Profiles of Index Tracking Products - Nasdaq-100 Tracking Stock

Risk Considerations


	Holders of NASDAQ-100 Index Tracking Stock are subject to risks similar to those of holders of other stock portfolios. One primary consideration is that the general level of stock prices may decline, and thus the value of NASDAQ-100 Index Tracking Stock, because it represents interests in a broadly based stock portfolio. NASDAQ-100 Index Tracking Stock is also subject to risks of an investment in a portfolio of equity securities in which the Index may be highly concentrated (e.g., technology) and, due to concentration in sectors characterized by relatively higher volatility in price performance, may be more volatile when compared to other broad-based stock indexes. NASDAQ-100 Index Tracking Stock is also subject to the risks specific to the performance of a few individual component securities that currently represent a highly concentrated weighting in the Index (e.g., Microsoft Corporation and Intel Corporation). In addition, the overall depth and liquidity of the secondary market in these shares may fluctuate. Although NASDAQ-100 Index Tracking Stock is designed to provide investment results that generally correspond to the price and yield performance of the NASDAQ-100 Index, the NASDAQ-100 Trust may not be able to exactly replicate the performance of the NASDAQ-100 Index because of Trust expenses and other factors. Over time, the composition and weighting of the securities held in the Trust will be adjusted to conform to changes in the composition and weighting of the NASDAQ-100 Index. The Trust will incur transaction costs and other expenses as a result of these adjustments. Furthermore, the Trust will realize capital gains or losses from the sale of securities due to these adjustments. Net long-term capital gains, if any, will be distributed to shareholders as capital gains distributions at least annually. From a tax standpoint, investors should be aware that the Trust is structured as a regulated investment company and that Trust dividend distributions, if any, may not be characterized entirely as ordinary income. Investors are encouraged to consult their tax adviser in this regard. Investors should refer to the Prospectus which provides a more detailed description of the risks associated with an investment in NASDAQ-100 Index Tracking Stock.