OSHARES.

COM

O’SHARES STRATEGY SERIES:

INVESTING IN INTERNET AND E-COMMERCE

Mega Trends Driving Internet and E-commerce Growth

Q1 2019

60 State Street | Boston, MA 02109 info@oshares.com

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// MEGA TRENDS DRIVING INTERNET AND E-COMMERCE GROWTH

Mega Trends
04 Consumer Trends: The Biggest Opportunity
05 Worldwide E-commerce Growth
06 Global E-commerce: World’s #1 is not U.S.
07 E-commerce: How Much Growth is Left?
08 Record Online Shopping Events in the U.S. and China

What’s Driving Mega Trends

10 Let’s Get Social: Top Social Media Sites
11 Advertising Trends: Digital Surpasses TV?
12 Are You not Entertained? Top Companies in Digital Entertainment
13 Cloud Tech Services: Growth in B2B?

Top Internet and E-commerce Companies of Today and Tomorrow?

15 FANG vs. BAT
16 U.S. Giants vs. International Giants
20 The Next Giants of E-commerce

Investing in E-commerce, A Potentially Better Way? ETF: OGIG

22 Investing: 50 of the Fastest Growing Internet Companies in One ETF: OGIG
23 Top Internet Giants Growing Revenue Faster than Generic Tech
25 About O’Shares ETF
26 Definitions

All investing involves risk. See page 27 to learn more about these risks.

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MEGA TRENDS

Long-term, transformative forces that can influence or shape business, economies and cultures.
Internet and e-commerce mega trends may have a profound impact on the way consumers
and companies conduct business, communicate and consume entertainment.

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CONSUMER TRENDS: THE BIGGEST OPPORTUNITY

Developed countries are nearing Internet adoption saturation. North America and Europe account for
roughly 15% of the world’s population and are nearing full adoption at 95% and 85%, respectively.

Asia and Africa, on the other hand, have populations exceeding 4 billion and 1 billion, respectively,
accounting for over 70% of the world’s population but have much lower adoption rates. Only half
of Asia is online and that proportion drops to nearly a third for Africa. As Internet adoption rates
in Asia and Africa converge with developed markets, growth in Internet and e-commerce will likely
follow suit.

Population vs. Internet Penetration Rate

Population (in Millions)

Source: ‘‘Internet Users in the World by Regions - June 30, 2018’’, Internet World Stats, data as of 12/31/2017.
The above includes information about the potential growth of a certain sector. It is impossible to predict future growth
and actual results may vary. The potential growth or decline of a particular sector is not guaranteed and does not repre-
sent the performance of the Fund.
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WORLDWIDE E-COMMERCE GROWTH

Global E-commerce is experiencing robust growth. Sales totaled ~$2.3 trillion in 2017 and are forecasted to
reach ~$4.8 trillion by 2021, representing a growth rate of ~112%.

The U.S. accounted for an estimated 19% of the market in 2017, with China and Rest of World at an estimated
48% and 33%, respectively.

Global Retail E-commerce Sales

Total Sales (in Billions)

Source: U.S. and China E-Commerce Sales from Bloomberg, data as of 12/31/2018. Global Retail E-commerce Sales from
Statista. The above chart is for informational purposes only, includes the estimated growth of a certain sector and does
not represent the O’Shares ETFs. It is impossible to predict future growth and actual results may vary.

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GLOBAL E-COMMERCE: WORLD’S #1 IS NOT U.S.

The rapid adoption of e-commerce in China has helped fuel regional dominance from Asia-Pacific. In 2010,
Asia- Pacific accounted for only a third of total e-commerce. As of last year, that proportion had grown to 60%.
North America and Europe comprised a total of 36%, at 21% and 15%, respectively. By 2021, Asia-Pacific’s
share of global e-commerce is projected to grow to 67%.

Asia: Global Leadership in E-commerce

2010 2017 2021

Rest of the Rest of the Rest of the
World 3% World 4% World 5%

Western Europe
Western 10%
Western Europe Europe 15%
Asia-Pacific 26%
32% Asia-Pacific
North America Asia-Pacific North America
2010 60% 67% 18%
21%
North America
39%

Source: State of E-commerce: Global Outlook 2016-21, International Post Corporation. Actual results may vary.

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E-COMMERCE: HOW MUCH GROWTH IS LEFT?

E-commerce Adoption in U.S and China, Growth Still Strong

The trend towards e-commerce is best demonstrated by observing the two largest economies in the world. In
both the U.S and China, e-commerce as a percentage of total retail sales continues to make up an increasingly
large portion.

In 2014, online sales totalled nearly $300 billion or just over 6% of total retail sales in the U.S. By 2017,
e-commerce totalled approximately $450 billion and that percentage had grown to 8%. As of the 3rd quarter
of 2018, e-commerce comprised almost 9% of total retail sales.

By comparison, China’s e-commerce rate of adoption is far more advanced. In 2017, e-commerce exceeded $1
trillion for the first time, nearly 20% of all retail sales. 2018 is on pace for another big year, as online sales
totalled over $900 billion through 3 quarters, accounting for over 22% of all retail sales in China.

U.S. - Total Retail Sales

Sales (in $ Billions)

China - Total Retail Sales

Sales (in $ Billions)

Source: Bloomberg, data as of Q3 2018.

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RECORD ONLINE SHOPPING EVENTS IN THE U.S. AND CHINA

Black Friday and Cyber Monday are big shopping days in the U.S. How big? Online sales over the two days totalled
$14 billon, including record Black Friday sales of over $6 billion, one third of which came from mobile. Cyber
Monday broke records as well, hauling in nearly $8 billion in online sales. The total of $14 billion represented
23% growth over 2017.

In China, Alibaba holds a one day online retail event called Singles Day, which is even larger than Black Friday
and Cyber Monday combined. Over 24 hours, Alibaba’s sales exceeded $30 billion, up over 25% compared to
2017.

This robust growth in online shopping supports internet giants like Amazon and Alibaba.

Online Retail Shopping Events

25%
Sales (in Billions)

23%

Source: ‘‘Black Friday pulled in a record $6.22 billion in online sales’’, CNBC.
‘‘Alibaba Singles Day sales top $30 billion’’, CNN.
‘‘Cyber Monday hits $7.9B in online sales’’, TechCrunch.
‘‘Cyber Monday sales break a record, with $7.9 billion spent online’’, CNBC.
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WHAT’S DRIVING MEGA TRENDS

Secular trends in social media, digital advertising, digital entertainment and cloud have been
a catalyst for growth in Internet and e-commerce companies. The number of people using
social media to stay connected continues to grow. Companies have moved from traditional
advertising in favor of digital methods. Video games, video-on-demand, music streaming and
e-publishing have continued to underpin the growth of digital entertainment companies.

Finally, “cloud” has rendered conventional data warehouses virtually obsolete.  These are just
some of the many secular trends that drive Internet and e-commerce “Mega Trends”.

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LET’S GET SOCIAL: TOP SOCIAL MEDIA SITES

The world population is estimated be over 7.5 billion people. Almost one third of the Earth’s population is now
on some form of social media. In 2010, approximately 1 billion people were social media users. Today, there
are nearly 2.5 billion social media users, a growth rate of ~150% percent. By 2021, the number of social media
users may reach 3 billion.

