Why OUSM | O’Shares ETFs

Why OUSM for U.S. Small Cap Quality Dividends?

Quality Advantages
Over 200 small cap stocks selected for quality, strong balance sheets and profitability.

Performance
Seeks less volatile approach to invest in small cap companies.

Use as Core Holding
Attractive long-term quality approach for investing in small caps, seeking income and less risk potential.

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

Which Portfolio Would Most Investors Prefer?

“Rules Based Quality” OUSM Index vs. Passive Index

Profitability (ROA) → More Profitability

OUSM Index, 7.8%

Russell 2000 Index, -0.3%

Volatility → Less Volatility

OUSM Index, 14.5%

Russell 2000 Index, 17.3%

Yield → Higher Portfolio Yield

OUSM Index, 2.7%

Russell 2000 Index, 1.3%

Market Cap ($ Billions) → Higher Market Cap

$4.7 B

OUSM Index

$2.4 B

Russell 2000 Index

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OUSM 30-day SEC Yield: 2.39%, as of 1/31/2020.

Past performance does not guarantee future results. The referenced indices are shown for informational purposes only and are not meant to represent the Fund. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.

Source: Bloomberg Finance L.P. Finance L.P., data as of 12/31/2019. OUSM Index: FTSE USA Small Cap ex Real Estate 2Qual/Vol/Yield 3% Capped Factor 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.
Volatility: A measure of the risk of price moves for a security calculated from the standard deviation of day to day logarithmic historical price changes. The 260-day price volatility equals the annualized standard deviation of the relative price change for the 260 most recent trading days closing price, expressed as a percentage. Commonly, the higher the volatility, the riskier the security.

How to Buy O’Shares ETF: OUSM

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:

