Aberdeen Standard Investments ETFs Aberdeen Standard Bloomberg Energy Commodity Longer Dated Strategy K-1 Free ETF (NYSE Arca: BEF) (the Fund )

Transcription

1 Aberdeen Standard Investments ETFs Aberdeen Standard Bloomberg Energy Commodity Longer Dated Strategy K-1 Free ETF (NYSE Arca: BEF) (the Fund ) Supplement dated December 20, 2018 (the Supplement ) to the Statutory Prospectus dated May 1, 2018, as supplemented to date (the Prospectus ) This Supplement provides new and additional information beyond that contained in the Prospectus and should be read in conjunction with the Prospectus. On December 13, 2018, Aberdeen Standard Investments ETFs Advisors LLC (the Advisor ) recommended, and the Board of Trustees of Aberdeen Standard Investments ETFs approved, a change in the name of the Fund to the Aberdeen Standard Bloomberg WTI Crude Oil Strategy K-1 Free ETF, and corresponding changes to the Fund s principal investment strategies and investment objective, as set forth below, such changes to take effect on or about the close of business on February 28, 2019 (the Effective Date ). The Fund s ticker symbol will also change to AOIL in connection with the Fund s name change; therefore all references to BEF in the Prospectus are hereby changed to AOIL on the Effective Date. Additionally, on the Effective Date, the number of shares per Creation Unit for the Fund will be decreased from 50,000 to 25,000. Therefore, on the Effective Date, any reference in the Prospectus to the size of the Fund s Creation Unit is hereby changed from 50,000 to 25,000. Fund Name Change. On the Effective Date, the name of the Fund will change as set forth in the table below: Current Fund Name Aberdeen Standard Bloomberg Energy Commodity Longer Dated Strategy K-1 Free ETF New Fund Name Aberdeen Standard Bloomberg WTI Crude Oil Strategy K-1 Free ETF On the Effective Date, all references in the Prospectus to the Current Fund Name are replaced with the New Fund Name. Investment Objective and Index Change. On the Effective Date, the Index which the Fund seeks to outperform will change as set forth in the table below: Current Index New Index Bloomberg Energy Index 3 Month Forward SM Bloomberg WTI Crude Oil Subindex Total Return As a result of the change in Index, on the Effective Date, the Fund s investment objective will be revised to reflect the New Index as follows: The Aberdeen Standard Bloomberg WTI Crude Oil Strategy K-1 Free ETF (the Fund ) is an actively managed exchange traded fund that seeks to provide a total return designed to exceed the performance of the Bloomberg WTI Crude Oil Subindex Total Return (the Index ). Additionally, on the Effective Date, all references in the Prospectus to the Current Index are replaced with the New Index. Principal Investment Strategy Change. On the Effective Date, the disclosure with respect to the Fund under Principal Investment Strategies on pages of the Prospectus is deleted in its entirety and replaced with the following: The Fund is an actively managed exchange traded fund that seeks to provide a total return designed to exceed the performance of the Index. The Fund is not an index tracking exchange traded fund and is not required to invest in all components of the Index. However, the Fund will generally seek to hold similar interests to those included in the Index by investing in WTI Crude Oil Futures under the same futures rolling schedule as the Index. The Fund will also hold shortterm fixed income securities, which may be used as collateral for the Fund s commodities futures holdings or to generate interest income and capital appreciation on the cash balances arising from its use of futures contracts (thereby providing a total return investment in the underlying commodities).

