ECMM Strategic E-Commerce & Logistics Sector ETF
https://www.sec.gov/Archives/edgar/data/1592900/000182912621000407/alphaarchitect_485apos.htm#a_033
PRINCIPAL INVESTMENT STRATEGIES
The Fund’s Investment Strategy
The Fund employs a “passive management” (or indexing) investment approach designed to track the performance, before fees and expenses, of the Index.
The term E-Commerce refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions. The Fund will invest in companies that engage in E-Commerce activities, whose stocks listed on the stock exchanges of United States and various developed countries. The Fund will primarily invest in companies the following three Index-Provider-defined E-Commerce sectors (each, as further described below):
| ● | The Strategic E-Commerce Marketplaces, Platforms and Merchants sector |
| ● | The Strategic E-Commerce Technology Infra & Support Services sector |
| ● | The Strategic E-Commerce Logistics & Fulfillment sector |
Companies in the Strategic E-Commerce Marketplaces, Platforms and Merchants sector operate e-commerce platforms that connect buyers and sellers of goods and services via online marketplaces, or primarily sell goods and services online and generate the majority of their overall revenue from online retail services.
Companies in the Strategic E-Commerce Technology Infra & Support Services sector provide e-commerce software, analytics, or services that facilitate the development and enhancement of e-commerce platforms, including e-commerce payments and merchant processing services.
Companies in the Strategic E-Commerce Logistics & Fulfillment sector provide e-commerce logistics, fulfilments or distribution services or real estate services.
Under normal market conditions, the eligible universe of companies will have a minimum market capitalization of $500 million. The Fund may invest in the securities of ecommerce companies listed on the stock exchanges of any of the following developed countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
The Fund’s portfolio will generally be comprised of approximately fifty companies’ securities. Those companies will generally be among the largest companies in the industry. See The Index below for more information about the security selection methodology.
The Fund’s investments may include common stocks, American Depositary Receipts (ADRs), limited partnership interests, and shares or units of beneficial interest of limited liability companies.
The Fund will be 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. The Fund will concentrate (i.e., invest more than 25% of the value of the Fund’s assets) in securities of issuers having their principal business activities in groups of E-Commerce industries.
The Index
In constructing the Index, the Index Provider identifies E-Commerce companies by applying a proprietary analysis that consists of three primary components: (1) industry and sector identification, (2) company analysis, and (3) company selection.
The Index Provider first considers a large group of companies that may become eligible for inclusion in the Index by evaluating whether, and the extent to which, the companies have direct exposure to the e-commerce industry and one of the aforementioned Strategic sectors that comprise the industry, each as determined by Strategic Investments, LLC (the “Index Provider”). To determine the scope of each of the sectors, the Index Provider analyzes industry reports, investment research and consumer data related to E-Commerce that, in the Index Provider’s view, are expected to provide the most exposure to the potential growth of the E-Commerce industry.
In the second step of the process, companies are analyzed based on two primary criteria: primary business operations and revenue exposure. To be eligible for inclusion in the Index, a company must be identified as having significant exposure to one or more of the Strategic E-Commerce sectors, as determined by the Index Provider. A company is deemed to have significant exposure to E-Commerce sectors if (i) it derives a significant portion of its revenue from one or more of the E-Commerce sectors, or (ii) it has stated its primary business to be in products and services focused on one or more of the E-Commerce sectors, in each case as determined by the Index Provider. The Index Provider screens companies that are identified to be in the Index based on filings, disclosures and other public information (e.g. regulatory filings, earnings transcripts, etc.). Companies are identified by the industry identification process, as of the selection date, are further reviewed by the Index Provider on the basis of operations related to e-commerce activities.
In the final step, the Index Provider selects from the eligible universe the fifty or so companies that have the largest float adjusted capitalizations. Via the free-float methodology, a company’s market capitalization is calculated by taking the security's price and multiplying it by the number of shares readily available in the market. As a result, rather than using all of a company’s outstanding shares, free-float calculations exclude locked-in shares, such as those held by insiders, promoters, and governments. Essentially, the largest publicly available companies in the eligible universe are included in the Index.
The Index is also weighted, so that the Index holds a larger percentage of larger capitalization companies and, conversely, a smaller portion of companies with smaller capitalizations. Lastly, the Index has a cap on the percentage that a particular company can represent in the Index. Under normal market conditions, the cap is approximately eight percent, which is applied only at the time of each reconstitution of the Index. As a result, a particular holding may exceed the cap, from time to time, due to market conditions.
Index Reconstitution. The Index is reconstituted quarterly in January, April, July and October. The date of each reconstitution of the Index will be available on the Fund’s website at www.StrategicETFs.com/resources at least one week in advance of the reconstitution date. Each Index reconstitution will normally become effective at market open on the trading day after the third Friday in the relevant month.
A more detailed description of the Index’s methodology is provided below under the heading “Additional Information About the Indices.”
