Page 1 of 11 Portfolio X-Ray : SVEMG 401K ETF/FUND I+2

Release date 06-30-2018 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.

Portfolio X-Ray?: SVEMG 401K ETF/FUND I+2

Prepared by: Robert Luna Page 1 of 11

Asset Allocation 06-30-2018

Asset Allocation

Cash US Stocks Non-US Stocks Bonds Other/Not Clsfd

Benchmark

Morningstar Mod Con Tgt Risk TR USD (USD, MSAAMMCR)

Market Value $1,000,000.00

Portfolio %

7.66 27.89 15.26 48.77 0.42

Bmark (%)

1.01 25.50 13.90 59.55 0.04

Stock Analysis 06-30-2018 Stock Sectors

Sensitive

Benchmark Portfolio

World Regions Greater Asia Americas

Greater Europe

Defensive

Bond Analysis 06-30-2018

Fixed-Income Sectors

Portfolio (%)

/ Government

41.19

< Municipal

0.34

> Corporate

38.41

Securitized

12.10

fi Cash & Equivalents

7.95

? Derivative

0.00

Bmark (%) 43.81 0.00 22.16 32.36 1.66 0.00

Portfolio

Bmark

0% 5 10 15 20 25 30 35 40 45 50

Maturity Breakdown Effective Maturity 1-3 3-5 5-7 7-10 10-15 15-20 20-30 >30

Portfolio (%) 22.19 29.78 15.77 13.11 1.78 1.65 9.39 6.32

Credit Quality Breakdown Credit Quality AAA AA A BBB BB B Below B NR

Portfolio (%) 53.55 4.18 11.38 9.25 5.06 8.93 6.01 1.64

Cyclical

h Cyclical

Portfolio (%) 39.25

r Basic Matls

4.93

t Consumer Cycl 12.24

y Financial Svs 17.31

u Real Estate

4.77

j Sensitive

i Commun Svs o Energy p Industrials a Technology

38.26 3.32 7.73 10.36 16.85

k Defensive

22.29

s Consumer Def 7.22

d Healthcare

9.60

f Utilities

5.47

Not Classified

0.20

Bmark (%) 41.13 5.52 11.08 17.80 6.73

36.78 3.40 6.46 11.15 15.77

22.09 7.92 10.87 3.30

0.00

75%

Bmark (%) 68.08 66.74 1.34

15.05 3.84 9.50 0.69 1.02

16.87 5.83 1.51 4.40 5.13

0.00

Large Mid Small High Med Low

Investment Style 06-30-2018

10 14 0 19 26 11

Fixed-Income Style

Effective Duration Effective Maturity

19 0 0

Ltd Mod Ext

Portfolio

4.31 2.74

Bmark

5.37 6.40

26 26 30 754 110

Value Blend Growth

Equity Style

Average Market Cap ($mil) Price/Earnings Price/Book Price/Sales Price/Cash Flow

Portfolio

Bmark

48,060.36 32,846.77

16.59 17.04

2.52

2.17

1.72

1.59

10.94 11.27

0-10 10-25 25-50 >50

0-10 10-25 25-50 >50

Top 10 Net Underlying Holdings 06-30-2018

Assets % 0.86 0.82 0.82 0.78 0.69

Name US Treasury Note US Treasury Note Microsoft Corp(USD) US Treasury Note(USD) US Treasury Note(USD)

0.60 US Treasury Note(USD) 0.58 Visa Inc Class A(USD) 0.50 Boeing Co(USD) 0.50 US Treasury Note(USD) 0.50 US Treasury Note(USD)

Type

Sector

Country

BND

--

United States

BND

--

United States

ST

Technology

United States

BND

Government

United States

BND

Government

United States

BND

Government

United States

ST

Financial Services

United States

ST

Industrials

United States

BND

Government

United States

BND

Government

United States

?2018 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report.

?

Release date 06-30-2018 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.