Which companies are attracting the most users? Facebook leads the way at over 2 billion monthly active users.
YouTube (owned by Google) is second at just under 2 billion. Instagram, the photo sharing social media app
34% are occupied
owned by Facebook rounds out the top 3 at 1 billion monthly active users. The top 4 and 5 spots
by Chinese Internet companies Qzone (Tencent) and Weibo, China’s answer to Twitter. Amazon

Worldwide Social Media Users: 2010-2021

Number of Users (in Billions)

2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e 2020e 2021e

Social Network Monthly Active Users (Millions) Est. Rev. Growth

Facebook 2230 30%
YouTube (Google) 1900 9%
Instagram (Facebook) 1000 30%
Qzone (Tencent) 563 30%
Weibo 376 38%

Source: Revenue Growth Equals Average of 2Y Estimated Revenue Growth, Bloomberg, data as of the Fiscal Year End
‘‘Number of Social Network Users Worldwide’’, Statista, data as of August 2018.
‘‘Top 15 Most Popular Social Networking Sites’’, DreamGrow, data as of August, 2018.
It is impossible to predict future growth and actual results may vary. The potential growth or decline of any sector or
10 company does not represent the performance of the Fund.
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ADVERTISING TRENDS: DIGITAL SURPASSES TV?

Internet/Digital Technology, E-commerce and social media have changed the way people communicate, shop
for clothes and groceries as well as consume news and entertainment. Companies looking to advertise their
products have recognized this secular shift and in 2017, digital surpassed TV advertising for the first time.
Digital Ad revenue totalled over $200 billion in 2017 compared $178 billion for TV. Digital has grown 134%
since 2012 compared to TV which has only experienced 7% growth.

Who stands to benefit from this trend? Global Internet giants, Google, Facebook, Tencent, Alibaba and Baidu
dominate in terms of digital ads. These five companies capture roughly 80% share of global digital ad revenue
and that figure is growing. In 2012, the five companies made up less than 60%. If the trend away from TV and
towards digital continues, companies like these may end up the bigger winners.

Global Ad Spend - Digital vs. TV

$250
$250

$209
($ Billions)

$200
$200
$176 $178 $182 $178
$166 $170 $176
$151
$B

$150
Spend

$150
$126
Spend

$105
$89
GlobalGlobal

$100
$100

$50
$50

$0
$-
2012
2012 2013
2013 2014
2014 2015
2015 2016
2016 2017
2017
DIGITAL TV

100%
100% Global Ad Spend - Est. % Contribution
90%

80%
80%
Contribution

70%
Contribution

60%
60%

50%

40%
%%

40%
Est.Est.

30%

20%
20%

10%

0%
0%
2012 2013 2014 2015 2016 2017
TENCENT ALIBABA BAIDU FACEBOOK GOOGLE

Source: Global Digital Ad Spend Est. % from Bloomberg, data as of 12/31/2017.

Global TV and Digital Ad Spend from Recode.net. For top ten holdings of the OGIG ETF see page 24.
For informational purposes only. There is no guarantee that current trends will continue in the future.

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ARE YOU NOT ENTERTAINED? TOP COMPANIES IN DIGITAL ENTERTAINMENT

What is digital entertainment? Broadly speaking, it can be broken down into 4 main categories: video games,
video-on-demand, ePublishing and digital music. Digital entertainment revenue totaled ~$115 billion in 2017 and
is forecasted to grow to ~$153 billion by 2022, a growth rate of 33% in just 5 years. Video games are the largest
category at over $60 billion, followed by video-on-demand at over $20 billion, ePublishing at approximately
$18 billion and digital music at over $12 billion.

Atop each of the digital entertainment pillars, sits 4 Internet companies. Chinese social media giant, Tencent,
leads video games with an estimated $15 billion in revenue from the category. This accounts for approximately
a quarter of the category’s sales. Video-on-demand is led by the streaming service, Netflix. At nearly $12 billion
in revenue, Netflix makes up almost half of the video-on-demand category revenue. Online retail giant, Amazon,
leads ePublishing with $5 billion in revenue coming from the category. Music streaming service, Spotify, leads
digital music with just under $5 billion in revenue in 2017.

