Arrow Funds Reserve Capital Management ETF (ARCM) - Conservative Ultra Short-Term Bond

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Arrow Reserve Capital Management ETF

Overview
Performance
Holdings
Distributions
Premium/Discount

Arrow Reserve Capital Management ETF
Conservative Ultra Short-Term Fixed Income Strategy

Investment Strategy
Seeks to preserve capital while maximizing current income.

Fund Highlights

Conservative ultra short-term fixed income
strategy

Designed to provide an alternative to low
yielding money market and non-yielding cash
positions

Sub-advised by Halyard Asset
Management, LLC

Conservative Ultra Short-Term Fixed Income
The Arrow Reserve Capital Management ETF (ARCM) is a conservative ultra short-term fixed income fund that invests in a variety of investment grade fixed income securities with maturities generally ranging from 0 to 2 years. The fund is sub-advised by Halyard Asset Management, LLC, leaders in reserve capital and fixed income strategies.

ARCM is actively managed in an attempt to maximize income potential without substantially increasing portfolio risk. The fund tries to identify holdings that offer an acceptable yield and return potential for a given level of credit risk and maturity.

Portfolio Exposure
Rather than being constrained to a narrow set of investments, ARCM's portfolio may provide exposure to a variety of domestic fixed income holdings including corporate, agency and government securities. The fund may also use futures and forward contracts in an attempt to gain exposure to a particular group of securities or asset class without actually purchasing those securities, or to hedge interest rate risk. In general, the fund has a flexible approach in order to achieve a conservative ultra short–term fixed income portfolio.

Duration is a measure used to estimate the sensitivity of a security's price to changes in interest rates—the longer a security's duration, the more sensitive it will be. The average duration of ARCM's portfolio is generally expected not to exceed eighteen months and will vary depending on interest rate forecasts and other market factors.

Reserve Capital Management
ARCM should appeal to investors who are looking for a choice beyond low yielding money markets and non-yielding cash positions. ARCM is a conservative ultra short-term fixed income fund and is not a money market fund. By taking a conservative approach to volatility and yield, ARCM intends to reduce the gap between cash/money market and the bond funds based on historical market yield and volatility.

Profile		Market Data	as of 12/04/2019
Symbol	ARCM	NAV Price	$100.27
Exchange	CBOE	NAV Price Change	$0.01
Inception Date	03/31/2017	Market Price¹	$100.23
Cusip	042765719	Market Price Change	$0.01
Net Expense Ratio³	0.42%	Premium/Discount	-0.04
IOPV Ticker	ARCM.IV	Shares Outstanding	560,000
		Volume	0
		Total Net Assets	$56,151,200.00

Analytics
30-Day SEC Yield²	2.06%
Distribution Rate²	2.39%
View all distributions

Gross Expense Ratio³

0.50%

¹Market Price or Bid/Ask Midpoint as of market close.

²SEC Yield and Distribution Rate calculations are based on most recent Ex-Date. Distribution Rate reflects the total distributions over the previous 12 months. SEC Yield and Distribution Rate may include income, dividends, return of capital, or other distributions that are not considered short-term or long-term capital gains. Return of capital is considered a return of the investment principal and is not derived from net profits.

³Total operating expenses are capped at 0.42% by a contractual waiver effective through 11/30/2019, subject to cap removal by Board approval upon 60 days notice. Before the fee waiver of -0.08%, expenses would include the 0.30% management fee and 0.20% other expenses, for a total expense of 0.50%.

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.

Shares of exchange traded products 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 exchange traded funds/products, and do not represent the returns you would receive if you traded shares at other times.

Glossary of Terms

AD-113018

Market Data

Daily Month-End Quarter-End as of

	Total Returns (%)*
	NAV	Market Price¹
YTD	2.54	2.59
1 Month	0.16	0.12
3 Months	0.49	0.56
6 Months	1.06	0.78
1 Year	2.56	2.48
3 Years	0.00	0.00
5 Years	0.00	0.00
10 Years	0.00	0.00
Since Inception (03/31/2017)*	1.82	1.77

Calendar Year Returns
	Total Returns (%)*
	NAV	Market Price¹
2017²	0.75	0.23
2018	1.58	1.33

Fee & Expenses
Expense Type	Amount
Management Fees	0.30
Other Expenses	0.20
Total Fund Expenses³	0.50

*Periods under 1 year are not annualized

¹Market Price or Bid/Ask Midpoint as of market close.

