Why OUSA? | O’Shares ETFs

Why OUSA for U.S. 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.

OUSA Since Inception

OUSA:
has only captured 70% of the S&P 500 market downside..
Lower risk:
OUSA has been less volatile than Value, Growth and the S&P 500.
Downside protection when it matters:
~30% less maximum drawdown than the S&P 500.

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Kevin O’Leary, O’Shares ETF Chairman & Shark Tank Investor

Which Portfolio Would Most Investors Prefer?

“Rules Based Quality” OUSA Index vs. Passive Index

Profitability (ROA) → More Profitability

OUSA Index, 10.4%

S&P 500 Index, 9.0%

Volatility → Less Volatility

OUSA Index, 10.6%

S&P 500 Index, 14.0%

Yield → Higher Portfolio Yield

OUSA Index, 3.1%

S&P 500 Index, 1.7%

Number of Stocks → ~70% of S&P 500 Index Excluded

139

OUSA Index

505

S&P 500 Index

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OUSA 30-day SEC Yield: 2.59%, as of 1/31/2020.

Past performance does not guarantee future results. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.

Left:
Source: Bloomberg Finance L.P., data as of 12/31/2019. Returns for periods longer than 1 year are annualized. Reference benchmark: S&P 500. Performance is measured as mean return. *S/I: Inception Date: 07/14/2015. Upside/Downside Capture: Since Inception 07/14/2015.

Right:
Source: Bloomberg Finance L.P., data as of 12/31/2019. OUSA Index: FTSE USA Qual/Vol/Yield Factor 5% Capped Index.

Definitions:
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.
Portfolio Yield: Weighted average dividend yield of the underlying constituents. Dividend Yield: The most recently announced gross dividend, annualized based on dividend frequency, then divided by the current market price.
ROA (Return on Assets): Indicator of how profitable a company is relative to its Total assets, in percentage. Calculated as (Trailing 12M Net Income/ Average Total Assets) x 100.

How to Buy O’Shares ETF: OUSA

ETFs are traded on major stock exchanges, much like shares of common stock. They can be bought and sold throughout the trading day, offering liquidity and ongoing valuations of each Fund’s holdings for investors. ETFs are typically tax-efficient and generally have lower costs than other investment alternatives, making them a great investment tool for investors.

Commissions and transaction costs may vary, so be sure to check on these costs.

Please contact your financial advisor or these firms directly for more information.

Trading can be executed through a self-directed account with many brokerage firms, such as:

OUSA: Top 10 Stocks

OUSA: Holdings

DOWNLOAD HOLDINGS

Name (As of 08/05/2020)	Security Name	Sector	Fund Weight
Apple Inc	AAPL US	Information Technology	6.8524%
Microsoft Corp	MSFT US	Information Technology	5.9191%
Home Depot Inc/The	HD US	Consumer Discretionary	5.3402%
Johnson & Johnson	JNJ US	Health Care	4.5719%
PepsiCo Inc	PEP US	Consumer Staples	3.9837%
Walt Disney Co/The	DIS US	Communication Services	3.6175%
S&P Global Inc	SPGI US	Financials	3.0992%
NextEra Energy Inc	NEE US	Utilities	2.8277%
Visa Inc	V US	Information Technology	2.803%
Honeywell International Inc	HON US	Industrials	2.5183%
UnitedHealth Group Inc	UNH US	Health Care	2.4898%
Mastercard Inc	MA US	Information Technology	2.1049%
Progressive Corp/The	PGR US	Financials	2.0507%
Amgen Inc	AMGN US	Health Care	2.0324%
Pfizer Inc	PFE US	Health Care	1.9185%
Starbucks Corp	SBUX US	Consumer Discretionary	1.9083%
McDonald's Corp	MCD US	Consumer Discretionary	1.8921%
Verizon Communications Inc	VZ US	Communication Services	1.6955%
Lockheed Martin Corp	LMT US	Industrials	1.6602%
TJX Cos Inc/The	TJX US	Consumer Discretionary	1.5885%
NIKE Inc	NKE US	Consumer Discretionary	1.5804%
Merck & Co Inc	MRK US	Health Care	1.5667%
T Rowe Price Group Inc	TROW US	Financials	1.4162%
3M Co	MMM US	Industrials	1.4075%
Cisco Systems Inc	CSCO US	Information Technology	1.3733%
Accenture PLC	ACN US	Information Technology	1.3184%
Moody's Corp	MCO US	Financials	1.1847%
Illinois Tool Works Inc	ITW US	Industrials	1.111%
Coca-Cola Co/The	KO US	Consumer Staples	1.0176%
Comcast Corp	CMCSA US	Communication Services	0.9884%
Costco Wholesale Corp	COST US	Consumer Staples	0.9613%
Texas Instruments Inc	TXN US	Information Technology	0.9226%
Danaher Corp	DHR US	Health Care	0.8936%
Eli Lilly and Co	LLY US	Health Care	0.8698%
Colgate-Palmolive Co	CL US	Consumer Staples	0.8656%
Procter & Gamble Co/The	PG US	Consumer Staples	0.8288%
Union Pacific Corp	UNP US	Industrials	0.8232%
United Parcel Service Inc	UPS US	Industrials	0.8067%
Altria Group Inc	MO US	Consumer Staples	0.7624%
AT&T Inc	T US	Communication Services	0.7428%
Philip Morris International In	PM US	Consumer Staples	0.7428%
Medtronic PLC	MDT US	Health Care	0.7416%
Marsh & McLennan Cos Inc	MMC US	Financials	0.7403%
Oracle Corp	ORCL US	Information Technology	0.728%
Intel Corp	INTC US	Information Technology	0.5914%
Lowe's Cos Inc	LOW US	Consumer Discretionary	0.5721%
MSCI Inc	MSCI US	Financials	0.5256%
International Business Machine	IBM US	Information Technology	0.4967%
Estee Lauder Cos Inc/The	EL US	Consumer Staples	0.4942%
Thermo Fisher Scientific Inc	TMO US	Health Care	0.4733%
Kimberly-Clark Corp	KMB US	Consumer Staples	0.4674%
Zoetis Inc	ZTS US	Health Care	0.4433%
FactSet Research Systems Inc	FDS US	Financials	0.4156%
Aon PLC	AON US	Financials	0.4137%
Bristol-Myers Squibb Co	BMY US	Health Care	0.4114%
Stryker Corp	SYK US	Health Care	0.4111%
JPMorgan Chase & Co	JPM US	Financials	0.3883%
American Express Co	AXP US	Financials	0.3531%
Cummins Inc	CMI US	Industrials	0.3477%
Intuit Inc	INTU US	Information Technology	0.3194%
Clorox Co/The	CLX US	Consumer Staples	0.3126%
Boeing Co/The	BA US	Industrials	0.3086%
Gilead Sciences Inc	GILD US	Health Care	0.3062%
Walmart Inc	WMT US	Consumer Staples	0.2994%
Abbott Laboratories	ABT US	Health Care	0.2855%
Ross Stores Inc	ROST US	Consumer Discretionary	0.2783%
Mondelez International Inc	MDLZ US	Consumer Staples	0.2716%
Hershey Co/The	HSY US	Consumer Staples	0.2614%
Waste Management Inc	WM US	Industrials	0.2407%
Rockwell Automation Inc	ROK US	Industrials	0.2402%
Automatic Data Processing Inc	ADP US	Information Technology	0.2372%
Eaton Corp PLC	ETN US	Industrials	0.236%
General Dynamics Corp	GD US	Industrials	0.2319%
Expeditors International of Wa	EXPD US	Industrials	0.2317%
Yum! Brands Inc	YUM US	Consumer Discretionary	0.2217%
Cintas Corp	CTAS US	Industrials	0.2215%
TE Connectivity Ltd	TEL US	Information Technology	0.2138%
Hormel Foods Corp	HRL US	Consumer Staples	0.2127%
Paychex Inc	PAYX US	Information Technology	0.2123%
Roper Technologies Inc	ROP US	Industrials	0.1987%
Northrop Grumman Corp	NOC US	Industrials	0.1972%
Baxter International Inc	BAX US	Health Care	0.1939%
PACCAR Inc	PCAR US	Industrials	0.1837%
Emerson Electric Co	EMR US	Industrials	0.1759%
Amphenol Corp	APH US	Information Technology	0.1678%
Sysco Corp	SYY US	Consumer Staples	0.1633%
Church & Dwight Co Inc	CHD US	Consumer Staples	0.1547%
Brown-Forman Corp	BF/B US	Consumer Staples	0.149%
Snap-on Inc	SNA US	Industrials	0.145%
L3Harris Technologies Inc	LHX US	Industrials	0.1333%
Constellation Brands Inc	STZ US	Consumer Staples	0.118%
Walgreens Boots Alliance Inc	WBA US	Consumer Staples	0.1141%
Cognizant Technology Solutions	CTSH US	Information Technology	0.1101%
Raytheon Technologies Corp	RTX US	Industrials	0.107%
Fidelity National Information	FIS US	Information Technology	0.0892%
Jack Henry & Associates Inc	JKHY US	Information Technology	0.0847%
Analog Devices Inc	ADI US	Information Technology	0.0778%
Motorola Solutions Inc	MSI US	Information Technology	0.0705%
US DOLLAR	{accrual} USD	Cash	0.0572%
Ingersoll Rand Inc	IR US	Industrials	0.0518%
US DOLLAR	{cash} USD	Cash	0.0419%

Holdings subject to change.

OUSA: Sector Allocation

Sector Allocations (As of 07/31/2020)	Weight
Information Technology	24.33%
Health Care	17.71%
Consumer Discretionary	13.44%
Consumer Staples	12.36%
Industrials	11.55%
Financials	10.8%
Communication Services	6.86%
Utilities	2.85%
Cash	0.10%

RESEARCH PAPER: U.S. LARGE & SMALL CAPS

The Power of a Quality Dividend Investment Strategy | Q1 2020

Dividends: The Most Powerful Force in the Universe

“Compound interest is the most powerful force in the universe.” – Albert Einstein
Dividend Growth has Generated Income Growth
Where Can Investors Turn For Income?
Why Quality Matters?

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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 view or download a prospectus. 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. A 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. 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, a Fund's 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 Fund's 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 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. 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.