Global Digital Entertainment Revenue by Category

$180
$148 $153
$160 $142
$135
$140 $126
$115
Revenue ($ Billions)

$120
$104
$100
$80
$60
$40
$20
$-
$0
2016 2017 2018e 2019e 2020e 2021e 2022e
Digital Music ePublishing Video-on-Demand Video Games

Est. Category Est. Market Est. Revenue Market Cap

Name Category
Revenue 2017 ($ B) Share 2017 Growth ($ B)

Tencent Video Games $14.5 23% 30% $381.7

Netflix Video-on-Demand $11.7 49% 25% $116.7
Amazon ePublishing $5.0 30% 20% $734.4
Spotify Digital Music $4.6 38% 27% $20.6

Source: Digital Entertainment Category Revenue from Statista. Amazon Category Revenue data from USA Today.
Spotify Category Revenue Data reported in euros from Statista. All Other revenue data from Bloomberg; Category revenue
data estimates as of the 2017 year end. Market Cap as of 12/31/18. Est Revenue Growth: 2YR Forward Revenue Growth.
It is impossible to predict future growth and actual results may vary. The potential growth or decline of any sector or com-
12 pany does not represent the performance of the Fund.
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CLOUD TECH SERVICES: GROWTH IN B2B?

Similar to the move to online retail (B2C), a transition to the

“Cloud” is occurring in tech services to businesses (B2B). Worldwide Cloud Market Share
Traditional in-house or off premises data warehouses are
becoming obsolete as businesses take their data backup
needs to the “Cloud.”
20%
The cloud market was $154 billion at the end of 2017 and Next 10
Rest of Market
is estimated to grow at a compounded annual growth rate
(Tencent, 34%
Salesforce, Amazon
of over 18% per year through 2021 to over $300 billion. Rackspace,
etc.)
15%
The Cloud market is concentrated. Global Internet
kingpins, Amazon, Microsoft, IBM, Google and Alibaba Microsoft
account for approximately 65% of the cloud market. The
4% IBM
13%
next 10, which include names like Tencent and Salesforce
6% 8%
comprise approximately 15%. As the pie grows, will these Alibaba
Internet companies maintain their stranglehold on cloud Google
or will there be more entrants in the space? Time will tell.

Total Worldwide Cloud Sales

$350
$350

Compound annual $303

$300
$300
growth rate: 18.5%
$260
$250
$250
$221
(USD)
Billons(USD)

$200
$200 $186
$Billions

$154
$150
$150

$100
$100

$50
$50

$0$0
2017
2017 2018e
2018 2019e
2019 2020e
2020 2021e
2021

Years

Source: Worldwide Cloud Sales data from Gartner. Marketshare from TheStreet, Synergy Research Group. Cloud Growth
Rates from GlobeNewswire. For top ten holdings of the OGIG ETF see page 24.
The above charts are for informational purposes only, includes the estimated growth of a certain sector and does not
represent the O’Shares ETFs. It is impossible to predict future growth and actual results may vary. Potential growth or
13 decline is not guaranteed and does not represent the performance of the Fund.
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TOP INTERNET AND E-COMMERCE COMPANIES

OF TODAY AND TOMORROW?

Companies like Facebook, Amazon, Google, Tencent and Alibaba are already among the largest
in their respective regions. Who are the internet giants of the future?

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FANG VS. BAT: CHEAPER VALUATIONS AND ROBUST GROWTH

FANG is the acronym commonly used for the group of stocks comprised of Facebook, Amazon, Netflix and
Alphabet (Google). These U.S. companies dominate social media, online retail, video streaming and Internet
search. Due to weakness in stock markets during the second half of 2018, these stocks appear relatively cheap
based on forward price to earnings ratio despite strong revenue growth.

BAT refers to the set of Chinese internet giants; Baidu, Alibaba and Tencent. These are China’s Internet giants
in Internet search, online retail and social media. Amid global trade concerns, stocks like Tencent, Alibaba and
Baidu also faced challenges in 2018 and now appear relatively attractive like their U.S. counterparts. They too
continue to demonstrate strong revenue growth.

At current valuations, there may be investment opportunities for both fast growing U.S. and Chinese Internet
companies.

Forward P/E Ratio - 1 Year

FANG vs. BAT

Avg. Revenue Growth Avg. Forward P/E Avg. 1 M Performance

FANG 23.8% 33.5 -7.5%

BAT 33.8% 21.5 -10.0%

BAT: Commonly used acronym to describe the group of stocks comprised of Baidu, Alibaba and Tencent.
FANG: Commonly used acronym to describe the group of stocks comprised of Facebook, Amazon, Netflix and Google.
Source: Bloomberg, data as of 12/31/2018.
For top ten holdings of the OGIG ETF see page 24. For current standard performance of OGIG, click here.
15 * See page 26 for list of index definitions.
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// U.S. GIANTS VS. INTERNATIONAL GIANTS

Companies like Google, Amazon, and Facebook are household names. In the U.S., Google dominates Internet
search, $4 out of every $10 spent online is on Amazon, and Facebook boasts mobile app penetration over 80%.

There are companies comparable to these U.S. Internet behemoths such as Baidu, Alibaba and Tencent in China
and elsewhere in the world. What may come as a surprise is that many of these international equivalents are
not only as dominant in their parts of the world but are actually growing at a faster pace.

U.S. VS. INTL.

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FACEBOOK VS TENCENT
Facebook is the largest social media company in the world, with a market cap exceeding $370 billion. It has
grown its user base to almost 2.3 billion and daily active users to almost 1.5 billion as of Q3 2018. Facebook
generates nearly half of its revenue from the U.S. and Canada, approximately one quarter from Europe with the
balance coming from Asia-Pacific and Rest of World. It generates over $17 billion in free cash flow which has
grown by nearly 50% per year over the past 3 years. The social media giant hauled in over $40 billion in 2017
and is projected to grow revenue at almost 30%.

In Asia, Tencent is China’s answer to Facebook. It is comparable in size with a market cap of approximately $382
billion. Though, not solely focused on social media. Tencent’s WeChat messaging service has over 1 billion
users. Their social networking platform Qzone has over 500 million monthly active users. The company had $35
billion in 2017 and is growing revenue at about the same pace as Facebook at approximately 30%.

TALE OF THE TAPE

U.S. Country China
$377 Market Cap ($B USD) $382
Revenue 2017 ($B USD)
$28 2016 $23
$41 2017 $35
$55 2018e $46
$68 2019e $60
Revenue Growth (%)
42.2% Trailing 36.7%
29.9% Avg 1Y & 2Y 30.1%
Valuations (fwd. P/E) TTM*
15.5 Current 27.5
14.7 Min 21.7
24.8 Max 42.3
19.0 Average 31.6

Source: Bloomberg as of 12/31/2018. The above includes estimated revenue growth of certain companies. It is impos-
sible to predict future growth and actual results may vary. The potential growth or decline of any individual company
does not represent the performance of the Fund. Users are monthly active users. Avg. Revenue represents the average of
the next two fiscal year estimates from Bloomberg to Avg. Revenue growth represents the average of the next two fiscal
17 year estimates from Bloomberg.
* See page 26 for list of definitions for financial terms.
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AMAZON VS. ALIBABA

Amazon, the online retail giant now accounts for 40% of all online retail sales in the U.S. It has grown in market
cap to over $700 billion. Though their traditional business model of online stores and retail third-party seller
services still comprises about 70% of their revenue, their cloud business, Amazon Web Services has grown to
almost 12% of their revenue as of Q3 2018. In 2017, Amazon’s sales totaled nearly $180 billion with a gross
margin over 30%. Despite its size, it is still estimated to grow approximately 26% per year.

