What is an ETF?	Back to top
An ETF is an Exchange Traded Fund, which means that unlike most mutual funds that are priced and exchangeable only at the end of each day the NYSE Arca Tech 100 ETF can be bought or sold throughout the day. The price you can obtain for buying or selling your shares will fluctuate during the day largely reflecting the changing prices of the index constituents and will also take into account any brokerage charges for placing the trade. ETFs are securities approved for listing on a national stock exchange after significant review by the Securities and Exchange Commission (SEC). ETFs have been available since 1993 as an efficient mechanism for packaging an investment designed to match performance of an Index.
What is Indexed Investing?	Back to top
Indexed investments seek to track the returns of a specific stock or bond benchmark, or index. An indexed investment replicates as closely as possible the investment results of the target index by holding all or in cases of very large indexes, a representative sample of the securities in the index. This strategy differs from the traditional active money management style where the manager holds a smaller selection of securities the advisor believes will outperform its index. Indexing takes a passive approach, focusing instead on broad representation within a sector and low trading activity. While investors have to pay to invest in indexed investments, there are a variety of characteristics that make index funds very appealing to investors.
What is the Creation and Redemption process for an ETF?	Back to top
The number of shares outstanding in an ETF is not fixed, hence they are often called, “open ended” exchange traded funds. Since an ETF will continuously offer new shares for sale to the market place, there is a process in place to create those ETF shares. To do this without disrupting the balance between supply and demand in the market place, the creation and redemption process is a transfer of shares, “in-kind.” The new ETF shares are typically created in large blocks, called creation units. The in-kind creation process occurs at the end of the day at the fund’s Net Asset Value (NAV). For example, an Authorized Participant will deliver to the fund administrator the specified basket of securities that represent the fund’s portfolio.
How can I buy or sell the fund shares?	Back to top
If you wish to buy or sell shares, this is not done directly through the fund. ETFs trade like stocks, so the transaction will occur on an exchange using a broker. The same order types used for stocks are applicable when conducting ETF transactions, such as market orders, limit orders, stop orders, etc.
Where is the NYSE Arca Tech 100 ETF listed?	Back to top
The NYSE Arca Tech 100 ETF is listed on NYSE Arca; the symbol is NXT.
Can the NYSE Arca Tech 100 ETF be sold short?	Back to top
The NYSE Arca Tech 100 ETF can be sold short and is also exempt from the plus or zero plus tick rules. Please contact your broker for more information about short selling, including a description of the risks associated with such activity.
What are the potential tax advantages of ETFs?	Back to top
An ETF does not need to sell securities from the portfolio of the fund to generate cash for shareholder redemptions. For more detailed information on the tax benefits of the NYSE Arca Tech 100 ETF see, Expected Tax Efficiency
How were the constituents of the NYSE Arca Tech 100 Index selected?	Back to top
The constituents were selected to reflect 100 industry leaders that produce or deploy innovative technologies to conduct its businesses. Unlike other technology indexes, the NYSE Arca Tech 100 Index selects companies that have a proven track record attaining profitable results over the last year prior to joining the index.
What are the management fees and how do they compare to mutual funds?	Back to top
The management fees for the NYSE Arca Tech 100 ETF is an annualized expense ratio of 50 basis points which can be significantly less than traditional mutual funds.
Is there a sales load?	Back to top
ETFs are not subject to sales loads but you may be charged transactional fees by your broker for executions. Those rates will vary based on firm.
Why invest in an ETF?	Back to top
ETFs that are modeled after indexes provide investors the benefits of diversification and sector tracking at a minimum cost.
What are the risks of investing in the fund?	Back to top
All investments involve various levels of risk. Similar to stock investment returns, ETF returns will fluctuate and are subject to market volatility. Such as global events, the economic environment, credit risk, interest rate risk, investor outlook or other industry specific factors. Please read the prospectus to become better acquainted with the fund before investing.
How does the performance of the ETF compare to the Index?	Back to top
The performance of the ETF and the Index may vary somewhat due to factors such as transaction costs, sample selection and timing differences associated with implementing changes to the ETF as a result of the addition or deletion of a security from the Index. The divergence between the Index returns and the ETF returns based on NAV can be seen in the tracking error.
How does the fund pay out dividends and how often?	Back to top
The ETF normally declares and pays dividends, if any, annually. Capital gains distributions, if any, for the ETF will normally be declared annually and paid within 60 days after the end of the fiscal year. If you purchased your shares in the secondary market, your broker is responsible for distributing the income and capital gain distributions to you.
Where can I get the prospectus?	Back to top
A copy of the prospectus can be found in the right had navigation of the NYSE Arca Tech 100 ETF web site.

NXT shares are subject to risk. As an index fund, the fund is subject to risk that it will not correlate perfectly to its underlying index and, therefore, its performance will deviate from the performance of the underlying index. Additionally, investments in narrowly focused investment strategies typically exhibit higher levels of volatility. Certain sectors of the market may perform exceptionally well at certain times, based upon current market conditions. Shares of the fund can benefit from that performance. Achieving such exceptional returns involves risk of volatility and investors should not accept that such returns will be repeated.