The Fund is an actively managed exchange-traded fund (ETF) that blends active and passive investment strategies to optimize costs, tracking and potential return over the Funds benchmark index, the Bloomberg Municipal 1-10 Year Blend Index (the Underlying Index). Under normal market conditions, the Fund will invest at least 80 percent of its net assets (plus any borrowings for investment purposes) in U.S. municipal bond securities that are exempt from U.S. federal income tax and are rated investment grade or better. The Fund may also invest up to 20 percent of its net assets in high-yield municipal bonds, also known as junk bonds. The ratio of the Funds assets that are allocated to active versus passive investment strategies is determined by Envestnet Asset Management, Inc., the Funds investment adviser, (the Adviser), and is based on a variety of factors, including the Advisers proprietary research that looks at the likelihood of active managers outperforming or underperforming within the asset classes in which the Fund invests, the Advisers research and due diligence on available investment sub-advisers (each, a Sub-Adviser) within the different asset classes in which the Fund invests and the Advisers assessment of how different Sub-Advisers will contribute to overall Fund performance. The Adviser also considers academic research on factor investing, which is an investment approach that involves selecting securities based on attributes associated with higher returns, and the long-term performance of factor investing with established style factors across the asset classes in which the Fund invests. Under normal market conditions, the Adviser will allocate at least 50 percent of the Funds assets to the passive allocation.