2 Under normal market conditions, the Fund intends to invest in exchange-traded WTI Crude Oil Futures contracts through a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the Subsidiary ). As a means to provide investment returns that are highly correlated to those of the Index, the Subsidiary may also invest directly in oillinked instruments, including pooled investment vehicles (such as exchange traded funds and other investment companies), swaps and exchange-traded options on futures contracts, to the extent permitted under the Investment Company Act of 1940, as amended (the 1940 Act ) and any applicable exemptive relief (collectively, Oil-Related Assets and, together with exchange-traded WTI Crude Oil Futures contracts, Oil Instruments ). The Fund may invest up to 25% of its total assets in the Subsidiary. The remainder of the Fund s assets that are not invested in the Subsidiary (i.e., at least 75% of the Fund s total assets) will principally be invested in: (1) short-term investment grade fixed-income securities that include U.S. government securities and money market instruments; and (2) cash and other cash equivalents. The Fund will exercise its discretion to use such instruments to most efficiently utilize the cash balances arising from the use of futures contracts and generate a total return for investors. Under normal circumstances the Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in futures contracts and other securities in an amount that provides investment exposure to oil. The Fund will not invest directly in Oil Futures contracts but, instead, expects to gain exposure to these investments exclusively by investing in the Subsidiary. The Fund s investment in the Subsidiary is intended to enable the Fund to gain exposure to relevant commodity markets within the limits of current federal income tax laws applicable to investment companies such as the Fund, which limit the ability of investment companies to invest directly in Oil Futures contracts. The Subsidiary and the Fund have the same investment objective. However, the Subsidiary may invest without limitation in the Oil Instruments. Except as otherwise noted, for the purposes of this Prospectus, references to the Fund s investments include the Fund s indirect investments through the Subsidiary. The Advisor and Sub-Advisor will use their discretion to determine the percentage of the Fund s assets allocated to the Oil Instruments held by the Subsidiary that will be invested in exchange-traded Oil Futures contracts or Oil-Related Assets. In this regard, under normal market conditions, the Subsidiary is expected to invest in futures contracts in proportional weights and allocations that are similar to the Index. The Fund does not seek leveraged returns. However, the Fund s use of instruments to collateralize the Subsidiary s investments in Oil Instruments has a leveraging effect and is designed to provide a total return, outperforming the investment performance of the Index. The Index is a sub-index of the Bloomberg Commodity Index SM ( BCOM ). BCOM is a widely followed commodity index which is calculated and published by Bloomberg L.P. and/or Bloomberg Finance L.P. and/or an affiliate of them (together, Bloomberg ). BCOM and its various sub-indices have been published since 1998 with simulated historical performance calculated back to 1991 and tracks movements in the prices of rolling positions in a basket of commodity futures with a maturity between one and three months. At present, there are 27 commodity futures eligible for inclusion in BCOM but five of those commodities (cocoa, lead, platinum, tin, and low sulphur gas oil) are currently not included in BCOM. With the exception of certain metals contracts (aluminum, lead, tin, nickel and zinc) that trade on the London Metals Exchange ( LME ) and the contracts for Brent crude oil and low sulphur gas oil, each of the commodities is the subject of at least one futures contract that trades on a U.S. exchange. The Index only includes WTI Crude Oil. BCOM uses a consistent, systematic process to represent the commodity markets using both liquidity data and US dollar-weighted production data in determining the weightings of included commodities. Liquidity data is the relative amount of trading activity for a particular commodity and U.S. dollarweighted production data takes the figures for production in the overall commodities market for all commodities in BCOM and weights them in BCOM in the same proportion in U.S. dollar terms.

3 The values of BCOM and the Index are computed on the basis of hypothetical investments in the basket of commodities of which they are comprised. The values of BCOM and the Index are rebalanced annually starting on the fifth business day of January. The Fund is classified as non-diversified under the 1940 Act. Principal Risks of Investing in the Fund. On the Effective Date, the following risk factor will replace Energy Sector Risk under Summary of Principal Risks of Investing in the Fund on page 23 of the Prospectus: Energy Sector Risk. Through its exposure to energy commodities, specifically crude oil, the Fund is subject to the risks of the energy sector and companies engaged in energy production and exploration. The energy sector and the price of energy commodity futures may be adversely affected by changes to or trends that affect commodity prices, the imposition of import controls, and government regulations related to environmental protection, health and safety. In addition, companies in the energy sector and the price of energy commodity futures may be impacted by economic conditions, technological developments, competition from alternative energy sources, and potential civil liabilities, such as environmental damage claims. Risks Specific to the Crude Oil Markets. The price of crude oil depends largely upon the supply and demand for oil. In particular, the demand for oil may be driven by governments or large institutions. Other factors that may significantly impact the price of crude oil include technological innovations related to extraction, refining and processing, storage costs, government regulation, social unrest or political upheaval in oil producing countries, and crude oil hedging activity by crude oil producers. Additional Information About the Fund s Investment Strategy. On the Effective Date, the second sentence of the seventh paragraph under Additional Information About Each Fund s Investment Strategy on page 26 of the Prospectus is deleted in its entirety and replaced with the following: Under normal circumstances, the Aberdeen Standard Bloomberg Energy Commodity Strategy K-1 Free ETF will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in futures contracts and other securities in an amount that provides investment exposure to energy commodities. Under normal circumstances, the Aberdeen Standard Bloomberg WTI Crude Oil Strategy K-1 Free ETF will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in futures contracts and other securities in an amount that provides investment exposure to oil. Additional Principal Risk Information About the Fund. On the Effective Date, the following risk factor will be added as a subsection of the Energy Sector Risk under Additional Principal Risk Information About the Funds on page 30 of the Prospectus: Risks Specific to the Crude Oil Markets. Through its exposure to oil commodities, the Aberdeen Standard Bloomberg WTI Crude Oil Strategy K-1 Free ETF is subject to the risks of the crude oil markets. The price of crude oil and, in turn, Oil Instruments owned by the Fund, may be significantly affected by, but not limited to, the following factors: Significant fluctuations in the supply of and demand for crude oil. Natural factors, including environmental and climatological conditions, may contribute to the depletion of known cost-effective sources for crude oil and/or a decrease in the global demand for crude oil. In particular, severe weather may impact the ability of oil companies to produce, refine or distribute crude oil. Technological innovations may also significantly impact the global supply and demand for oil through either the development of new and improved extraction, refining and processing equipment and methods or energy substitutes for oil. Improvements in technology may also mitigate the likelihood that major refining and processing equipment, including refineries, will fail or become unavailable, which, in turn, impacts the crude oil supply.

4 Significant changes in the attitude of market participants, such as speculators and investors, toward crude oil could cause worldwide crude oil prices to change, which could have a corresponding positive or negative impact on the price of the Fund s shares. Large purchases or sales of crude oil by governments and large institutions that have large commodities holdings or may establish major commodities positions. For example, nations with centralized or nationalized oil production and organizations such as the Organization of Petroleum Exporting Countries (OPEC) control large physical quantities of crude oil and their decisions to purchase or sell large amounts of crude oil could change world prices and impact the price of the Fund s shares. Both peaceful political activity, such as the imposition of governmental regulations or the entry into trade treaties, and political disruptions caused by war, social unrest, societal breakdown, and/or insurrection may greatly impact crude oil prices. Significant fluctuations in crude oil hedging activity by crude oil producers could cause a change in world crude oil prices, which, in turn, could impact the price of the Fund s shares. Please retain this supplement for future reference.

5 Aberdeen Standard Investments ETFs Aberdeen Standard Bloomberg All Commodity Strategy K-1 Free ETF (NYSE Arca: BCI) (the Fund ) Supplement dated December 13, 2018 (the Supplement ) to the Statutory Prospectus dated May 1, 2018, as supplemented to date (the Prospectus ) This Supplement provides new and additional information beyond that contained in the Prospectus and should be read in conjunction with the Prospectus. On December 13, 2018, Aberdeen Standard Investments ETFs Advisors LLC (the Advisor ) recommended and the Board of Trustees of Aberdeen Standard Investments ETFs approved a reduction in the management fee paid by the Fund to the Advisor from 0.29% to 0.25% per annum of the Fund s average daily net assets. Accordingly, effective immediately, the Prospectus is hereby amended as follows: The fee table and accompanying footnotes under the heading Fees and Expenses of the Fund and the related expense examples under the heading Example are deleted in their entirety and replaced with the following: Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Management Fees (1),(2) 0.25% Distribution and Service (12b-1) Fees 0.00% Other Expenses 0.00% Total Annual Fund Operating Expenses 0.25% (1) (2) Aberdeen Standard Investments ETFs Advisors LLC (the Advisor ) has contractually agreed to waive the management fees that it receives from the Fund in an amount equal to the management fee paid to the Advisor by the Subsidiary, as defined below. This undertaking will continue in effect for so long as the Fund invests in the Subsidiary and may be terminated only with the approval of the Fund s Board of Trustees. The management fee figure in the table above represents the total amount of fees payable to the Advisor by the Fund and the Subsidiary. The management fee in the table has been restated to reflect a reduction in the Fund s current management fee effective December 13, Example The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. This example does not include brokerage commissions that investors may pay to buy and sell shares of the Fund in the secondary market. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your Shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund s operating expenses remain the same each year. Although your actual costs and returns may be higher or lower, based on these assumptions your costs would be: 1 Year 3 Years 5 Years 10 Years $26 $80 $141 $318 On page 33 of the Prospectus, in the section titled Investment Advisor under Management of the Funds, the reference to 0.29% in the Advisory Fee Rate table with respect to the Fund is hereby deleted and replaced with 0.25%. Please retain this supplement for future reference.

6 ETFS TRUST (the Trust ) ETFS Bloomberg All Commodity Strategy K-1 Free ETF ETFS Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (each a Fund and together the Funds ) Supplement dated September 27, 2018 ( Supplement ) to the currently effective Prospectus and Statement of Additional Information ( SAI ) for the Funds This Supplement provides new and additional information beyond that contained in the Prospectus and SAI for the Funds and should be read in conjunction with the Prospectus and SAI. Approval of Investment Advisory Agreement by Shareholders of ETFS Bloomberg All Commodity Strategy K-1 Free ETF and ETFS Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF As previously announced on April 27, 2018, Aberdeen Asset Management Inc., an indirect wholly-owned subsidiary of Standard Life Aberdeen plc, acquired the membership interests in ETF Securities Advisors LLC (the Advisor ) and became the Advisor s parent company (the Transaction ) resulting in the assignment and the automatic termination of the existing investment advisory agreement between the Trust, on behalf of the Funds, and the Advisor. In anticipation of the closing of the Transaction, at a special in-person meeting of the Board held on April 23, 2018, the Board approved an interim investment advisory agreement between the Trust, on behalf of each Fund, and the Advisor (the Interim Advisory Agreement ) that would remain in effect until approval by the Funds shareholders of a new investment advisory agreement between the Trust, on behalf of each Fund, and the Advisor (the New Advisory Agreement ). At a Special Meeting of the Shareholders of the ETFS Bloomberg All Commodity Strategy K-1 Free ETF and ETFS Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF held on September 24, 2018, the Shareholders entitled to vote approved the New Advisory Agreement. As previously announced on September 21, 2018, the New Advisory Agreement was approved by the Shareholders of the ETFS Bloomberg Energy Commodity Longer Dated Strategy K-1 Free ETF at a Special Meeting of Shareholders held on September 18, Under the New Advisory Agreement, the material terms and compensation payable to the Advisor are identical to those of the Interim Advisory Agreement except with respect to the effective date, duration and termination provisions, and the payment of advisory fees through an escrow account, which is discussed in additional detail in the Funds proxy statement dated July 2, 2018, which was mailed to shareholders on or about July 8, PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

