Fund Description: QuantShares Hedged Dividend Income 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 Hedged Dividend Income Fund seeks performance results that correspond to the price and yield performance, before fees and expenses, of the INDXX Hedged Dividend Income Index. INDEX DESCRIPTION: The INDXX Hedged Dividend Income Index is designed to generate a high current yield and capital appreciation with risk similar to that of a corporate bond index. The Index rebalances monthly by identifying the highest dividend stocks as long positions, and the lowest dividend stocks as short positions. The Index invests in stocks with stable or growing dividends that trade at high yields; to reduce risk the Index shorts stocks in each sector which have unstable or low dividends. The Index in 100% long and 50% short at the time of rebalances. The maximum weight for any sector in the long portfolio is 25% and 15% for industries. Sector and industry weights in the short portfolio are 50% of the size of the long sector weights. The Index has 100 long positions and approximately 150-200 short positions. FUND STRATEGY: The Fund will invest at least 80% of its net assets (plus borrowings for investment purposes) in common stocks, including the short positions, in the Index. A sampling strategy may be used which involves investing in a representative sample of the long and short positions in the Index that, collectively, have an investment profile correlated with the Index. The weightings of the long and short positions in the Fund’s portfolio may differ from their weightings in the Index. The Fund may invest up to 20% of its total assets in instruments other than the long and short positions in the Index. Such instruments are expected to include long and short common stocks not in the Index, derivatives, including swap agreements and futures contracts on equity indexes and money market instruments. FUND MANAGEMENT: FFCM LLC serves as the Fund's investment adviser.