div style="margin-bottom:6pt;margin-top:6pt;text-align:justify"span style="-sec-ix-redline:true;color:#000000;font-family:'Times New Roman',serif;font-size:10pt;font-weight:400;line-height:120%"The Fund is an actively-managed exchange-traded fund (“ETF”) that seeks current income and long-term capital appreciation. Under normal circumstances, the Fund invests at least 80% of its net assets, plus borrowings for investment purposes, in debt instruments that are principally traded in the United States. For purposes of the Fund’s 80% policy, the Fund may utilize the “To Be Announced” (“TBA”) markets for U.S. agency mortgage-backed securities (“MBS”) investments, invest in dollar-denominated international bonds that are principally traded in the United States, and invest in private credit funds./spanspan style="color:#000000;font-family:'Times New Roman',serif;font-size:10pt;font-weight:400;line-height:120%" /span/divdiv style="margin-bottom:6pt;margin-top:6pt;text-align:justify"span style="-sec-ix-redline:true;color:#000000;font-family:'Times New Roman',serif;font-size:10pt;font-weight:400;line-height:120%"The Fund may invest in any core U.S. bond sector, including U.S. Treasuries, U.S. agency securities, MBS, and investment-grade corporate bonds, private credit collateralized loan obligations (“CLOs”) and collateralized mortgage obligations (“CMOs”), as well as any non-core bond sector, such as high-yield corporate bonds (also known as “junk bonds”), Treasury Inflation-Protected Securities (“TIPS”), private credit, and dollar-denominated international bonds, but the Fund generally seeks to diversify interest rate and credit risks across all such U.S. bond sectors. Vident Asset Management, the Fund’s investment adviser (the “Adviser” or “Vident”), uses its quantitative methodology to select individual securities within each sector, except private credit, based on a combination of yield, duration (/spanspan style="-sec-ix-redline:true;color:#000000;font-family:'Times New Roman',serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%"i.e/spanspan style="-sec-ix-redline:true;color:#000000;font-family:'Times New Roman',serif;font-size:10pt;font-weight:400;line-height:120%"., interest rate sensitivity), creditworthiness, and governance factors, rather than amount of debt/bonds outstanding. Within the investment grade and high yield corporate sectors, the strategy seeks to improve corporate bond exposures by screening for companies with relatively stronger leadership, governance, and creditworthiness factors. The Fund generally invests in dollar-dominated international bonds of corporate and sovereign debt issuers located only in countries that meet a minimum threshold using the Adviser’s “Country Principles Score”, a proprietary scoring system that analyzes certain data inputs to evaluate country economic and financial resilience and overall attractiveness of investing in certain countries. The Fund also seeks to improve liquidity by avoiding small issues (par value less than $500 million)./spanspan style="color:#000000;font-family:'Times New Roman',serif;font-size:10pt;font-weight:400;line-height:120%" /span/divdiv style="margin-bottom:6pt;margin-top:6pt;text-align:justify"span style="-sec-ix-redline:true;color:#000000;font-family:'Times New Roman',serif;font-size:10pt;font-weight:400;line-height:120%"The Fund limits exposure to high-yield corporate bonds, TIPS, private credit, and dollar denominated international bonds to 22%, 17%, 10%, and 22% of the portfolio, respectively. These maximum weights can be exceeded at times due to natural market movement, especially when market values drift over time due to changing market conditions. The Fund may invest debt instruments of any maturity. The Fund’s portfolio will generally have an effective duration of five to nine years and will generally have an average credit quality of investment grade./span/divdiv style="margin-bottom:6pt;margin-top:6pt;text-align:justify"span style="-sec-ix-redline:true;color:#000000;font-family:'Times New Roman',serif;font-size:10pt;font-weight:400;line-height:120%"The Fund may utilize the TBA market for MBS investments. The TBA market allows investors to gain exposure to MBS with certain broad characteristics (maturity, coupon, age) without taking delivery of the actual securities until the settlement day which is once every month. In addition, the Fund may utilize the TBA roll market, in which one sells, in the TBA market, the security for current month settlement, while simultaneously committing to buy the same TBA security for next month settlement. The Fund may utilize the TBA roll market for extended periods of time without taking delivery of the physical securities./spanspan style="color:#000000;font-family:'Times New Roman',serif;font-size:10pt;font-weight:400;line-height:120%" /span/divdiv style="margin-bottom:6pt;margin-top:6pt;text-align:justify"span style="-sec-ix-redline:true;color:#000000;font-family:'Times New Roman',serif;font-size:10pt;font-weight:400;line-height:120%"The term “private credit” refers to lending activity that occurs outside of the broadly-syndicated markets where banks and other traditional lenders place an issuer’s debt obligations across a wide range of investors. “Private credit funds” refer to registered funds, business development companies (“BDCs”), and private funds that invest in private credit. For purposes of the Fund’s 80% policy, a private credit fund is one that is offered in the U.S. and invests at least 80% of its net assets in private credit. Private credit funds will undergo due diligence by the Adviser with factors, including, but not limited to, manager experience, fund duration, liquidity, sector allocation, and yield./span/div