Fund Description: QuantShares U.S. Market Neutral Anti-Beta Fund is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the FQF Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The QuantShares U.S. Market Neutral Anti-Beta Fund seeks performance results that correspond to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Thematic Market Neutral Anti-Beta Total Return Index. INDEX DESCRIPTION: The Dow Jones U.S. Thematic Market Neutral Anti-Beta Total Return Index is a market neutral index that is dollar-neutral. As such, it identifies long and short securities positions of approximately equal dollar amounts. The universe for the Target Anti-Beta Index is the top 1,000 eligible securities by market capitalization in the Dow Jones U.S. Index (universe). The securities included in the universe are categorized as belonging to one of 10 sectors. The Index identifies approximately the 20% of the securities with the lowest betas within each sector as equal-weighted long positions and approximately the 20% of securities with the highest betas within each sector as equal-weighted short positions. Beta measures the relative volatility of the value of a security compared with that of a market index; beta is calculated using historical market index data. A stock’s beta is based on its sensitivity to weekly market movements over the last twelve months as measured by its price movements relative to those of the universe as a whole. High beta stocks are those stocks that are more volatile than the market index, and low beta stocks are those stocks that are less volatile than the market index. FUND STRATEGY: The Fund seeks to track the performance of the Index by investing at least 80% of its net assets (plus any borrowings for investment purposes) in common stock, including the short positions, in the Index. In choosing to track a market neutral index, the Fund seeks to limit the effects of general market movements on the Fund and to limit the correlation of the performance of the Fund with the market’s overall movements. For the Fund, anti-beta investing entails investing in securities that have below-average betas and shorting securities that have above-average betas. The performance of the Fund will depend on the differences in the rates of return between these long positions and short positions. The Fund expects to invest up to 20% of its total assets in instruments other than the long and short positions in the Index which the Fund's investment adviser believes will help the Fund track its Index. Such instruments are expected to include long and short common stocks not in the Index, derivatives, including swap agreements based on the Index and futures contracts on equity indexes and money market instruments. FUND MANAGEMENT: FFCM LLC serves as the Fund's investment adviser and takes a team approach to managing the day-to-day management of the Fund’s portfolio. The Portfolio Managers are responsible for various functions related to portfolio management, including investing cash inflows, implementing investment strategy, researching and reviewing investment strategy and overseeing members of his or her portfolio management team with more limited responsibilities.