OUSM: Top 10 Stocks

OUSM: Holdings

DOWNLOAD HOLDINGS

Name (As of 04/03/2020)	Ticker	Sector	Fund Weight
Cypress Semiconductor Corp	CY	Information Technology	3.52%
Encompass Health Corp	EHC	Health Care	2.97%
Monolithic Power Systems Inc	MPWR	Information Technology	2.80%
LogMeIn Inc	LOGM	Information Technology	2.52%
Watsco Inc	WSO	Industrials	2.48%
Graco Inc	GGG	Industrials	2.00%
Cabot Microelectronics Corp	CCMP	Information Technology	1.83%
Jack Henry & Associates Inc	JKHY	Information Technology	1.81%
Cogent Communications Holdings	CCOI	Communication Services	1.71%
Eaton Vance Corp	EV	Financials	1.69%
AO Smith Corp	AOS	Industrials	1.61%
FactSet Research Systems Inc	FDS	Financials	1.55%
MKS Instruments Inc	MKSI	Information Technology	1.47%
Healthcare Services Group Inc	HCSG	Industrials	1.47%
Toro Co/The	TTC	Industrials	1.40%
National Instruments Corp	NATI	Information Technology	1.37%
Lincoln Electric Holdings Inc	LECO	Industrials	1.33%
Reliance Steel & Aluminum Co	RS	Materials	1.23%
Williams-Sonoma Inc	WSM	Consumer Discretionary	1.23%
Progress Software Corp	PRGS	Information Technology	1.22%
Kulicke & Soffa Industries Inc	KLIC	Information Technology	1.22%
Lazard Ltd	LAZ	Financials	1.20%
Lennox International Inc	LII	Industrials	1.13%
Sonoco Products Co	SON	Materials	1.08%
NIC Inc	EGOV	Information Technology	1.02%
First American Financial Corp	FAF	Financials	1.01%
Donaldson Co Inc	DCI	Industrials	1.00%
Patterson Cos Inc	PDCO	Health Care	0.91%
Cracker Barrel Old Country Sto	CBRL	Consumer Discretionary	0.89%
MSC Industrial Direct Co Inc	MSM	Industrials	0.89%
Federated Hermes Inc	FHI	Financials	0.86%
Janus Henderson Group PLC	JHG	Financials	0.86%
Carlisle Cos Inc	CSL	Industrials	0.82%
Carter's Inc	CRI	Consumer Discretionary	0.82%
Evercore Inc	EVR	Financials	0.82%
Power Integrations Inc	POWI	Information Technology	0.81%
FLIR Systems Inc	FLIR	Information Technology	0.81%
Texas Roadhouse Inc	TXRH	Consumer Discretionary	0.80%
Thor Industries Inc	THO	Consumer Discretionary	0.75%
RPM International Inc	RPM	Materials	0.74%
Moelis & Co	MC	Financials	0.73%
UGI Corp	UGI	Utilities	0.73%
MSA Safety Inc	MSA	Industrials	0.70%
OGE Energy Corp	OGE	Utilities	0.69%
Lancaster Colony Corp	LANC	Consumer Staples	0.67%
Simpson Manufacturing Co Inc	SSD	Industrials	0.65%
Dolby Laboratories Inc	DLB	Information Technology	0.64%
Huntsman Corp	HUN	Materials	0.61%
WD-40 Co	WDFC	Consumer Staples	0.60%
Dunkin' Brands Group Inc	DNKN	Consumer Discretionary	0.58%
MAXIMUS Inc	MMS	Information Technology	0.58%
Artisan Partners Asset Managem	APAM	Financials	0.58%
Brady Corp	BRC	Industrials	0.56%
nVent Electric PLC	NVT	Industrials	0.55%
Oshkosh Corp	OSK	Industrials	0.54%
Essential Utilities Inc	WTRG	Utilities	0.52%
Valvoline Inc	VVV	Materials	0.51%
MGIC Investment Corp	MTG	Financials	0.50%
Steven Madden Ltd	SHOO	Consumer Discretionary	0.49%
Louisiana-Pacific Corp	LPX	Materials	0.49%
LPL Financial Holdings Inc	LPLA	Financials	0.48%
NewMarket Corp	NEU	Materials	0.46%
Flowers Foods Inc	FLO	Consumer Staples	0.46%
Hawaiian Electric Industries I	HE	Utilities	0.45%
ITT Inc	ITT	Industrials	0.45%
ManTech International Corp/VA	MANT	Information Technology	0.44%
Exponent Inc	EXPO	Industrials	0.44%
IDACORP Inc	IDA	Utilities	0.44%
Hillenbrand Inc	HI	Industrials	0.43%
Allison Transmission Holdings	ALSN	Industrials	0.43%
New Jersey Resources Corp	NJR	Utilities	0.40%
Portland General Electric Co	POR	Utilities	0.40%
Domtar Corp	UFS	Materials	0.40%
Cohen & Steers Inc	CNS	Financials	0.40%
Cabot Corp	CBT	Materials	0.39%
ONE Gas Inc	OGS	Utilities	0.39%
Wyndham Destinations Inc	WYND	Consumer Discretionary	0.38%
John Wiley & Sons Inc	JW/A	Communication Services	0.37%
ABM Industries Inc	ABM	Industrials	0.37%
