Fund Objective

The EGShares Low Volatility Emerging Markets Dividend Exchange Traded Fund (ETF) seeks investment results that correspond (before fees and expenses) to the price and yield performance of the Indxx Low Volatility Emerging Markets Dividend Index.

Background

HILO is a passive ETF designed to provide high income and to be significantly less volatile than the MSCI Emerging Markets Index through the utilization of low beta stocks. HILO is broad based with exposure to multiple countries and sectors with quarterly income distributions. Additional risk criteria correlated to the MSCI Emerging Market Index limits concentration in any position to 5% and country exposure to a maximum of 5 positions. HILO does not use any options, derivates or leverage in attaining its income distribution.

Key Statistics
(As of 6/30/12)
ETF Ticker (NYSE):
HILO
Inception Date
8/4/2011
Net Expenses*
0.85%
Holdings
30
Average Market Cap
$12.23B
Median Market Cap
$9.27B
Trailing P/E Ratio
11.39x
Price/Book Ratio
1.9x
Index Dividend Yield
5.38%

Country Weights

(As of 6/30/12)
Country
Weights
Brazil
18.32%
South Africa
14.59
China
11.13
Malaysia
10.44
Thailand
8.65
Poland
5.29
Russia
5.21
Philippines
5.17
Hungary
5.10
India
4.84

Top Sector Weights

(As of 6/30/12)
Sector
Weights
Telecommunications
34.53%
Utilities
17.15
Industrials
15.34
Consumer Goods
12.65
Consumer Services
5.80
Financials
5.56
Oil & Gas
4.84

Top 10 Holdings

(As of 6/30/12)
Company
Weights
Telekomunikacja Polska SA
5.29%
Mobile Telesystems OJSC
5.21
Philippine Long Distance Telephone Co
5.17
Jiangsu Expressway Co Ltd
5.17
Magyar Telekom Telecommunications PLC
5.10
DiGi.Com Bhd
4.95
Centrais Eletricas Brasileiras SA
4.84
Telefonica Brasil SA
4.67
CEZ AS
4.48
Samart Corp PCL
4.13

Performance

(As of 6/30/12)
  1-Month (%) 3-Month (%) Year-to-Date (%) 1-Year (%) Since
Inception (%)**
  Total Returns
(Net Asset Value)
3.99 -7.55 2.77 N/A -5.29
  Total Returns
(Market Price)
2.96 -7.60 2.18 N/A -5.85
  Indxx Low Volatility Emerging Markets Dividend Index 4.01 -7.35 4.01 -3.56 -3.79

Recent Distributions

 
Declaration Ex-Date Record Payable Amount ($) Type
  3/23/2012 3/26/2012 3/28/2012 4/11/2012 0.03763 Return of Capital
  3/23/2012 3/26/2012 3/28/2012 4/11/2012 0.14094 Income
  12/22/2011 12/23/2011 12/28/2011 1/5/2012 0.06667 Return of Capital
  12/22/2011 12/23/2011 12/28/2011 1/5/2012 0.02078 Income
  9/23/2011 9/26/2011 9/28/2011 10/5/2011 0.06515 Return of Capital
  9/23/2011 9/26/2011 9/28/2011 10/5/2011 0.03947 Income

Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted.

This fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is so concentrated and to the extent permitted by applicable regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry.

Market price returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times.

*Gross expenses of 1.64% are reimbursed to keep from exceeding 0.85% of net assets. This agreement will remain in effect and will be contractually binding at least until June 10, 2012.

The Fund is non-diversified and, as a result, may have greater volatility than diversified funds. The Fund's return may not match the return of the Underlying Index. Investments in small and mid-cap companies are generally more volatile.

**HILO inception date is 8/4/11