XPAY Strategic Fintech & Digital Payments Sector ETF
https://www.sec.gov/Archives/edgar/data/1592900/000182912621000407/alphaarchitect_485apos.htm#a_034
PRINCIPAL INVESTMENT STRATEGIES
The Fund’s Investment Strategy
The Fund employs a “passive management” (or indexing) investment approach designed to track the performance, before fees and expenses, of the Index.
The term “Fintech” refers to companies that provide financial technology and digital payment products and services. The Fund will invest in Fintech companies whose stocks listed on the stock exchanges of United States and various developed countries. The Fund will primarily invest in the following two Fintech sectors (each, as further described below):
| ● | The Strategic Fintech Enterprise Solutions sector |
| ● | The Strategic Fintech Integrated Platforms sector |
Companies in the Strategic Fintech Enterprise Solutions sector include companies that offer financial industry-specific, cloud-based business software solutions, services, and data analytics to vertical industry businesses. A “vertical” industry business provides goods and services to a particular industry with specialized needs.
Companies in the Strategic Fintech Integrated Platforms sector comprises an ecosystem of financial products and services including:
| ● | Managed payments systems and solutions (e.g., payments systems and solutions, hardware, risk management & disputes) |
| ● | Point-of-sale & business tools (including firms providing marketing, loyalty, and gift cards, employee tracking & reporting systems and services, and E-Commerce companies, which are companies involved in the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions), |
| ● | Vertical specific software (e.g., appointments, invoices, virtual terminal services, retail, food & drink) |
| ● | Financial services (e.g., access to funds, payroll, and financing). |
| ● | Blockchain and alternative currency systems |
Under normal market conditions, the eligible universe of companies will have a minimum market capitalization of $500 million. The Fund may invest in the securities of Fintech companies listed on the stock exchanges of any of the following developed countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
The Fund’s portfolio will generally be comprised of approximately fifty securities. Those companies will generally be among the largest companies in the industry. See The Index below for more information about the security selection methodology.
The Fund’s investments may include common stocks, American Depositary Receipts (ADRs), limited partnership interests, and shares or units of beneficial interest of limited liability companies
The Fund will be 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. The Fund will concentrate (i.e., invest more than 25% of the value of the Fund’s assets) in securities of issuers having their principal business activities in groups of Fintech industries.
The Index
In constructing the Index, the Index Provider identifies Fintech companies by applying a proprietary analysis that consists of three primary components: (1) industry and sector identification, (2) company analysis, and (3) company selection.
The Index Provider first considers a large group of companies that may become eligible for inclusion in the Index by evaluating whether, and the extent to which, the companies have direct exposure to the e-commerce industry and one of the aforementioned Strategic sectors that comprise the industry, each as determined by Strategic Investments, LLC (the “Index Provider”). To determine the scope of each of the sectors, the Index Provider analyzes industry reports, investment research and consumer data related to Fintech that, in the Index Provider’s view, are expected to provide the most exposure to the potential growth of the Fintech industry.
In the second step of the process, companies are analyzed based on two primary criteria: primary business operations and revenue exposure. To be eligible for inclusion in the Index, a company must be identified as having significant exposure to one or both of the Strategic Fintech sectors, as determined by the Index Provider. A company is deemed to have significant exposure to Fintech sectors if (i) it derives a significant portion of its revenue from one or both of the Fintech sectors, or (ii) it has stated its primary business to be in products and services focused on one or both of the Fintech sectors, in each case as determined by the Index Provider. The Index Provider screens companies that are identified to be in the Index based on filings, disclosures and other public information (e.g. regulatory filings, earnings transcripts, etc.). Companies are identified by the industry identification process, as of the selection date, are further reviewed by the Index Provider on the basis of operations related to e-commerce activities.
In the final step, the Index Provider selects from the eligible universe the fifty or so companies that have the largest float adjusted capitalizations. Via the free-float methodology, a company’s market capitalization is calculated by taking the security's price and multiplying it by the number of shares readily available in the market. As a result, rather than using all of a company’s outstanding shares, free-float calculations exclude locked-in shares, such as those held by insiders, promoters, and governments. Essentially, the largest publicly available companies in the eligible universe are included in the Index.
The Index is also weighted, so that the Index holds a larger percentage of larger capitalization companies and, conversely, a smaller portion of companies with smaller capitalizations. Lastly, the Index has a cap on the percentage that a particular company can represent in the Index. Under normal market conditions, the cap is eight percent, which is applied only at the time of each reconstitution of the Index. As a result, a particular holding may exceed the cap, from time to time, due to market conditions.
Index Reconstitution. The Index is reconstituted quarterly in January, April, July and October. The date of each reconstitution of the Index will be available on the Fund’s website at www.StrategicETFs.com/resources at least one week in advance of the reconstitution date. Each Index reconstitution will normally become effective at market open on the trading day after the third Friday in the relevant month.
A more detailed description of the Index’s methodology is provided below under the heading “Additional Information About the Indices.”
HOTL Strategic Hotel & Lodging Sector ETF
https://www.sec.gov/Archives/edgar/data/1592900/000182912621000407/alphaarchitect_485apos.htm#a_035
PRINCIPAL INVESTMENT STRATEGIES
The Fund’s Investment Strategy
The Fund employs a “passive management” (or indexing) investment approach designed to track the performance, before fees and expenses, of the Index.
The term “Hotel and Lodging” refers to companies that specialize in Hotel and Lodging operations, management, and real estate. The Fund will invest in Hotel and Lodging companies whose stocks listed on the stock exchanges of United States and various developed countries. The Fund will primarily invest in the following two Hotel & Lodging sectors (each, as further described below):
| ● | The Strategic Hotel & Lodging Services sector |
| ● | The Strategic Hotel & Lodging Operations sector |
Companies in the Strategic Hotel & Lodging Services sector include companies that specialize providing hotel and lodging management services, operational services, or provide franchising of: hotel, motel, lodging, residential, and/or timeshare properties, including lodging platform services (e.g., global marketplaces for private accommodations including online marketplaces for discovering and booking private or shared accommodations).
Companies in the Strategic Hotel & Lodging Operations sector include companies that own or lease hotels, motels, lodges, resorts, timeshare properties, and/or real estate.
Under normal market conditions, the eligible universe of companies will have a minimum market capitalization of $300 million. The Fund may invest in the securities of Hotel & Lodging companies listed on the stock exchanges of any of the following developed countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
The Fund’s portfolio will generally be comprised of approximately fifty securities. Those companies will generally be among the largest companies in the industry. See The Index below for more information about the security selection methodology.
The Fund’s investments may include common stocks, Real Estate Investment Trusts (REITs), American Depositary Receipts (ADRs), limited partnership interests, and shares or units of beneficial interest of limited liability companies.
The Fund will be 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. The Fund will concentrate (i.e., invest more than 25% of the value of the Fund’s assets) in securities of issuers having their principal business activities in groups of Hotel & Lodging industries.
The Index
In constructing the Index, the Index Provider identifies Hotel & Lodging companies by applying a proprietary analysis that consists of three primary components: (1) industry and sector identification, (2) company analysis, and (3) company selection.
The Index Provider first considers a large group of companies that may become eligible for inclusion in the Index by evaluating whether, and the extent to which, the companies have direct exposure to the e-commerce industry and one of the aforementioned Strategic sectors that comprise the industry, each as determined by Strategic Investments, LLC (the “Index Provider”). To determine the scope of each of the sectors, the Index Provider analyzes industry reports, investment research and consumer data related to Hotel & Lodging that, in the Index Provider’s view, are expected to provide the most exposure to the potential growth of the Hotel & Lodging industry.
In the second step of the process, companies are analyzed based on two primary criteria: primary business operations and revenue exposure. To be eligible for inclusion in the Index, a company must be identified as having significant exposure to one or more of the Strategic Hotel & Lodging sectors, as determined by the Index Provider. A company is deemed to have significant exposure to Hotel & Lodging sectors if (i) it derives a significant portion of its revenue from one or more of the Hotel & Lodging sectors, or (ii) it has stated its primary business to be in products and services focused on one or more of the Hotel & Lodging sectors, in each case as determined by the Index Provider. The Index Provider screens companies that are identified to be in the Index based on filings, disclosures and other public information (e.g. regulatory filings, earnings transcripts, etc.). Companies are identified by the industry identification process, as of the selection date, are further reviewed by the Index Provider on the basis of operations related to e-commerce activities.
In the final step, the Index Provider selects from the eligible universe the fifty or so companies that have the largest float adjusted capitalizations. Via the free-float methodology, a company’s market capitalization is calculated by taking the security's price and multiplying it by the number of shares readily available in the market. As a result, rather than using all of a company’s outstanding shares, free-float calculations exclude locked-in shares, such as those held by insiders, promoters, and governments. Essentially, the largest publicly available companies in the eligible universe are included in the Index.
The Index is also weighted, so that the Index holds a larger percentage of larger capitalization companies and, conversely, a smaller portion of companies with smaller capitalizations. Lastly, the Index has a cap on the percentage that a particular company can represent in the Index. Under normal market conditions, the cap is approximately eight percent, which is applied only at the time of each reconstitution of the Index. As a result, a particular holding may exceed the cap, from time to time, due to market conditions.
Index Reconstitution. The Index will be reconstituted quarterly in January, April, July and October. The date of each reconstitution of the Index will be available on the Fund’s website at www.StrategicETFs.com/resources at least one week in advance of the reconstitution date. Each Index reconstitution will normally become effective at market open on the trading day after the third Friday in the relevant month.
A more detailed description of the Index’s methodology is provided below under the heading “Additional Information About the Indices.”
INET Strategic Internet of Things Technology ETF
https://www.sec.gov/Archives/edgar/data/1592900/000182912621000407/alphaarchitect_485apos.htm#a_036
PRINCIPAL INVESTMENT STRATEGIES
The Fund’s Investment Strategy
The Fund employs a “passive management” (or indexing) investment approach designed to track the performance, before fees and expenses, of the Index.
