The ETFs the Portfolio invests in will generally hold, and may continue to buy, the same securities even though a security's outlook, rating, market value or yield may have changed. As with all investments, you may lose some or all of your investment in the Portfolio.
The Portfolio invests in shares of ETFs, which are subject to various risks including management's ability to meet the fund's investment objective. Shares of ETFs may trade at a discount from their net asset value in the secondary market and their net asset value may decrease. By investing in ETFs, the Portfolio incurs greater expenses than you would incur if you invested directly in the ETFs. The Portfolio is subject to an ETF's index correlation risk.
Certain ETFs held by the Portfolio may invest in foreign securities. These securities presents additional risk, including increased volatility compared to U.S. securities due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards.
Foreign security risk may be more pronounced in emerging markets due to trading limitations, liquidity concerns, delays and disruptions in settlement transactions, political uncertainties and dependence on international trade and development assistance.
The ETFs the Portfolio invests in may include securities issued by small- and mid-cap companies. These securities customarily involve more investment risk than securities of large-cap companies. Small- and mid-cap companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
Read the Portfolio's prospectus carefully before investing. It contains the Portfolio's investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing.