ETF Research Center

O'Shares FTSE U.S. Quality Dividend ETF seeks investment performance that correlates generally to price and yield before fees and expenses of the FTSE U.S. Qual/Vol/5% Capped Factor Index

FUND BASICS
Category	US Equities
Fund Sponsor	FFCM LLC
Website	www.oshares.com
Inception date	Jul 14, 2015
Assets (mns)	$566
Currency	USD
Expense ratio	48 bp
Distributions	Monthly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	137
Wgt avg mkt cap (mns)	$234,681
Large cap (>$10bn)	98.8%
Mid cap ($2-10bn)	1.2%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	36.8 %
APPLE INC	6.0 %
JOHNSON & JOHNSON	5.2 %
EXXON MOBIL CORP	4.6 %
PROCTER & GAMBLE CO/THE	3.8 %
CHEVRON CORP	3.2 %
PFIZER INC	3.0 %
HOME DEPOT INC	2.9 %
VERIZON COMMUNICATIONS INC	2.8 %
MERCK & CO. INC.	2.7 %
PEPSICO INC	2.6 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.6 %
	IRELAND	2.5 %
	SWITZERLAND	0.4 %
	BRITAIN	0.3 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
21.8%	12.2%	--	--	11.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.78	85%
MSCI EAFE	0.69	56%
MSCI Emg. Mkts.	0.47	41%

Technical Indicators
Recent close	$35.95
30d moving avg.	$35.49
Annualized volatility	10.2%
Short interest (ETF)	0.0%
Short interest (Underlying)	1.9%
Relative strength (RSI)	62

Liquidity measures
Avg. volume (thou.)	44
Turnover	0.3%
Bid/Ask (% of price)	0.16%
ADV underlying (mns)	$45,570

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

OUSA

Expense:

48 bp

ALTAR Score™:

5.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH OUSA
Ticker	Fund Name	Overlap¹ vs OUSA (%)	Expense ratio (bp)	Savings vs OUSA (bp)	ALTAR Score™ (%)	ALTAR vs OUSA (%)
OYLD	Invesco Russell 1000 Yield Factor ETF	56.9	19	29	7.0	+1.1
VYM	Vanguard High Dividend Yield ETF	55.7	6	42	7.2	+1.3
DLN	WisdomTree Large Cap Dividend	51.2	28	20	6.5	+0.6
DGRO	iShares Core Dividend Growth	50.7	8	40	6.4	+0.5
SCHV	Schwab U.S. Large-Cap Value	50.3	4	44	6.9	+1.0
QARP	Xtrackers Russell 1000 US QARP	49.9	19	29	6.4	+0.5
MGV	Vanguard Mega Cap 300 Value	47.8	7	41	7.0	+1.1
DGRW	WisdomTree US Dividend Growth	47.4	28	20	6.7	+0.8
OVOL	Invesco Russell 1000 Low Volatility Factor ETF	46.6	19	29	5.6	-0.3
USDY	Pacific Global US Equity Income	46.4	29	19	7.4	+1.5
FDRR	Fidelity Dividend for Rising Rates	46.1	29	19	7.7	+1.8
SPHQ	Invesco S&P High Quality Portfolio	46.0	15	33	5.6	-0.3
VTV	Vanguard Value ETF	45.9	4	44	7.1	+1.2
DURA	VanEck Vectors Morningstar Durable Dividend	45.7	29	19	6.7	+0.8
DTD	WisdomTree Total Dividend	45.5	28	20	6.5	+0.6
PFM	Invesco Dividend Achievers	45.4	54	-6	5.4	-0.5
USMC	Principal U.S. Mega-Cap Multi-Factor Index	45.3	12	36	5.4	-0.5
HDV	iShares High Dividend	45.2	8	40	6.6	+0.7
DIVB	iShares U.S. Dividend & Buyback	45.0	25	23	6.6	+0.7
DHS	WisdomTree Equity Income	44.6	38	10	7.2	+1.3

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 U.S. Quality Dividend
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	23.5	%
Divided by: Fwd. P/BV	3.7	x
Less: Expense ratio	48	bp
Equals: ALTAR Score	5.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.63	CATEGORY AVERAGE	1.56

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.