Main Sector Rotation ETF (the Fund )

Transcription

1 View the fund's Summary Prspectus r Statement f Additinal Infrmatin. Main Sectr Rtatin ETF (the Fund ) SECT Primary Listing Exchange fr the Fund: BATS Glbal Market ( BATS ) PROSPECTUS July 8, 2017 Advised by: Main Management ETF Advisrs, LLC 601 Califrnia Street, Suite 620 San Francisc, Califrnia This prspectus prvides imprtant infrmatin abut the Fund that yu shuld knw befre investing. Please read it carefully and keep it fr future reference. These securities have nt been apprved r disapprved by the Securities and Exchange Cmmissin nr has the Securities and Exchange Cmmissin passed upn the accuracy r adequacy f this prspectus. Any representatin t the cntrary is a criminal ffense.

2

3 TABLE OF CONTENTS FUND SUMMARY- Main Sectr Rtatin ETF 1 ADDITIONAL INFORMATION ABOUT PRINCIPAL INVESTMENT STRATEGIES AND RELATED RISKS 4 Investment Objective 4 Principal Investment Strategies 5 Temprary Investments 5 Principal Investment Risks 5 Prtfli Hldings Disclsure 7 Cybersecurity 7 MANAGEMENT 7 Investment Adviser 7 Prtfli Managers 8 HOW SHARES ARE PRICED 9 HOW TO BUY AND SELL SHARES 10 FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES 10 DISTRIBUTION AND SERVICE PLAN 11 DIVIDENDS, OTHER DISTRIBUTIONS AND TAXES 11 Taxes 11 Taxes n Distributins 11 Taxes n Exchange-Listed Share Sales 12 Taxes n Purchase and Redemptin f Creatin Units 12 FINANCIAL HIGHLIGHTS 13 Privacy Ntice 14

4

5 FUND SUMMARY - Main Sectr Rtatin ETF Investment Objective: The Fund seeks t utperfrm the S&P 500 in rising markets while limiting lsses during perids f decline. 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 ). Investrs purchasing r selling shares f the Fund in the secndary market may be subject t csts (including custmary brkerage cmmissins) charged by their brker. These csts are nt included in the expense example belw. Annual Fund Operating Expenses (expenses that yu pay each year as a percentage f the value f yur investment) Management Fees 0.50% Distributin and Service (12b-1) Fees 0.00% Other Expenses (1) 0.28% Acquired Fund Fees and Expenses (1)(2) 0.23% Ttal Annual Fund Operating Expenses 1.01% Fee Waiver and Reimbursement (3) (0.13%) Ttal Annual Fund Operating Expenses After Fee Waiver 0.88% (1) Estimated fr the current fiscal year. (2) Acquired Fund Fees and Expenses are the indirect csts f investing in ther investment cmpanies. The perating expenses in this fee table will nt crrelate t the expense rati in the Fund s financial highlights because the financial statements include nly the direct perating expenses incurred by the Fund (3) The Fund s adviser, Main Management ETF Advisrs, LLC (the Adviser ), has cntractually agreed t reduce its fees and/r absrb expenses f the Fund, until at least July 31, 2027, t insure that ttal annual fund perating expenses after fee waiver and/r reimbursement (exclusive f any frnt-end r cntingent deferred lads, taxes, brkerage fees and cmmissins, brrwing csts (such as interest and dividend expense n securities sld shrt), acquired fund fees and expenses, fees and expenses assciated with investments in ther cllective investment vehicles r derivative instruments (including fr example ptin and swap fees and expenses), r extrardinary expenses such as litigatin (which may include indemnificatin f Fund fficers and Trustees, cntractual indemnificatin f Fund service prviders (ther than the Adviser))) will nt exceed 0.65% f the Fund s average daily net assets. These fee waivers and expense reimbursements are subject t pssible recupment frm the Fund in future years (within the three years frm the time the fees were waived r reimbursed), if such recupment can be achieved within the lesser f the freging expense limits r thse in place at the time f recapture. This agreement may be terminated nly by the Trust s Bard f Trustees, n 60 days written ntice t the Adviser. Example: This Example is intended t help yu cmpare the cst f investing in the Fund with the cst f investing in ther mutual 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 upn these assumptins yur csts wuld be: 1 Year 3 Years $90 $281 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 may indicate higher transactin csts and may result in higher taxes when Fund 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. PRINCIPAL INVESTMENT STRATEGIES: The Fund utilizes a fund f funds structure t invest in sectr based equity exchange traded funds ( ETFs ). The Fund seeks t achieve its bjective thrugh dynamic sectr rtatin. The Adviser fcuses its research primarily n sectr selectin by carefully reviewing the sectr, industry, and sub-industries in the Fund s prtfli. The Adviser chses sectrs it believes are undervalued and pised t respnd favrably t financial market catalysts. The Fund will sell a security when it achieves its target price and is, in the pinin f the Adviser, n lnger undervalued. The Adviser will actively manage the Fund. Frm time t time, the Fund s investment may be fcused in a sectr r sectrs. The Fund may invest in securities f any market capitalizatin r cuntry and denminated in any currency. The Fund is an actively managed ETF and des nt seek t replicate the perfrmance f a specified index. In selecting investments fr the Fund s prtfli, the Adviser adheres t the investment prcess described belw. 1

6 Assessing Market Cnditins. The Adviser determines the Fund s target sectr allcatins by analyzing market sectrs and their underlying industries and sub-industries. The Adviser uses the Glbal Industry Classificatin Standard ( GICS ) in its sectr analysis. GICS sectrs include: energy, materials, industrials, cnsumer discretinary, cnsumer staples, healthcare, financials, infrmatin technlgy, telecmmunicatin services, utilities, and real estate. The Adviser analyzes ecnmic grwth frecasts, inflatin trends, and ther macrecnmic and capital market fundamentals ver a 6-18 mnth time hrizn. The Adviser identifies pprtunities fr near-term grwth in value that are facilitated by events r changes within sectrs that its research has identified as undervalued. Identifying the Apprpriate ETFs. The Adviser then seeks t identify the mst apprpriate ETFs t implement its strategic asset allcatin and sectr views by evaluating varius factrs in the respective ETFs including its underlying index and prtfli hldings, sectr expsure and weightings, liquidity prfiles, and tracking errr. Principal Investment Risks: As with all funds, there is the risk that yu culd lse mney thrugh yur investment in the Fund. Many factrs affect the Fund s net asset value and perfrmance. The fllwing describes the risks the Fund bears directly r indirectly thrugh investments in underlying ETFs. As with any ETF, there is n guarantee that the Fund will achieve its gal. Allcatin Risk. If the Fund s strategy fr allcating assets amng different sectrs and sub sectrs des nt wrk as intended, the Fund may nt achieve its bjective r may underperfrm ther funds with the same r similar investment strategy. Sectr Risk. The Fund may have significant expsure t a limited number f issuers cnducting business in the same sectr r grup f sectrs. Market cnditins, interest rates, and ecnmic, regulatry, r financial develpments culd significantly affect a single sectr r a grup f sectrs, and the securities f cmpanies in that sectr r grup f sectrs culd react similarly t these r ther develpments. Sectr Cncentratin Risk. Sectr cncentratin risk is the pssibility that securities within the same sectr will decline in price due t sectr-specific market r ecnmic develpments. If the Fund invests mre heavily in a particular sectr, the value f its shares may be especially sensitive t factrs and ecnmic risks that specifically affect that sectr. As a result, the Fund s share price may fluctuate mre widely than the value f shares f a fund that invests in a brader range f sectrs. Additinally, sme sectrs culd be subject t greater gvernment regulatin than ther sectrs. Therefre, changes in regulatry plicies fr thse sectrs may have a material effect n the value f securities issued by cmpanies in thse sectrs. ETF Structure Risks. The Fund is structured as an ETF and as a result is subject t the special risks, including: Nt Individually Redeemable. Shares are nt individually redeemable and may be redeemed by the Fund at net asset value ( NAV ) nly by certain authrized brker-dealers in large blcks knwn as Creatin Units. Yu may incur brkerage csts purchasing enugh Shares t cnstitute a Creatin Unit. Trading Issues. Trading in Shares n the primary listing exchange ( Exchange ) may be halted due t market cnditins r fr reasns that, in the view f the Exchange, make trading in Shares inadvisable, such as extrardinary market vlatility. There can be n assurance that Shares will cntinue t meet the listing requirements f the Exchange. An active trading market fr the Fund s shares may nt be develped r maintained. If the Fund s shares are traded utside a cllateralized settlement system, the number f financial institutins that can act as authrized participants that can pst cllateral n an agency basis is limited, which may limit the market fr the Fund s shares. Market Price Variance Risk. The market prices f Shares will fluctuate in respnse t changes in NAV and supply and demand fr Shares and will include a bid-ask spread charged by the exchange specialists, market makers r ther participants that trade the particular security. There may be times when the market price and the NAV vary significantly. This means that Shares may trade at a discunt t NAV. In times f market stress, market makers may step away frm their rle market making in shares f ETFs and in executing trades, which can lead t differences between the market value f Fund shares and the Fund s net asset value. The market price fr the Fund s shares may deviate frm the Fund s net asset value, particularly during times f market stress, with the result that investrs may pay significantly mre r significantly less fr Fund shares than the Fund s net asset value, which is reflected in the bid and ask price fr Fund shares r in the clsing price. When all r a prtin f an ETFs underlying securities trade in a market that is clsed when the market fr the Fund s shares is pen, there may be changes frm the last qute f the clsed market and the qute frm the Fund s dmestic trading day, which culd lead t differences between the market value f the Fund s shares and the Fund s net asset value. 2

7 In stressed market cnditins, the market fr the Fund s shares may becme less liquid in respnse t the deterirating liquidity f the Fund s prtfli. This adverse effect n the liquidity f the Fund s shares may, in turn, lead t differences between the market value f the Fund s shares and the Fund s net asset value. Fluctuatin f Net Asset Value Risk. The NAV f the Fund s shares will generally fluctuate with changes in the market value f the Fund s hldings. The market prices f the shares will generally fluctuate in accrdance with changes in NAV as well as the relative supply f and demand fr the shares n the Exchange. The Adviser cannt predict whether the shares will trade belw, at r abve their NAV. Price differences may be due, in large part, t the fact that supply and demand frces at wrk in the secndary trading market fr the shares will be clsely related t, but nt identical t, the same frces influencing the prices f the Fund s hldings trading individually r in the aggregate at any pint in time. In additin, unlike cnventinal ETFs, the Fund is nt an index fund. The Fund is actively managed and des nt seek t replicate the perfrmance f a specified index. Index based ETFs have generally traded at prices which clsely crrespnd t NAV per share. Actively managed ETFs have a limited trading histry and, therefre, there can be n assurance as t whether and/r the extent t which the shares will trade at premiums r discunts t NAV. Exchange-Traded Fund Risk. The ETFs in which the Fund invests will nt be able t replicate exactly the perfrmance f the indices they track because the ttal return generated by the securities will be reduced by transactin csts incurred in adjusting the actual balance f the securities. This may result in a lss. Certain securities cmprising the indices tracked by the ETFs may, frm time t time, temprarily be unavailable, which may further impede the ETFs ability t track their applicable indices. ETFs in which the Fund invests are subject t investment advisry and ther expenses, which will be indirectly paid by the Fund. As a result, the cst f investing in the ETFs will be higher than the cst f investing directly in the ETF s underlying investments and may be higher than ther mutual funds that invest directly in stcks and bnds. ETFs may als trade at a discunt r premium t their net asset value. Equity Risk. Equity securities are susceptible t general stck market fluctuatins and t vlatile increases and decreases in value. The equity securities held by the Fund may experience sudden, unpredictable drps in value r lng perids f decline in value. This may ccur because f factrs affecting securities markets generally, the equity securities f a particular sectr, r a particular cmpany. Limited Histry f Operatins Risk. The Fund is a new ETF with n histry f peratins fr investrs t evaluate. Management Risk. The prtfli manager s judgments abut the attractiveness, value and ptential appreciatin f particular stcks r ther securities in which the Fund invests may prve t be incrrect and there is n guarantee that the prtfli manager s judgment will prduce the desired results. Market Risk. Overall market risks may als affect the value f the Fund. Factrs such as dmestic ecnmic grwth and market cnditins, interest rate levels and plitical events affect the securities markets. Small and Medium Capitalizatin Securities Risk. The earnings and prspects f small and medium sized cmpanies are mre vlatile than larger cmpanies and may experience higher failure rates than larger cmpanies. Small and medium sized cmpanies nrmally have a lwer trading vlume than larger cmpanies, which may tend t make their market price fall mre disprprtinately than larger cmpanies in respnse t selling pressures and may have limited markets, prduct lines, r financial resurces and lack management experience. Perfrmance: Because the Fund has nly recently cmmenced investment peratins, n perfrmance infrmatin is presented fr the Fund at this time. In the future, perfrmance infrmatin will be presented in this sectin f this prspectus. Als, sharehlder reprts cntaining financial and perfrmance infrmatin will be mailed t sharehlders semi-annually. Updated perfrmance infrmatin will be available at n cst by visiting r by calling ETF-XPRT 1(866) Investment Adviser: Main Management ETF Advisrs, LLC (the Adviser ). Prtfli Managers: Kim D. Arthur, Chief Executive Officer f the Adviser, James W. Cncidine, Chief Risk Officer f the Adviser, and J. Richard Fredericks, Managing Directr f the Adviser, have served the Fund as its prtfli managers since it cmmenced peratins in

8 Purchase and Sale f Fund Shares: The Fund will issue and redeem Shares at NAV nly in large blcks f 50,000 Shares (each blck f Shares is called a Creatin Unit ). Creatin Units are issued and redeemed fr cash and/r in-kind fr securities. Individual Shares may nly be purchased and sld in secndary market transactins thrugh brkers. Except when aggregated in Creatin Units, the Shares are nt redeemable securities f the Fund. Shares f the Fund are listed fr trading n BATS (the Exchange ) and trade at market prices rather than NAV. Shares f the Fund may trade at a price that is greater than, at, r less than NAV. Tax Infrmatin: Dividends and capital gain distributins yu receive frm the Fund, whether yu reinvest yur distributins in additinal Fund shares r receive them in cash, are taxable t yu at either rdinary incme r capital gains tax rates unless yu are investing thrugh a tax-deferred plan such as an IRA r 401(k) plan. Hwever, these dividend and capital gain distributins may be taxable upn their eventual withdrawal frm tax-deferred plans. Payments t Brker-Dealers and Other Financial Intermediaries: If yu purchase the Fund thrugh a brker-dealer r ther financial intermediary (such as a bank), the Adviser and its related cmpanies may pay the intermediary fr the sale f Fund shares and related services. These payments may create a cnflict f interest by influencing the brker-dealer r ther intermediary and yur salespersn t recmmend the Fund ver anther investment. Ask yur salespersn r visit yur financial intermediary s website fr mre infrmatin. ADDITIONAL INFORMATION ABOUT PRINCIPAL INVESTMENT STRATEGIES AND RELATED RISKS INVESTMENT OBJECTIVE: The Fund seeks t utperfrm the S&P 500 in rising markets while limiting lsses during perids f decline. The Fund s investment bjective may be changed withut sharehlder apprval upn 60 days written ntice t sharehlders. The Fund s investment plicies may be changed by the Bard f Trustees (the Bard ) f the Fund withut sharehlder apprval unless therwise nted in this prspectus r the Statement f Additinal Infrmatin. PRINCIPAL INVESTMENT STRATEGIES: The Fund utilizes a fund f funds structure t invest in sectr based exchange traded funds ( ETFs ). The Adviser fcuses its research primarily n sectr selectin by carefully reviewing the sectr, industry, and sub-industries in the Fund s prtfli. The Fund seeks t achieve its bjective thrugh dynamic sectr rtatin. The Adviser chses sectrs it believes are undervalued and pised t respnd favrably t financial market catalysts. The Adviser expects this apprach t prduce a high ptential fr share price grwth. The Fund s strategy uses systematic, fundamental analysis t evaluate and rank sectrs and uncver ptential catalysts. The Fund will sell a security when it achieves its target price and is, in the pinin f the Adviser, n lnger undervalued. The Adviser will actively manage the Fund. Frm time t time, the Fund s investments may be fcused in a sectr r sectrs. The Fund may invest in securities f any market capitalizatin r cuntry and denminated in any currency. The Fund is an actively managed ETF and des nt seek t replicate the perfrmance f a specified index. In selecting investments fr the Fund s prtfli, the Adviser adheres t the fllwing investment prcess. The Adviser believes that, ver time, sectr selectin is mre imprtant than individual security selectin in limiting the variability inherent in equity security investing. The Adviser seeks t gain an understanding f the ecnmic landscape and t identify catalysts which may allw fr near term sectr appreciatin by analyzing interest and currency rates, inflatin trends, ecnmic grwth frecasts and ther capital market fundamentals f the market sectrs, sub-sectrs, and industries. Assessing Market Cnditins. The Adviser determines the Fund s target allcatins by analyzing market sectrs and their underlying industries and sub-industries. The Adviser uses the Glbal Industry Classificatin Standard ( GICS ) in its sectr analysis. GICS sectrs include: energy, materials, industrials, cnsumer discretinary, cnsumer staples, healthcare, financials, infrmatin technlgy, telecmmunicatin services, utilities, and real estate. The Adviser analyzes ecnmic grwth frecasts, inflatin trends, and ther macrecnmic and capital market fundamentals. The Adviser identifies pprtunities fr near-term grwth in value that are facilitated by events r changes within sectrs that its research has identified as undervalued within the U.S. equity market. 4

9 Identifying the Apprpriate ETFs. The Fund will invest in equity ETFs. The Adviser then seeks t identify the mst apprpriate ETFs t implement its strategic asset allcatin and sectr views by evaluating such factrs as the respective ETF s: underlying index and prtfli hldings, weighting methdlgies, sectr expsures, liquidity prfiles, and tracking errr. TEMPORARY INVESTMENTS: T respnd t adverse market, ecnmic, plitical r ther cnditins, the Fund may invest 100% f its ttal assets, withut limitatin, in high-quality shrt-term debt securities and mney market instruments. These shrt-term debt securities and mney market instruments include: shares f mney market mutual funds, cmmercial paper, certificates f depsit, bankers acceptances, U.S. Gvernment securities and repurchase agreements. While the Fund is in a defensive psitin, the Fund may nt achieve its investment bjective. Furthermre, t the extent that the Fund invests in mney market mutual funds fr cash psitins, there will be sme duplicatin f expenses because the Fund pays its pr-rata prtin f such mney market funds advisry fees and peratinal fees. The Fund may als invest a substantial prtin f its assets in such instruments at any time t maintain liquidity r pending selectin f investments in accrdance with its plicies. PRINCIPAL INVESTMENT RISKS The fllwing describes the risks the Fund bears directly r indirectly thrugh investments in underlying ETFs. Allcatin Risk. The risk that if the Fund s strategy fr allcating assets amng different assets classes des nt wrk as intended, the Fund may nt achieve its bjective r may underperfrm ther funds with the same r similar investment strategy. Sectr Risk: T the extent that the Fund s investments are significantly expsed t a particular sectr, the Fund will be susceptible t lss due t adverse ccurrences affecting that sectr. The Fund will be subject t the risk that ecnmic, plitical r ther cnditins that have a negative effect n these sectrs may adversely affect the Fund t a greater extent than if the Fund s assets were invested in a wider variety f sectrs r industries. Sectr Cncentratin Risk. Sectr cncentratin risk is the pssibility that securities within the same sectr will decline in price due t sectr-specific market r ecnmic develpments. If the Fund invests mre heavily in a particular sectr, the value f its shares may be especially sensitive t factrs and ecnmic risks that specifically affect that sectr. As a result, the Fund s share price may fluctuate mre widely than the value f shares f a fund that invests in a brader range f sectrs. Additinally, sme sectrs culd be subject t greater gvernment regulatin than ther sectrs. Therefre, changes in regulatry plicies fr thse sectrs may have a material effect n the value f securities issued by cmpanies in thse sectrs. Exchange-Traded Fund Risk. ETFs are investment cmpanies, which may be managed r unmanaged, that generally seek t track the perfrmance f a specific index. The value f ETFs can be expected t increase and decrease in value in prprtin t increases and decreases in the indices that they are designed t track. The vlatility f different index tracking stcks can be expected t vary in prprtin t the vlatility f the particular index they track. The ETFs in which the Fund invests may nt be able t replicate exactly the perfrmance f the indices they track because the ttal return generated by the securities will be reduced by transactin csts incurred in adjusting the actual balance f the securities. This may result in a lss. ETFs are traded similarly t stcks f individual cmpanies. Althugh an ETF is designed t prvide investment perfrmance crrespnding t its index, it may nt be able t exactly replicate the perfrmance f its index because f its perating expenses and ther factrs. ETFs may als trade at a discunt r premium t their net asset value. In additin, ETFs have certain inherent risks generally assciated with investments in a prtfli f securities, in which the ETF is invested, including the risk that the general level f stck prices may decline, thereby adversely affecting the value f each unit f the ETF. ETFs als invlve the risk that an active trading market fr an ETF s shares may nt develp r be maintained. The Fund s investments in certain cmmdities-linked ETFs may be limited by tax cnsideratins, including the Fund s intentin t qualify annually as a RIC under the Cde. ETFs in which the Fund invests are subject t investment advisry and ther expenses, which will be indirectly paid by the Fund. As a result, the cst f investing in the Fund will be higher than the cst f investing directly in an ETF and may be higher than ther mutual funds that invest directly in stcks and bnds. 5

