REVS | Columbia Research Enhanced Value ETF

REVS ISSUER

The REVS, part of the Columbia Funds Complex, operates as an exchange-traded fund (ETF) aiming to replicate the performance of the Index. Managed by Columbia Management Investment Advisers, LLC, and calculated by FTSE Russell, the Index follows a strategic beta approach in investing in companies within the Russell 1000® Value Index. This strategy incorporates a rules-based methodology considering quality, value, and company catalyst factors, resulting in approximately 250-290 holdings, reconstituted and rebalanced semi-annually. The Fund utilizes a replication strategy, investing in the Index's component securities proportionally. However, under certain circumstances, it may opt for a sample of securities or employ other investment techniques to approximate Index performance. The Fund maintains flexibility to sell or purchase securities, irrespective of their representation in the Index. Notably, the Investment Manager doesn't engage in day-to-day management based on its views, market forecasts, or defensive positions. While there are no restrictions on sector exposures, as of October 31, 2023, the Index, and consequently, the Fund, displayed concentration in the financial services sector. Furthermore, the Fund may allocate up to 20% of assets to non-Index securities or instruments, including other ETFs.

REVS DIVIDEND

The REVS, an exchange-traded fund within the Columbia Funds Complex, may provide dividends to its investors as a result of its investment strategy. The Fund seeks to replicate the performance of the Index, which is comprised of companies from the Russell 1000® Value Index. As the Index typically includes common stocks of U.S. large- and mid-cap value companies, any dividends earned by these underlying securities may contribute to the overall dividend yield of the REVS Fund. The specific dividend distribution and frequency would be subject to the dividend policies of the individual companies within the Index, and investors in the REVS Fund may receive dividend income based on the performance of these underlying securities. It's important for investors to review the Fund's dividend history, policies, and the characteristics of the underlying Index for a comprehensive understanding of the potential income generated by their investment in REVS.

REVS TRACKING

The REVS, part of the Columbia Funds Complex, employs a tracking strategy to mirror the performance of its underlying Index, which follows a rules-based methodology in investing in U.S. large- and mid-cap value companies within the Russell 1000® Value Index. The Fund's tracking approach involves a replication strategy, wherein it invests in or gains exposure to a substantial portion of the component securities of the Index, aiming to maintain similar proportions as the Index itself. However, in certain circumstances, such as practical constraints in purchasing all securities or adhering to the same weightings, the Fund may opt for a sample of securities to approximate the overall Index performance. Additionally, the Fund may use various investment techniques, including overweighting or underweighting certain holdings, purchasing instruments not in the Index, or employing other available strategies to achieve a correlation with the Index. This tracking methodology allows investors in REVS to potentially benefit from the overall performance of the underlying Index, providing a tool for those seeking to align their investment returns with the movements of U.S. large- and mid-cap value companies.

REVS CORRELATION

The REVS, a member of the Columbia Funds Complex, is designed to exhibit a strong correlation with its underlying Index, which follows a rules-based methodology in selecting U.S. large- and mid-cap value companies within the Russell 1000® Value Index. The Fund employs a replication strategy to track the performance of the Index, investing in or gaining exposure to a significant portion of its component securities. The correlation between REVS and the Index is a key feature, reflecting the Fund's objective to closely mimic the market movements of the selected companies. This alignment allows investors to potentially benefit from the overall performance trends of U.S. large- and mid-cap value stocks as represented by the Index. By maintaining a robust correlation, the REVS Fund aims to provide investors with a tool for achieving returns that closely mirror the broader movements within the specified market segment.

REVS SECTOR

The REVS, part of the Columbia Funds Complex, does not set explicit limits on sector or industry exposures within its investment strategy. The Fund seeks to replicate the performance of its underlying Index, which follows a rules-based approach to investing in U.S. large- and mid-cap value companies within the Russell 1000® Value Index. As of October 31, 2023, the Index (and consequently, the REVS Fund) was concentrated in the financial services sector. This concentration underscores the flexibility of the Fund's approach, allowing it to align with prevailing market conditions and dynamics. While there are no predetermined restrictions on sector allocations, investors should be aware that the REVS Fund's sector exposure may vary over time based on the composition of the underlying Index and market developments. The absence of sector limits offers the Fund adaptability in responding to changing market trends while seeking to achieve its investment objective of replicating the performance of the designated Index.

REVS EXPOSURE

The REVS, a component of the Columbia Funds Complex, strategically structures its portfolio to gain exposure to the performance of the underlying Index, which employs a rules-based methodology to select U.S. large- and mid-cap value companies within the Russell 1000® Value Index. The Fund utilizes a replication strategy, investing in or obtaining exposure to a substantial portion of the component securities of the Index in proportions intended to mirror the Index's overall performance. The exposure sought by the REVS Fund allows investors to potentially benefit from the market movements of the selected companies, offering a means to align their investment returns with the broader trends within the U.S. large- and mid-cap value segment. This exposure strategy also incorporates flexibility, as the Fund may, under certain circumstances, use a sample of securities or employ various techniques to approximate the performance of the Index. The REVS Fund's exposure approach is fundamental to achieving its objective of closely correlating with the designated Index.