China has its own online retail giant in Alibaba. It has a market cap or approximately $355 billion and though
its sales may pale in comparison to Amazon, they still totaled almost $40 billion with gross margins at almost
60% and are projected to grow nearly twice the pace at an estimated 54%. Alibaba had 666 million mobile
users as of as of its most recently reported quarter. Alibaba’s mobile payment platform, Alipay, has over 700
million active users1. Singles Day2 Alibaba’s one day shopping event, generated over $30 billion in sales in
just 24 hours.
TALE OF THE TAPE
U.S. Country China
$734 Market Cap ($B USD) $355
Revenue 2017 ($B USD)
$136 2016 $16
$178 2017 $24
$232 2018e3 $38
$280 2019e $56
Revenue Growth (%)
37.1% Trailing 57.8%
25.6% Avg 1Y & 2Y 53.8%
Valuations (fwd. P/E) TTM
41.3 Current 22.2
37.1 Min 21.0
87.2 Max 31.0
65.4 Average 26.9

Source: Bloomberg as of 12/31/2018. The above includes estimated revenue growth of certain companies. It is impos-
sible to predict future growth and actual results may vary. The potential growth or decline of any individual company
does not represent the performance of the Fund. Users are monthly active users. Avg. Revenue represents the average of
the next two fiscal year estimates from Bloomberg to Avg. Revenue growth represents the average of the next two fiscal
18 year estimates from Bloomberg.
1. Alibaba number of users from CNBC. 2. Singles Day Sales from CNBC. 3. 2018e: Alibaba actual fiscal year revenue.
*See page 26 for list of definitions for financial terms.
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GOOGLE/ALPHABET VS. BAIDU

Google has become synonymous with Internet search. It is the global leader and has a market cap of $753
billion. Google monopolizes the majority of global search at 90%. The company’s revenue topped $100 billion
in 2017 and revenue growth is projected to grow by over 9% on average.

Though Google is the undisputed king of Internet search in many markets, they are a distant second in China.
Baidu owns 70% of Internet search share versus Google at approximately 3%. The gap grows even wider if
comparing mobile Internet search, where Baidu maintains its approximate 70% share but Google only claims
0.3%. Baidu has a market cap of almost $60 billion and had revenue of almost $13 billion in 2017. Though
small by comparison, Baidu has a projected revenue growth rate of approximately 17%, nearly 2 times the pace
of Google/Alphabet.

TALE OF THE TAPE

U.S. Country China
$753 Market Cap ($B USD) $55
Revenue 2017 ($B USD)
$90 2016 $11
$111 2017 $13
$110 2018e $15
$132 2019e $17
Revenue Growth (%)
24.2% Trailing 24.1%
9.5% Avg 1Y & 2Y 17.4%
Valuations (fwd. P/E) TTM
18.5 Current 14.9
17.5 Min 14.8
23.7 Max 27.1
20.5 Average 21.8

Source: Bloomberg as of 12/31/2018. Users are monthly active users. Avg. Revenue represents the average of the next
two fiscal year estimates from Bloomberg to Avg. Revenue growth represents the average of the next two fiscal year
estimates from Bloomberg.
‘‘Mobile Search Engine Market Share China’’, StatCounter. ‘‘Search Engine Market Share China’’, StatCounter.
19 The above includes estimated revenue growth of certain companies. It is impossible to predict future growth and actual
results may vary. The potential growth or decline of any individual company does not represent the performance of the
Fund. *See page 26 for list of definitions for financial terms.
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THE NEXT GIANTS OF E-COMMERCE

Spotify is a global leader in online music streaming. Founded in Sweden, the company was launched 10 years
ago and serves 65 regions today. As of last reporting period, Spotify had 87 million paying subscribers and a
total of 191 million active users. 2017 revenue totaled almost $5 billion. Revenue is estimated to grow by an
average of 24% over the next 2 years. Spotify’s current market cap is $20 billion.

Dropbox provides cloud based file storage. It was founded in 2007 and is based out of San Francisco, California.
Today, it boasts over 500 million users in more than 180 countries with revenue exceeding $1 billion. Revenue
growth is estimated to grow by over approximately 15% over the next 2 years. Dropbox’s current market cap
is $8 billion.

