Before
you invest, you may want to review the Fund’s complete prospectus, which contains more information about the Fund and its
risks. You can find the Fund’s prospectus and other information about the Fund at http://strategysharesetfs.com/literature-forms/.
You can also get this information at no cost by calling 1-800-594-7930, emailing info@strategysharesetfs.com or by asking any financial
intermediary that offers shares of the Fund. The Fund’s prospectus and statement of additional information, both dated January
10, 2020, are incorporated by reference into this summary prospectus and may be obtained, free of charge, at the website or phone
number noted above.
Principal Investment Strategy
The Fund’s investment advisor,
Day Hagan Asset Management (the “Advisor”), actively manages the Fund’s portfolio using proprietary investment
models co-developed with Ned Davis Research (“NDR”). The Fund is considered a “fund of funds” that, under
normal market conditions, seeks to achieve its investment objective by principally investing in unaffiliated equity exchange traded
funds (“ETFs”) that track the performance of the individual sectors (“Sectors”) of the S&P 500 Index
(“Index”). The Fund will attempt to enhance returns relative to
the Index by overweighting and underweighting
its exposure to the Sectors relative to the Index and may reduce its overall exposure to ETFs as determined by its risk management
model.
The Fund utilizes the NDR U.S. Sector
Model to determine its allocation to each Sector. The model combines sector-specific price-based, economic, fundamental and behavioral
indicators to form a composite for each Sector. By combining multiple and diverse indicators, which historically have been shown
to add value in Sector allocation decisions, the model seeks to objectively assess the weight of the evidence and generate sector
allocation recommendations. As of September 30, 2019, the Sectors are real estate, utilities, consumer staples, information technology,
health care, financials, energy, consumer discretionary, materials, industrials, and communications services. The Fund’s
allocation to a particular Sector may be greater than 25%. Conversely, the Fund’s allocation to a particular Sector may be
reduced to 0% if the Sector’s model composite is at low levels.
The Fund’s risk management model,
the NDR U.S. Stock Market Model Composite, defines the Fund’s overall equity allocation target. The model reading represents
the net percentage of indicators that are bullish. By taking the weight of the evidence of technical, monetary, economic, valuation,
and sentiment indicators, the model measures the potential risk level of factors the stock market faces.
Under normal market conditions, the
Fund intends to invest predominantly in ETFs but will reduce its exposure by as much as 50% of its assets during times that the
model deems the market to have a low reward-to-risk ratio from a historical perspective. During these times, the Fund may hold
up to 50% of its assets in cash and cash equivalents, including U.S. Treasury securities and money market funds, or utilize derivative
securities designed to effectively reduce, or hedge, the Fund’s overall equity exposure. The derivative securities that the
Fund may use include purchasing index put options and selling index futures contracts. Derivative securities will be used only
to reduce the overall equity exposure of the Fund and are not intended to achieve a net short position. The decision to purchase
or sell derivative securities will be based on the cost and market liquidity of the derivative being used to reduce exposure. The
Fund will increase its equity investments when the model returns to levels indicating that major risks have potentially subsided.
The Fund’s portfolio is rebalanced
monthly, although the Advisor may engage in intra-month trades if the models show substantial changes.
The Fund is classified as “non-diversified”
for purposes of the Investment Company Act of 1940 (the “1940 Act”), which means a relatively high percentage of the
Fund’s assets may be invested in the securities of a limited number of issuers.
The Fund actively trades its portfolio securities
in an attempt to achieve its investment objective.
Principal Investment Risks
As with any ETF, there is no guarantee that
the Fund will achieve its objective. Investment markets are unpredictable and there will be certain market conditions where the
Fund will not meet its investment objective and will lose money. The Fund’s net asset value, market price and returns will
vary and you could lose money on your investment in the Fund and those losses could be significant. An investment in the Fund is
not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
The following summarizes the principal risks
of investing in the Fund. These risks could adversely affect the net asset value, market price, total return and the value of the
Fund and your investment. These risks affect the Fund directly as well as through the ETFs in which it invests.
