OUSA

O’Shares FTSE U.S. Quality Dividend ETF

Why OUSA for Large Cap Quality Dividends?

Quality Advantages. Seek companies with strong balance sheets and profitability, for long-term investors.
Performance. High Quality Dividend paying companies provide a performance alternative to value investing.
Diversified Portfolio. Over 100 major companies selected according to measures of financial quality.

January 11, 2019/by Emily Vidal

Invest in Value, Not Value Traps?

January 8, 2019/by Emily Vidal

Game Plan for Late Cycle Investing: Quality Beats Value?

December 18, 2018/by Samantha Lim

Research Call | Dec 12 | 2019 Strategies

MARKET DATA AS OF	01/15/2019
NAV Price	$30.68
NAV Price Change	$0.19
Premium/Discount	$0.04
Market Price	$30.72
Market Price Change	$0.19
Shares Outstanding	13,650,000
Volume	94,380
Total Net Assets	$418,847,520

Profile
Symbol	OUSA
Listing Exchange	NYSE/ARCA
Inception Date	7/14/2015
CUSIP	67110P 407
Target Index Provider	FTSE Russell
Target Index Symbol	FUSYQVCF
IOPV Ticker	OUSA.IV
Expense Ratio	0.48%
30-Day SEC Yield¹	2.87%

Fund Investment Objective

The Fund seeks to track the performance (before fees and expenses) of its target index, the FTSE USA 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 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.

PERFORMANCE

Monthly Performance (as of 12/31/2018)	1 MTH	3 MTH	6 MTH	1 YR	QTD	YTD	SI
NAV	-8.01%	-7.69%	-0.63%	-3.06%	-7.69%	-3.06%	8.10%
Market Value	-7.90%	-7.67%	-0.69%	-3.18%	-7.67%	-3.18%	8.10%

Quarterly Performance (as of 12/31/2018)	1 MTH	3 MTH	6 MTH	1 YR	QTD	YTD	SI
NAV	-8.01%	-7.69%	-0.63%	-3.06%	-7.69%	-3.06%	8.10%
Market Value	-7.90%	-7.67%	-0.69%	-3.18%	-7.67%	-3.18%	8.10%

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 beyond 1 year are 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 generally based on market value 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.