10 ETF Structure Risk. The Fund is structured as an ETF and as a result is subject t the special risks, including: Nt Individually Redeemable. Shares are nt individually redeemable and may be redeemed at NAV nly by certain authrized brker-dealers in large blcks knwn as Creatin Units. A sharehlder may incur brkerage csts when purchasing enugh Shares t cnstitute a Creatin Unit. Trading Issues. Trading in Shares n the Exchange may be halted due t market cnditins r fr reasns that, in the view f the Exchange, make trading in Shares inadvisable, such as extrardinary market vlatility. There can be n assurance that Shares will cntinue t meet the listing requirements f the Exchange. An active trading market fr the Fund s shares may nt be develped r maintained. If the Fund s shares are traded utside a cllateralized settlement system, the number f financial institutins that can act as authrized participants that can pst cllateral n an agency basis is limited, which may limit the market fr the Fund s shares. Market Price Variance Risk. Individual Shares f the Fund that are listed fr trading n the Exchange can be bught and sld in the secndary market at market prices. The market prices f Shares will fluctuate in respnse t changes in NAV and supply and demand fr Shares. There may be times when the market price and the NAV vary significantly and a sharehlder may pay mre than NAV when buying Shares n the secndary market, and a sharehlder may receive less than NAV when a sharehlder sell thse Shares. The market price f Shares, like the price f any exchange-traded security, includes a bid-ask spread charged by the exchange specialists, market makers r ther participants that trade the particular security. In times f severe market disruptin, the bid-ask spread ften increases significantly. This means that Shares may trade at a discunt t NAV and the discunt is likely t be greatest when the price f Shares is falling fastest, which may be the time that a sharehlder mst wants t sell its Shares. The Fund s investment results are measured based upn the daily NAV f the Fund ver a perid f time. Investrs purchasing and selling Shares in the secndary market may nt experience investment results cnsistent with thse experienced by thse creating and redeeming directly with the Fund. In times f market stress, market makers may step away frm their rle market making in shares f ETFs and in executing trades, which can lead t differences between the market value f Fund shares and the Fund s net asset value. The market price fr the Fund s shares may deviate frm the Fund s net asset value, particularly during times f market stress, with the result that investrs may pay significantly mre r significantly less fr Fund shares than the Fund s net asset value, which is reflected in the bid and ask price fr Fund shares r in the clsing price. When all r a prtin f an ETFs underlying securities trade in a market that is clsed when the market fr the Fund s shares is pen, there may be changes frm the last qute f the clsed market and the qute frm the Fund s dmestic trading day, which culd lead t differences between the market value f the Fund s shares and the Fund s net asset value. In stressed market cnditins, the market fr the Fund s shares may becme less liquid in respnse t the deterirating liquidity f the Fund s prtfli. This adverse effect n the liquidity f the Fund s shares may, in turn, lead t differences between the market value f the Fund s shares and the Fund s net asset value. Fluctuatin f Net Asset Value Risk. The NAV f a Fund s shares will generally fluctuate with changes in the market value f the Fund s hldings. The market prices f the shares will generally fluctuate in accrdance with changes in NAV as well as the relative supply f and demand fr the shares n the Exchange. The Adviser cannt predict whether the shares will trade belw, at r abve their NAV. Price differences may be due, in large part, t the fact that supply and demand frces at wrk in the secndary trading market fr the shares will be clsely related t, but nt identical t, the same frces influencing the prices f a Fund s hldings trading individually r in the aggregate at any pint in time. In additin, unlike cnventinal ETFs, the Fund is nt an index fund. The Fund is actively managed and des nt seek t replicate the perfrmance f a specified index. Index based ETFs have generally traded at prices which clsely crrespnd t NAV per share. Actively managed ETFs have a limited trading histry and, therefre, there can be n assurance as t whether and/r the extent t which the shares will trade at premiums r discunts t NAV. Equity Risk. Equity securities are susceptible t general stck market fluctuatins and t vlatile increases and decreases in value. The equity securities held by the Fund may experience sudden, unpredictable drps in value r lng perids f decline in value. This may ccur because f factrs affecting securities markets generally, the equity securities f a particular sectr, r a particular cmpany. Limited Histry f Operatins. The Fund is a new mutual fund with a limited histry f peratins fr investrs t evaluate. 6

11 Management Risk. The Adviser s reliance n its strategy and its judgments abut the value and ptential appreciatin securities in which the Fund invests may prve t be incrrect, including the Adviser s tactical allcatin f the Fund s prtfli amng its investments. The ability f the Fund t meet its investment bjective is directly related t the Adviser s prprietary investment prcess. The Adviser s assessment f the relative value f securities, their attractiveness and ptential appreciatin f particular investments in which the Fund invests may prve t be incrrect and there is n guarantee that the Adviser s investment strategy will prduce the desired results. Market Risk. Overall stck and bnd market risks may als affect the value f the Fund. Factrs such as dmestic ecnmic grwth and market cnditins, interest rate levels and plitical events affect the securities markets. Stcks and bnds invlve the risk that they may never reach what the manager believes is their full market value, either because the market fails t recgnize the security s intrinsic wrth r the manager misgauged that wrth. They als may decline in price, even thugh, in thery, they are already undervalued. Small and Medium Capitalizatin Securities Risk. The stcks f small and medium capitalizatin cmpanies invlve substantial risk. These cmpanies may have limited prduct lines, markets r financial resurces, and they may be dependent n a limited management grup. Securities f these cmpanies may be subject t mre abrupt r erratic market mvements than thse f larger, mre established cmpanies r the market averages in general. PORTFOLIO HOLDINGS DISCLOSURE: A descriptin f the Fund s plicies regarding the release f prtfli hldings infrmatin is available in the Fund s Statement f Additinal Infrmatin and n its website, CYBERSECURITY: The cmputer systems, netwrks and devices used by the Fund and its service prviders t carry ut rutine business peratins emply a variety f prtectins designed t prevent damage r interruptin frm cmputer viruses, netwrk failures, cmputer and telecmmunicatin failures, infiltratin by unauthrized persns and security breaches. Despite the varius prtectins utilized by the Fund and its service prviders, systems, netwrks, r devices ptentially can be breached. The Fund and its sharehlders culd be negatively impacted as a result f a cybersecurity breach. Cybersecurity breaches can include unauthrized access t systems, netwrks, r devices; infectin frm cmputer viruses r ther malicius sftware cde; and attacks that shut dwn, disable, slw, r therwise disrupt peratins, business prcesses, r website access r functinality. Cybersecurity breaches may cause disruptins and impact the Fund s business peratins, ptentially resulting in financial lsses; interference with the Fund s ability t calculate its NAV; impediments t trading; the inability f the Fund, the Adviser, and ther service prviders t transact business; vilatins f applicable privacy and ther laws; regulatry fines, penalties, reputatinal damage, reimbursement r ther cmpensatin csts, r additinal cmpliance csts; as well as the inadvertent release f cnfidential infrmatin. Similar adverse cnsequences culd result frm cybersecurity breaches affecting issuers f securities in which the Fund invests; cunterparties with which the Fund engages in transactins; gvernmental and ther regulatry authrities; exchange and ther financial market peratrs, banks, brkers, dealers, insurance cmpanies, and ther financial institutins (including financial intermediaries and service prviders fr the Fund s sharehlders); and ther parties. In additin, substantial csts may be incurred by these entities in rder t prevent any cybersecurity breaches in the future. MANAGEMENT Investment Adviser: Main Management ETF Advisrs, LLC, lcated at 601 Califrnia Street, Suite 620, San Francisc, Califrnia 94108, serves as the Fund s investment adviser. The Adviser is registered with the SEC as an investment adviser under the Investment Advisers Act f 1940, as amended. The Adviser is a Delaware limited liability crpratin frmed in Its nly client is the Fund. Subject t the supervisin f the Fund s Bard f Trustees, the Adviser is respnsible fr managing the Fund s investments, executing transactins and prviding related administrative services and facilities under an Investment Advisry Agreement between the Fund and the Adviser. The management fee set frth in the Fund s Investment Advisry Agreement is 0.50% annually, t be paid n a mnthly basis. In additin t investment advisry fees, the Fund pay ther expenses including csts incurred in cnnectin with the maintenance f securities law registratin, printing and mailing prspectuses and Statements f Additinal Infrmatin t sharehlders, certain financial accunting services, taxes r gvernmental fees, custdial, transfer and sharehlder servicing agent csts, expenses f utside cunsel and independent accuntants, preparatin f sharehlder reprts and expenses f trustee and sharehlder meetings. 7

