BAD | B.A.D. ETF

BAD ISSUER

The BAD issuer, managed by Thematic Investments, LLC, and administered by EQM Indexes LLC, follows a passive management strategy to mirror the performance of the EQM BAD Index, owned by The BAD Investment Company. This index employs a rules-based approach, aiming to expose investors to companies primarily involved in betting or gambling, alcohol, Canadian cannabis, and pharmaceuticals. Companies meeting specific criteria are included, such as a minimum market capitalization and revenue thresholds. The Index is rebalanced quarterly, with each business category equally weighted. Despite the potential concentration risks, the Fund, using a replication strategy, invests in all index components, though it may use representative sampling under certain circumstances. Additionally, the Fund may invest in securities outside the index to better align with index changes and corporate actions. As of December 2022, the Index was concentrated in the Casinos & Gaming and Pharmaceuticals, Biotechnology & Life Sciences industries, reflecting the Fund's non-diversified classification under the Investment Company Act of 1940.

BAD DIVIDEND

BAD Dividend, managed by Thematic Investments, LLC, and overseen by EQM Indexes LLC, employs a passive investment approach to emulate the performance of the BAD Dividend Index, owned by The BAD Investment Company. This index focuses on companies that exhibit strong dividend-paying characteristics within the context of industries such as betting or gambling, alcohol, Canadian cannabis, and pharmaceuticals. The index selection process involves screening for companies with robust dividend histories and financial stability, ensuring a minimum market capitalization and revenue thresholds are met. Rebalancing occurs quarterly, with each sector equally weighted to mitigate potential sectoral biases. Despite the potential concentration risks inherent in this strategy, the Fund, utilizing a replication approach, seeks to invest in all index components to capture dividend performance accurately. However, the Fund reserves the option to employ representative sampling in specific scenarios. Furthermore, the Fund may augment its portfolio with securities beyond the index to reflect corporate actions and index changes. As of its last available information, the Fund's concentration in particular industries aligns with its classification as a non-diversified investment company under the Investment Company Act of 1940.

BAD TRACKING

BAD Tracking, managed by Thematic Investments, LLC, and administered by EQM Indexes LLC, adopts a passive investment strategy to replicate the performance of the BAD Tracking Index, owned by The BAD Investment Company. This index aims to track the movements of companies engaged in betting or gambling, alcohol, Canadian cannabis, and pharmaceuticals. The index construction process involves screening companies based on specific criteria, including market capitalization and revenue thresholds, with rebalancing occurring quarterly. Each sector within the index is equally weighted to prevent overexposure to any particular industry. Despite potential concentration risks, the Fund seeks to invest in all index components through a replication strategy, ensuring accurate tracking of index performance. However, the Fund retains the flexibility to employ representative sampling in situations where replication poses practical challenges or substantial costs. Additionally, the Fund may include securities beyond the index to reflect corporate actions and index changes. As of the latest information available, the Fund's concentration in specific industries mirrors its classification as a non-diversified investment company under the Investment Company Act of 1940.

BAD CORRELATION

BAD Correlation, managed by Thematic Investments, LLC, and overseen by EQM Indexes LLC, implements a passive investment methodology to mirror the performance of the BAD Correlation Index, owned by The BAD Investment Company. This index is designed to track the correlation between companies operating in sectors such as betting or gambling, alcohol, Canadian cannabis, and pharmaceuticals. The index construction process involves identifying companies meeting specific criteria, including market capitalization and revenue thresholds, with rebalancing conducted quarterly. Each sector within the index is equally weighted to mitigate sectoral biases. Despite potential concentration risks, the Fund aims to invest in all index components through a replication strategy, ensuring accurate correlation tracking. Nevertheless, the Fund may utilize representative sampling in certain scenarios where replication is impractical or costly. Additionally, the Fund may include securities beyond the index to reflect corporate actions and index changes. As of the latest available information, the Fund's industry concentration aligns with its classification as a non-diversified investment company under the Investment Company Act of 1940.

BAD SECTOR

BAD Sector, managed by Thematic Investments, LLC, and administered by EQM Indexes LLC, adopts a passive investment strategy to emulate the performance of the BAD Sector Index, owned by The BAD Investment Company. This index focuses on tracking the performance of companies operating within sectors such as betting or gambling, alcohol, Canadian cannabis, and pharmaceuticals. The index construction process involves screening companies based on specific criteria, including market capitalization and revenue thresholds, with rebalancing occurring quarterly. Each sector within the index is equally weighted to mitigate potential sectoral biases. Despite the inherent concentration risks, the Fund seeks to invest in all index components through a replication strategy, ensuring accurate tracking of sector performance. However, the Fund retains the flexibility to use representative sampling in certain scenarios where replication is challenging or costly. Additionally, the Fund may include securities beyond the index to reflect corporate actions and index changes. As of the latest available information, the Fund's industry concentration is consistent with its classification as a non-diversified investment company under the Investment Company Act of 1940.

BAD EXPOSURE

BAD Exposure, managed by Thematic Investments, LLC, and administered by EQM Indexes LLC, employs a passive investment approach to replicate the performance of the BAD Exposure Index, owned by The BAD Investment Company. This index is crafted to provide exposure to companies operating within sectors such as betting or gambling, alcohol, Canadian cannabis, and pharmaceuticals. The index construction process involves meticulously screening companies based on specific criteria, including market capitalization and revenue thresholds, with rebalancing taking place quarterly. Each sector within the index is equally weighted to mitigate potential sectoral biases. Despite the concentration risks inherent in such a strategy, the Fund aims to invest in all index components through a replication approach, ensuring accurate exposure tracking. However, the Fund may utilize representative sampling in certain situations where replication proves challenging or costly. Additionally, the Fund may include securities beyond the index to reflect corporate actions and index changes. As of the latest available information, the Fund's industry concentration is consistent with its classification as a non-diversified investment company under the Investment Company Act of 1940.