The Fund’s position relative to the Cap and Buffer should be considered before investing in the Fund. Investors may experience different outcomes if Fund shares are not held for the entire Hedge Period.
What is the Hedge Period and how can it affect investor experience?
The Buffer and Cap apply to Fund shares held over the entire Hedge Period. An investor that purchases Fund shares after the beginning of a Hedge Period, or sells Fund shares before the end of a Hedge Period, may not fully realize the Buffer or Cap for the Hedge Period and may be exposed to greater risk of loss. For example, if an investor purchases Fund shares during a Hedge Period at a time when the Underlying ETF’s share price has decreased from its price at the beginning of the Hedge Period, the investor’s Buffer may be decreased. Conversely, if an investor purchases Fund shares during a Hedge Period at a time when the Underlying ETF’s share price has increased from its price at the beginning of the Hedge Period, the investor’s upside potential may be reduced and the investor may experience losses prior to reaching the downside protection offered by the Buffer. Investors who sell prior to the end of the Hedge Period may not fully realize the Buffer or Cap.