12 The Adviser has cntractually agreed t reduce its fees and/r absrb expenses f the Fund, until at least July 31, 2027, t ensure that ttal annual fund perating expenses after fee waiver and/r reimbursement (exclusive f any frnt-end r cntingent deferred lads, taxes, brkerage fees and cmmissins, brrwing csts (such as interest and dividend expense n securities sld shrt), acquired fund fees and expenses, fees and expenses assciated with investments in ther cllective investment vehicles r derivative instruments (including fr example ptin and swap fees and expenses), r extrardinary expenses such as litigatin) will nt exceed 0.65% f the Fund s average daily net assets; subject t pssible recupment frm the Fund in future years n a rlling three-year basis (within the three years after the fees have been waived r reimbursed) if such recupment can be achieved within the lesser f the freging expense limits r thse in place at the time f recapture. Fee waiver and reimbursement arrangements can decrease the Fund s expenses and bst its perfrmance. A discussin regarding the basis fr the Bard f Trustees apprval f the advisry agreement will be available in the Fund s first annual r semi-annual reprt t sharehlders. Prtfli Managers: Kim D. Arthur, Chief Executive Officer f the Adviser, James W. Cncidine, Chief Risk Officer f the Adviser, and J. Richard Fredericks, Managing Directr f the Adviser, have served the Fund as its prtfli managers since it cmmenced peratins in Kim D. Arthur. Mr. Arthur is a funding partner f Main Management, LLC, the Adviser s parent cmpany. He has served as CEO f Main Management, LLC since 2002 and as CEO and prtfli manager f the Adviser since In 2009 he was recgnized by Institutinal Investr Magazine as a Rising Star f Fundatins and Endwments. Mr. Arthur began his financial career in 1987 in institutinal sales marketing U.S. equities t Japanese institutins. He was prmted t managing directr f institutinal sales, and advanced t the transitinal head f Internatinal Sales fr Banc f America Securities. Mr. Arthur has als led an institutinal sales and trading department verseeing 60 sales traders in 6 cities, managed the equity prduct marketing team, and served n the Investment Plicy Cmmittee and the Executive Management Cmmittee at Banc f America Securities. James W. Cncidine. Mr. Cncidine is a funding partner f Main Management, LLC. He currently serves as a Managing Directr f the Adviser and is a member f the Investment Cmmittee. Mr. Cncidine began his career in the financial services industry in 1970 as a stck brker wrking with retail clients frm When the CBOE pened in April 1973, he began t specialize in cnservative cvered call writing strategies, and wrked in institutinal sales where he was respnsible fr U.S. equity sales t institutinal accunts in the United Kingdm. Mr. Cncidine led an Internatinal Institutinal Sales Team. Since 1995, he has served as chief investment fficer fr a sizeable San Francisc family ffice where his duties include manager selectin and asset allcatin. J. Richard Fredericks. Ambassadr J. Richard Fredericks is a funding partner f Main Management, LLC. He currently serves as a Managing Directr and is a member f the Investment Cmmittee. He began his career with Dean Witter in 1970 as a securities analyst. In 1977, he jined Mntgmery Securities (nw Banc f America Securities) as a partner and later Senir Managing Directr in Investment Research, cvering the banking and financial service area. Fr 17 cnsecutive years, Mr. Fredericks was chsen by Institutinal Investr Magazine as an All-American Research Analyst, cvering the cmmercial banking industry. In 1995, Mr. Fredericks frmally changed rles t versee the firm s investment banking effrt fr the financial industry. Mr. Fredericks served as United States Ambassadr t bth Switzerland and Liechtenstein frm 1999 t Mr. Fredericks currently is n the Bard f Directrs f Janus Crpratin; the Library f Cngress Trust Fund Bard; the Bard f Directrs f Cadence Bancrp LLC; member f the Bard f Trustees at Lyla University f Maryland; the Advisry Bard f Financial Technlgy Ventures; the Bard f Chambers & Chambers Wine Merchants; and as a grwer and Bard Member fr Turley Wine Cellars. The Prtfli Managers are supprted by ther members f the Adviser s investment team wh prvide research, analysis and trading supprt. The Statement f Additinal Infrmatin prvides additinal infrmatin abut the Prtfli Managers cmpensatin, ther accunts managed and wnership f Fund shares. 8

