Fund Description: AlphaClone Alternative Alpha ETF is an exchange-traded index fund or index ETF which is a separate portfolio of the ETF Series Solutions, an open-end investment management company. INVESTMENT OBJECTIVE: The AlphaClone Alternative Alpha ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the AlphaClone Hedge Fund Long/Short Index. INDEX DESCRIPTION: The AlphaClone Hedge Fund Long/Short Index is composed of U.S. equity securities selected based on a proprietary hedge fund position replication methodology developed by AlphaClone, LLC (the Index Provider). The methodology ranks issuers favored as investments by hedge funds and institutional investors based on the efficacy of replicating their publicly disclosed positions and selects equities from those managers with the highest ranking. Index constituents are equal weighted but have an overlap bias (i.e., holdings with twice the number of holders have twice the weight). The Index can vary from being 100% long to up to 50% short, also known as market hedged, based on market volatility targets defined by the methodology. The Index, and therefore the Fund, may take a defensive position and become market hedged (i.e., short) if one or more broad-based market indices close below their respective 200 day moving average at the end of any month. Short positions are used to hedge long positions and to seek positive returns. The Fund will either realize a profit or incur a loss from a short position, depending on whether the value of the underlying stock decreases or increases, respectively, between the time when it is sold and when the Fund replaces the borrowed security. FUND STRATEGY: The Fund uses a passive or indexing investment approach to track the Index. The Fund, under normal circumstances, invests at least 80% of its net assets in the equity securities that comprise the Index, which include, but are not limited to, common and preferred equity securities, depositary receipts, exchange-traded funds, real estate investment trusts and master limited partnerships. The Fund may invest the remainder of its assets in securities not included in the Index, but which the Sub-Adviser believes will help the Fund track the Index, or in financial instruments that provide long or short exposure to the Index. These financial instruments include, but are not limited to: exchange-traded options on securities, indices and futures contracts and short positions. On a day-to-day basis, the Fund also may hold short-term debt instruments that have terms-to-maturity of less than 397 days and exhibit high quality credit profiles, including U.S. government securities and repurchase agreements. Representative sampling is an approach that is used to try to achieve the Fund’s investment objective. Representative sampling is a passive indexing strategy that involves investing in a representative sample of component securities of the Index that collectively has an investment profile similar to the Index. In general, if the Fund is performing as designed, the return of the Index will dictate the return for the Fund. The Fund seeks to be fully invested at all times and Fund will concentrate its investment in a particular industry or group of industries to approximately the same extent as the Index is so concentrated. The Index is rebalanced quarterly. FUND MANAGEMENT: Exchange Traded Concepts, LLC serves as the investment adviser to the Fund. Index Management Solutions, LLC serves as sub-adviser to the Fund.