Fund Description: QuantShares U.S. Market Neutral Momentum 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 Momentum 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 Momentum Total Return Index. INDEX DESCRIPTION: The universe for the Dow Jones U.S. Thematic Market Neutral Momentum Total Return 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 highest momentum within each sector as equal-weighted long positions and approximately the 20% of securities with the lowest momentum within each sector as equal-weighted short positions. A stock’s momentum is based on its total return, which is a function of price performance and dividend returns over the first twelve of the last thirteen months. High momentum stocks are those stocks with higher total returns, and low momentum stocks are those stocks with lower total returns. The Index, which is compiled by Dow Jones Indexes, is equal-weighted and sector neutral meaning that at each reconstitution of the Index, all of the components of the Index are equal-weighted and the number of long and short positions in each sector in the Index approximate the weighting of that sector in the universe. For example, if a sector in the universe comprises 100 securities, the Index would identify the 20 securities with the highest momentum within that sector as long positions and the 20 securities with the lowest momentum within that sector as short positions. If between reconstitutions the value of short positions in the Index exceeds the value of the long positions by an amount that is established by the index provider, the Index will be rebalanced back to equal weights and sector neutrality. The Index is reconstituted monthly. 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. The Index is a market neutral index that is dollar-neutral. As such, it identifies long and short securities positions of approximately equal dollar amounts. 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. Although it is expected that the Fund’s assets will be invested in all of the long and short positions that comprise the Index, the Fund may use a sampling strategy to track the performance of the Index. A sampling strategy 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. In either case, the weightings of the long and short positions in the Fund’s portfolio may differ from their weightings in the Index. For the Fund, momentum investing entails investing in securities that have had above-average recent returns and shorting securities that have had below-average recent returns. The performance of the Fund will depend on the differences in the rates of return between its long positions and short positions. 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.