13 HOW SHARES ARE PRICED The net asset value ( NAV ) and ffering price (NAV plus any applicable sales charges) f each class f shares is determined at the clse f regular trading n the New Yrk Stck Exchange (nrmally 4:00 p.m. Eastern Time) n each day the New Yrk Stck Exchange ( NYSE ) is pen. NAV is cmputed by determining, n a per class basis, the aggregate market value f all assets f the applicable Fund, less its liabilities, divided by the ttal number f shares utstanding ((assets-liabilities)/number f shares = NAV). The NYSE is clsed n weekends and New Year s Day, Martin Luther King, Jr. Day, Presidents Day, Gd Friday, Memrial Day, Independence Day, Labr Day, Thanksgiving Day and Christmas Day. The NAV takes int accunt, n a per class basis, the expenses and fees f the Fund, including management, administratin, and distributin fees, which are accrued daily. The determinatin f NAV fr the Fund fr a particular day is applicable t all applicatins fr the purchase f shares, as well as all requests fr the redemptin f shares, received by the Fund (r an authrized brker r agent, r its authrized designee) befre the clse f trading n the NYSE n that day. Generally, each Fund s securities are valued each day at the last quted sales price n each security s primary exchange. Securities traded r dealt in upn ne r mre securities exchanges (whether dmestic r freign) fr which market qutatins are readily available and nt subject t restrictins against resale shall be valued at the last quted sales price n the primary exchange r, in the absence f a sale n the primary exchange, at the mean between the current bid and ask prices n such exchange. Securities primarily traded in the Natinal Assciatin f Securities Dealers Autmated Qutatin System ( NASDAQ ) Natinal Market System fr which market qutatins are readily available shall be valued using the NASDAQ Official Clsing Price. If market qutatins are nt readily available, securities will be valued at their fair market value as determined using the fair value prcedures apprved by the Bard. Fair value pricing invlves subjective judgments and it is pssible that the fair value determined fr a security may be materially different than the value that culd be realized upn the sale f that security. The fair value prices can differ frm market prices when they becme available r when a price becmes available. The Bard has delegated executin f these prcedures t a fair value team cmpsed f ne r mre representatives frm each f the (i) Trust, (ii) administratr, and (iii) adviser. The team may als enlist third party cnsultants such as an audit firm r financial fficer f a security issuer n an as-needed basis t assist in determining a security-specific fair value. The Bard reviews and ratifies the executin f this prcess and the resultant fair value prices at least quarterly t assure the prcess prduces reliable results. The Fund may use independent pricing services t assist in calculating the value f each Fund s securities. In additin, market prices fr freign securities are nt determined at the same time f day as the NAV fr the Fund. Because the Fund may invest in underlying ETFs that hld prtfli securities primarily listed n freign exchanges, and these exchanges may trade n weekends r ther days when the underlying ETFs d nt price their shares, the value f sme f a Fund s prtfli securities may change n days when yu may nt be able t buy r sell Fund shares. In cmputing the NAV, the Fund values freign securities held by a fund at the latest clsing price n the exchange in which they are traded immediately prir t clsing f the NYSE. Prices f freign securities quted in freign currencies are translated int U.S. dllars at current rates. If events materially affecting the value f a security in a Fund s prtfli, particularly freign securities, ccur after the clse f trading n a freign market but befre a Fund prices its shares, the security will be valued at fair value. Fr example, if trading in a prtfli security is halted and des nt resume befre the Fund calculates its NAV, the Adviser may need t price the security using the Fund s fair value pricing guidelines. Withut a fair value price, shrt-term traders culd take advantage f the arbitrage pprtunity and dilute the NAV f lng-term investrs. Fair valuatin f a Fund s prtfli securities can serve t reduce arbitrage pprtunities available t shrt-term traders, but there is n assurance that fair value pricing plicies will prevent dilutin f a Fund s NAV by shrt term traders. The determinatin f fair value invlves subjective judgments. As a result, using fair value t price a security may result in a price materially different frm the prices used by ther mutual funds t determine net asset value, r frm the price that may be realized upn the actual sale f the security. With respect t any prtin f a Fund s assets that are invested in ne r mre pen-end management investment cmpanies registered under the 1940 Act, a Fund s net asset value is calculated based upn the net asset values f thse pen-end management investment cmpanies, and the prspectuses fr these cmpanies explain the circumstances under which thse cmpanies will use fair value pricing and the effects f using fair value pricing. Premium/Discunt Infrmatin Mst investrs will buy and sell Shares f the Fund in secndary market transactins thrugh brkers at market prices and the Fund s Shares will trade at market prices. The market price f Shares f the Fund may be greater than, equal t, r less than NAV. Market frces f supply and demand, ecnmic cnditins and ther factrs may affect the trading prices f Shares f the Fund. Infrmatin regarding hw ften the Shares f the Fund traded at a price abve (at a premium t) r belw (at a discunt t) the NAV f the Fund during the past fur calendar quarters, when available, can be fund at 9

14 HOW TO BUY AND SELL SHARES Shares f the Fund will be listed fr trading n BATS under the symbl SECT. Share prices are reprted in dllars and cents per Share. Shares can be bught and sld n the secndary market thrughut the trading day like ther publicly traded shares, and Shares typically trade in blcks f less than a Creatin Unit. There is n minimum investment required. Shares may nly be purchased and sld n the secndary market when the Exchange is pen fr trading. The Exchange is pen fr trading Mnday thrugh Friday and is clsed n weekends and the fllwing hlidays, as bserved: New Year s Day, Martin Luther King, Jr. Day, Presidents Day, Gd Friday, Memrial Day, Independence Day, Labr Day, Thanksgiving Day and Christmas Day. When buying r selling Shares thrugh a brker, yu will incur custmary brkerage cmmissins and charges, and yu may pay sme r all f the spread between the bid and the ffered price in the secndary market n each leg f a rund trip (purchase and sale) transactin. Authrized participants ( APs ) may acquire Shares directly frm the Fund, and APs may tender their Shares fr redemptin directly t the Fund, at NAV per Share nly in large blcks, r Creatin Units, f 50,000 Shares. Purchases and redemptins directly with the Fund must fllw the each Fund s prcedures, which are described in the SAI. The Fund may liquidate and terminate at any time withut sharehlder apprval. Share Trading Prices The apprximate value f Shares f the Fund, an amunt representing n a per share basis the sum f the current market price f the securities accepted by the Fund in exchange fr Shares f the Fund and an estimated cash cmpnent will be disseminated every 15 secnds thrughut the trading day thrugh the facilities f the Cnslidated Tape Assciatin. This apprximate value shuld nt be viewed as a real-time update f the NAV per Share f the Fund because the apprximate value may nt be calculated in the same manner as the NAV, which is cmputed nce a day, generally at the end f the business day. The Fund is nt invlved in, r respnsible fr, the calculatin r disseminatin f the apprximate value f the Shares, and the Fund des nt make any warranty as t the accuracy f these values. Bk Entry Shares are held in bk entry frm, which means that n stck certificates are issued. The Depsitry Trust Cmpany ( DTC ) r its nminee is the recrd wner f all utstanding Shares f the Fund and is recgnized as the wner f all Shares fr all purpses. Investrs wning Shares are beneficial wners as shwn n the recrds f DTC r its participants. DTC serves as the securities depsitry fr all Shares. Participants in DTC include securities brkers and dealers, banks, trust cmpanies, clearing crpratins and ther institutins that directly r indirectly maintain a custdial relatinship with DTC. As a beneficial wner f Shares, yu are nt entitled t receive physical delivery f stck certificates r t have Shares registered in yur name, and yu are nt cnsidered a registered wner f Shares. Therefre, t exercise any right as an wner f Shares, yu must rely upn the prcedures f DTC and its participants. These prcedures are the same as thse that apply t any ther securities that yu hld in bk entry r street name frm. FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES The Fund s Shares can nly be purchased and redeemed directly frm the Fund in Creatin Units by APs, and the vast majrity f trading in the Fund s Shares ccurs n the secndary market. Because the secndary market trades d nt directly invlve the Fund, it is unlikely thse trades wuld cause the harmful effects f market timing, including dilutin, disruptin f prtfli management, increases in the Fund s trading csts and the realizatin f capital gains. With regard t the purchase r redemptin f Creatin Units directly with the Fund, t the extent effected in-kind (i.e., fr securities), thse trades d nt cause the harmful effects that may result frm frequent cash trades. T the extent trades are effected in whle r in part in cash, thse trades culd result in dilutin t the Fund and increased transactin csts, which culd negatively impact the Fund s ability t achieve its investment bjective. Hwever, direct trading by APs is critical t ensuring that the Fund s Shares trade at r clse t NAV. The Fund als emplys fair valuatin pricing t minimize ptential dilutin frm market timing. In additin, the Fund impses transactin fees n purchases and redemptins f Fund Shares t cver the custdial and ther csts incurred by the Fund in effecting trades. These fees increase if an investr substitutes cash in part r in whle fr securities, reflecting the fact that a Fund s trading csts increase in thse circumstances. Given this structure, the Trust has determined that it is nt necessary t adpt plicies and prcedures t detect and deter market timing f the Fund s Shares. 10

