Summary Prospectus August 31, 2018

Transcription

1 Aptus Frtified Value ETF Trading Symbl: FTVA Listed n Cbe BZX Exchange, Inc. Summary Prspectus August 31, Befre yu invest, yu may want t review the Fund s prspectus and statement f additinal infrmatin ( SAI ), which cntain mre infrmatin abut the Fund and its risks. The current prspectus and SAI, each dated August 31, 2018, are incrprated by reference int this Summary Prspectus. Yu can find the Fund s prspectus, SAI, and ther infrmatin abut the Fund nline at Yu can als get this infrmatin at n cst by calling r by sending an request t ETF@usbank.cm. Investment Objective The Aptus Frtified Value ETF (the Fund ) seeks t track the perfrmance, befre fees and expenses, f the Aptus Frtified Value Index (the Index ). Fees and Expenses f the Fund This table describes the fees and expenses that yu may pay if yu buy and hld shares f the Fund ( Shares ). This table and the example belw d nt include the brkerage cmmissins that investrs may pay n their purchases and sales f Shares. Annual Fund Operating Expenses (expenses that yu pay each year as a percentage f the value f yur investment) Management Fees 0.79% Distributin and/r Service (12b-1) Fees 0.00% Other Expenses * 0.00% Ttal Annual Fund Operating Expenses 0.79% * Based n estimated amunts fr the current fiscal year. Expense Example This Example is intended t help yu cmpare the cst f investing in the Fund with the cst f investing in ther funds. The Example assumes that yu invest $10,000 in the Fund fr the time perids indicated and then redeem all f yur Shares at the end f thse perids. The Example als assumes that yur investment has a 5% return each year and that the Fund s perating expenses remain the same. Althugh yur actual csts may be higher r lwer, based n these assumptins yur csts wuld be: Prtfli Turnver 1 Year 3 Years $81 $252 The Fund pays transactin csts, such as cmmissins, when it buys and sells securities (r turns ver its prtfli). A higher prtfli turnver rate may indicate higher transactin csts and may result in higher taxes when Shares are held in a taxable accunt. These csts, which are nt reflected in annual fund perating expenses r in the example, affect the Fund s perfrmance. Fr the fiscal perid frm Octber 31, 2017 (cmmencement f peratins) thrugh April 30, 2018, the Fund s prtfli turnver rate was 34% f the average value f its prtfli. Principal Investment Strategy The Fund uses a passive management (r indexing) apprach t track the perfrmance, befre fees and expenses, f the Index. The Index is based n a prprietary methdlgy develped by Aptus Capital Advisrs, LLC, the Fund s investment adviser ( Aptus r the Adviser ) and index prvider. Aptus Frtified Value Index The Index is a rules-based, equal-weighted index that is designed t gain expsure t 50 f the mst undervalued U.S.-listed cmmn stcks and real estate investment trusts ( REITs ), while hedging against significant U.S. equity market declines when the market is vervalued. The Index is cmpsed f tw cmpnents: an equity cmpnent f 50 cmmn stcks and REITs and, when the Index determines that the U.S. equity market is vervalued, a tail hedge f lng put ptins n a security that tracks the brader U.S. equity market. When the tail hedge is nt in effect, the Index will be cmpsed 100% f the equity cmpnent. At the time the tail hedge is implemented, the Index will be cmpsed 99.5% f the equity cmpnent and 0.50% f the tail hedge, as described belw. 1

2 Equity Cmpnent. The Index s equity cmpnent is drawn frm the universe f cmmn stcks and REITs that make up the Slactive US Large & Mid Cap Index, generally the 1,000 largest U.S.-listed cmmn stcks and REITs. Cmpanies in the finance sectr are excluded frm the universe. The Index scres each cmpany in the universe n a prprietary series f bjective, fundamental analyses (the Valuatin Mdel ) that evaluate each cmpany s free cash flw relative t its size, return n capital emplyed (a measure f prfitability relative t a cmpany s capital), and change in price-t-earnings ratis ver the past five years. Fr each cmpany, the Valuatin Mdel averages the scres frm each analysis t determine an verall Aptus Value Cmpsite Scre. The Index s equity cmpnent is cmpsed f the 50 cmmn stcks and REITs with the highest Aptus Value Cmpsite Scre, equally-weighted and subject t a limit f n mre than 15 securities in an individual sectr. The equity cmpnent is recnstituted quarterly, and securities are nly remved frm the Index at the time f a recnstitutin if their Aptus Value Cmpsite Scre has fallen belw the tp 40 th percentile f the Aptus Value Cmpsite Scres f all securities eligible fr inclusin in the Index. Tail Hedge. The Index s tail hedge attempts t prvide prtectin frm significant market