Why UFO was built without an SPV

By ProcureAM Research

There is a version of investing that looks less like a brokerage account and more like bottle service. For years, owning a slice of certain private companies meant playing by nightclub rules, all through a structure called a special purpose vehicle, or SPV.

The velvet rope

An SPV is a private pool built to hold shares of a single private company. The mechanics tend to read like a night out:

What you see is what you own.

An ETF wrapper does its best work when the things inside it trade. Read the full breakdown of why UFO was built this way.

*NAV (Net Asset Value): the per-share value of a fund’s assets minus its liabilities, calculated once at the end of each trading day. An ETF’s market price may trade above or below its NAV.

Important Information

For a complete list of holdings in UFO, visit procureetfs.com/ufo. Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.

Please consider the Fund’s investment objectives, risks, and charges and expenses carefully before you invest. This and other important information is contained in the Fund’s summary prospectus and prospectus, which can be obtained by visiting procureetfs.com. Read carefully before you invest.

Investing involves risk. Principal loss is possible. The Fund is also subject to the following risks: Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns.

Aerospace and defense companies can be significantly affected by government aerospace and defense regulation and spending policies. The exploration of space by private industry and the harvesting of space assets is a business based in future and is witnessing new entrants into the market. Investments in the Fund will be riskier than traditional investments in established industry sectors. The Fund is considered to be concentrated in securities of companies that operate or utilize satellites which are subject to manufacturing delays, launch delays or failures, and operational and environmental risks that could limit their ability to utilize the satellites needed to deliver services to customers. Investing in foreign securities are volatile, harder to price, and less liquid than U.S. securities. Securities of small- and mid-capitalization companies may experience much more price volatility, greater spreads between their bid and ask prices and significantly lower trading volumes than securities issued by large, more established companies. The Fund is not actively managed so it would not take defensive positions in declining markets unless such positions are reflected in the underlying index. Please refer to the summary prospectus for a more detailed explanation of the Fund’s principal risks. It is not possible to invest in an index.

UFO is distributed by Quasar Distributors LLC.