You understand and acknowledge that in using Prebuilt Mutual Fund Portfolios, you are choosing to enter a series of mutual fund orders allocated across a group of mutual funds that you have selected. Mutual funds trade only once per trading day after the close of regular trading hours (typically 4:00 p.m. ET subject to market holidays) and are executed at the next available net asset value ("NAV"), which is typically posted by 6:00 p.m. ET. The NAV at which your order executes may be higher or lower than the previous day's closing NAV. The estimated quantities and amounts per mutual fund share are for illustration purposes only and the actual quantities and amounts purchased may vary due to market conditions. E*TRADE has developed a Mutual Fund Screener to help you learn more about and search for additional mutual funds. This screener may be found at https://www.etrade.wallst.com/Research/Screener/MutualFund/.

You understand that the Prebuilt Mutual Fund Portfolios program is a self-directed educational program designed to assist you in identifying investment strategies and allocations based solely on criteria that you define. This program is not designed to yield results specific to your financial situation, risk tolerance, or liquidity needs and should not be relied upon, in any way, to determine the suitability of an investment for you. Before buying or selling any investment, you should carefully consider your financial situation, risk tolerance, and liquidity needs, and determine on your own whether the investment strategy, including the particular mutual funds and allocations, is suitable for you. Past performance is not indicative of future results.

Diversification and asset allocation strategies do not ensure profit or protect against loss. Investments in securities and other instruments involve risk and will not always be profitable.

Prebuilt Mutual Fund Portfolios do not utilize any rebalancing methodologies. Also, these portfolios will not be rebalanced when deposits or withdrawals are made. A rebalancing strategy seeks to minimize relative risk by aligning the portfolio to a target asset allocation as the portfolio's asset allocation changes. Not rebalancing a portfolio may over time change its risk and return characteristics. Furthermore, strategies that do not rebalance may not address prolonged changes in market conditions. You are responsible for monitoring your investments and their performance.

Morgan Stanley Smith Barney LLC and its affiliates do not provide tax advice, and you always should consult your own tax advisor regarding your personal circumstances before taking any action that may have tax consequences.

The investment return and principal value of an investment will fluctuate, so that an investor's shares, when sold, may be worth more or less than their original cost. Investors should carefully consider the investment objectives, risks, charges, fees and expenses of any mutual fund before investing. For more detailed discussion about the risks of investing in a mutual fund, as well as the fund's investment objectives, policies, charges, and expenses, please read the fund's prospectus. To obtain the most recent prospectus, please visit the Mutual Funds Center at www.etrade.com/mutualfunds.

The individual investments in each portfolio, which may include Choice List Mutual Funds, are handpicked by the investment strategy team at Morgan Stanley Smith Barney LLC. The investment strategy team consists of seasoned financial service industry professionals each with a minimum of 10 years of experience. This team, part of Morgan Stanley's Global Investment Office, supports the Investment Policy Committee, constructs allocations for managed portfolios, establishes rebalancing methodologies, and conducts ongoing due diligence on model managers, portfolio managers, co-advisors and investment portfolios.

The Choice Mutual Funds List is a cost- and volatility-aware list of select mutual funds across certain asset categories designed to help you with investing. The selected actively managed mutual funds on the Choice Mutual Funds List typically have at least a three year track record, greater than $20 million in assets and compare favorably against their peers based on historical returns, risk, expenses, manager tenure, style consistency, and asset size. The Choice Mutual Funds List is selected from the universe of mutual fund share classes offered through E*TRADE. An assessment, performed by our affiliate, Morgan Stanley Smith Barney, LLC, evaluates each fund’s investment philosophy and process, risk management, and the managing investment firm. The list can include affiliated products as further described below. The Choice Mutual Funds List can be amended at any time upon our discretion. E*TRADE will not notify you if we have added or removed a mutual fund from the Choice Mutual Funds List.

The List’s calculation framework takes into consideration the following factors, applied on a weighted average: composite long-term performance relative to the applicable peer group; composite risk score of applicable peer group average, the fund manager’s success ratio (the percentage of funds that rank above average over a 3-year period) and average and long-term manager tenure, the applicable peer group expense ratio rank; the composite style score relative to the applicable peer group; and the length of the track record. Thereafter, MSSB conducts a qualitative review to further hone the List.