declines during mnths when the market is deemed vervalued. As f the secnd-t-last business day f each mnth, the Index calculates the U.S. equity market s Q Rati, a measure f the ttal market capitalizatin f the U.S. equity market divided by the net wrth f U.S. cmpanies. When the Q Rati as calculated is abve the median based n its histry, the tail hedge is implemented n the next business day (i.e., the last business day f the mnth). Once the tail hedge is implemented, it remains in place fr the full mnth. When the tail hedge is implemented, the Index will reallcate 0.50% f its weight t buy put ptins n a large, highly liquid exchange-traded fund that tracks the perfrmance f the U.S. equity market (the Underlying ETF ), as selected based n the rules f the Index. A put ptin gives the purchaser the right t sell shares f the underlying asset at a specified price ( strike price ) prir t a specified date ( expiratin date ). The purchaser pays a cst (premium) t purchase the put ptin. In the event the underlying asset declines in value, the value f the put ptin will generally increase, and in the event the underlying asset appreciates in value, the put ptin may end up wrthless and the premium may be lst. At the time the tail hedge is implemented, the put ptins n the Underlying ETF will have an expiratin date f apprximately three mnths frm the date the tail hedge is implemented, and the strike price will be apprximately 30% less than the mst recent clsing price f the Underlying ETF ( ut-f-the-mney ). On the last business day f each mnth, any ptins held by the Index are sld. If the tail hedge will nt be in effect fr the fllwing mnth, the weight f such ptins, if any, will be reallcated pr rata t the securities in the Index s equity cmpnent. If the tail hedge will cntinue in effect fr the fllwing mnth, the Index is rebalanced (i.e., n equity securities are added r deleted) such that the tail hedge (with new ptins purchased) has a weight f 0.50% and the equity cmpnent securities are adjusted up r dwn pr rata t have an aggregate weight f 99.5%. The Fund s Investment Strategy The Fund attempts t invest all, r substantially all, f its assets in the cmpnent securities that make up the Index. Under nrmal circumstances, at least 80% f the Fund s ttal assets (exclusive f any cllateral held frm securities lending) will be invested in the cmpnent securities f the Index. The Adviser expects that, ver time, the crrelatin between the Fund s perfrmance and that f the Index, befre fees and expenses, will be 95% r better. The Fund will generally use a replicatin strategy t achieve its investment bjective, meaning it generally will invest in all f the cmpnent securities f the Index in apprximately the same prprtin as in the Index. Hwever, the Fund may use a representative sampling strategy, meaning it may invest in a sample f the securities in the Index whse risk, return and ther characteristics clsely resemble the risk, return and ther characteristics f the Index as a whle, when the Fund s investment adviser believes it is in the best interests f the Fund (e.g., when replicating the Index invlves practical difficulties r substantial csts, an Index cnstituent becmes temprarily illiquid, unavailable, r less liquid, r as a result f legal restrictins r limitatins that apply t the Fund but nt t the Index). The Fund generally may invest up t 20% f its ttal assets (exclusive f any cllateral held frm securities lending) in securities r ther investments nt included in the Index, but which the Fund s investment adviser believes will help the Fund track the Index. Fr example, the Fund may invest in securities that are nt cmpnents f the Index t reflect varius crprate actins and ther changes t the Index (such as recnstitutins, additins, and deletins). T the extent the Index cncentrates (i.e., hlds mre than 25% f its ttal assets) in the securities f a particular industry r grup f related industries, the Fund will cncentrate its investments t apprximately the same extent as the Index. 2

3 Principal Investment Risks Yu can lse mney n yur investment in the Fund. The Fund is subject t the risks described belw. Sme r all f these risks may adversely affect the Fund s net asset value per share ( NAV ), trading price, yield, ttal return and/r ability t meet its bjectives. Cncentratin Risk. T the extent the Fund invests mre heavily in particular industries, grups f industries, r sectrs f the ecnmy, its perfrmance will be especially sensitive t develpments that significantly affect thse industries, grups f industries, r sectrs f the ecnmy. Cnsumer Discretinary Sectr Risk. The success f cnsumer prduct manufacturers and retailers is tied clsely t the perfrmance f dmestic and internatinal ecnmies, interest rates, exchange rates, cmpetitin, cnsumer cnfidence, changes in demgraphics, and cnsumer preferences. Cmpanies in the cnsumer discretinary sectr depend heavily n dispsable husehld incme and cnsumer spending and may be strngly affected by scial trends and marketing campaigns. These cmpanies may be subject t severe cmpetitin, which may have an adverse impact n their prfitability. Health Care Sectr Risk. Cmpanies in the health care sectr are subject t extensive gvernment regulatin and their prfitability can be significantly affected by restrictins n gvernment reimbursement fr medical expenses, rising csts f medical prducts and services, pricing pressure (including price discunting), limited prduct lines, and an increased emphasis n the delivery f healthcare thrugh utpatient services. Cmpanies in the health care sectr are heavily dependent n btaining and defending patents, which may be time cnsuming and cstly, and the expiratin f patents may als adversely affect the prfitability f these cmpanies. Health care cmpanies are als subject t extensive litigatin based n prduct liability and similar claims. In additin, their prducts can becme bslete due t industry innvatin, changes in technlgies, r ther market develpments. Many new prducts in the health care sectr require significant research and develpment and may be subject t regulatry apprvals, all f which may be time cnsuming and cstly with n guarantee that any prduct will cme t market. Infrmatin Technlgy Sectr Risk. Market r ecnmic factrs impacting infrmatin technlgy cmpanies and cmpanies that rely heavily n technlgical advances culd have a significant effect n the value f the Fund's investments. The value f stcks f infrmatin technlgy cmpanies and cmpanies that rely heavily n technlgy is particularly vulnerable t rapid changes in technlgy prduct cycles, rapid prduct bslescence, gvernment regulatin, and cmpetitin, bth dmestically and internatinally, including cmpetitin frm freign cmpetitrs with lwer prductin csts. Stcks f infrmatin technlgy cmpanies and cmpanies that rely heavily n technlgy, especially thse f smaller, less-seasned cmpanies, tend t be mre vlatile than the verall market. Infrmatin technlgy cmpanies are heavily dependent n patent and intellectual prperty rights, the lss r impairment f which may adversely affect prfitability. Additinally, cmpanies in the technlgy sectr may face dramatic and ften unpredictable changes in grwth rates and cmpetitin fr the services f qualified persnnel. Equity Market Risk. The equity securities held in the Fund s prtfli may experience sudden, unpredictable drps in value r lng perids f decline in value. This may ccur because f factrs that affect securities markets generally r factrs affecting specific issuers, industries, r sectrs in which the Fund invests. Cmmn stcks, such as thse held by the Fund, are generally expsed t greater risk than ther types f securities, such as preferred stck and debt bligatins, because cmmn stckhlders generally have inferir rights t receive payment frm issuers. ETF Risks. The Fund is an ETF and, as a result f an ETF s structure, is expsed t the fllwing risks: Authrized Participants, Market Makers, and Liquidity Prviders Cncentratin Risk. The Fund has a limited number f financial institutins that may act as APs. In additin, there may be a limited number f market makers and/r liquidity prviders in the marketplace. T the extent either f the fllwing events ccur, Shares may trade at a material discunt t NAV and pssibly face delisting: (i) APs exit the business r therwise becme unable t prcess creatin and/r redemptin rders and n ther APs step frward t perfrm these services, r (ii) market makers and/r liquidity prviders exit the business r significantly reduce their business activities and n ther entities step frward t perfrm their functins. Csts f Buying r Selling Shares. Due t the csts f buying r selling Shares, including brkerage cmmissins impsed by brkers and bid/ask spreads, frequent trading f Shares may significantly reduce investment results and an investment in Shares may nt be advisable fr investrs wh anticipate regularly making small investments. Shares May Trade at Prices Other Than NAV. As with all ETFs, Shares may be bught and sld in the secndary market at market prices. Althugh it is expected that the market price f Shares will apprximate the Fund s NAV, there may be times when the market price f Shares is mre than the NAV intra-day (premium) r less than the NAV intra-day (discunt) due t supply and demand f Shares r during perids f market vlatility. This risk is heightened in times f market vlatility, perids f steep market declines, and perids when there is limited trading activity fr Shares in the secndary market, in which case such premiums r discunts may be significant. 3