7 ETFS TRUST (the Trust ) ETFS Bloomberg All Commodity Strategy K-1 Free ETF ETFS Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF ETFS Bloomberg Agriculture Commodity Strategy K-1 Free ETF ETFS Bloomberg Energy Commodity Strategy K-1 Free ETF ETFS Bloomberg Energy Commodity Longer Dated Strategy K-1 Free ETF (each a Fund and together the Funds ) Supplement dated September 21, 2018 ( Supplement ) to the currently effective Prospectus and Statement of Additional Information ( SAI ) for the Funds This Supplement provides new and additional information beyond that contained in the Prospectus and SAI for the Funds and should be read in conjunction with the Prospectus and SAI. Name Changes of the Trust, Funds, Advisor, and the Funds Website At the meeting of the Board of Trustees of the Trust (the Board ) held on September 12, 2018, the following changes to the name of the Trust and each Fund were approved effective October 1, 2018: Current Trust Name New Trust Name Aberdeen Standard Investments ETFs Current Fund Name ETFS Bloomberg All Commodity Strategy K-1 Free ETF ETFS Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF New Fund Name Aberdeen Standard Bloomberg All Commodity Strategy K-1 Free ETF Aberdeen Standard Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF ETFS Bloomberg Agriculture Commodity Strategy K-1 Free ETF Aberdeen Standard Bloomberg Agriculture Commodity Strategy K-1 Free ETF ETFS Bloomberg Energy Commodity Strategy K-1 Free ETF ETFS Bloomberg Energy Commodity Longer Dated Strategy K-1 Free ETF Aberdeen Standard Bloomberg Energy Commodity Strategy K-1 Free ETF Aberdeen Standard Bloomberg Energy Commodity Longer Dated Strategy K-1 Free ETF The ticker symbol for each Fund will remain the same. Accordingly, effective October 1, 2018, all references in the Prospectus and SAI for the Funds to the Current Trust Name and Current Fund Names are replaced with the New Trust Name and New Fund Names, respectively. Effective October 1, 2018, the name of the Funds investment advisor is changing from ETF Securities Advisors LLC to Aberdeen Standard Investments ETFs Advisors LLC and all references thereto are changing accordingly. Effective on or about October 1, 2018, is changing to and all references in the Prospectus and SAI to the Funds website are changing accordingly. Approval of Investment Advisory Agreement by Shareholders of ETFS Bloomberg Energy Commodity Longer Dated Strategy K-1 Free ETF As previously announced on April 27, 2018, Aberdeen Asset Management Inc., an indirect wholly-owned subsidiary of Standard Life Aberdeen plc, acquired the membership interests in ETF Securities Advisors LLC (the Advisor ) and became the Advisor s parent company (the Transaction ) resulting in the assignment and the automatic termination of the existing investment advisory agreement between the Trust, on behalf of the Funds, and the Advisor. In anticipation of the closing of the Transaction, at a special in-person meeting of the Board held on April 23, 2018, the Board approved an interim investment advisory agreement between the Trust, on behalf of each Fund, and the Advisor (the Interim Advisory Agreement ) that would remain in effect until approval by the Funds shareholders of a new investment advisory agreement between the Trust, on behalf of each Fund, and the Advisor (the New Advisory Agreement ).

8 At a Special Meeting of the Shareholders of the ETFS Bloomberg Energy Commodity Longer Dated Strategy K-1 Free ETF held on September 18, 2018, the Shareholders entitled to vote approved the New Advisory Agreement. As of the date of this Supplement, the Special Meetings of the Shareholders of the ETFS Bloomberg All Commodity Strategy K-1 Free ETF and ETFS Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF to vote on the New Advisory Agreement have been postponed from September 18, 2018 to September 24, 2018 to allow for the solicitation of additional proxies. Under the New Advisory Agreement, the material terms and compensation payable to the Advisor are identical to those of the Interim Advisory Agreement except with respect to the effective date, duration and termination provisions, and the payment of advisory fees through an escrow account, which is discussed in additional detail in the Funds proxy statement dated July 2, 2018, which was mailed to shareholders on or about July 8, In addition, effective immediately, all references to ETF Securities Limited, the Advisor s parent company prior to the Transaction, in the Additional Notices section of the SAI are hereby deleted and replaced with the Advisor. Further, the reference in the SAI to ETF Securities Limited under the Distributor heading in the section titled Management of the Trust is hereby deleted and replaced with Standard Life Aberdeen plc. PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

9 Prospectus May 1, 2018 ETFS Bloomberg All Commodity Strategy K-1 Free ETF (BCI) ETFS Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (BCD) ETFS Bloomberg Agriculture Commodity Strategy K-1 Free ETF (AGRI) ETFS Bloomberg Energy Commodity Strategy K-1 Free ETF (BEI) ETFS Bloomberg Energy Commodity Longer Dated Strategy K-1 Free ETF (BEF) Principal U.S. Listing Exchange: NYSE Arca THE U.S. SECURITIES AND EXCHANGE COMMISSION ( SEC ) AND THE COMMODITY FUTURES TRADING COMMISSION HAVE NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

10

11 Table of Contents Summary ETFS Bloomberg All Commodity Strategy K-1 Free ETF (BCI)... 1 ETFS Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (BCD)... 6 ETFS Bloomberg Agriculture Commodity Strategy K-1 Free ETF (AGRI) ETFS Bloomberg Energy Commodity Strategy K-1 Free ETF (BEI) ETFS Bloomberg Energy Commodity Longer Dated Strategy K-1 Free ETF (BEF) Additional Information About the Funds Additional Principal Risk Information About the Funds Portfolio Holdings Management of the Funds Additional Information on Buying and Selling Fund Shares Share Trading Prices Determination of Net Asset Value Dividends and Distributions Book Entry Delivery of Shareholder Documents Householding Frequent Purchases and Redemption of Fund Shares Investments by Registered Investment Companies Additional Tax Information Distribution Premium/Discount and NAV Information Additional Notices Financial Highlights... 41

12 ETFS Bloomberg All Commodity Strategy K-1 Free ETF Investment Objective The ETFS Bloomberg All Commodity Strategy K-1 Free ETF (the Fund ) is an actively managed exchange traded fund that seeks to provide a total return designed to exceed the performance of the Bloomberg Commodity Index SM which is calculated on an excess return basis (the Index ). Fees and Expenses of the Fund The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund ( Shares ). Investors purchasing and selling shares may be subject to costs (including brokerage commissions) charged by their broker, which are not reflected in the table and example below. Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Management Fees (1) % Distribution and Service (12b-1) Fees % Other Expenses % Total Annual Fund Operating Expenses % (1) ETF Securities Advisors LLC (the Advisor ) has contractually agreed to waive the management fees that it receives from the Fund in an amount equal to the management fee paid to the Advisor by the Subsidiary, as defined below. This undertaking will continue in effect for so long as the Fund invests in the Subsidiary and may be terminated only with the approval of the Fund s Board of Trustees. The management fee figure in the table above represents the total amount of fees paid to the Advisor by the Fund and the Subsidiary. Example The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. This example does not include brokerage commissions that investors may pay to buy and sell shares of the Fund in the secondary market. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your Shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund s operating expenses remain the same each year. Although your actual costs and returns may be higher or lower, based on these assumptions your costs would be: 1 Year 3 Years 5 Years 10 Years $30 $93 $163 $368 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may cause the Fund to incur higher transaction costs and may result in higher taxes when Shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or the example, may affect the Fund s performance. For the period from the Fund s commencement of operations on March 30, 2017 through the Fund s fiscal year end on December 31, 2017, the Fund s portfolio turnover rate was 0% of the average value of its portfolio. Principal Investment Strategies The Fund is an actively managed exchange traded fund that seeks to provide a total return designed to exceed the performance of the Index. The Fund is not an index tracking exchange traded fund and is not required to invest in all components of the Index. However, the Fund will generally seek to hold similar interests to those included in the Index and will seek exposure to many of the commodities included in the Index under the same futures rolling schedule as the Index. The Fund will also hold short-term fixed-income securities, which may be used as collateral for the Fund s commodities futures holdings or to generate interest income and capital appreciation on the cash balances arising from its use of futures contracts (thereby providing a total return investment in the underlying commodities). Under normal market conditions, the Fund intends to achieve its investment objective by investing in exchange-traded commodity futures contracts through a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the Subsidiary ). As a means to provide investment returns that are highly correlated to those of the Index, the Subsidiary may also invest directly in 1

