Fund Description: O'Shares FTSE U.S. Quality Dividend ETF 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 O'Shares FTSE U.S. Quality Dividend ETF seeks to provide investment returns that closely correspond to the price and yield performance of the FTSE U.S. Qual/Vol/5% Capped Factor Index. INDEX DESCRIPTION: The FTSE U.S. Qual/Vol/5% Capped Factor Index is designed to measure the performance of publicly-listed large-capitalization and mid-capitalization dividend-paying issuers in the United States that meet certain market capitalization, liquidity, high quality, low volatility and dividend yield thresholds, as determined by FTSE-Russell (the Index Provider). The high quality and low volatility requirements are designed to reduce exposure to high dividend equities that have experienced large price declines, as may occur with some dividend investing strategies. The constituents of the Index are selected from the FTSE USA Index, comprised of 600 of the largest U.S. publicly-listed equities. The Index Provider selects and weights securities for the Index based on a proprietary approach that combines the following three factors: 1) high quality, including measures of profitability, operating efficiency, earnings quality and leverage, 2) low volatility, and 3) high dividend yield for the twelve months preceding each annual reconstitution. Individual index constituent weights are capped at 5% at each quarterly rebalance to avoid overexposure to any single security, and are tested for liquidity semi-annually. The Index’s investable universe includes real estate investment trusts (REITs). FUND STRATEGY: The Fund employs a passive management or rules based investment approach that seeks to track the performance of the Index. The Fund expects to employ a representative sampling strategy which means it will typically invest in a portfolio of investments that collectively has an investment profile similar to the Index, rather than holding all of the investments in the Index. Under normal market conditions, the Fund will invest at least 80% of its total assets in the components of the Index. To the extent that the Index concentrates (i.e., holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund is expected to concentrate to approximately the same extent. The Fund may invest up to 20% of its net assets in investments not included in the Index, but which the Adviser believes will help the Fund track the Index. FUND MANAGEMENT: FFCM LLC serves as the investment adviser to the Fund.