HOLDINGS

DOWNLOAD HOLDINGS

Name (as of 01/15/2019)	Ticker	Sector	Fund Weight
Johnson & Johnson	JNJ	Health Care	4.92%
Exxon Mobil Corporation	XOM	Energy	4.82%
Procter & Gamble	PG	Consumer Goods	4.36%
Cisco Systems	CSCO	Technology	4.32%
Intel Corp	INTC	Technology	3.57%
Home Depot	HD	Consumer Services	3.06%
Chevron	CVX	Energy	2.98%
Pfizer	PFE	Health Care	2.87%
Merck & Co	MRK	Health Care	2.30%
AT&T	T	Telecommunications	2.29%
Verizon Communications	VZ	Telecommunications	2.25%
Pepsico	PEP	Consumer Goods	2.10%
Philip Morris International	PM	Consumer Goods	2.07%
Boeing	BA	Industrials	2.00%
Texas Instruments	TXN	Technology	1.90%
International Bus Machns.	IBM	Technology	1.84%
Simon Property Group	SPG	Financials	1.72%
Coca-Cola	KO	Consumer Goods	1.68%
McDonalds Corp	MCD	Consumer Services	1.67%
Starbucks	SBUX	Consumer Services	1.60%
Altria Group	MO	Consumer Goods	1.55%
Walmart	WMT	Consumer Services	1.51%
Public Storage	PSA	Financials	1.50%
3M Company	MMM	Industrials	1.50%
Marsh & Mclennan	MMC	Financials	1.42%
Amgen Corp	AMGN	Health Care	1.24%
Disney (Walt) Company	DIS	Consumer Services	1.23%
Lilly (Eli) & Co	LLY	Health Care	1.08%
Lockheed Martin Corp	LMT	Industrials	1.06%
AbbVie Inc	ABBV	Health Care	1.04%
Accenture Cl A	ACN	Industrials	0.99%
Bristol Myers Squibb	BMY	Health Care	0.92%
Prologis	PLD	Financials	0.90%
Union Pacific Corp	UNP	Industrials	0.89%
Colgate-Palmolive	CL	Consumer Goods	0.88%
Medtronic plc	MDT	Health Care	0.86%
Honeywell International Incorporatio	HON	Industrials	0.84%
Price (T. Rowe) Group	TROW	Financials	0.77%
NextEra Energy Inc	NEE	Utilities	0.72%
Automatic Data Process	ADP	Industrials	0.69%
Walgreens Boots Alliance	WBA	Consumer Services	0.67%
Duke Energy Corp	DUK	Utilities	0.67%
Kimberly-Clark	KMB	Consumer Goods	0.63%
Occidental Petroleum	OXY	Energy	0.62%
CVS Health Corporation	CVS	Consumer Services	0.59%
Southern Co	SO	Utilities	0.58%
United Technologies	UTX	Industrials	0.58%
Lowes Cos Inc	LOW	Consumer Services	0.58%
General Dynamics Corp	GD	Industrials	0.57%
Avalonbay Communities	AVB	Financials	0.56%
TJX Companies	TJX	Consumer Services	0.56%
Illinois Tool Wks	ITW	Industrials	0.50%
Paychex	PAYX	Industrials	0.46%
Dominion Energy	D	Utilities	0.45%
Waste Mgmt Inc	WM	Industrials	0.45%
Emerson Electric	EMR	Industrials	0.44%
Raytheon	RTN	Industrials	0.43%
Linde plc	LIN	Basic Materials	0.42%
Exelon Corporation	EXC	Utilities	0.40%
Schlumberger	SLB	Energy	0.40%
Cons Edison Holding	ED	Utilities	0.39%
American Elec Power Com	AEP	Utilities	0.39%
CASHUSD	CASHUSD	Cash	0.34%
Target Corp	TGT	Consumer Services	0.34%
Phillips 66	PSX	Energy	0.32%
Sempra Energy	SRE	Utilities	0.32%
Cummins	CMI	Industrials	0.31%
LyondellBasell Industries Cl A	LYB	Basic Materials	0.31%
Franklin Resources	BEN	Financials	0.29%
Extra Space Storage	EXR	Financials	0.29%
Sysco Corp	SYY	Consumer Services	0.29%
Public Svc Enterprise Group	PEG	Utilities	0.28%
XCEL Energy	XEL	Utilities	0.27%
Xilinx	XLNX	Technology	0.27%
Eaton Corp PLC	ETN	Industrials	0.26%
Air Products And Chemcom	APD	Basic Materials	0.26%
Carnival Corp A	CCL	Consumer Services	0.24%
DTE Energy	DTE	Utilities	0.24%
WEC Energy Group	WEC	Utilities	0.23%
Hershey Company	HSY	Consumer Goods	0.23%
Edison International	EIX	Utilities	0.23%
Clorox	CLX	Consumer Goods	0.22%
TE Connectivity	TEL	Industrials	0.22%
Host Hotels & Resorts	HST	Financials	0.22%
Arthur J Gallagher	AJG	Financials	0.22%
Yum Brands	YUM	Consumer Services	0.22%
Maxim Integrated Prod.	MXIM	Technology	0.21%
PPL Corporation	PPL	Utilities	0.21%
MSCI	MSCI	Financials	0.21%
FNF Group	FNF	Financials	0.21%
VF Corp	VFC	Consumer Goods	0.21%
Eversource Energy	ES	Utilities	0.19%
Fastenal Co	FAST	Industrials	0.19%
Omnicom Group	OMC	Consumer Services	0.19%
Ingersoll-Rand	IR	Industrials	0.19%
Darden Restaurants	DRI	Consumer Services	0.19%
Paccar	PCAR	Industrials	0.19%
Rockwell Automation	ROK	Industrials	0.18%
Ameren Corp	AEE	Utilities	0.17%
Evergy	EVRG	Utilities	0.17%
Entergy Corp	ETR	Utilities	0.17%
Kla-Tencor Corp	KLAC	Technology	0.17%
Firstenergy Corp.	FE	Utilities	0.16%
Parker-Hannifin	PH	Industrials	0.14%
CenterPoint Energy	CNP	Utilities	0.14%
Federal Realty Invs	FRT	Financials	0.14%
Amdocs	DOX	Technology	0.14%
CMS Energy Corp	CMS	Utilities	0.13%
Hormel Foods	HRL	Consumer Goods	0.13%
Kellogg	K	Consumer Goods	0.13%
American Water Works Company	AWK	Utilities	0.13%
Republic Services	RSG	Industrials	0.12%
Liberty Property Trust	LPT	Financials	0.12%
Cardinal Health	CAH	Health Care	0.11%
Pinnacle West Capital Corp	PNW	Utilities	0.11%
Hasbro	HAS	Consumer Goods	0.11%
J M Smucker	SJM	Consumer Goods	0.10%
Garmin Ltd	GRMN	Consumer Goods	0.10%
Alliant Energy	LNT	Utilities	0.10%
Interpublic Group Cos	IPG	Consumer Services	0.09%
Expeditors Intl Washington	EXPD	Industrials	0.09%
Campbell Soup	CPB	Consumer Goods	0.09%
Coca-Cola European Partners	CCEP	Consumer Goods	0.09%
Intl Flavours & Fragrances	IFF	Basic Materials	0.08%
Snap-On Inc	SNA	Industrials	0.08%
Molson Coors CL B	TAP	Consumer Goods	0.07%
ConAgra Brands Inc	CAG	Consumer Goods	0.07%
Ingredion	INGR	Consumer Goods	0.06%
Packaging Corp of America	PKG	Industrials	0.06%
Leggett & Platt	LEG	Consumer Goods	0.06%
Bunge	BG	Consumer Goods	0.05%
Autoliv	ALV	Consumer Goods	0.05%
Gentex Corp	GNTX	Consumer Goods	0.05%
Block (H & R) NPV	HRB	Consumer Services	0.04%
MDU Resources	MDU	Industrials	0.04%
Avangrid	AGR	Utilities	0.03%
Resideo Technologies	REZI	Industrials	0.02%
Southern Copper Corp.	SCCO	Basic Materials	0.02%
Garrett Motion	GTX	Consumer Goods	0.01%