13 ETFS Bloomberg All Commodity Strategy K-1 Free ETF commodity-linked instruments, including pooled investment vehicles (such as exchange traded funds and other investment companies), swaps and exchange-traded options on futures contracts, to the extent permitted under the Investment Company Act of 1940, as amended (the 1940 Act ) and any applicable exemptive relief (collectively, Commodities-Related Assets and, together with exchange-traded commodities futures contracts, Commodities Instruments ). The Fund may invest up to 25% of its total assets in the Subsidiary. The remainder of the Fund s assets that are not invested in the Subsidiary (i.e., at least 75% of the Fund s total assets) will principally be invested in: (1) short-term investment grade fixed-income securities that include U.S. government securities and money market instruments; and (2) cash and other cash equivalents. The Fund will exercise its discretion to use such instruments to most efficiently utilize the cash balances arising from the use of futures contracts and generate a total return for investors. The Fund will not invest directly in commodity futures contracts but, instead, expects to gain exposure to these investments exclusively by investing in the Subsidiary. The Fund s investment in the Subsidiary is intended to enable the Fund to gain exposure to relevant commodity markets within the limits of current federal income tax laws applicable to investment companies such as the Fund, which limit the ability of investment companies to invest directly in commodity futures contracts. The Subsidiary and the Fund have the same investment objective. However, the Subsidiary may invest without limitation in the Commodities Instruments. Except as otherwise noted, for the purposes of this Prospectus, references to the Fund s investments include the Fund s indirect investments through the Subsidiary. The Advisor and Sub-Advisor will use their discretion to determine the percentage of the Fund s assets allocated to the Commodities Instruments held by the Subsidiary that will be invested in exchange-traded commodity futures contracts or Commodities-Related Assets. In this regard, under normal market conditions, the Subsidiary is expected to invest in futures contracts in proportional weights and allocations that are similar to the Index. The Fund does not seek leveraged returns. However, the Fund s use of instruments to collateralize the Subsidiary s investments in Commodity Instruments has a leveraging effect and is designed to provide a total return, outperforming the investment performance of the Index. The Index is a widely followed commodity index which is calculated and published by Bloomberg L.P. and/or Bloomberg Finance L.P. and/or an affiliate of them (together, Bloomberg ). The Index has been published since 1998 with simulated historical performance calculated back to 1991 and tracks movements in the price of a rolling position in a basket of commodity futures with a maturity between 1 and 3 months. At present, there are 26 commodity futures eligible for inclusion in the Index but four of those commodities (cocoa, lead, platinum and tin) are currently not included in the Index. With the exception of certain metals contracts (aluminum, lead, tin, nickel and zinc) that trade on the London Metals Exchange ( LME ) and the contract for Brent crude oil, each of the Commodities is the subject of at least one futures contract that trades on a U.S. exchange. The Index uses a consistent, systematic process to represent the commodity markets using both liquidity data and U.S. dollar-weighted production data in determining the weightings of included commodities. Liquidity data is the relative amount of trading activity for a particular commodity and U.S. dollar-weighted production data takes the figures for production in the overall commodities market for all commodities in the Index and weights them in the Index in the same proportion in U.S. dollar terms. The value of the Index is computed on the basis of hypothetical investments in the basket of commodities that make up the Index. The Index is rebalanced annually starting on the fifth business day of January. The Fund is classified as non-diversified under the 1940 Act. Summary of Principal Risks of Investing in the Fund Active Fund Management. The Fund is an actively managed exchange traded fund that seeks to provide a total return in excess of the Index through the active management of commodity and commodity-linked futures and other financial instruments and is not designed to track the Index. The Advisor and Sub-Advisor will determine the investments of the Fund and the Subsidiary on a discretionary basis, but there can be no guarantee that the Fund will meet its investment objective. Authorized Participants. The Fund has entered into Authorized Participant Agreements with only a limited number of institutions. Should these Authorized Participants cease to act as such or, for any reason, be unable to create or redeem Shares of the Fund and new Authorized Participants are not appointed in their place, Shares of the Fund may trade at a discount to the Fund s net asset value and possibly face delisting. 2

