Definitions

Active share  is the percentage of stock holdings in a portfolio that differ from the benchmark index. Active Share determines the extent of active management being employed by fund managers: the higher the Active Share, the more likely a fund is to outperform the benchmark index. Researchers in a 2006 Yale School of Management study determined that funds with a higher Active Share will tend to be more consistent in generating high returns against the benchmark indexes.

Alpha is a measure of the portfolio’s risk adjusted performance. When compared to the portfolio’s beta, a positive alpha indicates better-than-expected portfolio performance and a negative alpha worse-than-expected portfolio performance.

Beta is a measure of the funds sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market and a portfolio with a beta less than 1 is less volatile than the market.

Correlation is the extent to which the returns of different types of investments move in tandem with one another in response to changing economic and market conditions. Correlation is measured on a scale of -1 (negatively correlated) to +1 (completely correlated). Low correlation or negative correlation to traditional stocks and bonds may help reduce risk in a portfolio and provide downside protection.

The Gavekal Knowledge Leaders Developed World Index is an equal-weighted index that tracks highly innovative companies and consists of mid- and large-cap companies from the developed world.

Downside Capture is used to evaluate how well or poorly an investment manager performed relative to an index during periods when the index has dropped.

The Gavekal Knowledge Leaders Emerging Markets Index is an equal-weighted index that tracks highly innovative companies and consists of mid- and large-cap companies from the emerging markets.

Max Drawdown is the maximum single period loss incurred over the interval being measured.

The MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of emerging markets.

The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.

Sharpe Ratio uses a fund’s standard deviation and its excess return (the difference between the fund’s return and the risk‐free return of 90‐day Treasury Bills) to determine reward per unit of risk.

Standard deviation is a calculation used to measure variability of a portfolio’s performance.

Treynor Ratio is a risk-adjusted measure of return based on systematic risk. It is similar to the Sharpe ratio, with the difference being that the Treynor ratio uses beta as the measurement of volatility.

Upside Capture is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen.

An investor cannot invest directly in an index.

Shares of the Funds may be sold throughout the day on the exchange through any brokerage account. However, shares are not individually redeemable, and may only be redeemed directly from the Fund by Authorized Participants, in very large creation/redemption units. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. Shares may trade above or below NAV.

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