Cheesecake Factory Inc/The	CAKE	Consumer Discretionary	0.37%
Waddell & Reed Financial Inc	WDR	Financials	0.37%
American Eagle Outfitters Inc	AEO	Consumer Discretionary	0.37%
Dick's Sporting Goods Inc	DKS	Consumer Discretionary	0.35%
ALLETE Inc	ALE	Utilities	0.33%
Hanover Insurance Group Inc/Th	THG	Financials	0.32%
Vector Group Ltd	VGR	Consumer Staples	0.31%
HNI Corp	HNI	Industrials	0.31%
New York Community Bancorp Inc	NYCB	Financials	0.30%
Safety Insurance Group Inc	SAFT	Financials	0.30%
Olin Corp	OLN	Materials	0.30%
KAR Auction Services Inc	KAR	Industrials	0.30%
Wendy's Co/The	WEN	Consumer Discretionary	0.29%
National Fuel Gas Co	NFG	Utilities	0.29%
FirstCash Inc	FCFS	Financials	0.28%
Spire Inc	SR	Utilities	0.27%
Universal Corp/VA	UVV	Consumer Staples	0.27%
Forrester Research Inc	FORR	Industrials	0.27%
Cal-Maine Foods Inc	CALM	Consumer Staples	0.26%
Badger Meter Inc	BMI	Information Technology	0.26%
Compass Minerals International	CMP	Materials	0.26%
Applied Industrial Technologie	AIT	Industrials	0.25%
Delek US Holdings Inc	DK	Energy	0.25%
TCF Financial Corp	TCF	Financials	0.25%
Franklin Electric Co Inc	FELE	Industrials	0.25%
Spectrum Brands Holdings Inc	SPB	Consumer Staples	0.25%
Crane Co	CR	Industrials	0.25%
Herman Miller Inc	MLHR	Industrials	0.24%
Kaiser Aluminum Corp	KALU	Materials	0.24%
Forward Air Corp	FWRD	Industrials	0.23%
Macquarie Infrastructure Corp	MIC	Industrials	0.22%
CVB Financial Corp	CVBF	Financials	0.22%
Regal Beloit Corp	RBC	Industrials	0.22%
Six Flags Entertainment Corp	SIX	Consumer Discretionary	0.21%
Southwest Gas Holdings Inc	SWX	Utilities	0.21%
Avista Corp	AVA	Utilities	0.21%
Assured Guaranty Ltd	AGO	Financials	0.21%
J&J Snack Foods Corp	JJSF	Consumer Staples	0.21%
PacWest Bancorp	PACW	Financials	0.21%
Black Hills Corp	BKH	Utilities	0.21%
NorthWestern Corp	NWE	Utilities	0.21%
Nu Skin Enterprises Inc	NUS	Consumer Staples	0.21%
Columbia Sportswear Co	COLM	Consumer Discretionary	0.21%
Telephone & Data Systems Inc	TDS	Communication Services	0.20%
El Paso Electric Co	EE	Utilities	0.19%
Werner Enterprises Inc	WERN	Industrials	0.19%
Umpqua Holdings Corp	UMPQ	Financials	0.19%
McGrath RentCorp	MGRC	Industrials	0.19%
BGC Partners Inc	BGCP	Financials	0.19%
Otter Tail Corp	OTTR	Utilities	0.19%
Extended Stay America Inc	STAY	Consumer Discretionary	0.19%
Inter Parfums Inc	IPAR	Consumer Staples	0.18%
Brightsphere Investment Group	BSIG	Financials	0.18%
Brinker International Inc	EAT	Consumer Discretionary	0.18%
Medifast Inc	MED	Consumer Staples	0.18%
PolyOne Corp	POL	Materials	0.18%
Weis Markets Inc	WMK	Consumer Staples	0.18%
PNM Resources Inc	PNM	Utilities	0.18%
FNB Corp/PA	FNB	Financials	0.18%
Scholastic Corp	SCHL	Communication Services	0.18%
United Bankshares Inc/WV	UBSI	Financials	0.18%
First Horizon National Corp	FHN	Financials	0.18%
Neenah Inc	NP	Materials	0.18%
Bank of Hawaii Corp	BOH	Financials	0.17%
PriceSmart Inc	PSMT	Consumer Staples	0.17%
Quaker Chemical Corp	KWR	Materials	0.17%
Deluxe Corp	DLX	Industrials	0.17%
Synovus Financial Corp	SNV	Financials	0.16%
Insperity Inc	NSP	Industrials	0.16%
Cinemark Holdings Inc	CNK	Communication Services	0.16%
Buckle Inc/The	BKE	Consumer Discretionary	0.16%
MGE Energy Inc	MGEE	Utilities	0.16%
First Hawaiian Inc	FHB	Financials	0.16%
Antero Midstream Corp	AM	Energy	0.16%
Schneider National Inc	SNDR	Industrials	0.16%
Innospec Inc	IOSP	Materials	0.15%
Kennametal Inc	KMT	Industrials	0.15%
Schweitzer-Mauduit Internation	SWM	Materials	0.15%
Sensient Technologies Corp	SXT	Materials	0.15%
Home BancShares Inc/AR	HOMB	Financials	0.15%
Cathay General Bancorp	CATY	Financials	0.15%
Virtu Financial Inc	VIRT	Financials	0.15%
PBF Energy Inc	PBF	Energy	0.14%
National Presto Industries Inc	NPK	Industrials	0.14%
Worthington Industries Inc	WOR	Materials	0.14%
