Terms

  1. 60/40 Portfolio:  is a traditional investment strategy that allocates approximately 60% of its assets to stocks (equities) and 40% to bonds (fixed-income securities). The stock portion is intended to provide long-term growth potential, while the bond portion is intended to generate income and help reduce overall portfolio volatility.
  2. Options:  are financial contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset, such as a stock or an index, at a specified price on or before a specified date. Funds may use options to gain or reduce market exposure, manage risk, or pursue their investment objective.  Depending on how they are used, options can result in the loss of some or all of the investment, and certain options strategies can expose investors to substantial losses.
  3. Cboe BZX Exchange: is a U.S. national securities exchange on which shares of the Fund are listed and traded. Investors generally buy and sell Fund shares through a brokerage account at market prices during the exchange’s regular trading hours, rather than directly from the Fund.
  4. Nasdaq-100 Index®: is a market-capitalization-weighted index that measures the performance of 100 of the largest non-financial companies listed on the Nasdaq Stock Market. The index includes companies from a variety of industries, including technology, consumer services, healthcare, and communications, but does not include financial companies.
  5. Modern Portfolio Theory (MPT) is an investment framework that seeks to balance risk and expected return by combining different types of investments within a portfolio. The theory suggests that holding a diversified mix of assets with different risk and return characteristics may help reduce overall portfolio risk compared with investing in a single asset or asset class.
  6. NDX is the ticker symbol for the Nasdaq-100 Index®, a market-capitalization-weighted index that measures the performance of 100 of the largest non-financial companies listed on the Nasdaq Stock Market. The index serves as a widely recognized benchmark for large-cap growth stocks and cannot be invested in directly.
  7. S&P 500® Index is a market-capitalization-weighted index that measures the performance of approximately 500 leading publicly traded U.S. companies across a broad range of industries. The index is widely regarded as a benchmark for the overall U.S. large-cap equity market and cannot be invested in directly.
  8. SPXTR2 is a ticker symbol used by certain market data providers to identify the S&P 500® Total Return Index, which measures the performance of the S&P 500 Index assuming that cash dividends paid by the index’s constituent companies are reinvested. Unlike the standard S&P 500 Index, which reflects only changes in stock prices, the total return index includes both price appreciation and the effect of reinvested dividends. The index cannot be invested in directly.
  9. Diversification: An investment approach that seeks to reduce risk by spreading investments across different asset classes, industries, securities, or investment strategies. Diversification may help reduce the impact of losses from any single investment but does not ensure a profit or protect against loss.