Definitive Materials Filed by Investment Companies. (497)
March 24 2020 - 4:48PM
Edgar (US Regulatory)
GRANITESHARES
ETF TRUST
GRANITESHARES
FUND
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NYSE
ARCA, INC. TICKER SYMBOL
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GRANITESHARES XOUT
U.S. Large Cap ETF
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XOUt
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SUPPLEMENT
DATED March 24, 2020
TO
THE PROSPECTUS and statement of additional information,
each
dated september 24, 2019
GraniteShares XOUT U.S. Large Cap
ETF (the “Fund”), a series of GraniteShares ETF Trust, is updating its diversification policy under the Investment
Company Act of 1940, as amended. Under the revised policy, the Fund will continue to track the XOUT U.S. Large Cap Index (the “Index”)
even if the Fund becomes non-diversified as a result of a change in relative market capitalization or index weighting of one or
more constituents of the index.
Shareholder approval will not
be sought if the Fund crosses from diversified to non-diversified status under such circumstances.
Accordingly, the following
changes to the Summary Prospectus, Statutory Prospectus, and SAI are effective immediately:
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On page 3 of the Prospectus and page 3 of the Summary Prospectus, the sentence starting with “The Fund is diversified…” is replaced by:
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The
Fund may become “non-diversified,” as defined under the Investment Company Act of 1940, solely as a result
of a change in relative market capitalization or index weighting of one or more constituents of the Index that the fund aims to
track.
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Under the section “Principal Risks of the Fund” starting on page 3 of the Prospectus and page 3 of the Summary Prospectus, the following paragraph is added:
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Non-Diversification Risk. To
the extent that the Fund becomes non-diversified as necessary to approximate the composition of the Index, it may invest
in the securities of relatively few issuers. As a result, a single adverse economic or regulatory occurrence may have a more significant
effect on the Fund’s investments, and the Fund may experience increased volatility.
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On page 1 of the SAI, in the first paragraph under the heading “General Information About the Trust and the Fund”, the sentence “The Fund is a diversified series of a management investment company under the 1940 Act” is replaced by:
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The
Fund may become “non-diversified,” as defined under the 1940 Act, solely as a result of a change in relative
market capitalization or index weighting of one or more constituents of the Index that the Fund aims to track. A fund that becomes
a non-diversified mutual fund means that a relatively high percentage of assets of the fund may be invested in the obligations
of a limited number of issuers. The value of shares of the Fund may be more susceptible to any single economic, political or regulatory
occurrence than the shares of a diversified investment company would be. The Fund intends to be diversified in approximately the
same proportion as its Index. In addition, the Fund intends to diversify its investments to the extent required to qualify as a
“regulated investment company” under Subchapter M of the Code.
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On page 4 of the SAI, the text under the heading “Diversification”, is changed to the following:
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The
Fund may become “non-diversified,” as defined under the Investment Company Act of 1940, solely as a result
of a change in relative market capitalization or index weighting of one or more constituents of the Index that the Fund aims to
track.
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Under the heading “Investment Restrictions” on page 12 of the SAI, the following paragraph is added after the paragraph starting with “Concentrate its investment…”:
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The
Fund may become “non-diversified,” as defined in the 1940 Act, with respect to investments in an issuer or
several issuers to the extent necessary to approximate the composition of the Index the fund aims to track to the extent permitted
by law or regulatory relief.
Capitalized terms and certain other terms used in this Supplement,
unless otherwise defined in this Supplement, have the meanings assigned to them in the Prospectus or SAI, as applicable.
* * *
Investors Should Retain This Supplement
for Future Reference
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