Twilio is a cloud computing platform that allows developers to integrate voice and text communications into
web and mobile applications. Twilio has over 2 million registered developers. The company has grown revenues
by over 50% and is forecasted to maintain robust growth over the next few years.

Etsy provides e-commerce services for members to sell hand crafted and vintage items, art, clothing, housewares,
paper goods and candles among other products. It has been referred to as the handcrafter’s Amazon.com. The
Etsy community now has more than 50 million members and 20 million active buyers. Annual revenues are
approaching $500 million and are projected to grow by an average of approximately 30% over the next 2 years.
Etsy’s current market cap is almost $6 billion.

CarGurus is an online platform for automobile shopping. Leveraging proprietary technology, search algorithms
and innovative analytics, it allows users to evaluate new and used car listings. CarGurus’ revenues exceed $300
million dollars and have grown by ~46%.

Comparison: Spotify, Dropbox, Twilio, Etsy and CarGurus

Spotify Dropbox Twilio Etsy CarGurus

Market Cap ($ Billions) $20.6 $8.3 $8.9 $5.7 $3.7
Revenue ($ Millions)
2016 $3,267.6 $844.8 $277.3 $365.0 $198.1
2017 $4,620.6 $1,106.8 $399.0 $441.2 $316.9
2018e $6,075.5 $1,385.6 $630.2 $598.2 $450.4
2019e $7,744.8 $1,604.3 $829.5 $776.2 $562.0
Revenue Growth (%)
Trailing 28.8% 27.1% 53.4% 30.1% 45.9%
Average 1 Year & 2 Year 24.4% 15.9% 34.1% 29.5% 22.8%

Sources: Bloomberg. Data as of 12/31/2018. Avg. Revenue Growth represents the average of the next two fiscal year
estimated from Bloomberg.
Spotify Financial Results for Third Quarter 2018. Dropbox Investor Relations.
1. Twilio Announces Third Quarter 2018 Results.
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INVESTING IN E-COMMERCE,
A POTENTIALLY BETTER WAY? ETF OGIG

O’Shares Global Internet Giants ETF (OGIG) is a rules-based ETF designed to provide investors
with the means to invest in some of the largest global companies that derive most of their
revenue from the Internet and e-commerce that exhibit quality and growth potential.

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// INVESTING: 50 OF THE FASTEST GROWING INTERNET COMPANIES

// IN ONE ETF: OGIG

Global Internet
giants such as
Amazon, Facebook,
Netflix, Alibaba and
Tencent

• Strong Revenue Growth

• Profitability
• Strong Balance Sheets

Over 50 of the Fastest

Growing Internet Giants in
the World!

Holdings subject to change.

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// TOP INTERNET GIANTS GROWING REVENUE

FASTER THAN GENERIC "TECH"?

• Higher Revenue Growth: Portfolio average of ~36% vs. less than 20% for
generic tech indexes.

• The OGIG Index owns more than 50 of the fastest growing Internet and
e-commerce companies in the world.

OGIG Index vs. Other Notable Indexes - Revenue Growth

Source: Bloomberg. Data as of 12/31/2018. Revenue Growth of Underlying Holdings: Trailing 12 month revenue growth.
OGIG is an exchange traded fund (ETF) that seeks to track the performance (before fees and expenses) of the O’Shares
Global Internet Giants Index (“OGIG Target Index”).
The referenced indices are shown for general market comparisons and are not meant to represent the Fund. Investors
23 cannot directly invest in an index; unmanaged index returns do not reflect any fees, expenses or sales charges.
* See page 26 for list of index definitions.
 OSHARES.COM