14 ETFS Bloomberg All Commodity Strategy K-1 Free ETF Cash Redemption Risk. The Fund expects to effect its creations and redemptions primarily for cash due to the nature of its investments. Paying redemption proceeds in cash rather than through in-kind delivery of portfolio securities may require the Fund to dispose of or sell portfolio investments to obtain the cash needed to distribute redemption proceeds at an inopportune time. This may cause the Fund to recognize investment income and/or capital gain that it might not have recognized if it had made a redemption in-kind. As a result, the Fund may be less tax efficient and may have to pay out higher annual distributions than if the in-kind redemption process was used. Commodity Pool Regulatory Risk. The Fund is deemed to be a commodity pool due to its investment exposure to commodity futures contracts and is subject to regulation under the Commodity Exchange Act ( CEA ) and Commodity Futures Trading Commission ( CFTC ) rules as well as the regulatory scheme applicable to registered investment companies. The Advisor is registered as a commodity pool operator ( CPO ) and the Sub-Advisor is registered as a commodity trading advisor ( CTA ). Registration as a CPO and CTA imposes additional compliance obligations on the Advisor, the Sub-Advisor, and the Fund related to additional laws, regulations, and enforcement policies, which could increase compliance costs and may affect the operations and financial performance of the Fund. These requirements are also subject to change at any time. Commodity Price Risk. The NAV of the Fund will be affected by movements in commodity prices generally and by the way in which those prices and other factors affect the prices of the commodity futures contracts. Commodity prices generally may fluctuate widely and may be affected by numerous factors. Fixed-Income Securities and Money Market Instruments. A decline in an issuer s credit rating or a rise in interest rates could cause the value of a fixed-income security or money market instrument to decrease. Interest rate risk is generally lower for shorter-term investments and higher for longer-term investments. The Fund may be subject to a heightened risk of rising interest rates due to the current historically low interest rate environment and the likely impact on market conditions of any potential government fiscal policy initiatives that respond to these low rates. In addition, the Fund s income may decline due to falling interest rates or other factors. Futures, Options and Options on Futures Contracts. Through its holdings of derivative instruments including futures, options and options on futures contracts, the Fund may be exposed to (i) losses from margin deposits in the case of bankruptcy of the relevant broker, and (ii) a risk that the relevant position cannot be closed out when required at its fundamental value. Investment Company Securities. Through its holdings of securities of other investment companies, including exchange traded funds, the Fund will bear a proportionate share of the fees and expenses paid by such other investment company, including advisory and administrative fees. Investment Risk. An investor may lose the value of their entire investment or part of their investment in Shares. Leverage Risk. To the extent the Fund is exposed directly or indirectly to leverage (through investments in commodities futures contracts) the value of the Fund may be more volatile than if no leverage were present. Liquidity. Generally, only Authorized Participants may redeem Fund Shares. Investors other than Authorized Participants wishing to realize their Fund Shares will generally need to rely on secondary trading in the public trading market. There can be no assurance as to the price at which, or volume in which, it may at any time be possible to realize Fund Shares in the public trading market. Although the Fund Shares are listed for trading on NYSE Arca, there can be no assurance that an active trading market for such shares will develop or be maintained. Market Risk. The prices of the assets in which the Fund invests may decline for a number of reasons, including in response to economic developments and perceptions about the creditworthiness of individual issuers. Non-Diversification Risk. As a non-diversified fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Shares may be more volatile than the values of shares of more diversified funds. Roll Yield. During situations where the cost of any futures contracts for delivery on dates further in the future is higher than those for delivery closer in time, the value of the Fund holding such contracts will decrease over time unless the spot price of that contract increases by the same rate as the rate of the variation in the price of the futures contract. The rate of variation could be quite significant and last for an indeterminate period of time, reducing the value of the Fund. 3

15 ETFS Bloomberg All Commodity Strategy K-1 Free ETF Shares of the Fund May Trade at Prices Other than NAV. Although it is expected that the market price of the Shares of the Fund will approximate the Fund s NAV when purchased and sold in the secondary market, the Fund faces numerous market trading risks, including the potential lack of an active market for Fund Shares, disruptions in the securities markets in which the Fund invests, periods of high market volatility and disruptions in the creation/redemption process. Any of these may lead to times when the market price of the Shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount). Subsidiary Investment Risk. Changes in the laws of the United States and/or the Cayman Islands, under which the Fund and the Subsidiary are organized, respectively, could result in the inability of the Subsidiary to operate as intended and could negatively affect the Fund and its shareholders. Swap Agreements. Swaps can involve greater risks than a direct investment in an underlying asset and these may increase or decrease the overall volatility of the Fund s investment and its share price. As with other transactions, the Fund will bear the risk that the counterparty will default, which could cause losses to the Fund. Tax Risk. In order to qualify for the favorable U.S. federal income tax treatment accorded to a regulated investment company ( RIC ) under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code ), the Fund must derive at least 90% of its gross income in each taxable year from certain categories of income ( qualifying income ) and must satisfy certain asset diversification requirements. Certain of the Fund s investments will not generate income that is qualifying income. The Fund intends to hold such commodity-related investments indirectly, through the Subsidiary. In September 2016, the Internal Revenue Service ( IRS ) issued proposed regulations that would generally require the Subsidiary to distribute its income each year in order for the Fund to treat that income as qualifying income. The Fund has secured an opinion of counsel based on customary representations that actual distributions made to the Fund should be treated as qualifying income, which is consistent with the recently proposed IRS regulations. Accordingly, to the extent the Subsidiary makes distribution out of its earnings and profits, the Fund expects such distributions to be treated as qualifying income. The Advisor or Sub-Advisor will carefully monitor the Fund s investments in the Subsidiary to ensure that no more than 25% of the Fund s assets are invested in the Subsidiary to ensure compliance with the Fund s asset diversification test as described in more detail in the SAI. To the extent the Fund makes direct investments in commodity-linked derivative instruments, it will seek to restrict the resulting income from such instruments so that, when combined with its other non-qualifying income, the Fund s nonqualifying income is less than 10% of its gross income. Fund Performance Performance information for the Fund is not provided because the Fund does not have performance history for a full calendar year as of the date of this Prospectus. When this Prospectus is updated after a full calendar year of operations, a bar chart and table will be included that will provide some indication of the risks of investing in the Fund by showing the variability of the Fund s return based on net assets and comparing the Fund s performance to a broad measure of market performance. Past performance does not necessarily indicate how the Fund will perform in the future. Updated performance information will be available at Management Investment Advisor and Sub-Advisor ETF Securities Advisors LLC serves as the investment advisor to the Fund and the Subsidiary. Vident Investment Advisory, LLC serves as the sub-advisor to the Fund and the Subsidiary. Portfolio Manager Denise Krisko, CFA, has served as the Fund s portfolio manager since March Buying and Selling Fund Shares The Fund is an exchange traded fund or ETF. This means that shares of the Fund are listed on a national securities exchange, such as the NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund Shares trade on such exchanges at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount). The Fund issues and redeems shares (at NAV) only in large blocks of shares ( Creation Units ), which only certain institutions or large investors (typically market makers or other broker-dealers) may purchase or redeem. Currently, Creation Units 4

16 ETFS Bloomberg All Commodity Strategy K-1 Free ETF generally consist of 50,000 shares, though this may change from time to time. Creation Units are not expected to consist of less than 25,000 shares. The Fund generally issues and redeems Creation Units in exchange for a designated amount of U.S. cash, a portfolio of securities closely approximating the holdings of the Fund or a combination of the two. Tax Information The Fund intends to make distributions that may be taxed as ordinary income or capital gains. Payments to Broker-Dealers and Other Financial Intermediaries If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank) (an Intermediary ), the Advisor or its affiliates may pay Intermediaries for certain activities related to the Fund, including participation in activities that are designed to make Intermediaries more knowledgeable about exchange traded products, including the Fund, or for other activities, such as marketing, educational training or other initiatives related to the sale or promotion of Fund Shares. These payments may create a conflict of interest by influencing the Intermediary and your salesperson to recommend the Fund over another investment. Any such arrangements do not result in increased Fund expenses. Ask your salesperson or visit the Intermediary s website for more information. 5

17 ETFS Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF Investment Objective The ETFS Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (the Fund ) is an actively managed exchange traded fund that seeks to provide a total return designed to exceed the performance of the Bloomberg Commodity Index 3 Month Forward SM which is calculated on an excess return basis (the Index ). Fees and Expenses of the Fund The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund ( Shares ). Investors purchasing and selling shares may be subject to costs (including brokerage commissions) charged by their broker, which are not reflected in the table and example below. Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Management Fees (1) % Distribution and Service (12b-1) Fees % Other Expenses % Total Annual Fund Operating Expenses % (1) ETF Securities Advisors LLC (the Advisor ) has contractually agreed to waive the management fees that it receives from the Fund in an amount equal to the management fee paid to the Advisor by the Subsidiary, as defined below. This undertaking will continue in effect for so long as the Fund invests in the Subsidiary and may be terminated only with the approval of the Fund s Board of Trustees. The management fee figure in the table above represents the total amount of fees paid to the Advisor by the Fund and the Subsidiary. Example The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. This example does not include brokerage commissions that investors may pay to buy and sell shares of the Fund in the secondary market. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your Shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund s operating expenses remain the same each year. Although your actual costs and returns may be higher or lower, based on these assumptions your costs would be: 1 Year 3 Years 5 Years 10 Years $30 $93 $163 $368 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may cause the Fund to incur higher transaction costs and may result in higher taxes when Shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or the example above, may affect the Fund s performance. For the period from the Fund s commencement of operations on March 30, 2017 through the Fund s fiscal year end on December 31, 2017, the Fund s portfolio turnover rate was 0% of the average value of its portfolio. Principal Investment Strategies The Fund is an actively managed exchange traded fund that seeks to provide a total return designed to exceed the performance of the Index. The Fund is not an index tracking exchange traded fund and is not required to invest in all components of the Index. However, the Fund will generally seek to hold similar interests to those included in the Index and will seek exposure to many of the commodities included in the Index under the same futures rolling schedule as the Index. The Fund will also hold short-term fixed-income securities, which may be used as collateral for the Fund s commodities futures holdings or to generate interest income and capital appreciation on the cash balances arising from its use of futures contracts (thereby providing a total return investment in the underlying commodities). Under normal market conditions, the Fund intends to invest in exchange-traded commodity futures contracts through a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the Subsidiary ). As a means to provide investment returns that are highly correlated to those of the Index, the Subsidiary may also invest directly in commodity-linked instruments, including pooled investment vehicles (such as exchange traded funds and other investment companies), swaps and exchange-traded options on futures 6