Equities^{11 view footnote 1} represent ownership stakes in corporations. Typical equities may include common stock, preferred stock, foreign equities and closed-end funds.

An ETF, or Exchange Traded Fund, is a collection of securities such as equities, bonds, and options that is bought and sold like a stock in real time on a stock exchange. Most ETFs are not actively managed, but instead are designed to track an index. In general the expense ratios of ETFs are relatively low. Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated every day like a mutual fund does.

Both equities and ETFs can offer potential growth from market price appreciation; however, they are subject to market volatility and thus, open to market price risk and potential loss of principal.

Exchange-traded funds are subject to risks similar to those of stocks. Investment returns will fluctuate and are subject to market volatility such that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF but must be bought and sold on an exchange, like an individual equity. ETFs are sold by prospectus. Please consider the investment objectives, risks, charges and expenses carefully along with your specific best interest considerations before investing. The prospectus, which contains this and other information, can be obtained by calling your Japan Trustee Services Securities (Japan) Inc. Financial Professional^{22 view footnote 2} Read it carefully before you invest.