Summary Prospectus July 31, 2018

Transcription

1 AlphaMark Actively Managed Small Cap ETF TRADING SYMBOL: SMCP LISTED ON NASDAQ Summary Prspectus July 31, Befre yu invest, yu may want t review the AlphaMark Actively Managed Small Cap ETF s (the Fund ) statutry prspectus and statement f additinal infrmatin, which cntain mre infrmatin abut the Fund and its risks. The current statutry prspectus and statement f additinal infrmatin dated July 31, 2018, are incrprated by reference int this Summary Prspectus. Yu can find the Fund s statutry prspectus, statement f additinal infrmatin 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 AlphaMark Actively Managed Small Cap ETF (the Fund ) seeks lng-term grwth f capital. 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 0.90% Distributin and/r Service (12b-1) Fees Nne Other Expenses 0.00% Acquired Fund Fees and Expenses % Ttal Annual Fund Operating Expenses 0.92% 1 Acquired Fund Fees and Expenses are the indirect csts f investing in ther investment cmpanies. Ttal Annual Fund Operating Expenses d nt crrelate t the expense ratis in the Fund s Financial Highlights because the Financial Highlights include nly the direct perating expenses incurred by the Fund and exclude Acquired Fund Fees and Expenses. 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: 1 Year 3 Years 5 Years 10 Years $94 $293 $509 $1,131 1

2 Prtfli Turnver 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 year ended March 31, 2018, the Fund s prtfli turnver rate was 41% f the average value f its prtfli. Principal Investment Strategies f the Fund The Fund is actively managed and invests primarily in equity securities f small cap cmpanies listed n a U.S. exchange and selected by AlphaMark Advisrs, LLC, the Fund s investment adviser (the Adviser ). Under nrmal circumstances, the Fund will invest at least 80% f its net assets (plus any brrwings fr investment purpses) in equity securities f small cap cmpanies listed n a U.S. exchange. The Fund defines small cap cmpanies as cmpanies with a ttal market capitalizatin f less than $5 billin at the time f purchase, althugh the Adviser expects t generally fcus n cmpanies with market capitalizatins f between $150 millin and $2 billin at the time f purchase. The Fund defines equity securities t include cmmn and preferred stck, American Depsitary Receipts ( ADRs ), real estate investment trusts ( REITs ), and exchange-traded funds ( ETFs ). Investments in ETFs that, under nrmal circumstances, invest at least 80% f their net assets (plus any brrwings fr investment purpses) in equity securities f small cap cmpanies ( Small Cap ETFs ) will cunt tward the Fund s 80% investment plicy. The Fund may invest up t 30% f its net assets in freign equity securities f small cap cmpanies traded n a U.S. exchange as ADRs, which may include cmpanies in emerging markets. The Adviser seeks t invest in cmpanies with a prven histry f cnsistent grwth, sustainable earnings mmentum and the ability t prduce a reliable stream f cash flw during all ecnmic cycles. The Adviser uses a bttm-up internal stck screening prcess designed t identify cmpanies that prduce reliable cash flw streams and are priced at a level that prvides fr grwth pprtunity. An assessment f secular trends in the markets and the ecnmy will exert sme influence n the ecnmic sectr weightings f the Fund s prtfli. The Adviser s screening prcess narrws the small cap grwth universe t apprximately 150 stcks. These cmpanies are then subjected t further fundamental analysis, including the fllwing: Market return n equity Sufficiency f cash flw t cver capital spending Operating margin relative t price/sales Financial statement review, fcusing n true equity value Enterprise value review and management review, including factrs such as insider trading, stck ptin distributin and share buy backs. The Adviser expects that there will generally be between 25 and 40 stcks in the Fund s prtfli. The prtin f the Fund s net assets invested at any given time in securities f issuers engaged in industries within a particular sectr is affected by valuatin cnsideratins and ther investment characteristics f that sectr. As a result, the Fund s investment in varius sectrs may change significantly ver time. The Fund may invest in Small Cap ETFs t gain market expsure while the Fund builds a psitin in ne r mre specific stcks. Additinally, the Fund may invest a significant prtin r all f its assets in Small Cap ETFs during perids when the Adviser believes that the stcks identified by the Adviser s analysis are likely t underperfrm the brader small cap market. The Adviser will sell a security frm the Fund s prtfli under ne r mre f the fllwing circumstances: A material change in the cmpany s structure r management; 2

