UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22128
FocusShares Trust
(Exact name of registrant as specified in charter)
210 Summit Avenue
Suite C-11
Montvale, NJ 07645
(Address of principal executive offices) (Zip code)
Erik Liik
FocusShares, LLC
210 Summit Avenue
Suite C-11
Montvale, NJ 07645
(Name and Address of Agent for Service)
Registrant’s telephone number, including area code: (201) 930-8500
Date of fiscal year end: October 31
Date of reporting period: October 31, 2011
Item 1. Reports To Stockholders.
The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/logo_focusshares-k.jpg){kind=logo}
Annual Report
October 31, 2011
Shares of the Trust are not sponsored, endorsed, sold or promoted by Morningstar. Morningstar makes no representation or warranty, express or implied, to the owners of the shares of the Trust or any member of the public regarding the advisability of trading in the product(s). Morningstar has no obligation to take the needs of FocusShares, LLC (in its capacity as licensee of the underlying indexes, the “licensee”) or the owners of the shares of the Trust into consideration in determining, composing or calculating the underlying indexes. Morningstar is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the shares of the trust to be listed or in the determination or calculation of the equation by which the shares of the trust are to be converted into cash. Morningstar has no obligation or liability in connection with the administration, marketing or trading of the shares of the trust.
Morningstar does not guarantee the accuracy and/or the completeness of the underlying indexes or any data included therein and Morningstar shall have no liability for any errors, omissions, or interruptions therein. Morningstar makes no warranty, express or implied, as to results to be obtained by licensee, owners of the shares of the trust, or any other person or entity from the use of the underlying indexes or any data included therein. Morningstar makes no express or implied warranties, and expressly disclaims all warranties, of merchantability or fitness for a particular purpose or use with respect to the underlying indexes or any data included therein, without limiting any of the foregoing, in no event shall Morningstar have any liability for any lost profits or indirect, punitive, special or consequential damages (including lost profits), even if notified of the possibility of such damages. There are no third party beneficiaries of any agreements or arrangements between Morningstar and Licensee.
Morningstar® is a registered trademark of Morningstar, Inc. Morningstar Basic MaterialsSM, Morningstar Communication ServicesSM, Morningstar Consumer CyclicalSM, Morningstar Consumer DefensiveSM, Morningstar EnergySM, Morningstar Financial ServicesSM, Morningstar Health CareSM, Morningstar IndustrialsSM, Morningstar Large CapSM, Morningstar Mid CapSM, Morningstar Real EstateSM, Morningstar Small CapSM, Morningstar TechnologySM, Morningstar US MarketSM, Morningstar UtilitiesSM are service marks of Morningstar, Inc.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Funds. This report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus.
Not FDIC Insured • No Bank Guarantee • May Lose Value
The views in this report were those of the Fund’s manager as of the publication of the report and may not necessarily reflect his views on the date of publication or anytime thereafter. These views are intended to assist shareholders in understanding the Funds’ present investment methodology and do not constitute investment advice.
Foreside Funds Services, LLC, distributor
An investment in the Funds is subject to investment risk, including the possible loss of principal amount invested. The risks associated with the Funds are detailed in the prospectus which include: market risk, index risk, index tracking risk, concentration risk, and non-diversification risk. Sector funds tend to be riskier and more volatile than the broad market because they are less diversified. Investing in mid and small capitalization companies may be more volatile than those of larger companies. Concentrated fund investments will subject the fund to a greater risk of loss as a result of adverse economic, business and other developments than if its investments were diversified across different industry sectors. See prospectus for specified risks factors regarding each sector.
We are privileged to provide the first annual shareholder report for FocusShares and our 15 Focus Morningstar exchange-traded funds. The period covered in this annual report starts on the inception date for our ETFs, March 30, 2011, and continues through the end of our fiscal year, Oct. 31, 2011.
Our primary mission at FocusShares is to provide value and choice to investors utilizing indexes developed by Morningstar. We offer funds with expense ratios at or near the lowest in their respective categories, and all of our ETFs provide access to parts or all of the U.S. stock market. While the first seven months were volatile for the U.S. stock market, we are proud to report that our funds tracked their Morningstar-developed indexes very closely. We believe those indexes fairly represented their respective categories.
