GDXY

Risk Information

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus. Please read the prospectuses carefully before you invest. 

Investments involve risk. Principal loss is possible. Shareholders of the Fund are not entitled to dividends paid out by GDX®.

THE FUND, TRUST, ADVISER, AND SUB-ADVISER ARE NOT AFFILIATED WITH THE VANECK® ETF TRUST, THE VANECK® GOLD MINERS ETF (GDX®) OR THE VAN ECK ASSOCIATES CORPORATION.

As with any investment, there is a risk that you could lose all or a portion of your investment in the Fund.

Some or all of these risks may adversely affect the Fund’s net asset value (“NAV”) per share, trading price, yield, total return, and/or ability to meet its objective.

Shares of any ETF are bought and sold at market price (not NAV) and may trade at a discount or premium to NAV. Shares are not individually redeemable from the Fund and may only be acquired or redeemed from the fund in creation units. Brokerage commissions will reduce returns.

GDX® Risk. The Fund invests in options contracts that are based on the value of an ETF, specifically GDX®. This subjects the Fund to certain of the same risks as if it owned shares of GDX®, as well as the types of instruments in which GDX® invests, even though it does not. The value of GDX® will fluctuate over time based on fluctuations in the values of the securities held by GDX®, which may be affected by changes in general economic conditions, expectations for future growth and profits, interest rates and the supply and demand for those securities. Brokerage, tax and other expenses may negatively impact the performance of GDX® and, in turn, the value of the Fund’s shares. Since GDX® is an ETF, it is also subject to the same structural risks as the Fund, which is an ETF. Investors in the Fund will not have rights to receive dividends or other distributions or any other rights with respect to the underlying stock but will be subject to declines in the performance of the underlying stock

Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions.

Currency Risk. The Fund is exposed to currency risk indirectly due to GDX®’s investments. GDX®’s net asset value is determined on the basis of the U.S. dollar, therefore, GDX® may lose value if the local currency of a foreign market depreciates against the U.S. dollar, even if the local currency value of  GDX®’s holdings goes up.

Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events.

Price Participation Risk. The Fund employs an investment strategy that includes the sale of call option contracts, which limits the degree to which the Fund will participate in increases in value experienced by GDX® over the Call Period. This means that if GDX® experiences an increase in value above the strike price of the sold call options during a Call Period, the Fund will likely not experience that increase to the same extent and may significantly underperform GDX® over the Call Period. Additionally, because the Fund is limited in the degree to which it will participate in increases in value experienced by GDX® over each Call Period, but has full exposure to any decreases in value experienced by GDX® over the Call Period, the NAV of the Fund may decrease over any given time period.

Distribution Risk. As part of the Fund’s investment objective, the Fund seeks to provide current monthly income. There is no assurance that the Fund will make a distribution in any given month. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next.

New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.