²Data reflects partial calendar year 3/31/2017-12/31/2017.

³Total operating expenses are capped at 0.42% by a contractual waiver effective through 11/30/2019, subject to cap removal by Board approval upon 60 days notice. Before the fee waiver of -0.08%, expenses would include the 0.30% management fee and 0.20% other expenses, for a total expense of 0.50%.

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.

Shares of exchange traded products 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 exchange traded products, and do not represent the returns you would receive if you traded shares at other times.

Holdings as of 12/04/2019 (Holdings are subject to change)

Name	Description	% Net Assets	Market Value ($)	Security ID	Country
US TREASURY FRN ADJ% 04/30/2021	U.S. GOVERNMENT	3.57	$1,999,121	9128286Q8	US
Martin Marietta Materials Inc 3.132630 12/20/2019	BOND	3.04	$1,703,115	573284AS5	US
Medtronic Inc 3.410880 03/15/2020	BOND	3.04	$1,702,974	585055BJ4	US
Citigroup Inc 3.374000 01/10/2020	BOND	2.73	$1,530,101	172967LE9	US
General Dynamics Corp 2.987000 05/11/2020	BOND	2.71	$1,516,294	369550BB3	US
Toyota Motor Credit Corp 2.784630 09/18/2020	BOND	2.66	$1,487,520	89236TFM2	US
Synchrony Financial 3.967500 02/03/2020	BOND	2.52	$1,409,021	87165BAF0	US
Wells Fargo Bank NA 3.257630 12/06/2019	BOND	2.44	$1,367,000	94988J5J2	US
Quest Diagnostics Inc 2.500000 03/30/2020	BOND	2.37	$1,327,881	74834LAW0	US
Allstate Corp/The 3.031000 03/29/2021	BOND	2.34	$1,312,096	020002BE0	US
RYDER SYSTEM INC 2.65% 03/02/2020	BOND	2.33	$1,305,160	78355HJY6	US
Campbell Soup Co 3.114630 03/16/2020	BOND	2.27	$1,270,666	134429BB4	US
PENNSYLVANIA ELECTRIC CO 5.20% 04/01/2020	BOND	2.26	$1,265,105	708696BW8	US
Home Depot Inc/The 2.748500 06/05/2020	BOND	2.25	$1,258,840	437076BR2	US
Stryker Corp 4.375000 01/15/2020	BOND	2.24	$1,254,086	863667AB7	US
General Motors Co 3.538500 08/07/2020	BOND	2.17	$1,215,269	37045VAM2	US
Branch Banking & Trust Co 3.237310 01/15/2020	BOND	2.17	$1,212,213	07330NAP0	US
ONTARIO (PROVINCE OF) 1.875% 05/21/2020	BOND	2.15	$1,204,203	68323ADH4	CA
Comcast Corp 2.921750 10/01/2020	BOND	2.13	$1,192,674	20030NCV1	US
JPMorgan Chase & Co 3.956630 10/29/2020	BOND	2.12	$1,186,414	46625HNY2	US
Consolidated Edison Inc 2.000000 03/15/2020	BOND	2.05	$1,144,904	209115AD6	US
Caterpillar Financial Services Corp 2.863750	BOND	2.01	$1,123,663	14913Q2K4	US
Penske Truck Leasing Co Lp / PTL Finance Corp	BOND	2.01	$1,122,631	709599AR5	US
Capital One Financial Corp 3.457750 05/12/2020	BOND	1.99	$1,113,390	14040HBQ7	US
TREASURY BILL 01/23/2020	U.S. GOVERNMENT	1.94	$1,087,797	912796TC3	US
LABORATORY CORP OF AMER 2.625% 02/01/20	BOND	1.91	$1,071,029	50540RAR3	US
PNC Bank NA 3.042880 05/19/2020	BOND	1.82	$1,016,550	69353RFD5	US
American Express Co 3.207880 05/17/2021	BOND	1.81	$1,014,248	025816BV0	US
TWDC Enterprises 18 Corp 2.745130 03/04/2020	BOND	1.79	$1,000,544	25468PDR4	US
