Arrow Funds DWA Tactical ETF (DWAT)

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Arrow DWA Tactical ETF (DWAT)

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Arrow DWA Tactical ETF may not be suitable for all investors. Exchange traded products are bought and sold at market price, not NAV, and are not individually redeemed from the fund. Buying and selling shares generally results in brokerage commissions which will reduce returns. The market price may be higher (premium) or lower (discount) than the Net Asset Value (NAV). The fund may invest in commodity-related securities, which may be subject to greater volatility than investments in traditional securities. The fund may invest in international and emerging market securities, which may be subject to special risks including fluctuations in currency, government regulation, differences in accounting standards and liquidity. Investing in small-cap securities may have special risks, including wider variations in earnings and business prospects than larger, more established companies. The fund may invest in real estate-related securities, which may be subject to mortgage-related risks and real estate market fluctuations. The fund may invest in fixed income securities, which are subject to risks including interest rate, credit and inflation.

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Arrow DWA Tactical ETF

Overview
Performance
Holdings
Distributions
Premium/Discount

Arrow DWA Tactical ETF
A Systematic RS Global Macro Strategy

Arrow Funds CEO Joe Barrato Discusses How Much Investors Should
Allocate to International Equities on NASDAQ's Trade Talks.

Interview originally recorded on January 23, 2018. By clicking on or copying the link above you will be leaving the Arrow Funds site and entering a third party site. Arrow Funds is not responsible for any information contained on these third party sites. Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.

Investment Strategy
Seeks long term capital appreciation with capital preservation as a secondary objective. The Fund seeks to achieve its investment objective by implementing a proprietary Relative Strength (RS) Global Macro model developed by Dorsey Wright & Associates (DWA). Based on the technical analysis and relative strength expertise of Dorsey Wright & Associates.

Fund Highlights

Provides access to a tactical global macro strategy
using long and inverse exposure to U.S. and international stocks with global exposure to fixed income, commodities and currencies

Gives access to the technical analysis expertise of Dorsey Wright & Associates

Core strategy with a strict relative strength buy
and sell discipline

Who Should Invest?

Designed for investors who have an investment time horizon of at least five years

A fund that has flexibility to narrow its focus by investing among a wide range of global asset classes,
rotation strategies and ETFs

An actively managed alternative to strategic asset allocation funds, target maturity funds and life cycle funds
that fall into the tactical global macro category

Investment Overview
Based on the DWA RS Global Macro investment model, the Arrow DWA Tactical ETF uses a systematic process to continuously seek relative strength across multiple global markets. Using a strict buy/sell discipline, the Fund accesses the global market segments primarily through the use of Exchange Traded Funds (ETFs).

Market Segment	Description	Min	Max
Equities	Provides long/short exposure to domestic, international and emerging market equities. Short (or inverse) exposure will generally not exceed an allocation of 30%.	0%	100%
Fixed Income	Provides exposure to domestic, international, and emerging fixed income markets, including corporate, government, and agency bonds.	0%	100%
Alternatives	Includes global exposure to real estate, currencies, and commodities. Allocations will generally not exceed 30% for each of these individual alternative strategies.	0%	90%

Multiple Global Asset Exposure
With fewer constraints, Global Macro strategies are able to pursue a targeted investing style. The goal of the Fund is to systematically identify and provide exposure to leading global market strategies. The following table highlights the global macro strategies that are monitored within the three market segments.

Equities		Fixed Income					Alternatives
U.S. Style Rotation U.S. Sector Rotation International Rotation Global Dividend Global Alpha Global Inverse		Global Inflation U.S. Treasury Rotation Global Income					Commodity Rotation Currency Rotation Global REIT

The fund may use futures to provide exposure to these strategies.

Profile		Market Data	as of 04/19/2018
Symbol	DWAT	NAV Price	$11.84
Exchange	NASDAQ OMX	NAV Price Change	$-0.01
Inception Date	10/01/2014	Market Price¹	$11.83
Cusip	042765792	Market Price Change	$0.00
Expense Ratio²	1.72%	Premium/Discount	-0.01
IOPV Ticker	DWAT.IV	Shares Outstanding	700,000
		Volume	12
		Total Net Assets	$8,288,000.00

*Holdings are subject to change. Holdings and percent of assets are based on security assets only, not including cash or receivables (unpaid interest and dividends).

¹Bid/Ask Midpoint as of market close.

²Total operating expenses (management fee and other expenses) are capped at 1.40% by a contractual waiver effective through 11/30/2018, subject to cap removal by Board approval upon 60 days notice. Before the fee cap, management fees are 1.00% and other expenses are 0.78% (fee waiver -0.38%). With acquired fund expenses of 0.32% and an operating fee cap of 1.40%, total fund expenses are 1.72% after fee waiver (2.10% total annual fund operating expense before waiver). Acquired fund fees will vary depending on the underlying investments and are not a direct expense of the fund.

Past performance is no guarantee of future results. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost.

ArrowShares are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns.

Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. ET when NAV is normally determined for most ArrowShares, and do not represent the returns you would receive if you traded shares at other times.