Portfolio X-Ray?: SVEMG 401K ETF/FUND I+2

Prepared by: Robert Luna Page 2 of 11

Portfolio Holdings

Benchmark

Morningstar Mod Con Tgt Risk TR USD (USD, MSAAMMCR)

Portfolio Holdings 06-30-2018

Total: 16 Holdings American Funds Bond Fund of Amer F2 (USD, ABNFX) American Funds American High-Inc F2 (USD, AHIFX) American Funds Washington Mutual F2 (USD, WMFFX) American Funds US Government Sec F2 (USD, GVTFX) American Funds Europacific Growth F2 (USD, AEPFX)

American Funds Capital World Bond F2 (USD, BFWFX) American Funds Intl Gr and Inc F2 (USD, IGFFX) iShares 0-5 Year TIPS Bond ETF (USD, STIP) iShares Edge MSCI USA Momentum Fctr ETF (USD, MTUM) iShares Edge MSCI USA Quality Factor ETF (USD, QUAL)

iShares Floating Rate Bond ETF (USD, FLOT) SPDR? DoubleLine? Shrt Term TR Tact ETF (USD, STOT) SPDR? Portfolio S&P 500 High Div ETF (USD, SPYD) WisdomTree Dynamic Long/Short US Eq ETF (USD, DYLS) WisdomTree Dynamic Ccy Hdgd Intl Eq ETF (USD, DDWM)

Vanguard Prime Money Market Investor (USD, VMMXX)

Type

Fund Portfolio Date

Assets %

Market Value $

MF

06-30-2018

14.00

140,000

MF

06-30-2018

10.00

100,000

MF

06-30-2018

9.00

90,000

MF

06-30-2018

8.00

80,000

MF

06-30-2018

6.00

60,000

MF

06-30-2018

5.50

55,000

MF

06-30-2018

5.00

50,000

ETF

07-26-2018

5.00

50,000

ETF

07-26-2018

5.00

50,000

ETF

07-26-2018

5.00

50,000

ETF

07-26-2018

5.00

50,000

ETF

07-26-2018

5.00

50,000

ETF

07-26-2018

5.00

50,000

ETF

07-26-2018

5.00

50,000

ETF

07-26-2018

4.50

45,000

MM

02-28-2018

3.00

30,000

?2018 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report.

?

Release date 06-30-2018

Standardized and Tax Adjusted Returns Disclosure Statement

Prepared by: Robert Luna Page 3 of 11

The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end please visit .

Standardized Returns assume reinvestment of dividends and capital gains. They depict performance without adjusting for the effects of taxation, but are adjusted to reflect sales charges and ongoing fund expenses.

If adjusted for taxation, the performance quoted would be significantly reduced. For variable annuities, additional expenses will be taken into account, including M&E risk charges, fund-level expenses such as management fees and operating fees, contract-level administration fees, and charges such as surrender, contract, and sales charges. The maximum redemption fee is the maximum amount a fund may charge if redeemed in a specific time period after the fund's purchase.

After-tax returns are calculated using the highest individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Actual aftertax returns depend on the investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or an IRA. After-tax returns exclude the effects of either the alternative minimum tax or phase-out of certain tax credits. Any taxes due are as of the time the distributions are made, and the taxable amount and tax character of each distribution are as specified by the fund on the dividend declaration date. Due to foreign tax credits or realized capital losses, after-tax returns may be greater than before-tax returns. Aftertax returns for exchange-traded funds are based on net asset value.

Money Market Fund Disclosures If money market fund(s) are included in the Standardized Returns table below, each money market fund's name will be followed by a superscripted letter that links it to the applicable disclosure below:

Institutional Money Market Funds (designated by an "S"): You could lose money by investing in the fund. Because the share price of the fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Government Money Market Funds that have chosen to rely on the ability to impose liquidity fees and suspend redemptions (designated by an "L" ) and Retail Money Market Funds (designated by an "L"): You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Government Money Market Funds that have chosen not to rely on the ability to impose liquidity fees and suspend redemptions (designated by an "N"): You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Annualized returns 06-30-2018 Standardized Returns (%)

7-day Yield 7-day Yield

1Yr

5Yr 10Yr

Since Inception Max Front Max Back Net Exp Gross Exp

Max

Subsidized Unsubsidized

Inception

Date Load % Load % Ratio % Ratio % Redemption %

as of date as of date

American Funds American High-Inc F2 American Funds Bond Fund of Amer F2 American Funds Capital World Bond F2 American Funds Europacific Growth F2 American Funds Intl Gr and Inc F2

--

-- 3.15 4.38 -- 6.58 08-04-2008

NA

NA

0.45

--

-- -0.65 2.39 -- 3.40 08-04-2008

NA

NA

0.36

--

-- 0.58 1.76 -- 2.82 08-01-2008

NA

NA

0.66

--

-- 9.24 8.23 -- 5.26 08-01-2008

NA

NA

0.58

--

-- 6.41 5.10 -- 7.24 10-01-2008

NA

NA

0.70

American Funds US Government Sec F2

--

-- -1.24 1.56 -- 3.05 08-07-2008

NA

NA

0.39

?2018 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report.

