Fund Objective

The EGShares Basic Materials GEMS exchange-traded fund (ETF) seeks to achieve its investment objective of total return by investing in the constituent securities of the Dow Jones Emerging Markets Basic Materials Titans 30 Index. The index is created to represent 30 of the largest emerging market companies in the Basic Materials Industry as defined by the Industry Classification Benchmark (ICB). Stocks are selected to the index based on rankings by float-adjusted market capitalization, revenue and net profit.

Key Statistics
(As of 6/30/12)
ETF Ticker (NYSE):
LGEM
Bloomberg Index Ticker:
DJEBMT
Inception Date
6/23/2011
Net Expenses*
0.85%
Holdings
30
Average Market Cap
$28.46B
Median Market Cap
$14.98B
Trailing P/E Ratio
8.1x
Price/Book Ratio
1.6x
Index Dividend Yield
4.06%

Country Weights

(As of 6/30/12)
Country
Weights
South Africa
20.34%
Brazil
17.11
Russia
15.61
China
15.32
India
11.49
Mexico
7.45
Poland
3.60
Chile
3.08
Malaysia
2.63

Industry Weights

(As of 6/30/12)
Industry
Weights
Mining
44.72%
Industrial Metals & Mining
44.15
Chemicals
8.06
Forestry & Paper
3.08

Top 10 Holdings

(As of 6/30/12)
Company
Weights
Vale SA
10.0%
MMC Norilsk Nickel OJSC
7.33
AngloGold Ashanti Ltd
6.11
China Shenhua Energy Co Ltd
5.72
Uralkali OJSC
5.42
Impala Platinum Holdings Ltd
4.95
Grupo Mexico SAB de CV
4.78
Gerdau SA
4.29
Gold Fields Ltd
4.10
KGHM Polska Miedz SA
3.60

Performance

(As of 6/30/12)
  1-Month (%) 3-Month (%) Year-to-Date (%) 1-Year (%) Since
Inception (%)**
  Total Returns
(Net Asset Value)
4.38 -13.08 -3.83 -31.77 -28.95
  Total Returns
(Market Price)
5.58 -10.75 -1.32 -30.33 -27.07
  Dow Jones Emerging Markets Basic Materials Titans 30 Index 4.15 -13.03 -4.51 -32.08 -29.44

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 1.20% 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 July 29, 2012.

**LGEM inception date is 6/23/2011