15 DISTRIBUTION AND SERVICE PLAN The Fund has adpted a distributin and service plan ( Plan ) pursuant t Rule 12b-1 under the 1940 Act. Under the Plan, the Fund is authrized t pay distributin fees t the distributr and ther firms that prvide distributin and sharehlder services ( Service Prviders ). If a Service Prvider prvides these services, the Fund may pay fees at an annual rate nt t exceed 0.25% f average daily net assets, pursuant t Rule 12b-1 under the 1940 Act. N distributin r service fees are currently paid by the Fund, and there are n current plans t impse these fees. In the event Rule 12b-1 fees were charged, ver time they wuld increase the cst f an investment in the Fund. DIVIDENDS, OTHER DISTRIBUTIONS AND TAXES Unlike interests in cnventinal mutual funds, which typically are bught and sld frm and t the fund nly at clsing NAVs, each Fund s Shares are traded thrughut the day in the secndary market n a natinal securities exchange n an intra-day basis and are created and redeemed in-kind and/r fr cash in Creatin Units at each day s next calculated NAV. In-kind arrangements are designed t prtect nging sharehlders frm the adverse effects n a Fund s prtfli that culd arise frm frequent cash redemptin transactins. In a cnventinal mutual fund, redemptins can have an adverse tax impact n taxable sharehlders if the mutual fund needs t sell prtfli securities t btain cash t meet net fund redemptins. These sales may generate taxable gains fr the nging sharehlders f the mutual fund, whereas the Shares in-kind redemptin mechanism generally will nt lead t a tax event fr the Fund r its nging sharehlders. Ordinarily, dividends frm net investment incme, if any, are declared and paid quarterly by the Fund. The Fund distribute their net realized capital gains, if any, t sharehlders annually. Distributins in cash may be reinvested autmatically in additinal whle Shares nly if the brker thrugh whm yu purchased Shares makes such ptin available. Taxes As with any investment, yu shuld cnsider hw yur investment in Shares will be taxed. The tax infrmatin in this prspectus is prvided as general infrmatin. Yu shuld cnsult yur wn tax prfessinal abut the tax cnsequences f an investment in Shares. Unless yur investment in Shares is made thrugh a tax-exempt entity r tax-deferred retirement accunt, such as an individual retirement accunt, yu need t be aware f the pssible tax cnsequences when: Taxes n Distributins The Fund makes distributins, Yu sell yur Shares listed n the Exchange, and Yu purchase r redeem Creatin Units. As stated abve, dividends frm net investment incme, if any, rdinarily are declared and paid quarterly by the Fund. The Fund may als pay a special distributin at the end f a calendar year t cmply with federal tax requirements. Distributins frm each Fund s net investment incme, including net shrt-term capital gains, if any, are taxable t yu as rdinary incme, except that each Fund s dividends attributable t its qualified dividend incme (i.e., dividends received n stck f mst dmestic and certain freign crpratins with respect t which the Fund satisfies certain hlding perid and ther restrictins), if any, generally are subject t federal incme tax fr nn-crprate sharehlders wh satisfy thse restrictins with respect t their Fund shares at the rate fr net capital gain -- a maximum f 15% fr taxable years beginning befre A part f each Fund s dividends als may be eligible fr the dividends-received deductin allwed t crpratins -- the eligible prtin may nt exceed the aggregate dividends each Fund receives frm dmestic crpratins subject t federal incme tax (excluding REITs) and excludes dividends frm freign crpratins -- subject t similar restrictins. Hwever, dividends a crprate sharehlder deducts pursuant t that deductin are subject indirectly t the federal alternative minimum tax. In general, yur distributins are subject t federal incme tax when they are paid, whether yu take them in cash r reinvest them in the Fund (if that ptin is available). Distributins reinvested in additinal Shares f a Fund thrugh the means f a dividend reinvestment service, if available, will be taxable t sharehlders acquiring the additinal Shares t the same extent as if such distributins had been received in cash. Distributins f net lng-term capital gains, if any, in excess f net shrtterm capital lsses are taxable as lng-term capital gains, regardless f hw lng yu have held the Shares. 11