Arrow Reverse Cap 500 ETF
|Arrow Reverse Cap 500 ETF is not available for purchase. A registration statement, which is not complete and may change, has been filed with the Securities and Exchange Commission. Shares of the Fund may not be sold until the registration statement becomes effective.
The Arrow Reverse Cap 500 ETF ("The Fund") seeks to track the performance, before fees and expenses, of the Reverse Cap Weighted U.S. Large Cap Index ("The Index").
The Fund uses a “passive management” (or indexing) approach to track the performance, before fees and expenses, of the Index.
Reverse Cap Weighted U.S. Large Cap Index
The Index is a rules-based, reverse capitalization weighted index comprised of constituents of the S&P 500® Index, which consists of approximately 500 leading U.S.-listed companies representing approximately 80% of the U.S. equity market capitalization. The Index seeks to provide exposure to the U.S. large-cap market but with greater emphasis on the smaller-end of the large-cap market, unlike many traditional market capitalization weighted indexes that place a greater emphasis on the largest companies in the large-cap market. The Index includes common stocks and equity interests in real estate investment trusts (“REITs”).
At the time of each Index rebalance, the Index components are weighted by the inverse of their free-float market capitalization divided by the total of the inverse free-float market capitalizations of all of the Index components such that the smallest company in the Index will have the largest weight and the largest company in the Index will have the smallest weight.
The Index is generally rebalanced on each date that the S&P 500 Index is rebalanced (typically as of the close of trading on the third Friday in each March, June, September, and December (or the following business day if such third Friday is not a business day) based on data as of the second Friday of such rebalance month). In the event that the S&P 500 Index postpones or changes its rebalance schedule, so too will the Index.
The Fund is not currently available for purchase. A registration statement, which is not complete and may change, has been filed with the Securities and Exchange Commission. Shares of the Fund may not be sold until the registration statement becomes effective. Please see below for a link to the Red Herring Prospectus.
It is proposed that Reverse Cap Weighted U.S. Large Cap ETF (the “Predecessor Fund”), a series of ETF Series Solutions will be Reorganized into the Fund, and the Fund will become a continuation of the Predecessor Fund. Shareholders of the Predecessor Fund have not yet approved the Reorganization, and the Reorganization must be approved by shareholders of the Predecessor Fund before the Reorganization may occur. In addition to shareholder approval, the completion of the Reorganization is dependent upon the parties fulfilling their duties under an Agreement and Plan of Reorganization.
As with all funds, there is the risk that you could lose money through your investment in the Fund. Many factors affect the Fund’s net asset value, price of shares, and performance. As with any fund, there is no guarantee that the Fund will achieve its objective.
The information in the Prospectus is not complete and
may be changed. We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is effective. This
Prospectus is not an offer to sell these securities and is not soliciting an
offer to buy these securities in any state where the offer or sale is not
permitted.Content reviewed by an affiliate, Archer Distributors, LLC.