Brokerage commissions and ETF expenses will reduce returns. While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.ĮTFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. This may cause the fund to experience tracking errors relative to performance of the index. Passively managed funds invest by sampling the index, holding a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. When the Fund is non-diversified, it may invest a relatively high percentage of its assets in a limited number of issuers. The Fund is classified as “diversified” under the Investment Company Act of 1940, as amended (the “1940 Act”) however, the Fund may become “non-diversified,” as defined under the 1940 Act, solely as a result of tracking the Index (e.g., changes in weightings of one or more component securities). These risks are magnified in emerging markets. securities, due to varying degrees of regulation and limited liquidity. Foreign securities may be subject to higher volatility than U.S. Please see the prospectus for more details.Įquity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.įoreign (non-U.S.) Securities may be subject to greater political, economic, environmental, credit and information risks. Investors may acquire ETFs and tender them for redemption through the Fund in Creation Unit Aggregations only. Although ETF shares may be bought and sold on the exchange through any brokerage account, ETF shares are not individually redeemable from the Fund. In general, ETFs can be expected to move up or down in value with the value of the applicable index.
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