The blue line represents the S&P 500, which has delivered a 16% year-to-date return. The orange line depicts the momentum factor (MTUM), which has outperformed the S&P 500 by 10% so far this year. Notably, both high-dividend (IWD) and value (VYM) strategies have significantly underperformed the market, as shown below the index line. In yellow, we can see that the growth factor (IWF) has also been a winner this year. The Fund's use of derivatives may reduce the Fund's returns and/or increase volatility and subject the Fund to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. The Fund could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited. There can be no assurance that the Fund's hedging transactions will be effective. Dividend yield factor portfolios in the FTSE High Dividend Yield Index have delivered 3.1% returns in the last 30 days, beating the broader market. "Factor investing" in high-yield equities continues to lure income-seeking investors amid stable Treasury yields.