The term “Internet of Things” refers to the network of physical objects—“things”—that have sensors, software, and other technologies that allows them to connect and exchange data with other devices and systems over the internet. A ‘thing’ can refer to a connected medical device, a solar panel, a smart home security system, autonomous farming equipment, shipping container and logistics tracking, or any other object, outfitted with sensors, that has the ability to gather and transfer data over a network.
The Fund will invest in Internet of Things companies whose stocks listed on the stock exchanges of United States and various developed countries. The Fund will primarily invest in the following four Internet of Things sectors (each, as further described below):
| ● | The Strategic Enterprise Solutions sector |
| ● | The Strategic Equipment, Vehicle, and Infrastructure/Building Technology sector |
| ● | The Strategic Semiconductors and Sensors sector |
| ● | The Strategic Networking Infrastructure/Software sector |
Companies in the Strategic Enterprise Solutions sector include companies that provide applications that are responsible for data collection, device integration, real-time analytics, and software applications and software process extensions (i.e., processes designed to accommodate for future growth) within the Internet of Things network.
Companies in the Strategic Equipment, Vehicle, and Infrastructure/Building Technology sector include companies that build, service, or own Internet of Things-related infrastructure including data centers, cell towers, fiber optic networks, and technology hardware (for example, antennas, servers, and cables).
Companies in the Semiconductors and Sensors sector include companies that provide signal processing units, network links, and cellular network receivers and transmitters. That includes companies that support (a) the Baseband Unit (BBU), which are the signal processing units in cellular networks, also known as the base stations, (b) Backhaul, a portion of the network (also called the Core Network) that comprises the intermediate links between the BBU, a metropolitan core network (i.e., the core network for a city), and the edge of the network (for example, data centers, cloud storage, and the internet itself) and (c) Remote Radio Heads (RRHs), which includes the radio frequency receivers/transmitters in the cellular network, or the antennas.
Companies in the Networking Infrastructure/Software sector include companies that provide cloud data platforms, which include solutions for data warehousing (repositories for structured data), data lakes (repositories for data in its raw format), data engineering, data science, data application development, and data exchange.
Under normal market conditions, the eligible universe of companies will have a minimum market capitalization of $500 million. The Fund may invest in the securities of Internet of Things companies listed on the stock exchanges of any of the following developed countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
The Fund’s portfolio will generally be comprised of approximately fifty securities. Those companies will generally be among the largest companies in the industry. See The Index below for more information about the security selection methodology.
The Fund’s investments may include common stocks, American Depositary Receipts (ADRs), limited partnership interests, and shares or units of beneficial interest of limited liability companies.
The Fund will be 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. The Fund will concentrate (i.e., invest more than 25% of the value of the Fund’s assets) in securities of issuers having their principal business activities in groups of Internet of Things industries.
The Index
In constructing the Index, the Index Provider identifies Internet of Things companies by applying a proprietary analysis that consists of three primary components: (1) industry and sector identification, (2) company analysis, and (3) company selection.
The Index Provider first considers a large group of companies that may become eligible for inclusion in the Index by evaluating whether, and the extent to which, the companies have direct exposure to the e-commerce industry and one of the aforementioned Strategic sectors that comprise the industry, each as determined by Strategic Investments, LLC (the “Index Provider”). To determine the scope of each of the sectors, the Index Provider analyzes industry reports, investment research and consumer data related to Internet of Things that, in the Index Provider’s view, are expected to provide the most exposure to the potential growth of the Internet of Things industry.
In the second step of the process, companies are analyzed based on two primary criteria: primary business operations and revenue exposure. To be eligible for inclusion in the Index, a company must be identified as having significant exposure to one or more of the Strategic Internet of Things sectors, as determined by the Index Provider. A company is deemed to have significant exposure to Internet of Things sectors if (i) it derives a significant portion of its revenue from one or more of the Internet of Things sectors, or (ii) it has stated its primary business to be in products and services focused on one or more of the Internet of Things sectors, in each case as determined by the Index Provider. The Index Provider screens companies that are identified to be in the Index based on filings, disclosures and other public information (e.g. regulatory filings, earnings transcripts, etc.). Companies are identified by the industry identification process, as of the selection date, are further reviewed by the Index Provider on the basis of operations related to e-commerce activities.
In the final step, the Index Provider selects from the eligible universe the fifty or so companies that have the largest float adjusted capitalizations. Via the free-float methodology, a company’s market capitalization is calculated by taking the security's price and multiplying it by the number of shares readily available in the market. As a result, rather than using all of a company’s outstanding shares, free-float calculations exclude locked-in shares, such as those held by insiders, promoters, and governments. Essentially, the largest publicly available companies in the eligible universe are included in the Index.
The Index is also weighted, so that the Index holds a larger percentage of larger capitalization companies and, conversely, a smaller portion of companies with smaller capitalizations. Lastly, the Index has a cap on the percentage that a particular company can represent in the Index. Under normal market conditions, the cap is approximately eight percent, which is applied only at the time of each reconstitution of the Index. As a result, a particular holding may exceed the cap, from time to time, due to market conditions.
