The performance of the Underlying Index and the Fund may deviate from that of the sector the Underlying Index seeks to track due to changes that are reflected in the sector more quickly than the quarterly rebalancing process
can track.
Although the Fund attempts to track the performance of its Underlying Index, the Fund may not be able to duplicate its exact composition or return for any number of reasons.
The Fund invests in the securities of non-U.S. issuers, which securities involve risks beyond those associated with investments in U.S. securities.
Risks of Investing in the Global Oil Sector
General.
Exploration for, and production
of, oil is an uncertain process with many risks. The risks and hazards that are inherent in the oil industry may cause the price
of oil to widely fluctuate, which may have a negative effect on Oil Companies.
Regulation Risk.
Strict or limited
government regulation may impact the price of oil and the performance of Oil Companies.
Environmental Regulation Risk.
Environmental
and other governmental laws and regulations have increased the costs to plan, design, drill, install, operate and abandon oil
wells.
Operating Risks.
The oil industry experiences
numerous operating risks which may impact the performance of Oil Companies.
Seasonality Risk.
The price of oil
may fluctuate on a seasonal basis.
Relationship to Commodities
The Underlying Index measures the performance of securities of Oil Companies and not oil. The securities of Oil Companies may under- or over-perform oil over the short-term or the long-term.
Equity Risk
The value of the securities held by the Fund may fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate or factors relating to
specific companies in which the Fund invests.
Small Capitalization Companies Risk
The Fund invests in the securities of small capitalization companies, the value of which may be more volatile than those of larger companies.
Foreign Securities Valuation Risk
To the extent the Fund calculates its NAV based on fair value prices and the value of the Underlying Index is based on the securities’ closing price on foreign markets (i.e., the value of the Underlying Index is not
based on fair value prices), the valuation of the Fund’s NAV may deviate from the calculation of the Underlying Index.
Currency Risk
The value of foreign securities will be denominated in foreign currencies and converted into U.S. dollars for the calculation of the Underlying Index and the Fund’s NAV. To the extent the exchange rates used to calculate
the Fund’s
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