UNITED STATES TREASURY BILL 01/09/2020	U.S. GOVERNMENT	1.78	$998,550	912796TA7	US
Arizona Public Service Co 2.200000 01/15/2020	BOND	1.78	$997,188	040555CR3	US
Caterpillar Financial Services Corp 2.896250	BOND	1.56	$874,911	14913Q2U2	US
Verizon Communications Inc 3.213380 05/22/2020	BOND	1.56	$873,836	92343VDZ4	US
Royal Bank of Canada 3.140500 04/30/2021	BOND	1.51	$846,177	78013XKH0	CA
Apple Inc 2.938500 02/07/2020	BOND	1.49	$835,399	037833CL2	US
BRISTOL-MYERS SQUIBB CO ADJ% 11/16/2020	BOND	1.43	$800,026	110122CE6	US
US TREASURY FRN ADJ% 07/31/2020	U.S. GOVERNMENT	1.43	$799,808	912828Y53	US
TREASURY BILL 02/06/2020	U.S. GOVERNMENT	1.43	$797,881	912796TE9	US
American Honda Finance Corp 3.031000 07/20/2020	BOND	1.34	$752,127	02665WBS9	US
AT&T Inc 2.450000 06/30/2020	BOND	1.25	$701,623	00206RCL4	US
Amgen Inc 3.147000 05/11/2020	BOND	1.23	$688,107	031162CN8	US
Goldman Sachs Group Inc/The 3.810880 09/15/2020	BOND	1.16	$650,823	38141GVQ4	US
Apple Inc 2.947000 02/07/2020	BOND	1.15	$642,353	037833AW0	US
Intel Corp 2.777000 05/11/2020	BOND	1.12	$625,208	458140BA7	US
Ford Motor Credit Co LLC 3.386630 06/12/2020	BOND	1.07	$600,229	345397YN7	US
Morgan Stanley 3.904750 01/27/2020	BOND	1.05	$589,926	61747YDX0	US
John Deere Capital Corp 2.908250 03/13/2020	BOND	0.98	$550,489	24422ETP4	US
MARRIOTT INTERNATIONAL ADJ% 12/01/2020	BOND	0.89	$499,073	571903AZ6	US
Estee Lauder Cos Inc/The 1.800000 02/07/2020	BOND	0.86	$481,808	29736RAL4	US
Cisco Systems Inc 4.450000 01/15/2020	BOND	0.85	$478,296	17275RAH5	US
DUKE ENERGY FLORIDA LLC ADJ% 11/26/2021	BOND	0.82	$459,633	26444HAG6	US
Capital One Financial Corp 3.200500 10/30/2020	BOND	0.66	$367,846	14040HBS3	US
Lockheed Martin Corp 2.500000 11/23/2020	BOND	0.54	$304,467	539830BF5	US
KANSAS CITY SOUTHERN 2.35% 05/15/2020	BOND	0.51	$285,214	485170AU8	US
Travelers Cos Inc/The 3.900000 11/01/2020	BOND	0.50	$279,854	89417EAG4	US
Apple Inc 2.767000 05/11/2020	BOND	0.48	$268,102	037833CT5	US
MORGAN STANLEY ADJ% 06/16/2020	BOND	0.46	$256,142	61761JB40	US
Ford Motor Credit Co LLC 3.592130 01/09/2020	BOND	0.44	$247,171	345397YF4	US
TWDC Enterprises 18 Corp 2.788500 06/05/2020	BOND	0.44	$244,160	25468PDT0	US
WEC ENERGY GROUP INC 2.45% 06/15/2020	BOND	0.33	$186,350	976657AK2	US
AT&T Inc 3.437310 01/15/2020	BOND	0.19	$107,096	00206RDU3	US
American Express Credit Corp 3.045130 03/03/2020	BOND	0.17	$95,058	0258M0EF2	US
US DOLLARS	CURRENCY	0.16	$86,883	Cash	US
TREASURY BILL 01/02/2020	U.S. GOVERNMENT	0.13	$74,914	912796RT8	US
AMERICAN EXPRESS CREDIT ADJ% 05/26/2020	BOND	0.13	$72,174	0258M0DU0	US
Microsoft Corp 1.850000 02/06/2020	BOND	0.13	$71,011	594918BV5	US
Goldman Sachs Group Inc/The 3.408250 12/13/2019	BOND	0.10	$55,009	38145GAK6	US
American Express Credit Corp 2.375000 05/26/2020	BOND	0.01	$6,010	0258M0DT3	US

Export holdings

NOTE: Holdings and percent net assets are based on security assets, ex-cash and receivables (unpaid interest and dividends).