Most of the 11 Morningstar U.S. sectors — all of which have a corresponding Focus Morningstar ETF — had negative returns for the seven-month period. The utilities and consumer defensive sectors were the best performing sectors, while financial services and basic materials were the worst. Large cap stocks, as determined by Morningstar, outperformed mid- and small-cap stocks. Financial services companies had the most negative impact on returns for the Focus Morningstar US Market, Large Cap and Mid Cap ETFs. The industrial sector had the most negative impact on Focus Morningstar Small Cap ETF. The consumer defensive sector had the most positive impact on the Focus Morningstar US Market, Large and Mid Cap ETFs. The utilities sector had the most positive impact on the Focus Morningstar Small Cap ETF.
We look forward to the coming year. We believe that Focus Morningstar ETFs will continue to provide investors with cost-effective access to the domestic equity portion of their portfolios. For more information about our funds, including a copy of our prospectus, please visit www.focusshares.com.
Sincerely,
Erik Liik
President, CEO
FocusShares LLC
I
FocusShares Trust
Management Discussion of Fund Performance
October 31, 2011
Focus Morningstar US Market Index ETF (Ticker: FMU)
The Focus Morningstar US Market Index Fund ETF seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar US Market Index (the “Underlying Index”). The Underlying Index measures the performance of United States (“US”), publicly traded companies as determined by Morningstar Inc.’s (“Morningstar”) proprietary index methodology. The Underlying Index measures the performance of 1,524 stocks issued by large-, mid-, and small-capitalization companies that are domiciled or principally traded in the US. The Morningstar index methodology defines the “US Market” as those stocks that form the top 97% of the market capitalization of the stocks eligible to be included in the Underlying Index. The Fund may or may not hold all of the securities in the Underlying Index and may, from time to time, engage in a representative sampling strategy. Due to the use of representative sampling, the fund may or may not hold all of the securities in the index.
During the period from March 30, 2011 (inception), through October 31, 2011, the Fund’s NAV return was -4.45% and its market price return was -4.49%. The Index return was -4.41% during the same period.
The best performing sector over the period was Consumer Defensive, while the Financial Services sector was the worst drag on the Fund.
Among the top holdings, Apple Inc. and International Business Machines Corp. performed the best, while General Electric Co. and Exxon Mobil Corp., among others, had negative returns working against the Fund.
Largest Equity Holdings
 | | |||
| Company | % of Net Assets | |||
| Exxon Mobil Corp. | 2.9 | % | ||
| Apple, Inc. | 2.8 | % | ||
| International Business Machines Corp. | 1.7 | % | ||
| Chevron Corp. | 1.6 | % | ||
| Microsoft Corp. | 1.5 | % | ||
| General Electric Co. | 1.3 | % | ||
| Johnson & Johnson | 1.3 | % | ||
| Procter & Gamble Co./The | 1.3 | % | ||
| AT&T, Inc. | 1.3 | % | ||
| Google, Inc., Class A | 1.1 | % | ||
Industry Holdings
| | |||
| % of Total Investments | ||||
| Information Technology | 19.0 | % | ||
| Financials | 14.4 | % | ||
| Energy | 11.7 | % | ||
| Consumer Discretionary | 11.5 | % | ||
| Industrials | 11.3 | % | ||
| Health Care | 11.3 | % | ||
| Consumer Staples | 9.9 | % | ||
| Materials | 4.3 | % | ||
| Utilities | 4.0 | % | ||
| Telecommunication Services | 2.6 | % | ||
II
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FMU — Focus Morningstar US Market Index ETF
MSTART — Morningstar US Market Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_fmu.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FMU — NAV return | (4.45 | )%# | ||
| FMU — Market Price | (4.49 | )% | ||
| MSTART Index | (4.41 | )% | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.12% and the net operating expense ratio is 0.05% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
III
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Large Cap Index ETF (Ticker: FLG)
The Focus Morningstar Large Cap Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Large Cap Index (the “Underlying Index”). The Underlying Index measures the performance of stocks issued by large-capitalization companies as determined by Morningstar Inc.’s (“Morningstar”) proprietary index methodology. The Underlying Index measures the performance of stocks issued by large-capitalization companies that are domiciled or principally traded in the United States, as determined by Morningstar’s proprietary index methodology that meet specific criteria developed by Morningstar, and is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index. The Morningstar index methodology defines “large-capitalization” stocks as those stocks that form the top 70% of the market capitalization of the stocks eligible to be included in the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded US stocks).
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was -3.23% and its market price return was -3.23%. The index return was -3.20% during the same period.