// O’SHARES GLOBAL INTERNET GIANTS ETF: OGIG

O’Shares Global Internet Giants ETF (OGIG) is a rules-based FUND DETAILS

ETF designed to provide investors with the means to invest Ticker: OGIG
in some of the largest global companies that derive most of CUSIP: 67110P704
their revenue from the Internet, technology and e-commerce
Intraday NAV: OGIG.IV
business segments that exhibit above average growth
Expense Ratio: 0.48%
potential.
Inception Date: 6/5/2018
OGIG is an exchange traded fund (ETF) that seeks to track Rebalance: Quarterly
the performance (before fees and expenses) of the O’Shares Reconstitution: Semi-annually
Global Internet Giants Index (“OGIG Target Index”). Number of Holdings: 60
Primary Listing: NYSE
Why OGIG?

• Strong revenue growth: portfolio companies that exhibit TOP 10 HOLDINGS

above average growth potential, exceeding 30%;
Tencent CN 6.35%
• Strong balance sheets: profitable portfolio companies Alphabet/Google US 6.28%
with healthy cash reserve positions; Amazon.com US 5.84%
• Global portfolio: includes some of the largest high Alibaba CN 5.84%
growth companies in the world engaged in the Internet, Facebook US 5.83%
technology and e-commerce business segments in regions Microsoft US 4.01%
where Internet adoption is rising and consumer spending Netflix US 2.99%
increasing.
Salesforce.com US 2.12%
Adobe US 1.99%
COUNTRY ALLOCATION ServiceNow US 1.95%

SECTOR ALLOCATION
Communication Services 39.37%
Information Technology 32.52%
Consumer Discretionary 27.93%
Other 0.19%

RESOURCES
Website Fund Page
Fact Sheet
Prospectus
Summary Prospectus
SAI

Data as of 12/31/2018. Holdings subject to change.

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// ABOUT O’SHARES ETF

O’Shares provides ETFs for long-term wealth management, with an emphasis on quality across our
family of ETFs. O’Shares provides a series of ETFs, designed for investors with objectives ranging from
growth and capital appreciation, to income and wealth preservation. Each of the O’Shares ETFs reflects
our rules-based investment philosophy, including quality as an important characteristic.

At O’Shares, we prefer the ETF form of investment fund for cost-effective, tax-efficient, and transparent
access to investment portfolios. At O’Shares, we aim to serve investors by keeping investing simple,
straightforward and easy to understand.

O’Shares ETFs are all managed according to rules-based indexes, and all are listed on the NYSE.

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// DEFINITIONS

Nasdaq 100 Stock Index: Modified market cap weighted index that includes 100 of the largest domestic and international
non-financial securities listed on NASDAQ based on market cap.

Technology Select Sector Total Return Index: Market cap weighted index that holds large and mid-cap technology
stocks.

S&P 500 Index: Market Cap weighted index of the 500 largest U.S. publicly  traded companies by market value.

Valuations (Forward P/E): Ratio calculated by dividing the last price by the forward 12 month earnings per share
estimates.

TTM: Trailing 12 month period as of 12/31/2018.

Current: The fwd. P/E as of 12/31/2018.

Min: The lowest value over the last 12 months as of 12/31/2018.

Max: The highest value over the last 12 months as of 12/31/2018.

Average: The average value over the last 12 months as of 12/31/2018.

BAT: Commonly used acronym to describe the group of stocks comprised of Baidu, Alibaba and Tencent.

FANG: Commonly used acronym to describe the group of stocks comprised of Facebook, Amazon, Netflix and Google.

Revenue Growth: Average of 1Y and 2Y forward revenue growth.

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// RULES-BASED ETFS
// DESIGNED BY CONSERVATIVE LONG-TERM INVESTORS

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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 visit www.
oshares.com to view or download a prospectus online. 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. The Funds’ 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
Funds’ 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, dip-
lomatic, economic, foreign market and trading risks. In addition, the Funds’ 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 Funds’
returns. See the prospectus for specific risks regarding the Funds.

Companies involved with the 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 compe-
tition 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. Brokerage commissions will reduce returns. 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.

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