4 Trading. Althugh Shares are listed fr trading n a natinal securities exchange, such as Cbe BZX Exchange, Inc. (the Exchange ), and may be traded n U.S. exchanges ther than the Exchange, there can be n assurance that Shares will trade with any vlume, r at all, n any stck exchange. In stressed market cnditins, the liquidity f Shares may begin t mirrr the liquidity f the Fund s underlying prtfli hldings, which can be significantly less liquid than Shares. Limited Operating Histry. The Fund is a recently rganized, nn-diversified management investment cmpany with limited perating histry. As a result, prspective investrs have a limited track recrd r histry n which t base their investment decisin. Additinally, the Adviser has nt previusly managed a registered investment cmpany, which may create additinal risks fr investing in the Fund. Mid-Capitalizatin Cmpanies Risk. The securities f mid-capitalizatin cmpanies may be mre vulnerable t adverse issuer, market, plitical, r ecnmic develpments than securities f large-capitalizatin cmpanies. The securities f midcapitalizatin cmpanies generally trade in lwer vlumes and are subject t greater and mre unpredictable price changes than large capitalizatin stcks r the stck market as a whle. Sme medium capitalizatin cmpanies have limited prduct lines, markets, financial resurces, and management persnnel and tend t cncentrate n fewer gegraphical markets relative t large-capitalizatin cmpanies. Nn-Diversificatin Risk. Althugh the Fund intends t invest in a variety f securities and instruments, the Fund will be cnsidered t be nn-diversified, which means that it may invest mre f its assets in the securities f a single issuer r a smaller number f issuers than if it were a diversified fund. As a result, the Fund may be mre expsed t the risks assciated with and develpments affecting an individual issuer r a smaller number f issuers than a fund that invests mre widely. This may increase the Fund s vlatility and cause the perfrmance f a relatively smaller number f issuers t have a greater impact n the Fund s perfrmance. Optins Risk. The value f the Fund s ptins fluctuates in respnse t changes in the value f the Underlying ETF, which is expected t track the perfrmance f the brader U.S. equity market. The Fund is subject t the risk that the ptins used may nt track the brader U.S. equity market as expected because f factrs that distinguish the Underlying ETF frm the brader U.S. equity market (e.g., statutry r regulatry limitatins applicable t the Underlying ETF, fees and expenses f the Underlying ETF, liquidity f the Underlying ETF, trading halts). Optins enable the Fund t purchase expsure that is significantly greater than the premium paid. Cnsequently, the value f such ptins can be vlatile, and a small investment in ptins can have a large impact n the perfrmance f the Fund. The Fund risks lsing all r part f the cash paid (premium) fr purchasing put ptins. Because the Fund nly purchases put ptins, the Fund s lsses frm its expsure t put ptins is limited t the amunt f premiums paid. Passive Investment Risk. The Fund is nt actively managed, and the Adviser wuld nt sell shares f an equity security due t current r prjected underperfrmance f a security, industry, r sectr, unless that security is remved frm the Index r the selling f shares f that security is therwise required upn a recnstitutin f the Index in accrdance with the Index methdlgy. Prtfli Turnver Risk. Because the Fund may turn ver sme r all f its put ptins and equity securities as frequently as mnthly, the Fund may incur high levels f transactin csts frm cmmissins r mark-ups in the bid/ffer spread. Higher prtfli turnver may result in the Fund paying higher levels f transactin csts and generating greater tax liabilities fr sharehlders. Prtfli turnver risk may cause the Fund s perfrmance t be less than yu expect. While the turnver f the put ptins is nt deemed prtfli turnver fr accunting purpses, the ecnmic impact t the Fund is similar t what culd ccur if the Fund experienced high prtfli turnver (e.g., in excess f 100% per year). REIT Investment Risk. A REIT is a cmpany that wns r finances incme-prducing real estate. Thrugh its investments in REITs, the Fund is subject t the risks f investing in the real estate market, including decreases in prperty revenues, increases in interest rates, increases in prperty taxes and perating expenses, legal and regulatry changes, a lack f credit r capital, defaults by brrwers r tenants, envirnmental prblems and natural disasters. Tail Hedge Risk. When the Index s tail hedge is in effect, the Fund may purchase put ptins designed t mitigate the Fund s expsure t significant declines in the brader U.S. equity market. Hwever, there is a risk that the Fund will experience a lss as a result f engaging in such ptins transactins. Because the Index s tail hedge is nt triggered n r ff at any time ther than at mnth end, (i) the Index s tail hedge may be n r ff due t significant market mvements at r near mnth end that are nt predictive f the market s perfrmance fr the subsequent mnth and (ii) the triggering n r ff f the Index s tail hedge may lag a significant change in the market s directin (up r dwn) by as lng as a mnth if such changes first take effect at r near the beginning f a mnth. Such lags between market perfrmance and the triggering n r ff f the Index s tail hedge may result in significant underperfrmance relative t the brader, unhedged equity market. Mrever, there can be n assurance that the tail hedge will be successful in prtecting against all r any declines in the value f the Fund s prtfli because the amunt f prtectin prvided by the put ptins purchased by the Fund and the price f such prtectin will be dictated by prevailing market sentiment at the time the tail hedge is 4

5 triggered. Additinally, the tail hedge will nt prtect against declines in the value f the Fund s prtfli where such declines are based n factrs ther than general stck market fluctuatins. Tracking Errr Risk. As with all index funds, the perfrmance f the Fund and its Index may differ frm each ther fr a variety f reasns. Fr example, the Fund incurs perating expenses and prtfli transactin csts nt incurred by the Index. In additin, the Fund may nt be fully invested in the securities f the Index at all times r may hld securities nt included in the Index. Value Investing Risk. The Index methdlgy is based n a value style f investing, and cnsequently, the Fund culd suffer lsses r prduce pr results relative t ther funds, even in a rising market, if the methdlgy used by the Index t determine a cmpany s value r prspects fr exceeding earnings expectatins r market cnditins is wrng. In additin, value stcks can cntinue t be undervalued by the market fr lng perids f time. Perfrmance Perfrmance infrmatin fr the Fund is nt included because the Fund did nt have a full calendar year f perfrmance prir t the date f this Prspectus. In the future, perfrmance infrmatin fr the Fund will be presented in this sectin. Updated perfrmance infrmatin is available n the Fund s website at Management Investment Adviser Aptus Capital Advisrs, LLC serves as investment adviser t the Fund. Prtfli Managers Jhn D. ( JD ) Gardner, Chief Investment Officer and Managing Member at the Adviser, has been a prtfli manager f the Fund since its inceptin in Beckham D. Wyrick, Prtfli Manager and Chief Cmpliance Officer at the Adviser, has been a prtfli manager f the Fund since its inceptin in Purchase and Sale f Shares Shares are listed n a natinal securities exchange, such as Cbe BZX Exchange, Inc. (the Exchange ), and mst investrs will buy and sell Shares thrugh brkers at market prices, rather than NAV. Because Shares trade at market prices rather than NAV, Shares may trade at a price greater than NAV (premium) r less than NAV (discunt). The Fund issues and redeems Shares at NAV nly in large blcks knwn as Creatin Units, which nly Authrized Participants ( APs ) (typically, brker-dealers) may purchase r redeem. Creatin Units generally cnsist f 50,000 Shares, thugh this may change frm time t time. The Fund generally issues and redeems Creatin Units in exchange fr a prtfli f securities clsely apprximating the hldings f the Fund (the Depsit Securities ) and/r a designated amunt f U.S. cash. Tax Infrmatin Fund distributins are generally taxable as rdinary incme, qualified dividend incme, r capital gains (r a cmbinatin), unless yur investment is in an individual retirement accunt ( IRA ) r ther tax-advantaged accunt. Distributins n investments made thrugh tax-deferred arrangements may be taxed later upn withdrawal f assets frm thse accunts. Financial Intermediary Cmpensatin If yu purchase Shares thrugh a brker-dealer r ther financial intermediary (such as a bank) (an Intermediary ), the Adviser r its affiliates may pay Intermediaries fr certain activities related t the Fund, including participatin in activities that are designed t make Intermediaries mre knwledgeable abut exchange traded prducts, including the Fund, r fr ther activities, such as marketing, educatinal training r ther initiatives related t the sale r prmtin f Shares. These payments may create a cnflict f interest by influencing the Intermediary and yur salespersn t recmmend the Fund ver anther investment. Any such arrangements d nt result in increased Fund expenses. Ask yur salespersn r visit the Intermediary s website fr mre infrmatin. 5