Total allocation percentages may not equal 100% due to rounding, omission of holdings of less than 0.1%, cash, or receivables.

Distributions as of 12/04/2019

Ex-Date	Record Date	Payable Date	S.T. Cap Gains	Income/Other*	Total Distribution*
11/01/2019	11/04/2019	11/11/2019	0	0.1811	0.1811
10/01/2019	10/02/2019	10/07/2019	0	0.1776	0.1776
09/03/2019	09/04/2019	09/09/2019	0	0.1776	0.1776
08/01/2019	08/02/2019	08/07/2019	0	0.2068	0.2068
07/01/2019	07/02/2019	07/08/2019	0	0.1776	0.1776
06/03/2019	06/04/2019	06/10/2019	0	0.2070	0.2070
05/01/2019	05/02/2019	05/07/2019	0	0.2181	0.2181
04/01/2019	04/02/2019	04/08/2019	0	0.2019	0.2019
03/01/2019	03/04/2019	03/11/2019	0	0.1871	0.1871
02/01/2019	02/04/2019	02/11/2019	0	0.2368	0.2368
12/24/2018	12/26/2018	01/02/2019	0	0.2354	0.2354
12/03/2018	12/04/2018	12/10/2018	0	0.1834	0.1834
11/01/2018	11/02/2018	11/07/2018	0	0.2056	0.2056
10/01/2018	10/02/2018	10/08/2018	0	0.1584	0.1584
09/04/2018	09/05/2018	09/10/2018	0	0.1748	0.1748
08/01/2018	08/02/2018	08/07/2018	0	0.1810	0.1810
07/02/2018	07/03/2018	07/09/2018	0	0.1641	0.1641
06/01/2018	06/04/2018	06/11/2018	0	0.1649	0.1649
05/01/2018	05/02/2018	05/07/2018	0	0.1356	0.1356
04/02/2018	04/03/2018	04/09/2018	0	0.1214	0.1214
03/01/2018	03/02/2018	03/07/2018	0	0.1131	0.1131
02/01/2018	02/02/2018	02/07/2018	0	0.0625	0.0625
12/26/2017	12/27/2017	01/02/2018	0.0120	0.1531	0.1651
11/01/2017	11/02/2017	11/07/2017	0	0.0963	0.0963
10/02/2017	10/03/2017	10/09/2017	0	0.0211	0.0211
09/01/2017	09/05/2017	09/11/2017	0	0.0273	0.0273
08/01/2017	08/03/2017	08/08/2017	0	0.0149	0.0149
07/03/2017	07/05/2017	07/10/2017	0	0.0120	0.0120
06/01/2017	06/05/2017	06/12/2017	0	0.0115	0.0115

Export distributions

Distribution Schedule (PDF)

*Income/Other and Total Distribution may include income, dividends, return of capital, or other forms of payment. Return of capital is considered a return of the investment principal and is not derived from net profits.

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.

Past distributions are not indicative of future distributions. There is no guarantee a distribution will occur. Shares of funds are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns.

Glossary of Terms

Premium/Discount as of 12/04/2019

NAV	Market Price*	Premium/Discount	Trading Volume	30-Day Average Volume
$100.27	$100.23	-0.04%	0	132.6

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

*Market Price or Bid/Ask Midpoint as of market close.

Net asset value (NAV) and Market Price are usually calculated at 4:00 p.m. ET. Please refer to the prospectus for more details on NAV determination.

Description
The above chart presents information about the difference between the daily market price and the NAV. 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 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 shares traded within the premium/discount range indicated. Although market makers will generally take advantage of differences between the NAV and the trading price of 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 is generally calculated using prices as of 4:00 p.m. ET. Each exchange traded product 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 the listing exchange on which the exchange traded product 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 takes 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 NAV is normally calculated. 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 calculated at 4:00 p.m. ET. Therefore, the reported closing market price used here is generally the bid/ask midpoint at or near market close.

Glossary of Terms