3 A material change in the industry r ecnmic factrs affecting that industry; A psitin has grwn t an unacceptable weight; Earnings mmentum has decreased frm previus estimates; r The security s price has becme vervalued by 20% r mre based n the Adviser s prprietary cash flw mdels. Principal Risks f Investing in the Fund The principal risks f investing in the Fund are summarized belw. As with any investment, there is a risk that yu culd lse all r a prtin f yur investment in the Fund. The fllwing risks culd affect the value f yur investment in the Fund: ADR Risk. ADRs invlve risks similar t thse assciated with investments in freign securities and certain additinal risks. ADRs listed n U.S. exchanges are issued by banks r trust cmpanies, and entitle the hlder t all dividends and capital gains that are paid ut n the underlying freign shares ( Underlying Shares ). When the Fund invests in ADRs as a substitute fr an investment directly in the Underlying Shares, the Fund is expsed t the risk that the ADRs may nt prvide a return that crrespnds precisely with that f the Underlying Shares. 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. Freign and Emerging Markets Risk. Investments in ADRs that prvide expsure t securities traded in develping r emerging markets invlve substantial risk due t limited infrmatin; different accunting, auditing and financial reprting standards; an emerging market cuntry s dependence n revenue frm particular cmmdities r internatinal aid; and exprpriatin, natinalizatin r ther adverse plitical r ecnmic develpments. Plitical and ecnmic structures in many emerging market cuntries may be underging significant evlutin and rapid develpment, and such cuntries may lack the scial, plitical and ecnmic stability characteristics f mre develped cuntries. Sme f these cuntries may have in the past failed t recgnize private prperty rights and have at times natinalized r exprpriated the assets f private cmpanies. Investment Cmpany Risk. The risks f investing in investment cmpanies, such as ETFs, typically reflect the risks f the types f instruments in which the investment cmpanies invest. By investing in anther investment cmpany, the Fund becmes a sharehlder f that investment cmpany and bears its prprtinate share f the fees and expenses f the ther investment cmpany. Investments in ETFs are als subject t the fllwing risks: (i) the market price f an ETF s shares may trade abve r belw their net asset value ( NAV ); (ii) an active trading market fr an ETF s shares may nt develp r be maintained; and (iii) trading f an ETF s shares may be halted fr a number f reasns. Management Risk. The Fund is actively-managed and may nt meet its investment bjective based n the Adviser s success r failure t implement investment strategies fr the Fund. Prtfli Turnver Risk. The prtfli manager may actively and frequently trade securities r ther instruments in the Fund s prtfli t carry ut its investment strategies. A high prtfli turnver rate increases transactin csts, which may increase the Fund s expenses. REIT Investment Risk. Investments in REITs invlve unique risks. REITs may have limited financial resurces, may trade less frequently and in limited vlume, and may be mre vlatile than ther securities. 3

4 Secndary Market Trading Risk. Investrs buying r selling Shares in the secndary market will pay brkerage cmmissins r ther charges impsed by brkers as determined by that brker. Brkerage cmmissins are ften a fixed amunt and may be a significant prprtinal cst fr investrs seeking t buy r sell relatively small amunts f Shares. Sectr Risk. T the extent the Fund invests mre heavily in particular sectrs f the ecnmy, its perfrmance will be especially sensitive t develpments that significantly affect thse sectrs. Finance and Insurance Sectr Risk. The Fund may invest in cmpanies in the finance and insurance sectr, and therefre the perfrmance f the Fund culd be negatively impacted by events affecting this sectr. This sectr can be significantly affected by changes in interest rates, gvernment regulatin, the rate f defaults n crprate, cnsumer and gvernment debt, the availability and cst f capital, and fallut frm the husing and sub-prime mrtgage crisis. This sectr has experienced significant lsses in the recent past, and the impact f mre stringent capital requirements and f recent r future regulatin n any individual financial cmpany r n the sectr as a whle cannt be predicted. In recent years, cyber attacks and technlgy malfunctins and failures have becme increasingly frequent in this sectr and have caused significant lsses. Health Care Sectr Risk. The Fund may invest in cmpanies in the health care sectr, and therefre the perfrmance f the Fund culd be negatively impacted by events affecting this sectr. 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, an increased emphasis n the delivery f healthcare thrugh utpatient services, lss r impairment f intellectual prperty rights and litigatin regarding prduct r service liability. 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. Small Cap Cmpanies Risk. Small cap cmpany stcks have histrically been subject t greater investment risk than larger cmpany stcks. The prices f small cap cmpany stcks tend t be mre vlatile and less liquid than larger cmpany stcks. Perfrmance The fllwing perfrmance infrmatin indicates sme f the risks f investing in the Fund. The bar chart shws the Fund s perfrmance fr the calendar year ended December 31, The table illustrates hw the Fund s average annual returns fr the 1-year and since inceptin perids cmpare with thse f a brad measure f market perfrmance. The Fund s past perfrmance, befre and after taxes, des nt necessarily indicate hw it will perfrm in the future. 4

5 Calendar Year Ttal Return 20% 16.75% 10% 1.63% 0% Fr the year-t-date perid ended June 30, 2018, the Fund s ttal return was 0.46% During the perid f time shwn in the bar chart, the Fund s highest quarterly return was 9.75% fr the quarter ended March 31, 2017, and the lwest quarterly return was -5.89% fr the quarter ended June 30, Average Annual Ttal Returns Fr the Perid Ended December 31, 2017 AlphaMark Actively Managed Small Cap ETF 1 Year Since Inceptin (4/20/2015) Return Befre Taxes 16.75% 1.43% Return After Taxes n Distributins 16.75% 1.43% Return After Taxes n Distributins and Sale f Shares 9.48% 1.09% Russell 2000 Grwth Ttal Return Index (reflects n deductin fr fees, expenses, r taxes) 22.17% 8.28% Russell 2000 Ttal Return Index (reflects n deductin fr fees, expenses, r taxes) 14.65% 9.00% After-tax returns are calculated using the histrical highest individual federal marginal incme tax rates during the perid cvered by the table abve and d nt reflect the impact f state and lcal taxes. Actual after-tax returns depend n an investr s tax situatin and may differ frm thse shwn. In certain cases, the figure representing Return After Taxes n Distributins and Sale f Shares may be higher than the ther return figures fr the same perid. A higher after-tax return results when a capital lss ccurs upn redemptin and prvides an assumed tax deductin that benefits the investr. After-tax returns shwn are nt relevant t investrs wh hld their Shares thrugh tax-deferred arrangements such as an individual retirement accunt ( IRA ) r ther tax-advantaged accunts. Management Investment Adviser: AlphaMark Advisrs, LLC serves as investment adviser t the Fund. Prtfli Manager Michael L. Simn, President and Chief Investment Officer f the Adviser, is primarily respnsible fr the day-tday management f the Fund and has acted in this capacity since its inceptin in

6 Purchase and Sale f Shares Shares are listed n The Nasdaq Stck Market, LLC (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 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. 6