Horizon Kinetics Medical ETF (MEDX US) – Portfolio Construction Methodology

The investment strategy guiding the actively managed Horizon Kinetics Medical ETF seeks long term capital growth by investing, under normal conditions, at least 80% of net assets in equity securities of U.S. and foreign companies engaged in medical research, pharmaceuticals and medical technology, with an emphasis on oncology drug discovery. Eligible issuers generally derive ≥50% of revenue from these activities. Security selection applies fundamental analysis emphasizing research and development intensity alongside balance sheet strength, revenues, earnings and dividends. The portfolio may own companies of any size and may concentrate its exposure, is non diversified, and can exceed 25% in targeted medical industries. The strategy may purchase and write options for hedging or direct exposure, invest up to 20% in below investment grade debt, hold significant cash defensively, invest in other ETFs, and lend portfolio securities. Positions are trimmed or sold upon valuation realization or adverse business developments.

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