Active Trading Risk. The Fund may trade
securities actively, which could increase its transaction costs (thereby lowering its performance) and could increase the amount
of taxes you owe by generating short-term gains, which may be taxed at a higher rate. Under certain market conditions, the Fund’s
turnover may be very high and considerably higher than that of other funds.
Authorized Participant Risk. The Fund
has a limited number of financial institutions that may act as Authorized Participants. An “Authorized Participant”
is a participant in the Continuous Net Settlement System of the National Securities Clearing Corporation or the Depository Trust
Company (“DTC”) and that has executed a Participant Agreement with the Fund’s distributor (“Distributor”).
To the extent these Authorized Participants exit the business or are unable to process creation and/or redemption orders and no
other Authorized Participant is able to step forward to process creation and/or redemption orders, in either of these cases, shares
of the Fund may trade like closed-end fund shares at a discount to NAV and possibly face delisting.
Basic Materials Sector Risk. To the
extent that the Fund’s investments are exposed to issuers conducting business in basic materials, the Fund is subject to
the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes,
adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of basic materials
companies also may fluctuate widely in response to such events.
Cash and Cash Equivalents Risk.
At times, the Fund may have significant investments in cash or cash equivalents. When a substantial portion of a portfolio is held
in cash or cash equivalents, there is the risk that the value of the cash account, including interest, will not keep pace with
inflation, thus reducing purchasing power over time. Additionally, in rising markets, holding cash or cash equivalents may adversely
affect the Fund’s performance and the Fund may not achieve its investment objective.
Communications Services Sector Risk.
Companies in the communications services sector may be affected by industry competition, substantial capital requirements,
government regulations and obsolescence of communications products and services due to technological advancement. Companies may
encounter cash flow strains due to the need to commit substantial capital to developing new products and services using new technology.
Technological innovations may make certain current services obsolete.
Consumer Discretionary Sector Risk.
The success of consumer product manufacturers and retailers is tied closely to the performance of domestic and international economies,
interest rates, exchange rates, competition, consumer confidence, changes in demographics and consumer preferences. Companies in
the consumer discretionary sector depend heavily on disposable household income and consumer spending, and may be strongly affected
by social trends and marketing campaigns. These companies may be subject to severe competition, which may have an adverse impact
on their profitability.
Consumer Staples Sector Risk.
The consumer staples sector may be affected by the regulation of various product components and production methods, marketing campaigns
and other factors affecting consumer demand. Tobacco companies, in particular, may be adversely affected by new laws, regulations
and litigation. The consumer staples sector may also be adversely affected by changes or trends in commodity prices, which may
be influenced by unpredictable factors.
Derivatives Risk. The use of
derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in
securities and other traditional investments. These risks include (i) the risk that the counterparty to a derivative transaction
may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in
the value of the derivative may not correlate perfectly with the underlying reference asset. Derivatives can also create leverage
risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative.
As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially
greater than the
amount invested in the derivative or
the anticipated value of the underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss.
Derivative instruments may be less liquid than more traditional investments and the Fund may be unable to sell or close out its
derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the
Fund may be most in need of liquidating its derivative positions. Derivatives may also be less tax efficient and subject to changing
government regulation that could impact the Fund’s ability to use certain derivatives or their cost. When a derivative is
used for hedging, the change in value of the derivative may also not correlate specifically with the risk of the underlying asset
being hedged. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. Such prices
are influenced by numerous factors that affect the markets, including, but not limited to: changing supply and demand relationships;
government programs and policies; national and international political and economic events, changes in interest rates, inflation
and deflation and changes in supply and demand relationships. Derivatives strategies may not always be successful, and their successful
use will depend on the portfolio managers’ ability to accurately forecast movements in the market relating to the underlying
asset.
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Futures Risk. Investments in futures contracts involve leverage, which means a small percentage
of assets invested in futures can have a disproportionately large impact on the Fund. This risk could cause the Fund to lose more
than the principal amount invested. In addition, futures contracts may become mispriced or improperly valued relative to the Advisor’s
expectations and may not produce the desired investment results. Additionally, changes in the value of futures contracts may not
track or correlate perfectly with the underlying reference asset because of temporary, or even long-term, supply and demand imbalances
and because futures do not pay dividends.
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Hedging Risk. Hedging is a strategy in which the Fund uses options or futures to offset
the risks associated with other Fund holdings. There can be no assurance that the Fund’s hedging strategy will reduce risk
or that hedging transactions will be either available or cost effective.
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Options Market Risk. Markets for options
may not always operate on a fair and orderly basis. At times, prices for options may not represent fair market value and prices
may be subject to manipulation, which may be extreme under some circumstances. The dysfunction and manipulation of volatility and
options markets may make it difficult for the Fund to effectively implement its investment strategy and achieve its objectives
and could potentially lead to significant losses.
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Options Risk. There are risks associated with the Fund’s use of options. As the buyer
of a put option, the Fund risks losing the entire premium invested in the option if the underlying reference instrument does not
fall below the strike price, which means the option will expire worthless.
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Additionally, purchased options may decline in value due to changes in the price of the underlying
reference instrument, passage of time and changes in volatility. Generally, options may not be an effective hedge because they
may have imperfect correlation to the value of the Fund's portfolio securities. Further, the underlying reference instrument on
which the option is based may have imperfect correlation to the value of the Fund's portfolio securities. Option premiums are treated
as short-term capital gains and when distributed to shareholders, are usually taxable as ordinary income, which may have a higher
tax rate than long-term capital gains for shareholders holding Fund shares in a taxable account. Options are also subject to leverage
and volatility risk, liquidity risk, and tracking risk.
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Equity Securities Risk. The net asset
value and market price of the Fund will fluctuate based on changes in the value of the equity securities held by the Fund. Equity
prices can fall rapidly in response to developments affecting a specific company or industry, or to changing economic, political
or market conditions.
ETF Structure Risks. The Fund, and the
ETFs the Fund invests in, are structured as ETFs and as a result are subject to special risks, including:
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Not Individually Redeemable. Shares are not individually redeemable and may be redeemed by the Fund at NAV only in
large blocks known as “Creation Units.” You may incur brokerage costs purchasing enough Shares to constitute a Creation
Unit. Fund shares are typically bought and sold in the secondary market and investors typically pay brokerage commissions or other
charges on these transactions.
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Trading Issues. Trading in Shares on the Exchange may be halted due to market conditions or for reasons that, in
the view of the Exchange, make trading in Shares inadvisable, such as extraordinary market volatility. There can be no assurance
that Shares will continue to meet the listing requirements of the Exchange. An active trading market for the Fund’s shares
may not be developed or maintained. If the Fund’s shares are traded outside a collateralized settlement system, the number
of financial institutions that can act as authorized participants that can post collateral on an agency basis is limited, which
may limit the market for the Fund’s shares.
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Market Price Variance Risk. The market prices of Shares will fluctuate in response to changes in NAV and supply and
demand for Shares and will include a “bid-ask spread” charged by the exchange specialists, market makers or other participants
that trade the particular security. There may be times when the market price and the NAV vary significantly. This means that Shares
may trade at a discount to NAV.
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In times of market stress, market makers may step away from their role market making in shares
of ETFs and in executing trades, which can lead to differences between the market value of Fund shares and the Fund’s net
asset value.
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The market price for the Fund’s shares may deviate from the Fund’s net asset value,
particularly during times of market stress, with the result that investors may pay significantly more or significantly less for
Fund shares than the Fund’s net asset value, which is reflected in the bid and ask price for Fund shares or in the closing
price.
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When all or a portion of an ETF’s underlying securities trade in a market that is closed
when the market for the Fund’s shares is open, there may be changes from the last quote of the closed market and the quote
from the Fund’s domestic trading day, which could lead to differences between the market value of the Fund’s shares
and the Fund’s net asset value.
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In stressed market conditions, the market for the Fund’s shares may become less liquid in
response to the deteriorating liquidity of the Fund’s portfolio. This adverse effect on the liquidity of the Fund’s
shares may, in turn, lead to differences between the market value of the Fund’s shares and the Fund’s net asset value.
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Energy Sector Risk. Risks of energy
related securities include the risks that a decrease in the production of natural gas, natural gas liquids, crude oil, coal or
other energy commodities or a decrease in the volume of such commodities available for transportation, mining, processing, storage
or distribution may adversely impact the financial performance of energy related securities. To maintain or grow their revenues,
these companies need to maintain or expand their reserves through exploration of new sources of supply, through the development
of existing sources, through acquisitions, or through long-term contracts to acquire reserves. The financial performance of energy
related securities may be adversely affected if a master limited partnership, or the companies to whom it provides the service,
are unable to cost-effectively acquire additional reserves sufficient to replace the natural decline. Various governmental authorities
have the power to enforce compliance with regulations and the permits issued under them, and violators are subject to administrative,
civil and criminal penalties, including civil fines, injunctions or both. Stricter laws, regulations or enforcement policies could
be enacted in the future which would likely increase compliance costs and may adversely affect the financial performance of energy
related securities. Volatility of commodity prices, which may lead to a reduction in production or supply, may also negatively
impact the performance of energy related securities. energy related securities are also subject to risks that are specific to the
industry they serve. Energy related entities
that provide crude oil, refined product, natural gas liquids and natural gas services are subject to supply and demand fluctuations
in the markets they serve which will be impacted by a wide range of factors, including fluctuating commodity prices, weather, increased
conservation or use of alternative fuel sources, increased governmental or environmental regulation, depletion, rising interest
rates, declines in domestic or foreign production, accidents or catastrophic events, and economic conditions, among others.
Financials Sector Risk.
Performance of companies in the financials sector may be adversely impacted by many factors, including, among others, government
regulations, economic conditions, credit rating downgrades, changes in interest rates, and decreased liquidity in credit markets.
The impact of more stringent capital requirements, recent or future regulation of any individual financial company, or recent or
future regulation of the financials sector as a whole cannot be predicted.
Healthcare Sector Risk. The healthcare
sector may be affected by government regulations and government healthcare programs, increases or decreases in the cost of medical
products and services and product liability claims, among other factors. Many healthcare companies are heavily dependent on patent
protection, and the expiration of a company's patent may adversely affect that company's profitability. Healthcare companies are
subject to competitive forces that may result in price discounting, and may be thinly capitalized and susceptible to product obsolescence.
Industrials Sector Risk.
The value of securities issued by companies in the industrials sector may be adversely affected by supply and demand related to
their specific products or services and industrials sector products in general. The products of manufacturing companies may face
obsolescence due to rapid technological developments and frequent new product introduction. Government regulations, world events,
economic conditions and exchange rates may adversely affect the performance of companies in the industrials sector. Companies in
the industrials sector may be adversely affected by liability for environmental damage and product liability claims. Companies
in the industrials sector, particularly aerospace and defense companies, may also be adversely affected by government spending
policies because companies involved in this sector rely to a significant extent on government demand for their products and services.
Information Technology Sector Risk.
Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect
on profit margins. Information technology companies may have limited product lines, markets, financial resources or personnel.
The products of information technology companies may face obsolescence due to rapid technological developments and frequent new
product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Companies
in the information technology sector are heavily dependent on patent and intellectual property rights. The loss or impairment of
these rights may adversely affect the profitability of these companies.
Investment Style Risk. The type of securities
in which the Fund focuses may underperform other assets or the overall market.
Large Capitalization Company Risk. The
Fund’s investment in larger companies is subject to the risk that larger companies are sometimes unable to attain the high
growth rates of successful, smaller companies, especially during extended periods of economic expansion; and may be unable to respond
quickly to new competitive challenges, such as changes in technology and consumer tastes.
Limited History of Operations Risk.
The Fund has a limited history of operations as an ETF for investors to evaluate. If the Fund is unable to achieve an economic
size, expenses will be higher than expected and the Fund might close, which could produce adverse tax consequences for shareholders.
Management Risk. The Advisor's reliance
on its sector allocation and risk management strategies and related judgments about the value and potential appreciation of securities
in which the Fund invests may prove to be
incorrect. The
Advisor may not successfully implement the Fund’s investment strategies and, as a result, the Fund may not meet its investment
objective and/or underperform other investment vehicles with similar investment objectives and strategies.
Market Risk. The value of securities
in the Fund’s portfolio will fluctuate and, as a result, the Fund’s NAV or market price per share may decline suddenly
or over a sustained period of time. Factors such as domestic and foreign economic growth rates and market conditions, interest
rate levels and political events may adversely affect the securities markets.