0.45

NA

0.36

NA

0.66

NA

0.58

NA

0.70

NA

0.39

NA

?

Release date 06-30-2018

Prepared by: Robert Luna Page 4 of 11

Annualized returns 06-30-2018 Standardized Returns (%)

7-day Yield 7-day Yield

1Yr

5Yr 10Yr

Since Inception Max Front Max Back

Subsidized Unsubsidized

Inception

Date Load % Load %

as of date as of date

American Funds Washington Mutual F2

iShares 0-5 Year TIPS Bond ETF-NAV

iShares 0-5 Year TIPS Bond ETF-Market

iShares Edge MSCI USA Momentum Fctr ETF-NAV

iShares Edge MSCI USA Momentum Fctr ETF-Market iShares Edge MSCI USA Quality Factor ETFNAV iShares Edge MSCI USA Quality Factor ETFMarket iShares Floating Rate Bond ETF-NAV

iShares Floating Rate Bond ETF-Market

SPDR? DoubleLine? Shrt Term TR Tact ETF-NAV SPDR? DoubleLine? Shrt Term TR Tact ETF-Market SPDR? Portfolio S&P 500 High Div ETFNAV SPDR? Portfolio S&P 500 High Div ETFMarket Vanguard Prime Money Market Investor L

WisdomTree Dynamic Ccy Hdgd Intl Eq ETFNAV WisdomTree Dynamic Ccy Hdgd Intl Eq ETFMarket WisdomTree Dynamic Long/Short US Eq ETF-NAV WisdomTree Dynamic Long/Short US Eq ETF-Market

BBgBarc US Agg Bond TR USD

Morningstar Mod Con Tgt Risk TR USD

MSCI EAFE NR USD

S&P 500 TR USD

USTREAS T-Bill Auction Ave 3 Mon

-- -- -- --

--

--

--

-- -- --

--

--

--

2.06

07-30-2018

--

--

--

--

-- 13.95 12.18 -- 9.75 08-05-2008

NA

NA

-- 1.32 0.63 -- 1.03 12-01-2010

NA

NA

-- 1.39 0.64 -- 1.03 12-01-2010

NA

NA

-- 24.72 17.92 -- 17.02 04-16-2013

NA

NA

-- 24.83 17.81 -- 17.34 04-16-2013

NA

NA

-- 14.16 -- -- 12.80 07-16-2013

NA

NA

-- 14.25 -- -- 12.75 07-16-2013

NA

NA

-- 1.93 1.08 -- 1.14 06-14-2011

NA

NA

-- 1.90 1.05 -- 1.13 06-14-2011

NA

NA

-- 0.43 -- -- 1.18 04-13-2016

NA

NA

-- 0.49 -- -- 1.06 04-13-2016

NA

NA

-- 10.95 -- -- 13.48 10-21-2015

NA

NA

-- 10.90 -- -- 12.97 10-21-2015

NA

NA

-- 1.43 0.48 0.43 4.98 06-04-1975

NA

NA

-- 6.05 -- -- 11.87 01-07-2016

NA

NA

-- 5.26 -- -- 11.82 01-07-2016

NA

NA

-- 10.90 -- -- 13.18 12-23-2015

NA

NA

-- 10.55 -- -- 13.03 12-23-2015

NA

NA

-0.40 4.68 6.84 14.37 1.47

2.27 5.23 6.44 13.42 0.46

3.72 --

2.84 10.17 0.33

--

--

-- 02-18-2009

--

--

--

--

--

--

Net Exp Gross Exp

Max

Ratio % Ratio % Redemption %

0.38

0.38

NA

0.06

0.06

NA

0.06

0.06

NA

0.15

0.15

NA

0.15

0.15

NA

0.15

0.15

NA

0.15

0.15

NA

0.20

0.20

NA

0.20

0.20

NA

0.451

0.51

NA

0.451

0.51

NA

0.07

0.07

NA

0.07

0.07

NA

0.16

0.16

NA

0.352

0.40

NA

0.352

0.40

NA

0.483

0.53

NA

0.483

0.53

NA

1. Contractual waiver; Expires 10-31-2018 2. Contractual waiver; Expires 10-31-2018 3. Contractual waiver; Expires 10-31-2018

Return after Tax (%)

On Distribution

On Distribution and Sales of Shares

1Yr

American Funds American High-Inc F2

0.63

American Funds Bond Fund of Amer F2

-1.58

American Funds Capital World Bond F2

-0.03

American Funds Europacific Growth F2

7.73

American Funds Intl Gr and Inc F2

5.48

American Funds US Government Sec F2

American Funds Washington Mutual F2

iShares 0-5 Year TIPS Bond ETF-NAV

iShares Edge MSCI USA Momentum Fctr ETF-NAV iShares Edge MSCI USA Quality Factor ETFNAV

-1.94 11.52 0.44 24.26

13.50

iShares Floating Rate Bond ETF-NAV

1.19

SPDR? DoubleLine? Shrt Term TR Tact -0.43 ETF-NAV

SPDR? Portfolio S&P 500 High Div ETF-NAV 8.74

Vanguard Prime Money Market Investor L 0.83

WisdomTree Dynamic Ccy Hdgd Intl Eq ETF- 4.70 NAV

WisdomTree Dynamic Long/Short US Eq ETF-NAV

10.63

5Yr 1.68 1.41 0.97 7.31 3.82 0.69 10.15 0.28 17.52

--

0.69 --

-- 0.28

--

--

10Yr Since Inception

--

3.66

--

2.16

--

1.71

--

4.40

--

5.98

--

1.99

--

8.20

--

0.64

--

16.62

Inception Date

08-04-2008 08-04-2008 08-01-2008 08-01-2008 10-01-2008

08-07-2008 08-05-2008 12-01-2010 04-16-2013

--

12.27 07-16-2013

--

0.78 06-14-2011

--

0.21 04-13-2016

--

11.35 10-21-2015

0.26

2.56 06-04-1975

--

10.40 01-07-2016

--

12.58 12-23-2015

1Yr 1.79 -0.40 0.34 6.57 3.96 -0.75 9.68 0.75 14.73

8.54

1.11 0.23

6.40 0.83 3.71

6.63

5Yr 2.10 1.39 1.02 6.29 3.65 0.85 9.26 0.33 14.43

--

0.65 --

-- 0.28

--

--

10Yr Since Inception

--

3.82

--

2.11

--

1.76

--

3.92

--

5.43

--

2.03

--

7.46

--

0.64

--

13.70

--

10.10

--

0.71

--

0.47

--

9.48

0.26

2.56

--

8.70

--

9.99

?2018 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report.

?

Prepared by: Robert Luna

Release date 06-30-2018

Page 5 of 11

Portfolio X-Ray Report Disclosure Statement

General This report summarizes the composition characteristics of a portfolio of securities. It considers broad asset allocation and regional exposure, security style, and sector exposure to provide a variety of ways for considering the level of diversification within a portfolio, its potential riskiness, and its possible behavior in the future.

The Portfolio X-Ray report is supplemental sales literature and must be preceded or accompanied by the fund's/policy's current prospectus or equivalent. Please read these carefully before investing. In all cases, this disclosure statement should accompany the Portfolio X-Ray report. Morningstar is not itself a FINRA-member firm.

Data for this analysis is collected in several ways. For mutual funds, closed-end funds, exchange-traded funds, and variable annuity subaccounts, equity data is based upon Morningstar's analysis of the holdings, which are provided periodically by the fund to Morningstar. For fixed-income securities included in these products, duration and other data is provided by the fund company. For separately managed accounts, data for the account composite reflecting the average investor's experience is provided directly by the manager. Stock data is based upon Morningstar analysis.

An investment in the funds/subaccounts listed in this report is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

The information contained in this report is from the most recent information available to Morningstar as of the release date, and may or may not be an accurate reflection of the current composition of the securities included in the portfolio. There is no assurance that the weightings, composition, ratios, etc. will remain the same.

