Fund Characteristics

Selling puts is a frequently implemented income strategy. HVPW provides the beneficial features of put writing with the transparency1 and liquidity2 of the Exchange Traded Fund (ETF) structure. This results in benefits such as:

Investment Objective

The U.S. Equity High Volatility Put Write Index Fund (HVPW) seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an index called the NYSE Arca U.S. Equity High Volatility Put Write Index . The Index reflects the performance of a portfolio of exchange-traded put options on a selection of the largest capitalized stocks which also have listed options and which have the highest volatility, as determined by the NYSE Arca, Inc., the Fund’s index provider. Put options are financial instruments that give the owner /buyer the right, but not the obligation, to sell a specified quantity of a security at a set price called the “strike” price on or before an agreed upon expiration date.

Fund Strategy

HVPW is designed for investors who seek to obtain income through selling put options, selling 60 day listed put options every 2 months (6 times per year) on 20 stocks. HVPW intends to distribute, at the end of each 60-day period out of net investment income and/or short-term capital gains, an amount of cash equal to 1.5% of the Fund’s net assets at the end of such 60-day period. If the Fund’s net investment income is insufficient to support a 1.5% distribution in any 60-day period, the distribution will be reduced by the amount of the shortfall. Also note while the Fund only intends to make such distributions out of net investment income and/or short-term capital gains, it is possible that in certain circumstances, a portion of a distribution may result in a return of capital (which is a return of the shareholder’s investment in the Fund).

Investors assume the risk that the underlying referenced equities may close below their strike price, and investors also give up the upside on the underlying equities above the income the fund receives from selling the options. The strike price of each put option included in the Index must be as close as possible to 85% of the closing price of the option’s underlying stock price as of the beginning of each 60-day period.

Note that the potential return of HVPW is limited to the amount of option premium it receives, while the Fund can potentially lose up to the entire strike price of each option it sells. Therefore, though the Fund will collect premium on the options it writes, the Fund’s risk of loss if one or more of its options is exercised and expires in-the-money may substantially outweigh the gains to the Fund from the receipt of such option premiums.

Fund Data as of May 22, 2015
NAV $23.70
Market Price $23.73
Premium / Discount ($) $0.03
Premium / Discount (%) 0.13%
Bid/Ask Midpoint $23.73
Last Trade Price $23.81
Volume 14,677
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Ticker Symbol HVPW
CUSIP 00162Q734
Inception Date Feb 27, 2013
Fund Type ETF
Index Symbols PUTWRT
Total Expense Ratio 0.95%
Recent Distributions
Ex-Date Apr 20, 2015
Record Date Apr 22, 2015
Payment Date Apr 27, 2015
Amount $0.359319
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