Model and Data Risk. Like all quantitative
analysis, the investment models utilized by the Advisor carry the risk that the ranking system, valuation results and predictions
might be based on one or more incorrect assumptions, insufficient historical data, inadequate design, or may not be suitable for
the purpose intended. In addition, models may not perform as intended for many reasons including errors, omissions, imperfections
or malfunctions. Because the use of models are usually constructed based on data supplied by third parties, the success of the
Advisor’s use of such models is dependent on the accuracy and reliability of the supplied data. Historical data inputs may
be subject to revision or corrections, which may diminish data reliability and quality of predictive results. Changing and unforeseen
market dynamics could also lead to a decrease in the short-term or long-term effectiveness of a model. Models may lose their predictive
validity and incorrectly forecast future market behavior and asset prices, leading to potential losses. No assurance can be given
that a model will be successful under all or any market conditions.
Non-Diversification Risk. The
Fund is classified as a “non-diversified” fund under the 1940 Act. Accordingly, the Fund may invest a greater portion
of its assets in the securities of a single issuer than if it were a “diversified” fund. To the extent that the Fund
invests a higher percentage of its assets in the securities of a single issuer, the Fund is subject to a higher degree of risk
associated with and developments affecting that issuer than a fund that invests more widely.
Real Estate Sector Risk. The Fund is
subject to the risks of the real estate market as a whole, such as taxation, regulations and economic and political factors that
negatively impact the real estate market and the direct ownership of real estate. These may include decreases in real estate values,
overbuilding, rising operating costs, interest rates and property taxes. In addition, some real estate related investments are
not fully diversified and are subject to the risks associated with financing a limited number of projects.
Sector Risk. If the Fund focuses its
investments within a particular Sector, it is subject to increased risk. Performance will generally depend on the performance of
the Sector, which may differ in direction and degree from that of the overall U.S. stock markets. In addition, financial, economic,
business and political developments affecting the Sector may have a greater effect on the Fund than they would if the Fund did
not focus on that Sector.
Underlying Fund Risk. The ETFs and money
market funds (“Underlying Funds”) in which the Fund invests are subject to investment advisory and other expenses,
which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing
directly in the Underlying Funds and may be higher than other funds that invest directly in stocks and bonds. Each of the Underlying
Funds is subject to its own specific risks.
U.S. Government Obligations Risk. U.S.
Treasury obligations are backed by the “full faith and credit” of the U.S. government and generally have negligible
credit risk. However, due to fluctuations in interest rates, the market value of such securities may vary during the period shareholders
own shares of the Fund. Securities issued or guaranteed by federal agencies or authorities and U.S. government-sponsored instrumentalities
or enterprises may or may not be backed by the full faith and credit of the U.S. government. The Fund may be subject to such risk
to the extent it invests in securities issued or guaranteed by federal agencies or authorities and U.S. government-sponsored instrumentalities
or enterprises.
Utilities Sector Risk. Deregulation
may subject utility companies to greater competition and may adversely affect their profitability. As deregulation allows utility
companies to diversify outside of their original geographic regions and their traditional lines of business, utility companies
may engage in riskier ventures. In addition, deregulation may eliminate restrictions on the profits of certain utility companies,
but may also subject these companies to greater risk of loss. Companies in the utilities industry may have difficulty obtaining
an adequate return on invested capital, raising capital, or financing large construction projects during periods of inflation or
unsettled capital markets; face restrictions on operations and increased cost and delays attributable to environmental considerations
and regulation; find that existing plants, equipment or products have been rendered obsolete by technological innovations; or be
subject to increased costs because of the scarcity of certain fuels or the effects of man-made or natural disasters. Existing and
future regulations or legislation may make it difficult for utility companies to operate profitably. Government regulators monitor
and control utility revenues and costs, and therefore may limit utility profits. There is no assurance that regulatory authorities
will grant rate increases in the future, or that such increases will be adequate to permit the payment of dividends on stocks issued
by a utility company. Energy conservation and changes in climate policy may also have a significant adverse impact on the revenues
and expenses of utility companies.