ETF Research Center

The O'Shares FTSE Europe Quality Dividend ETF tracks an index that selects and weights large- and midcap Europe stocks based on three 3 factors: high quality, low volatility, and high dividend yield.

FUND BASICS
Category	International Equities
Fund Sponsor	FQF Trust
Website	oshares.com
Inception date	Aug 19, 2015
Assets (mns)	$27
Currency	USD
Expense ratio	48 bp
Distributions	Monthly

FUND STRUCTURE
Regulation	Open-End Investment Company
Custodian	Foreside Fund Services
Weighting	Multi-Factor
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	205
Wgt avg mkt cap (mns)	$100,717
Large cap (>$10bn)	87.6%
Mid cap ($2-10bn)	11.7%
Small cap (<$2bn)	0.0%
Developed mkts	99.8%
Emerging mkts	0.2%

TOP TEN HOLDINGS
Total	33.1 %
ROCHE HOLDING AG-GENUSSCHEIN	5.1 %
NOVARTIS AG-REG	5.0 %
NESTLE SA-REG	4.6 %
GLAXOSMITHKLINE PLC	3.8 %
TOTAL SA	3.0 %
ROYAL DUTCH SHELL PLC-A SHS	2.7 %
BP PLC	2.6 %
ROYAL DUTCH SHELL PLC-B SHS	2.3 %
ENEL SPA	2.1 %
UNILEVER NV	2.0 %

TOP COUNTRY EXPOSURE
	BRITAIN	32.3 %
	SWITZERLAND	19.6 %
	FRANCE	13.9 %
	GERMANY	8.2 %
	NETHERLANDS	5.1 %
	ITALY	3.7 %
	SPAIN	3.7 %
	SWEDEN	3.3 %
	FINLAND	3.0 %
	DENMARK	2.5 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
22.7%	22.7%	--	--	5.3%

Market Correlations
versus...	Beta	R-squared
S&P500	0.66	54%
MSCI EAFE	0.90	82%
MSCI Emg. Mkts.	0.59	60%

Technical Indicators
Recent close	$25.85
30d moving avg.	$25.42
Annualized volatility	10.9%
Short interest (ETF)	0.0%
Relative strength (RSI)	72

Liquidity measures
Avg. volume (thou.)	3
Turnover	0.3%
Bid/Ask (% of price)	0.32%
ADV underlying (mns)	$9,784

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the O'Shares FTSE Europe Quality Dividend ETF based on the alternatives' overlap in portfolio holdings with OEUR. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

OEUR

Expense:

48 bp

ALTAR Score™:

6.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH OEUR
Ticker	Fund Name	Overlap¹ vs OEUR (%)	Expense ratio (bp)	Savings vs OEUR (bp)	ALTAR Score™ (%)	ALTAR vs OEUR (%)
IEV	iShares S&P Europe 350	45.6	59	-11	6.1	-0.0
FLEE	Franklin FTSE Europe	44.2	9	39	6.6	+0.5
HFXE	IQ 50 PERCENT HEDGED FTSE EUROPE	44.2	30	18	6.4	+0.3
BBEU	JPMorgan BetaBuilders Europe	44.2	9	39	6.6	+0.5
FLEH	Franklin FTSE Europe Hedged	43.7	9	39	6.6	+0.5
DBEU	Xtrackers Europe Hedged	43.5	45	3	6.2	+0.1
GSEU	Goldman Sachs ActiveBeta Europe Equity	41.0	25	23	6.1	-0.1
IEUR	iShares Core MSCI Europe	40.1	9	39	6.6	+0.5
VGK	Vanguard FTSE Europe	39.5	9	39	6.7	+0.5
EUMV	iShares MSCI Europe Min Volatility	38.8	25	23	5.1	-1.0
FEU	SPDR DJ Stoxx 50	38.5	9	39	6.6	+0.5
RFEU	First Trust Riverfront Dynamic Europe	36.7	83	-35	5.9	-0.2
IDY	Pacific Global International Equity Income	36.5	39	9	8.0	+1.8
DOL	WisdomTree Int'l Large Cap Dividend	36.1	48	0	7.5	+1.3
JPEU	JPMorgan Diversified Return Europe Equity	34.8	37	11	6.2	+0.1
DTH	WisdomTree DEFA Equity Income	33.8	58	-10	8.2	+2.1
IQLT	iShares MSCI Int'l Developed Quality	33.4	30	18	5.7	-0.4
DDWM	WisdomTree Dynamic Currency Hedged Int'l Equity	31.2	35	13	7.6	+1.5
EFV	iShares MSCI EAFE Value	31.2	38	10	8.8	+2.6
EURZ	Xtrackers Eurozone Equity	31.1	9	39	6.8	+0.6

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	O'Shares FTSE Europe Quality Dividend
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	13.6	%
Divided by: Fwd. P/BV	2.1	x
Less: Expense ratio	48	bp
Equals: ALTAR Score	6.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.63	CATEGORY AVERAGE	1.63

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.