| The Fund seeks to track the investment results of the Bloomberg U.S. Universal 5-10 Year Index (the Underlying Index ), which measures the performance of U.S. dollar- denominated taxable bonds that are rated either investment-grade or high yield with remaining effective maturities between five and ten years. The Underlying Index includes U.S. Treasury bonds, government-related bonds (i.e., U.S. and non-U.S. agencies, sovereign, quasi-sovereign, supranational and local authority debt), investment-grade and high yield U.S. corporate bonds, mortgage-backed pass-through securities ( MBS ), commercial mortgage-backed securities ( CMBS ), asset-backed securities ( ABS ), Eurodollar bonds, bonds registered with the SEC or exempt from registration at the time of issuance, or offered pursuant to Rule 144A with or without registration rights ( Rule 144A Bonds ) and U.S. dollar-denominated emerging market bonds. The Underlying Index is a subset of the Bloomberg Barclays U.S. Universal Index. The Underlying Index may include large-, mid- or small- capitalization companies. Components of the Underlying Index primarily include securitized and corporate securities. A material portion of the Underlying Index is comprised of MBS that include 20- year and 30-year mortgages. These MBS are included in the Underlying Index because their effective duration has historically been more consistent with the duration of non-callable 5-10 year bonds due to prepayments. The components of the Underlying Index, and the degree to which these components represent certain industries, are likely to change over time. The securities in the Underlying Index must be denominated in U.S. dollars and non-convertible. Excluded from the Underlying Index are tax- exempt municipal securities, coupon issues that have been stripped from bonds, structured notes, private placements (excluding Rule 144A Bonds) and inflation-linked bonds. |