If, due to tax law changes, an MLP in the portfolio is deemed a corporation rather than a partnership for federal income purposes, then income would be subject to federal taxation at the MLP level. This would reduce the amount of cash available for distribution to the fund which could result in a reduction of the fund’s value.The Fund invests primarily in energy infrastructure companies which may be adversely affected by changes in worldwide energy prices, exploration, production spending, government regulation, changes in exchange rates and depletion of natural resources. Additionally, the ETF provides tax accounts such as IRA and 401(k) plans with a new option for participating in the energy infrastructure Master Limited Partnership (“MLP”) asset class without Unrelated Business Taxable Income concerns. Investors will not receive K-1s as they would if investing directly in MLPs. All K-1s are received and processed by the Alerian MLP ETF. The Alerian MLP ETF distributes a single Form 1099 to its shareholders. This notice is provided to you for informational purposes only, and should not be considered tax advice. Please consult your tax advisor for further assistance. The Fund’s concentration in securities of MLPs involves risks that differ from investments in common stock, including risks related to: (1) limited control and rights to vote on matters affecting the MLP; (2) potential conflicts of interest between the MLP and its general partner; (3) cash flow; (4) dilution; and (5) the general partner’s limited call right. Actual results, performance or events may also be affected by, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) changes in laws and regulations and (5) changes in the policies of governments and/or regulatory authorities. An investor’s shares, when sold, may be worth more or less than their original cost. MLPs may have additional expenses, as some MLPs pay incentive distribution fees to their general partners. Infrastructure companies are subject to risks specific to the industry they serve including, but not limited to commodity price fluctuations; reduced volumes of energy commodities available for transporting, processing, storing or distributing; changes in the economy or regulatory environment; and extreme weather. The Fund invests primarily in energy infrastructure companies which may be adversely affected by changes in worldwide energy prices, exploration, production spending, government regulation, changes in exchange rates and depletion of natural resources.
ALPS Distributors, Inc. is the Distributor of the Alerian MLP ETF.