The best performing sector over the period was Consumer Defensive, while the Financial Services sector was the worst drag on the Fund.
Among the top holdings, Apple Inc. and International Business Machines Corp. performed the best, while General Electric Co. and Exxon Mobil Corp., among others, had negative returns working against the Fund.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| Exxon Mobil Corp. | 3.9 | % | ||
| Apple, Inc. | 3.8 | % | ||
| International Business Machines Corp. | 2.2 | % | ||
| Chevron Corp. | 2.1 | % | ||
| Microsoft Corp. | 2.0 | % | ||
| General Electric Co. | 1.8 | % | ||
| Johnson & Johnson | 1.8 | % | ||
| Procter & Gamble Co./The | 1.8 | % | ||
| AT&T, Inc. | 1.8 | % | ||
| Google, Inc., Class A | 1.5 | % | ||
Industry Holdings
| | |||
| % of Total Investments | ||||
| Information Technology | 20.7 | % | ||
| Financials | 13.2 | % | ||
| Energy | 13.1 | % | ||
| Health Care | 11.9 | % | ||
| Consumer Staples | 11.4 | % | ||
| Consumer Discretionary | 10.0 | % | ||
| Industrials | 9.9 | % | ||
| Telecommunication Services | 3.4 | % | ||
| Materials | 3.3 | % | ||
| Utilities | 3.1 | % | ||
IV
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FLG — Focus Morningstar Large Cap Index ETF
MLCPT — Morningstar Large Cap Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_flg.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FLG — NAV return | (3.23 | )%# | ||
| FLG — Market Price | (3.23 | )% | ||
| MLCPT Index | (3.20 | )% | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.12% and the net operating expense ratio is 0.05% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
V
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Mid Cap Index ETF (Ticker: FMM)
The Focus Morningstar Mid Cap Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Mid Cap Index (the “Underlying Index”). The Underlying Index measures the performance of stocks issued by middle-capitalization companies as determined by Morningstar Inc.’s (“Morningstar”) proprietary index methodology. The Underlying Index measures the performance of stocks issued by middle-capitalization companies that are domiciled or principally traded in the United States, as determined by Morningstar’s proprietary index methodology that meet specific criteria developed by Morningstar, and is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index. The Morningstar index methodology defines “middle-capitalization” stocks as those stocks between the bottom 70th and 90th percentile of the market capitalization of the stocks eligible to be included in the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded US stocks).
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was -7.12% and its market price return was -6.77%. The index return was -7.04% during the same period.
The best performing sector over the period was Consumer Defensive, while the Industrials sector was the worst drag on the Fund.
Among the top holdings, Goodrich Corp. and VF Corp. performed the best, while Prologis Inc. and FMC Technologies Inc. had negative returns working against the Fund.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| Goodrich Corp. | 0.6 | % | ||
| Ventas, Inc. | 0.6 | % | ||
| ProLogis, Inc. | 0.5 | % | ||
| Macy's, Inc. | 0.5 | % | ||
| AvalonBay Communities, Inc. | 0.5 | % | ||
| Xcel Energy, Inc. | 0.5 | % | ||
| Alexion Pharmaceuticals, Inc. | 0.5 | % | ||
| SanDisk Corp. | 0.5 | % | ||
| VF Corp. | 0.5 | % | ||
| CF Industries Holdings, Inc. | �� | 0.4 | % | |
Industry Holdings
| | |||
| % of Total Investments | ||||
| Financials | 17.2 | % | ||
| Consumer Discretionary | 17.0 | % | ||
| Information Technology | 15.0 | % | ||
| Industrials | 12.4 | % | ||
| Health Care | 9.7 | % | ||
| Energy | 7.8 | % | ||
| Utilities | 6.9 | % | ||
| Consumer Staples | 6.7 | % | ||
| Materials | 6.4 | % | ||
| Telecommunication Services | 0.9 | % | ||
VI
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FMM — Focus Morningstar Mid Cap Index ETF
MMCPT — Morningstar Mid Cap Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_fmm.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FMM — NAV return | (7.12 | )%# | ||
| FMM — Market Price | (6.77 | )% | ||
| MMCPT Index | (7.04 | )% | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.19% and the net operating expense ratio is 0.12% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
VII
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Small Cap Index ETF (Ticker: FOS)
The Focus Morningstar Small Cap Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Small Cap Index (the “Underlying Index”). The Underlying Index measures the performance of stocks issued by small-capitalization companies as determined by Morningstar Inc.’s (“Morningstar”) proprietary index methodology. The Underlying Index measures the performance of stocks issued by small-capitalization companies that are domiciled or principally traded in the United States, as determined by Morningstar’s proprietary index methodology that meet specific criteria developed by Morningstar, and is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index. The Underlying Index methodology defines “small-capitalization” stocks as those stocks between the bottom 90th and 97th percentile of the market capitalization of the stocks eligible to be included in the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded US stocks).