Korn Ferry	KFY	Industrials	0.13%
Benchmark Electronics Inc	BHE	Information Technology	0.13%
Core-Mark Holding Co Inc	CORE	Consumer Discretionary	0.13%
Acushnet Holdings Corp	GOLF	Consumer Discretionary	0.13%
B&G Foods Inc	BGS	Consumer Staples	0.13%
Sabre Corp	SABR	Information Technology	0.13%
Raven Industries Inc	RAVN	Industrials	0.12%
Employers Holdings Inc	EIG	Financials	0.12%
Goodyear Tire & Rubber Co/The	GT	Consumer Discretionary	0.12%
HB Fuller Co	FUL	Materials	0.12%
Mueller Industries Inc	MLI	Industrials	0.12%
Ryder System Inc	R	Industrials	0.12%
Northwest Natural Holding Co	NWN	Utilities	0.12%
First Merchants Corp	FRME	Financials	0.12%
Kaman Corp	KAMN	Industrials	0.12%
Dana Inc	DAN	Consumer Discretionary	0.11%
Walker & Dunlop Inc	WD	Financials	0.11%
First Financial Bancorp	FFBC	Financials	0.11%
Cooper Tire & Rubber Co	CTB	Consumer Discretionary	0.11%
Bed Bath & Beyond Inc	BBBY	Consumer Discretionary	0.11%
Covanta Holding Corp	CVA	Industrials	0.11%
Comfort Systems USA Inc	FIX	Industrials	0.11%
International Bancshares Corp	IBOC	Financials	0.11%
Oxford Industries Inc	OXM	Consumer Discretionary	0.10%
Greif Inc	GEF	Materials	0.10%
La-Z-Boy Inc	LZB	Consumer Discretionary	0.10%
Northwest Bancshares Inc	NWBI	Financials	0.09%
Tredegar Corp	TG	Materials	0.09%
WesBanco Inc	WSBC	Financials	0.09%
CVR Energy Inc	CVI	Energy	0.09%
Calavo Growers Inc	CVGW	Consumer Staples	0.09%
Trinseo SA	TSE	Materials	0.09%
Penske Automotive Group Inc	PAG	Consumer Discretionary	0.09%
Jack in the Box Inc	JACK	Consumer Discretionary	0.09%
Lindsay Corp	LNN	Industrials	0.08%
City Holding Co	CHCO	Financials	0.08%
EnPro Industries Inc	NPO	Industrials	0.08%
Great Western Bancorp Inc	GWB	Financials	0.08%
Tootsie Roll Industries Inc	TR	Consumer Staples	0.08%
Designer Brands Inc	DBI	Consumer Discretionary	0.08%
Atlantica Yield plc	AY	Utilities	0.08%
ATN International Inc	ATNI	Communication Services	0.08%
Boise Cascade Co	BCC	Materials	0.08%
AZZ Inc	AZZ	Industrials	0.07%
S&T Bancorp Inc	STBA	Financials	0.07%
Steelcase Inc	SCS	Industrials	0.07%
Myers Industries Inc	MYE	Materials	0.07%
Children's Place Inc/The	PLCE	Consumer Discretionary	0.07%
Signet Jewelers Ltd	SIG	Consumer Discretionary	0.07%
Provident Financial Services I	PFS	Financials	0.06%
Sandy Spring Bancorp Inc	SASR	Financials	0.06%
Kelly Services Inc	KELYA	Industrials	0.06%
Bloomin' Brands Inc	BLMN	Consumer Discretionary	0.05%
TFS Financial Corp	TFSL	Financials	0.05%
Dine Brands Global Inc	DIN	Consumer Discretionary	0.05%
Cadence BanCorp	CADE	Financials	0.05%
Guess? Inc	GES	Consumer Discretionary	0.05%
TTEC Holdings Inc	TTEC	Information Technology	0.05%
Washington Trust Bancorp Inc	WASH	Financials	0.05%
Stock Yards Bancorp Inc	SYBT	Financials	0.04%
Orion Engineered Carbons SA	OEC	Materials	0.04%
Dave & Buster's Entertainment	PLAY	Consumer Discretionary	0.04%
Community Trust Bancorp Inc	CTBI	Financials	0.04%
Apogee Enterprises Inc	APOG	Industrials	0.04%
BJ's Restaurants Inc	BJRI	Consumer Discretionary	0.04%
TrustCo Bank Corp NY	TRST	Financials	0.04%
Copa Holdings SA	CPA	Industrials	0.03%
RPC Inc	RES	Energy	0.02%
Hawaiian Holdings Inc	HA	Industrials	0.01%
Gannett Co Inc	GCI	Communication Services	0.01%
US DOLLAR	USD		0.22%

Holdings subject to change.

OUSM: Sector Allocation

Sector Allocations (As of 02/29/2020)	Weight
Industrials	23.06%
Information Technology	19.42%
Financials	18.04%
Consumer Discretionary	13.83%
Materials	8.61%
Utilities	6.09%
Health Care	3.96%
Consumer Staples	3.63%
Communication Services	2.15%
Energy	1.05%
Cash	0.16%

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?

Download Research Paper

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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.