Index Reconstitution. The Index will be reconstituted quarterly in January, April, July and October. The date of each reconstitution of the Index will be available on the Fund’s website at www.StrategicETFs.com/resources at least one week in advance of the reconstitution date. Each Index reconstitution will normally become effective at market open on the trading day after the third Friday in the relevant month.
A more detailed description of the Index’s methodology is provided below under the heading “Additional Information About the Indices.”
XDNA Strategic Healthcare & Life Science Technology ETF
https://www.sec.gov/Archives/edgar/data/1592900/000182912621000407/alphaarchitect_485apos.htm#a_037
PRINCIPAL INVESTMENT STRATEGIES
The Fund’s Investment Strategy
The Fund employs a “passive management” (or indexing) investment approach designed to track the performance, before fees and expenses, of the Index.
The term “Healthcare Tech” companies refers to companies that specialize in healthcare and life science technologies. The Fund will invest in Healthcare Tech companies whose stocks listed on the stock exchanges of United States and various developed countries. The Fund will primarily invest in the following three Health Tech sectors (each, as further described below):
| ● | The Strategic Biomedical & Genomics Technology sector |
| ● | The Strategic Medical Software & Information Technology (IT) Services sector |
| ● | The Strategic Healthcare Internet of Things, Systems & Equipment sector |
Companies in the Strategic Biomedical & Genomics Technology sector include companies that are involved in genomics, immunology, and bioengineering. Genomics researchers analyze DNA-sequence data to find variations that affect health, disease or drug response. Immunology is used to diagnose, treat, and manage various immunologic conditions, including allergies and immunodeficiency diseases. Bioengineering includes the design biomedical equipment and devices, including artificial internal organs, replacements for body parts, and machines for diagnosing medical problems.
Companies in the Strategic Medical Software & IT Services sector include companies that build, service, or own scientific instrument, drug delivery systems, and electronic & electrical equipment.
Companies in the Strategic Healthcare Internet of Things, Systems & Equipment sector include companies that provide health-care related enterprise software/services, data processing/management, or technology hardware.
Under normal market conditions, the eligible universe of companies will have a minimum market capitalization of $500 million. The Fund may invest in the securities of HealthTech companies listed on the stock exchanges of any of the following developed countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
The Fund’s portfolio will generally be comprised of approximately eighty five securities. The Fund’s portfolio will generally be comprised of approximately fifty companies’ securities. Those companies will generally be among the largest companies in the industry. See The Index below for more information about the security selection methodology.
The Fund’s investments may include common stocks, American Depositary Receipts (ADRs), limited partnership interests, and shares or units of beneficial interest of limited liability companies.
The Fund will be 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. The Fund will concentrate (i.e., invest more than 25% of the value of the Fund’s assets) in securities of issuers having their principal business activities in groups of Healthcare Tech industries.
The Index
In constructing the Index, the Index Provider identifies Health Tech companies by applying a proprietary analysis that consists of three primary components: (1) industry and sector identification, (2) company analysis, and (3) company selection.
The Index Provider first considers a large group of companies that may become eligible for inclusion in the Index by evaluating whether, and the extent to which, the companies have direct exposure to the e-commerce industry and one of the aforementioned Strategic sectors that comprise the industry, each as determined by Strategic Investments, LLC (the “Index Provider”). To determine the scope of each of the sectors, the Index Provider analyzes industry reports, investment research and consumer data related to Health Tech that, in the Index Provider’s view, are expected to provide the most exposure to the potential growth of the Health Tech industry.
In the second step of the process, companies are analyzed based on two primary criteria: primary business operations and revenue exposure. To be eligible for inclusion in the Index, a company must be identified as having significant exposure to one or more of the Strategic Health Tech sectors, as determined by the Index Provider. A company is deemed to have significant exposure to Health Tech sectors if (i) it derives a significant portion of its revenue from one or more of the Health Tech sectors, or (ii) it has stated its primary business to be in products and services focused on one or more of the Health Tech sectors, in each case as determined by the Index Provider. The Index Provider screens companies that are identified to be in the Index based on filings, disclosures and other public information (e.g. regulatory filings, earnings transcripts, etc.). Companies are identified by the industry identification process, as of the selection date, are further reviewed by the Index Provider on the basis of operations related to e-commerce activities.
In the final step, the Index Provider selects from the eligible universe the fifty or so companies that have the largest float adjusted capitalizations. Via the free-float methodology, a company’s market capitalization is calculated by taking the security's price and multiplying it by the number of shares readily available in the market. As a result, rather than using all of a company’s outstanding shares, free-float calculations exclude locked-in shares, such as those held by insiders, promoters, and governments. Essentially, the largest publicly available companies in the eligible universe are included in the Index.
