O’SHARES FTSE US QUALITY DIVIDEND ETF

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OUSA-Listed-ARCA-01

FUND INVESTMENT OBJECTIVE

The Fund employs a “passive management” or “rules based” investment approach that seeks to track the performance of the Target Index, before fees and expenses.

The Fund seeks to track the performance (before fees and expenses) of its target index, the FTSE US Qual / Vol / Yield Factor 5% Capped Index (the “Target Index”).

The Target 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 requirements for market capitalization, liquidity, high quality, low volatility and dividend yield, 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.

O'Shares FTSE US Quality Dividend ETF (OUSA) - Performance
Quarterly Performance
(as of 12/31/2016)
1 MTH3 MTH6 MTH1 YRQTDYTDSince
Inception
NAV %2.66%0.95%0.35%12.31%0.95%12.31%13.79%
Market Value %2.61%1.06%0.57%12.25%1.06%12.25%13.92%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized.

Shares of the Funds are not individually redeemable and the owners of Shares may purchase or redeem Shares from each Fund in Creation Units only. The purchase and sale price of individual Shares trading on an Exchange may be below, at or above the most recently calculated NAV for such Shares.

Market Price returns are based upon the midpoint of the bid/ask spread at 4:00PM Eastern time (when NAV is normally determined), and do not represent the returns you would receive if you traded shares at other times. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Some performance results reflect expense subsidies and waivers in effect during certain periods. Absent these waivers, results would have been less favorable.

IOPV = Indicative Optimized Portfolio Value (IOPV) is an estimated fair value based on most recent intraday price of underlying assets

HOLDINGS
Name
(as of 1/17/2017)
TickerSectorFund Weight
Apple Inc.AAPLTechnology5.67%
Johnson & JohnsonJNJHealth Care4.73%
Exxon Mobil CorporationXOMEnergy4.46%
Verizon CommunicationsVZTelecommunications3.78%
Microsoft CorpMSFTTechnology3.72%
Procter & GamblePGConsumer Goods3.56%
PfizerPFEHealth Care2.95%
AT&TTTelecommunications2.60%
Philip Morris InternationalPMConsumer Goods2.58%
Altria GroupMOConsumer Goods2.56%
Merck & CoMRKHealth Care2.42%
Intel CorpINTCTechnology2.23%
Coca-ColaKOConsumer Goods2.16%
Home DepotHDConsumer Services2.14%
PepsicoPEPConsumer Goods2.13%
McDonalds CorpMCDConsumer Services1.99%
Wal-Mart StoresWMTConsumer Services1.68%
3M CompanyMMMIndustrials1.67%
BoeingBAIndustrials1.61%
Simon Property GroupSPGFinancials1.60%
International Bus Machns.IBMTechnology1.50%
Public StoragePSAFinancials1.41%
Disney (Walt) CompanyDISConsumer Services1.29%
United Parcel ServiceUPSIndustrials1.15%
QualcommQCOMTechnology1.09%
Marsh & MclennanMMCFinancials1.02%
Crown Castle Intl CorpCCIFinancials1.01%
Lilly (Eli) & CoLLYHealth Care0.95%
Amgen CorpAMGNHealth Care0.92%
Texas InstrumentsTXNTechnology0.89%
Union Pacific CorpUNPIndustrials0.87%
United TechnologiesUTXIndustrials0.87%
Accenture Cl AACNIndustrials0.85%
Colgate-PalmoliveCLConsumer Goods0.84%
Medtronic plcMDTHealth Care0.81%
Automatic Data ProcessADPIndustrials0.75%
Abbott LaboratoriesABTHealth Care0.71%
Honeywell International IncorporationHONIndustrials0.71%
Bristol Myers SquibbBMYHealth Care0.69%
Target CorpTGTConsumer Services0.68%
Price (T. Rowe) GroupTROWFinancials0.68%
General Dynamics CorpGDIndustrials0.64%
Duke Energy CorpDUKUtilities0.61%
Southern CoSOUtilities0.61%
StarbucksSBUXConsumer Services0.61%
Lowes Cos IncLOWConsumer Services0.56%
Emerson ElectricEMRIndustrials0.53%
CASHUSDCASHUSDCash0.52%
NextEra Energy IncNEEUtilities0.51%
Kimberly-ClarkKMBConsumer Goods0.50%
Dominion ResourcesDUtilities0.47%
Avalonbay CommunitiesAVBFinancials0.46%
Sysco CorpSYYConsumer Services0.43%
General MillsGISConsumer Goods0.42%
PaychexPAYXIndustrials0.42%
TJX CompaniesTJXConsumer Services0.41%
Monsanto CompanyMONConsumer Goods0.40%
PraxairPXBasic Materials0.39%
Progressive CorpPGRFinancials0.38%
Illinois Tool WksITWIndustrials0.36%
Kimco Realty CpKIMFinancials0.36%
American Elec Power ComAEPUtilities0.35%
Equity ResidentialEQRFinancials0.35%
RaytheonRTNIndustrials0.34%
Public Svc Enterprise GroupPEGUtilities0.33%
Exelon CorporationEXCUtilities0.31%
Analog DevicesADITechnology0.31%
Northrop Grumman CorpNOCIndustrials0.30%
PG & E Corp.PCGUtilities0.30%
Franklin ResourcesBENFinancials0.30%
Air Products And ChemcomAPDBasic Materials0.29%
Cardinal HealthCAHConsumer Services0.27%
Cons Edison HoldingEDUtilities0.26%
Edison InternationalEIXUtilities0.26%
Yum BrandsYUMConsumer Services0.26%
PPL CorporationPPLUtilities0.25%
Western UnionWUFinancials0.25%
CumminsCMIIndustrials0.24%
Sempra EnergySREUtilities0.24%
Genuine PartsGPCConsumer Goods0.24%
Hershey CompanyHSYConsumer Goods0.24%
Waste Mgmt IncWMIndustrials0.24%
Omnicom GroupOMCConsumer Services0.23%
Rockwell AutomationROKIndustrials0.22%
XCEL EnergyXELUtilities0.22%
VF CorpVFCConsumer Goods0.21%
General Growth PropertiesGGPFinancials0.21%
Carnival Corp ACCLConsumer Services0.20%
Host Hotels & ResortsHSTFinancials0.20%
TE ConnectivityTELIndustrials0.20%
PaccarPCARIndustrials0.19%
CloroxCLXConsumer Goods0.18%
Dr Pepper Snapple GroupDPSConsumer Goods0.18%
Archer Daniels MidlandADMConsumer Goods0.17%
L BrandsLBConsumer Services0.17%
Eversource EnergyESUtilities0.17%
Darden RestaurantsDRIConsumer Services0.17%
Linear Technology CorpLLTCTechnology0.17%
Fastenal CoFASTIndustrials0.17%
CenturyLinkCTLTelecommunications0.16%
Everest Re GroupREFinancials0.16%
DTE EnergyDTEUtilities0.15%
Entergy CorpETRUtilities0.15%
Ameren CorpAEEUtilities0.15%
MacerichMACFinancials0.15%
Marriott InternationalMARConsumer Services0.14%
Federal Realty InvsFRTFinancials0.14%
Arthur J GallagherAJGFinancials0.14%
J M SmuckerSJMConsumer Goods0.14%
KelloggKConsumer Goods0.13%
Motorola SolutionsMSITechnology0.13%
C.H. Robinson WorldwideCHRWIndustrials0.13%
Grainger (W W)GWWIndustrials0.12%
Firstenergy Corp.FEUtilities0.12%
Maxim Integrated Prod.MXIMTechnology0.12%
Republic ServicesRSGIndustrials0.12%
Extra Space StorageEXRFinancials0.12%
Mead Johnson Nutrition Co.MJNConsumer Goods0.11%
Yum China HoldingsConsumer Services0.11%
Pinnacle West Capital CorpPNWUtilities0.10%
CenterPoint EnergyCNPUtilities0.10%
MattelMATConsumer Goods0.10%
CMS Energy CorpCMSUtilities0.10%
Liberty Property TrustLPTFinancials0.10%
Campbell SoupCPBConsumer Goods0.09%
CA IncCATechnology0.09%
American Water Works CompanyAWKUtilities0.09%
Alliant EnergyLNTUtilities0.09%
Church & DwightCHDConsumer Goods0.09%
SCANA CorpSCGUtilities0.09%
McCormick & CoMKCConsumer Goods0.09%
NordstromJWNConsumer Services0.08%
HasbroHASConsumer Goods0.08%
NisourceNIUtilities0.08%
Weingarten Realty InvestorsWRIFinancials0.08%
Expeditors Intl WashingtonEXPDIndustrials0.08%
Hormel FoodsHRLConsumer Goods0.08%
Brown-Forman BBF.BConsumer Goods0.07%
Foot Locker IncFLConsumer Services0.07%
Leggett & PlattLEGConsumer Goods0.07%
Coca-Cola European PartnersConsumer Goods0.07%
Block (H & R) NPVHRBConsumer Services0.07%
Wyndham WorldwideWYNConsumer Services0.07%
Broadridge Financial SolutionsBRIndustrials0.07%
Tiffany & CoTIFConsumer Services0.07%
Robert Half InternationalRHIIndustrials0.07%
Avery Dennison CorpAVYBasic Materials0.06%
Snap-On IncSNAConsumer Goods0.06%
Garmin LtdGRMNTechnology0.06%
Bemis CompanyBMSIndustrials0.05%
MDU ResourcesMDUIndustrials0.04%
Versum MaterialsVSMBasic Materials0.03%
Polaris IndsPIIConsumer Goods0.03%
AdvanSixASIXBasic Materials0.01%
Sector Allocation (as of 12/31/2016)Weight
Consumer Goods17.50%
Technology15.80%
Health Care14.14%
Industrials13.02%
Consumer Services11.57%
Financials9.17%
Telecommunications6.79%
Utilities6.09%
Energy4.64%
Basic Materials0.77%
Cash0.52%
O'Shares FTSE US Quality Dividend ETF (OUSA) - Distribution Schedule
RecordEx-DividendPayableDistribution Per Share
08/19/1508/17/1508/21/150.023461
09/17/1509/15/1509/21/150.069249
10/19/1510/15/1510/21/150.059988
11/18/1511/16/1511/20/150.049176
12/29/1512/24/1512/31/150.091246
01/20/1601/15/1601/22/160.023804
02/18/1602/16/1602/22/160.022009
03/17/1603/15/1603/21/160.073109
04/19/1604/15/1604/21/160.046983
05/18/1605/16/1605/20/160.018196
06/17/1606/15/1606/21/160.099665
07/19/1607/15/1607/21/160.040264
08/17/1608/15/1608/19/160.026462
09/19/1609/15/1609/21/160.061061
10/19/1610/17/1610/21/160.06598
11/17/1611/15/1611/21/160.06737
01/19/1701/17/1701/23/17TBA
02/17/1702/15/1702/22/17TBA
03/17/1703/15/1703/21/17TBA
04/19/1704/17/1704/21/17TBA
05/17/1705/15/1705/19/17TBA
06/19/1706/15/1706/21/17TBA
07/19/1707/17/1707/21/17TBA
08/17/1708/15/1708/21/17TBA
09/19/1709/15/1709/21/17TBA
10/18/1710/16/1710/20/17TBA
11/17/1711/15/1711/21/17TBA
NAV Premium/Discount History
DateDays< -0.5%-0.5% to 0%0%0% to 0.5%> 0.5%
20151213440740
     09/30/2015571210350
     12/31/2015642230390
2016
     03/31/2016610300310
     06/30/2016640310330
     09/30/2016640261370

Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares because shares are bought and sold at current market prices.

The above frequency distribution chart presents information about the difference between the daily market price for shares of the Fund and the Fund’s reported Net Asset Value. The amount that the Fund’s market price is above the reported NAV is called the premium. The amount that the Fund’s market price is below the reported NAV is called the discount. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated (usually 4:00 p.m. EST). The horizontal axis of the chart shows the premium or discount expressed in basis points. The vertical axis indicates the number of trading days in the period covered by the chart. Each bar in the chart shows the number of trading days in which the Fund traded within the premium/discount range indicated.

Volatility Reduction

Capital preservation is a core investment philosophy at O’Shares Investments and we believe managing the impact of volatility is a key component when considering long term investments. The FTSE US Qual/Vol/Yield Factor 5% index looks at the price and dividend history of each company, along with balance sheet metrics, and favors stocks exhibiting relatively high and sustainable yields with lower than average price volatility. During times of increased market volatility, our approach seeks to::

  • Reduce  portfolio losses during down markets
  • Capture portfolio performance during up markets
  • Produce attractive risk adjusted returns

Volatility is defined as: a statistical measure of risk. Volatility can either be measured by using the standard deviation (used by O’Shares) or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.

Source: Bloomberg, as of April 30, 2016. Past performance is not indicative of future results.

Market Data as of1/18/2017
NAV Price$27.60
NAV Price Change$0.01
Premium/Discount$0.00
Market Price$27.60
Market Price Change$0.01
Shares Outstanding13,000,001
Volume45,312
Total Net Assets$358,800,028
Profile 
SymbolOUSA
Listing ExchangeNYSE/ARCA
Inception Date7/14/2015
Cusip351680855
Target Index ProviderFTSE/Russell
Target Index SymbolFUSYQVCF
IOPV TickerOUSA.IV
Gross Expense Ratio0.49%
Net Expense Ratio0.48%
Portfolio Characteristicsas of 12/31/2016
30 Day SEC Yield12.46%
30 Day SEC Yield12.45% (Unsubsidized)
Investor Materials 
Fact SheetPDF
Summary ProspectusPDF
ProspectusPDF
SAIPDF
Semi-Annual ReportPDF
Annual ReportPDF
XBRLZIP

The Fund’s investment adviser, FFCM LLC (“Adviser”), has agreed to reimburse the Fund in an amount equal to the Fund’s allocable portion of the compensation and expenses of the Independent Trustees (including Independent Trustee counsel fees) until at least July 10, 2018.

1. The 30-day SEC yield is calculated with a standardized formula mandated by the SEC. The formula is based on maximum offering price per share and includes the effect of any fee waivers. Without waivers, yields would be reduced. The 30-day unsubsidized SEC yield does not reflect waivers in effect. A fund’s actual distribution rate will differ from the SEC yield and any income distributions from the fund may be higher or lower than the SEC yield.

There are risks involved with investing, including possible loss of principal. Concentration in a particular industry or sector will subject the Funds to loss due to adverse occurrences that may affect that industry or sector. The fund may use derivatives which may involve risks different from, or greater than, those associated with more traditional investments. The Fund’s emphasis on dividend-paying stocks involves the risk that such stocks may fall out of favor with investors and underperform the market. Also, a company may reduce or eliminate its dividend after the Fund’s purchase of such a company’s securities. See the prospectus for specific risks regarding the Fund.