Glossary of Terms

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Market Data

Daily Month-End Quarter-End as of

	Total Returns (%)*
	NAV	Market Price¹
YTD	1.98	1.60
1 Month	-0.59	-0.45
3 Months	-3.82	-3.46
6 Months	5.22	5.19
1 Year	15.70	15.79
3 Years	5.26	5.19
5 Years	0.00	0.00
10 Years	0.00	0.00
Since Inception (10/01/2014)*	6.69	6.65

Calendar Year Returns
	Total Returns (%)*
	NAV	Market Price¹
2014²	6.81	6.65
2015	-5.39	-5.35
2016	5.00	4.87
2017	16.32	16.53

Fee & Expenses
Expense Type	Amount
Management Fees	1.00
Other Expenses	0.78
Acquired Fees	0.32
Total Fund Expenses³	1.72

*Periods under 1 year are not annualized

¹Bid/Ask Midpoint as of market close.

²Reflects partial calendar year 10/1/2014-12/31/2014.

³Total operating expenses (management fee and other expenses) are capped at 1.40% by a contractual waiver effective through 11/30/2018, subject to cap removal by Board approval upon 60 days notice. Before the fee cap, management fees are 1.00% and other expenses are 0.78% (fee waiver -0.38%). With acquired fund expenses of 0.32% and an operating fee cap of 1.40%, total fund expenses are 1.72% after fee waiver (2.10% total annual fund operating expense before waiver). Acquired fund fees will vary depending on the underlying investments and are not a direct expense of the fund.

Past performance is no guarantee of future results. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost.

ArrowShares are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns.

Total returns for the periods since inception are calculated from the inception date of the fund. "Average annualized total returns" represent the average annual change in value of an investment over the period indicated. "Cumulative total returns" represent the total change in value of an investment over the periods indicated.

Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. ET when NAV is normally determined for most ArrowShares, and do not represent the returns you would receive if you traded shares at other times.

Premium/Discount as of 04/19/2018

NAV	Market Price*	Premium/Discount	Trading Volume	30-Day Average Volume
$11.84	$11.83	-0.11%	12	11

Historical Data
Select a quarter
Greatest Premium N/A	N/A
Greatest Discount N/A	N/A
Days Within Percent of NAV
+0.5% & -0.5%	N/A
+0.5% & -0.5%	N/A%
Number of Days At
Premium	N/A
NAV	N/A
Discount	N/A

Export historical NAV/Market Price

*Bid/Ask Midpoint as of market close.

NAV and Market Price are usually calculated at 4:00 p.m. ET. Please refer to the ArrowShare's prospectus for more details on NAV determination.

Description
The above chart presents information about the difference between the daily market price for shares of the ArrowShare and the ArrowShare's net asset value. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the ArrowShare's NAV is calculated (usually 4:00 p.m. ET). The vertical axis of the chart shows the premium or discount expressed as a percentage of NAV. The horizontal axis indicates the number of trading days in the period covered by the chart. Each bar in the chart shows the number of trading days in which the ArrowShare traded within the premium/discount range indicated. Although market makers will generally take advantage of differences between the NAV and the trading price of ArrowShare shares through arbitrage opportunities, there is no guarantee that they will do so.

Why is there a difference between NAV and Market Price?
A major reason for the difference is that timing discrepancies can exist between the NAV and Market Price (Bid/Ask Midpoint) reported above. Information is constantly flowing to and among investors, corporations, and financial institutions that affects their outlook on the financial markets and the value of securities. This process, known as price discovery, is why market prices change and evolve throughout the trading day. It is important to note that even when markets are closed, the price discovery process continues 24 hours a day, 7 days a week, 365 days a year.

Possible Timing Discrepancies:

Close of Trading Times: The NAV of the ArrowShares normally is calculated using prices as of 4:00 p.m. ET. Each ArrowShare normally trades on its respective stock exchange until 4:00 p.m. ET.
Time of Last Trade: Trading generally takes place throughout the normal trading hours for ArrowShares on the listing exchange on which it is listed (generally 9:30 a.m. - 4:00 p.m. ET). At times, many trades are placed in rapid succession. At other times, little or no trading activity is taking place. It is important to note that the date/time of the last trade (which is recorded as the Closing Price) may not take place at exactly 4:00 p.m. ET when the ArrowShares normally calculate NAV. The date/time of the last trade sometimes may occur before 4:00 p.m. ET. Thus, ongoing price discovery may result in a deviation between the price recorded as the Closing Price and the NAV of the ArrowShare shares calculated at 4:00 p.m. ET. Therefore ArrowShares generally reports market price as the bid/ask midpoint at or near market close.

Glossary of Terms

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Before investing, please read the prospectus and shareholder reports to learn about the investment strategy and potential risks. Investing involves risk including loss of principal. An investor should also consider the investment objective, charges, expenses, and risk carefully before investing. This and other information is contained in the prospectus, which can be obtained by calling 1-877-277-6933. Please read the prospectus carefully before investing. Content reviewed by an affiliate, Archer Distributors, LLC.

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