The Index is also weighted, so that the Index holds a larger percentage of larger capitalization companies and, conversely, a smaller portion of companies with smaller capitalizations. Lastly, the Index has a cap on the percentage that a particular company can represent in the Index. Under normal market conditions, the cap is approximately eight percent, which is applied only at the time of each reconstitution of the Index. As a result, a particular holding may exceed the cap, from time to time, due to market conditions.
Index Reconstitution. The Index will be reconstituted quarterly in January, April, July and October. The date of each reconstitution of the Index will be available on the Fund’s website at www.StrategicETFs.com/resources at least one week in advance of the reconstitution date. Each Index reconstitution will normally become effective at market open on the trading day after the third Friday in the relevant month.
A more detailed description of the Index’s methodology is provided below under the heading “Additional Information About the Indices.”
PAD Strategic Apartment & Residential Real Estate ETF
https://www.sec.gov/Archives/edgar/data/1592900/000182912621000407/alphaarchitect_485apos.htm#a_038
PRINCIPAL INVESTMENT STRATEGIES
The Fund’s Investment Strategy
The Fund employs a “passive management” (or indexing) investment approach designed to track the performance, before fees and expenses, of the Index.
The term “Apartment & Residential Real Estate” companies refers to companies that specialize in apartment buildings, single-family home rentals, student housing, and/or manufactured homes operations, management, and real estate. The Fund will invest in Apartment & Residential Real Estate companies whose stocks listed on the stock exchanges of United States and Canada. The Fund will primarily invest in the following four sectors:
| ● | The Strategic Apartment buildings sector |
| ● | The Strategic Single-family rental home rentals sector |
| ● | The Strategic Student housing sector |
| ● | The Strategic Manufactured homes sector |
Under normal market conditions, the eligible universe of companies will have a minimum market capitalization of $300 million.
The Fund’s portfolio will generally be comprised of approximately twenty five securities. The Fund’s portfolio will generally be comprised of approximately fifty companies’ securities. Those companies will generally be among the largest companies in the industry. See The Index below for more information about the security selection methodology.
The Fund’s investments may include common stocks, Real Estate Investment Trusts (REITS), American Depositary Receipts (ADRs), limited partnership interests, and shares or units of beneficial interest of limited liability companies.
The Fund will be 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. The Fund will concentrate (i.e., invest more than 25% of the value of the Fund’s assets) in securities of issuers having their principal business activities in groups of Apartment & Residential Real Estate industries.
The Index
In constructing the Index, the Index Provider identifies Apartment & Residential Real Estate companies by applying a proprietary analysis that consists of three primary components: (1) industry and sector identification, (2) company analysis, and (3) company selection.
The Index Provider first considers a large group of companies that may become eligible for inclusion in the Index by evaluating whether, and the extent to which, the companies have direct exposure to the e-commerce industry and one of the aforementioned Strategic sectors that comprise the industry, each as determined by Strategic Investments, LLC (the “Index Provider”). To determine the scope of each of the sectors, the Index Provider analyzes industry reports, investment research and consumer data related to Apartment & Residential Real Estate that, in the Index Provider’s view, are expected to provide the most exposure to the potential growth of the Apartment & Residential Real Estate industry.
In the second step of the process, companies are analyzed based on two primary criteria: primary business operations and revenue exposure. To be eligible for inclusion in the Index, a company must be identified as having significant exposure to one or more of the Strategic Apartment & Residential Real Estate sectors, as determined by the Index Provider. A company is deemed to have significant exposure to Apartment & Residential Real Estate sectors if (i) it derives a significant portion of its revenue from one or more of the Apartment & Residential Real Estate sectors, or (ii) it has stated its primary business to be in products and services focused on one or more of the Apartment & Residential Real Estate sectors, in each case as determined by the Index Provider. The Index Provider screens companies that are identified to be in the Index based on filings, disclosures and other public information (e.g. regulatory filings, earnings transcripts, etc.). Companies are identified by the industry identification process, as of the selection date, are further reviewed by the Index Provider on the basis of operations related to e-commerce activities.
In the final step, the Index Provider selects from the eligible universe the fifty or so companies that have the largest float adjusted capitalizations. Via the free-float methodology, a company’s market capitalization is calculated by taking the security's price and multiplying it by the number of shares readily available in the market. As a result, rather than using all of a company’s outstanding shares, free-float calculations exclude locked-in shares, such as those held by insiders, promoters, and governments. Essentially, the largest publicly available companies in the eligible universe are included in the Index.
The Index is also weighted, so that the Index holds a larger percentage of larger capitalization companies and, conversely, a smaller portion of companies with smaller capitalizations. Lastly, the Index has a cap on the percentage that a particular company can represent in the Index. Under normal market conditions, the cap is approximately eight percent, which is applied only at the time of each reconstitution of the Index. As a result, a particular holding may exceed the cap, from time to time, due to market conditions.
Index Reconstitution. The Index will be reconstituted quarterly in January, April, July and October. The date of each reconstitution of the Index will be available on the Fund’s website at www.StrategicETFs.com/resources at least one week in advance of the reconstitution date. Each Index reconstitution will normally become effective at market open on the trading day after the third Friday in the relevant month.
A more detailed description of the Index’s methodology is provided below under the heading “Additional Information About the Indices.”
VIDS Strategic Streaming & Gaming Technology ETF
https://www.sec.gov/Archives/edgar/data/1592900/000182912621000407/alphaarchitect_485apos.htm#a_039
PRINCIPAL INVESTMENT STRATEGIES
The Fund’s Investment Strategy
The Fund employs a “passive management” (or indexing) investment approach designed to track the performance, before fees and expenses, of the Index.
“Streaming & Gaming” companies refers to companies that develop, manufacture, distribute, or sell products or services related to electronic video games. The Fund will primarily invest in the following Index Provider-determined two sectors:
| ● | The Strategic Streaming sector |
| ● | The Strategic Gaming sector |
The companies that comprise both of the foregoing sectors largely overlap. That is, companies in both sectors may include companies that:
| ● | offer video, audio, and gaming services that are communicated by a provider to an end user over the internet; |
| ● | operate a website or application which primarily derives revenue from streaming multi-media such as audio, video, video games, sporting events, health and wellness, and live content involving a streamer or group of streamers broadcasting content; |
| ● | provide the technology, infrastructure, and/or platform for businesses to engage in streaming or gaming over the internet (such as content delivery networks); |
| ● | provide streaming analytics and market research to end users and companies engaged in streaming activities; manufacture equipment and peripherals, for example, audio equipment, keyboards, headsets, cameras, virtual reality headsets, and other devices which have applications in live streaming. |
In addition, the Strategic Streaming sector includes companies that manufacture equipment and peripherals such as audio equipment, keyboards, headsets, cameras, virtual reality headsets, and other devices which have applications in live streaming.
The Strategic Gaming sector includes iGaming companies whose primary business model and/or growth prospects are directly linked to sports betting.
Under normal market conditions, the eligible universe of companies will have a minimum market capitalization of $300 million. The Fund may invest in the securities of Streaming & Gaming companies listed on the stock exchanges of any of the following developed countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
The Fund’s portfolio will generally be comprised of approximately sixty five securities. The Fund’s portfolio will generally be comprised of approximately fifty companies’ securities. Those companies will generally be among the largest companies in the industry. See The Index below for more information about the security selection methodology.
The Fund’s investments may include common stocks, American Depositary Receipts (ADRs), limited partnership interests, and shares or units of beneficial interest of limited liability companies.
The Fund will be 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. The Fund will concentrate (i.e., invest more than 25% of the value of the Fund’s assets) in securities of issuers having their principal business activities in groups of Streaming & Gaming industries.
The Index
In constructing the Index, the Index Provider identifies Streaming & Gaming companies by applying a proprietary analysis that consists of three primary components: (1) industry and sector identification, (2) company analysis, and (3) company selection.
The Index Provider first considers a large group of companies that may become eligible for inclusion in the Index by evaluating whether, and the extent to which, the companies have direct exposure to the Streaming & Gaming industry and one of the aforementioned Strategic sectors that comprise the industry, each as determined by Strategic Investments, LLC (the “Index Provider”). To determine the scope of each of the sectors, the Index Provider analyzes industry reports, investment research and consumer data related to Streaming & Gaming that, in the Index Provider’s view, are expected to provide the most exposure to the potential growth of the Streaming & Gaming industry.
In the second step of the process, companies are analyzed based on two primary criteria: primary business operations and revenue exposure. To be eligible for inclusion in the Index, a company must be identified as having significant exposure to one or both of the Streaming & Gaming sectors, as determined by the Index Provider. A company is deemed to have significant exposure to Streaming & Gaming sectors if (i) it derives a significant portion of its revenue from one or both of the Streaming & Gaming sectors, or (ii) it has stated its primary business to be in products and services focused on one or both of the Streaming & Gaming sectors, in each case as determined by the Index Provider. The Index Provider screens companies that are identified to be in the Index based on filings, disclosures and other public information (e.g. regulatory filings, earnings transcripts, etc.). Companies are identified by the industry identification process, as of the selection date, are further reviewed by the Index Provider on the basis of operations related to Streaming & Gaming activities.
In the final step, the Index Provider selects from the eligible universe the sixty five or so companies that have the largest float adjusted capitalizations. Via the free-float methodology, a company’s market capitalization is calculated by taking the security's price and multiplying it by the number of shares readily available in the market. As a result, rather than using all of a company’s outstanding shares, free-float calculations exclude locked-in shares, such as those held by insiders, promoters, and governments. Essentially, the largest publicly available companies in the eligible universe are included in the Index.
The Index is also weighted, so that the Index holds a larger percentage of larger capitalization companies and, conversely, a smaller portion of companies with smaller capitalizations. Lastly, the Index has a cap on the percentage that a particular company can represent in the Index. Under normal market conditions, the cap is approximately eight percent, which is applied only at the time of each reconstitution of the Index. As a result, a particular holding may exceed the cap, from time to time, due to market conditions.
