American Beacon Ionic Inflation Protection ETF (CPII)

Market Price: The price at which Fund shares are bought and sold, which may be below, at, or above NAV. The Market Price Returns are calculated based on the Fund’s official closing price on the listing exchange.

NAV: The dollar value of a single share of the Fund, calculated using the value of the underlying assets of the Fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day.

Expense Ratio (%): The Fund’s total annual operating expenses as a percentage of your investment. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the expense ratio.

30-Day Median Bid/Ask Spread: The midpoint of the differences between the “bid” price (what investors are willing to pay) and the “ask” price (at which they are willing to sell Fund shares) on the listing exchange over the last 30 calendar days.

Discount/Premium: The negative or positive difference between the market price and NAV at the time as of which the NAV is calculated, expressed as a percentage of NAV. The table shows the number of days the Fund traded at a premium, at a discount, or at NAV during various periods. The line graph shows the discount (negative) and the premium (positive) amount on the vertical axis and the date on which the premium/discount occurred on the horizontal axis.

Inflation: A general rise in prices throughout the U.S. economy, which the Fund measures using the non-seasonally adjusted U.S. City Average All Items Consumer Price Index for All Urban Consumers (the “CPI-U”).

Inflation Swap: Swaps are derivative contracts where one party “swaps” one type of cash flow for a different type of cash flow. In an inflation swap, one party agrees to pay to the other party the percentage increase in CPI-U during the term of the swap, while the other party agrees to pay back a fixed rate. The inflation swaps held by the Fund will typically increase in value if inflation increases and decrease in value if inflation decreases.

Swaption: A swaption is an option on a swap agreement that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium.” The Fund expects to focus on so-called “payer swaptions,” which give the Fund the right to pay fixed-rate payments and, in exchange, receive floating rate payments. Swaptions held by the Fund will typically increase in value if interest rates rise, and decrease in value if interest rates fall.

TIPS: U.S. Treasury Inflation-Protected Securities (“TIPS”) are marketable securities issued by the U.S. Treasury whose principal is adjusted based on changes in the CPI-U. With inflation, the principal increases, and with deflation (a decrease in the CPI-U), the principal decreases. The relationship between TIPS and inflation affects both the principal amount paid when a TIPS instrument matures and the amount of interest that a TIPS instrument pays semi-annually.

All investing involves risk, including possible loss of principal. The Fund is actively managed, and there can be no assurances that its investment objectives will be met. Derivative instruments, including swaps and swaptions, may be highly sensitive to market factors, have less liquidity than other investments and involve the potential for losses to exceed the amount invested. The use of fixed-income securities and derivatives entails interest rate and credit risks. Interest rate risk is the risk that investments will decrease in value with increases in market interest rates. Credit risk is the risk that an issuer will fail to make timely payment of interest or principal. U.S. Treasury securities are guaranteed only as to the timely payment of interest and principal when held to maturity. The market prices for such securities are not guaranteed and will fluctuate. In deflationary periods, the Fund may suffer a loss.The Fund may have high portfolio turnover risk, which could increase the Fund’s transaction costs and possibly have a negative impact on performance. Because the Fund may invest in fewer issuers than a more diversified portfolio, the fluctuating value of a single holding may have a greater effect on the value of the Fund. Please see the prospectus for a complete discussion of the Fund’s risks.

The Fund is new and has a limited operating history.

The Fund’s investment sub-advisor is Ionic Capital Management LLC.

American Beacon, Ionic, Foreside and the NYSE are not affiliated.

Performance shown is historical and is not indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted.