commissions and expose the buyer or seller to other transaction costs. Due to brokerage commissions and other transaction costs that may apply, frequent trading may detract from realized investment returns; and an investor’s realized returns will be reduced if the investor sells shares at a greater discount or narrower premium to NAV than he or she acquired the shares.
Graham and Dodd Investment Approach: A method described by Benjamin Graham and David Dodd in their 1934 book Security Analysis for seeking securities which may be underpriced relative to the value of their underlying assets.