Index Reconstitution. The Index will be reconstituted quarterly in January, April, July and October. The date of each reconstitution of the Index will be available on the Fund’s website at www.StrategicETFs.com/resources at least one week in advance of the reconstitution date. Each Index reconstitution will normally become effective at market open on the trading day after the third Friday in the relevant month.
A more detailed description of the Index’s methodology is provided below under the heading “Additional Information About the Indices.”
TRE Strategic Technology & E-Commerce Real Estate ETF
https://www.sec.gov/Archives/edgar/data/1592900/000182912621000407/alphaarchitect_485apos.htm#a_040
PRINCIPAL INVESTMENT STRATEGIES
The Fund’s Investment Strategy
The Fund employs a “passive management” (or indexing) investment approach designed to track the performance, before fees and expenses, of the Index.
The Strategic Technology & Ecommerce Real Estate Index measures the performance of publicly traded real estate securities, primarily through investments in Real Estate Investment Trusts (REITs) that sell, manage, or lease real estate to Technology & E-Commerce Companies. The term "Technology & E-Commerce” companies refers to companies that specialize in (i) telecommunications infrastructure including cellular towers and fiber optic networks, (ii) internet and cloud infrastructure including data centers, (iii) life science and biotechnology infrastructure including lab space, and (iv) e-commerce and logistics infrastructure including distribution centers and industrial properties.
Under normal market conditions, the eligible universe of companies will have a minimum market capitalization of $500 million. The Fund may invest in the securities of ecommerce companies listed on the stock exchanges of any of the following developed countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
The Fund’s portfolio will generally be comprised of approximately fifty companies’ securities. Those companies will generally be among the largest companies in the industry. See The Index below for more information about the security selection methodology.
The Fund’s investments may include common stocks, Real Estate Investment Trusts (REITs), American Depositary Receipts (ADRs), limited partnership interests, and shares or units of beneficial interest of limited liability companies
The Fund will be 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. The Fund will concentrate (i.e., invest more than 25% of the value of the Fund’s assets) in securities of issuers having their principal business activities in groups of Technology and E-Commerce Real Estate industries.
The Index
In constructing the Index, Strategic Investments, LLC (the “Index Developer”) identifies Technology & E-Commerce companies by applying a proprietary analysis that consists of three primary components: (1) industry and sector identification, (2) company analysis, and (3) company selection.
The Index Developer first considers a large group of real estate companies that may become eligible for inclusion in the Index by evaluating whether, and the extent to which, the companies have direct exposure to Technology & e-Commerce companies by analyzing each potential company’s property types, tenant types and revenue types..
In connection with the foregoing determinations, the Index Developer analyzes industry reports, investment research and consumer data related to real estate and Technology & E-Commerce companies that, in the Index Developer’s view, are expected to provide the most exposure to the potential growth of the industry.
In the second step of the process, companies are analyzed based on two primary criteria: primary business operations and revenue exposure. To be eligible for inclusion in the Index, a real estate company must be identified as having significant exposure to Technology & E-Commerce companies, as determined by the Index Developer. A real estate company is deemed to have significant exposure to Technology & E-Commerce companies if (i) it derives a significant portion of its revenue from real estate selling, managing, or leasing real estate to Technology & E-Commerce companies, or (ii) it has stated its primary business to be in selling, managing, or leasing real estate to Technology & E-Commerce companies, in each case as determined by the Index Developer. The Index Developer screens companies that are identified to be in the Index based on filings, disclosures and other public information (e.g. regulatory filings, earnings transcripts, etc.). Companies are identified by the industry identification process, as of the selection date, are further reviewed by the Index Developer on the basis of operations related to real estate activities related to Technology and E-Commerce companies.
In the final step, the Index Developer selects from the eligible universe the fifty or so companies that have the largest float adjusted capitalizations. Via the free-float methodology, a company’s market capitalization is calculated by taking the security's price and multiplying it by the number of shares readily available in the market. As a result, rather than using all of a company’s outstanding shares, free-float calculations exclude locked-in shares, such as those held by insiders, promoters, and governments. Essentially, the largest publicly available companies in the eligible universe are included in the Index.
The Index is also weighted, so that the Index holds a larger percentage of larger capitalization companies and, conversely, a smaller portion of companies with smaller capitalizations. Lastly, the Index has a cap on the percentage that a particular company can represent in the Index. Under normal market conditions, the cap is approximately eight percent, which is applied only at the time of each reconstitution of the Index. As a result, a particular holding may exceed the cap, from time to time, due to market conditions.
Index Reconstitution. The Index is reconstituted quarterly in January, April, July and October. The date of each reconstitution of the Index will be available on the Fund’s website at www.StrategicETFs.com/resources at least one week in advance of the reconstitution date. Each Index reconstitution will normally become effective at market open on the trading day after the third Friday in the relevant month.
A more detailed description of the Index’s methodology is provided below under the heading “Additional Information About the Indices.”
