These securities customarily contain more funding danger than securities of larger capitalization firms. Small-capitalization and mid-capitalization corporations might have limited product strains, markets or monetary resources and may be extra susceptible to antagonistic basic market or economic developments. Certain ETFs held by the Trust spend cash on bonds which are rated below investment-grade and are thought of to be “junk” securities. Below investment-grade obligations are considered to be speculative and are topic to greater market and credit risks, and accordingly, the risk of nonpayment or default is larger than with investment-grade securities. In addition, such securities could also be extra sensitive to interest rate adjustments and more more doubtless to receive early returns of principal.