SECTORS

Sector Allocation (as of 12/31/2018)	Weight
Health Care	16.03%
Consumer Goods	15.31%
Industrials	13.10%
Consumer Services	12.96%
Technology	12.36%
Energy	8.86%
Financials	8.58%
Utilities	7.06%
Telecommunications	4.38%
Basic Materials	1.11%
Cash	0.25%

DISTRIBUTIONS

Ex-Dividend	Record	Payable	Distribution Per Share
12/27/2018	12/28/2018	1/3/2019	0.115449
11/29/2018	11/30/2018	12/4/2018	0.077441
10/30/2018	10/31/2018	11/2/2018	0.081878
9/27/2018	9/28/2018	10/2/2018	0.107168
8/29/2018	8/31/2018	9/5/2018	0.0759
7/30/2018	7/31/2018	8/2/2018	0.062
6/26/2018	6/27/2018	6/29/2018	0.072
5/30/2018	5/31/2018	6/4/2018	0.072
4/27/2018	4/30/2018	5/2/2018	0.070
3/27/2018	3/29/2018	4/3/2018	0.079
2/27/2018	2/28/2018	3/2/2018	0.061
1/30/2018	1/31/2018	2/2/2018	0.046
12/22/2017	12/26/2017	12/29/2017	0.144
11/15/2017	11/16/2017	11/21/2017	0.069
10/16/2017	10/17/2017	10/20/2017	0.070
9/15/2017	9/18/2017	9/21/2017	0.060
8/15/2017	8/17/2017	8/21/2017	0.026
7/17/2017	7/19/2017	7/21/2017	0.029
6/15/2017	6/19/2017	6/21/2017	0.065
5/12/2017	5/17/2017	5/19/2017	0.019
4/17/2017	4/19/2017	4/21/2017	0.060
3/15/2017	3/17/2017	3/21/2017	0.074
2/15/2017	2/17/2017	2/22/2017	0.043
1/17/2017	1/19/2017	1/23/2017	0.026
12/23/2016	12/28/2016	12/30/2016	0.093
11/15/2016	11/17/2016	11/21/2016	0.067
10/17/2016	10/19/2016	10/21/2016	0.066
9/15/2016	9/19/2016	9/21/2016	0.061
8/15/2016	8/17/2016	8/19/2016	0.026
7/15/2016	7/19/2016	7/21/2016	0.040
6/15/2016	6/17/2016	6/21/2016	0.099
5/16/2016	5/18/2016	5/20/2016	0.018
4/15/2016	4/19/2016	4/21/2016	0.047
3/15/2016	3/17/2016	3/21/2016	0.073
2/16/2016	2/18/2016	2/22/2016	0.022
1/15/2016	1/20/2016	1/22/2016	0.024
12/24/2015	12/29/2015	12/31/2015	0.091
11/16/2015	11/18/2015	11/20/2015	0.049
10/15/2015	10/19/2015	10/21/2015	0.059
9/15/2015	9/17/2015	9/21/2015	0.069
8/17/2015	8/19/2015	8/21/2015	0.024