Comparison of Fund Types Funds, including closed-end funds, exchange-traded funds (ETFs), money market funds, open-end funds, and unit investment trusts (UITs), have many similarities, but also many important differences. In general, publicly-offered funds are investment companies registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended. Funds pool money from their investors and manage it according to an investment strategy or objective, which can vary greatly from fund to fund. Funds have the ability to offer diversification and professional management, but also involve risk, including the loss of principal.

A closed-end fund is an investment company, which typically makes one public offering of a fixed number of shares. Thereafter, shares are traded on a secondary market. As a result, the secondary market price may be higher or lower than the closed-end fund's net asset value (NAV). If these shares trade at a price above their NAV, they are said to be trading at a premium. Conversely, if they are trading at a price below their NAV, they are said to be trading at a discount. A closed-end mutual fund's expense ratio is an annual fee charged to a shareholder. It includes operating expenses and management fees, but does not take into account any brokerage costs. Closed-end funds may also have 12b-1 fees. Income distributions and capital gains of the closed-end fund are subject to income tax, if held in a taxable account.

An ETF is an investment company that typically has an investment objective of striving to achieve a similar return as a particular market index. The ETF will

invest in either all or a representative sample of the securities included in the index it is seeking to imitate. Like closed-end funds, an ETF can be traded on a secondary market and thus have a market price that may be higher or lower than its net asset value. If these shares trade at a price above their NAV, they are said to be trading at a premium. Conversely, if they are trading at a price below their NAV, they are said to be trading at a discount. ETFs are not actively managed, so their value may be affected by a general decline in the U.S. market segments relating to their underlying indexes. Similarly, an imperfect match between an ETF's holdings and those of its underlying index may cause its performance to vary from that of its underlying index. The expense ratio of an ETF is an annual fee charged to a shareholder. It includes operating expenses and management fees, but does not take into account any brokerage costs. ETFs do not have 12b-1 fees or sales loads. Capital gains from funds held in a taxable account are subject to income tax. In many, but not all cases, ETFs are generally considered to be more tax-efficient when compared to similarly invested mutual funds.

Holding company depository receipts (HOLDRs) are similar to ETFs, but they focus on narrow industry groups. HOLDRs initially own 20 stocks, which are unmanaged, and can become more concentrated due to mergers, or the disparate performance of their holdings. HOLDRs can only be bought in 100share increments. Investors may exchange shares of a HOLDR for its underlying stocks at any time.

A money-market fund is an investment company that invests in commercial paper, banker's acceptances, repurchase agreements, government securities, certificates of deposit and other highly liquid securities, and pays money market rates of interest. Money markets are not FDIC-insured, may lose money, and are not guaranteed by a bank or other financial institution.

An open-end fund is an investment company that issues shares on a continuous basis. Shares can be purchased from the open-end mutual fund itself, or through an intermediary, but cannot be traded on a secondary market, such as the New York Stock Exchange. Investors pay the open-end mutual fund's current net asset value plus any initial sales loads. Net asset value is calculated daily, at the close of business. Open-end mutual fund shares can be redeemed, or sold back to the fund or intermediary, at their current net asset value minus any deferred sales loads or redemption fees. The expense ratio for an open-end mutual fund is an annual fee charged to a shareholder. It includes operating expenses and management fees, but does not take into account any brokerage costs. Open-end funds may also have 12b-1 fees. Income distributions and capital gains of the open-end fund are subject to income tax, if held in a taxable account.

A unit investment trust (UIT) is an investment company organized under a trust agreement between a sponsor and trustee. UITs typically purchase a fixed portfolio of securities and then sell units in the trust to investors. The major difference between a UIT and a mutual fund is that a mutual fund is actively managed, while a UIT is not. On a periodic basis, UITs usually distribute to the unit holder their pro rata share of the trust's net investment income and net realized capital gains, if any. If the trust is one that invests only in tax-free securities, then the income from the trust is also tax-free. UITs generally make one public offering of a fixed number of units. However, in some cases, the sponsor will maintain a secondary market that allows existing unit holders to sell their units and for new investors to buy units. A one-time initial sales charge is deducted from an investment made into the trust. UIT investors may also pay creation and development fees, organization costs, and/or trustee and operation expenses. UIT units may be redeemed by the sponsor at their net asset value minus a deferred sales charge, and sold to other investors. UITs have set termination dates, at which point the underlying securities are sold and the sales proceeds are paid to the investor. Typically, a UIT investment is rolled over into successive trusts as part of a long-term strategy. A rollover fee

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