PREMIUM DISCOUNT

Date	Days	< -0.5%	-0.5% to 0%	0	0% to 0.5%	> 0.5%
2018	251	1	130	1	118	1
12/31/2018	63	1	22	0	39	1
9/30/2018	63	0	46	0	17	0
6/30/2018	64	0	41	0	23	0
3/31/2018	61	0	21	1	39	0
2017	252	25	100	0	111	16
12/31/2017	63	1	26	0	36	0
9/30/2017	63	1	30	0	32	0
6/30/2017	63	22	14	0	11	16
3/31/2017	63	1	30	0	32	0
2016	252	1	117	1	133	0
12/31/2016	63	1	30	0	32	0
9/30/2016	64	0	26	1	37	0
6/30/2016	64	0	31	0	33	0
3/31/2016	61	0	30	0	31	0
2015	121	3	44	0	74	0
12/31/2015	64	2	23	0	39	0
9/30/2015	57	1	21	0	35	0

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.

INVESTOR RESOURCES

Investor Materials
Fact Sheet
Prospectus
Summary Prospectus
SAI
Semi-Annual Report
Annual Report

OUSA RESEARCH | NEWS

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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. 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.

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

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.

Before you invest in O’Shares ETF Investments Funds, please refer to the prospectus for important information about the investment objectives, risks, charges and expenses. To obtain a prospectus containing this and other important information, please visit www.oshares.com to view or download a prospectus online. Read the prospectus carefully before you invest. There are risks involved with investing including the 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 Funds may use derivatives which may involve risks different from, or greater than, those associated with more traditional investments. The Funds’ 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 Funds’ purchase of such a company's securities. Returns on investments in foreign securities could be more volatile than, or trail the returns on, investments in U.S. securities. Exposures to foreign securities entail special risks, including political, diplomatic, economic, foreign market and trading risks. In addition, the Funds’ investments in securities denominated in other currencies could decline due to changes in local currency relative to the value of the U.S. dollar, which may affect the Funds’ returns. See the prospectus for specific risks regarding the Funds.
The securities of small capitalization companies are often more volatile and less liquid than the stocks of larger companies and may be more affected than other types of securities during market downturns. Compared to larger companies, small capitalization companies may have a shorter history of operations, and may have limited product lines, markets or financial resources.
Companies involved with the Internet, technology and e-commerce are exposed to risks associated with rapid advances in technology, obsolescence of current products and services, the finite life of patents and the constant threat of global competition and substitutes.
Past performance does not guarantee future results. Shares are bought and sold at market price (not NAV), are not individually redeemable, and owners of Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, consisting of 50,000 Shares. Brokerage commissions will reduce returns. The market price of Shares can be at, below, or above NAV. Brokerage commissions will reduce returns. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00 PM Eastern time (when NAV is normally determined), and do not represent the returns you would receive if you traded Shares at other times.

O’Shares ETF Investments Funds are distributed by Foreside Fund Services, LLC. Foreside Fund Services, LLC is not affiliated with O’Shares ETF Investments or any of its affiliates.