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was -9.37% and its market price return was -9.37%. The index return was -9.27% during the same period.
The best performing sector over the period was Consumer Defensive, while the Financial Services sector was the worst drag on the Fund.
Among the top holdings, Nu Skin Enterprises Inc. and Healthspring Inc. performed the best, while Rosetta Resources Inc. and Rock-Tenn Co. had negative returns working against the Fund.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| Rock-Tenn Co., Class A | 0.5 | % | ||
| BioMarin Pharmaceutical, Inc. | 0.4 | % | ||
| Healthspring, Inc. | 0.4 | % | ||
| Temple-Inland, Inc. | 0.4 | % | ||
| Netlogic Microsystems, Inc. | 0.4 | % | ||
| Ariba, Inc. | 0.3 | % | ||
| Cadence Design Systems, Inc. | 0.3 | % | ||
| Nu Skin Enterprises, Inc., Class A | 0.3 | % | ||
| World Fuel Services Corp. | 0.3 | % | ||
| Jack Henry & Associates, Inc. | 0.3 | % | ||
Industry Holdings
| | |||
| % of Total Investments | ||||
| Financials | 21.7 | % | ||
| Information Technology | 18.3 | % | ||
| Industrials | 16.6 | % | ||
| Consumer Discretionary | 13.0 | % | ||
| Health Care | 10.3 | % | ||
| Energy | 6.0 | % | ||
| Materials | 5.5 | % | ||
| Utilities | 4.7 | % | ||
| Consumer Staples | 3.7 | % | ||
| Telecommunication Services | 0.2 | % | ||
VIII
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FOS — Focus Morningstar Small Cap Index ETF
MSCPT — Morningstar Small Cap Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_fos.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FOS — NAV return | (9.37 | )%# | ||
| FOS — Market Price | (9.37 | )% | ||
| MSCPT Index | (9.27 | )% | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.19% and the net operating expense ratio is 0.12% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
IX
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Basic Materials Index ETF (Ticker: FBM)
The Focus Morningstar Basic Materials Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Basic Materials Index (the “Underlying Index”). The Underlying Index is a subset of the Morningstar US Market Index and consists of companies that manufacture chemicals, building materials and paper products. This sector also includes companies engaged in commodities exploration and processing. The Morningstar Basic Materials Index is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index and is a subset of the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded companies that are domiciled or principally traded in the United States). The Underlying Index consists of companies that manufacture chemicals, building materials and paper products. This sector also includes companies engaged in commodities exploration and processing that meet specific criteria developed by Morningstar Inc.
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was -15.61% and its market price return was -15.66%. The index return was -15.51% during the same period.
The best performing sub-sector over the period was Gold, while the Coal sub-sector was the worst drag on the Fund.
Among the top holdings, Newmont Mining Corp. and CF Industries Holdings Inc. performed the best, while Peabody Energy Corp. and Alcoa Inc. had negative returns working against the Fund.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| Monsanto Co. | 8.6 | % | ||
| Freeport-McMoRan Copper & Gold, Inc. | 8.4 | % | ||
| Dow Chemical Co./The | 7.3 | % | ||
| Newmont Mining Corp. | 7.2 | % | ||
| Air Products & Chemicals, Inc. | 3.8 | % | ||
| Mosaic Co./The | 3.6 | % | ||
| PPG Industries, Inc. | 3.0 | % | ||
| Peabody Energy Corp. | 2.6 | % | ||
| CF Industries Holdings, Inc. | 2.6 | % | ||
| Alcoa, Inc. | 2.5 | % | ||
Largest Sub-Industry Holdings
| | |||
| % of Total Investments | ||||
| Fertilizers & Agricultural Chemicals | 15.6 | % | ||
| Diversified Chemicals | 15.2 | % | ||
| Diversified Metals & Mining | 11.4 | % | ||
| Specialty Chemicals | 10.5 | % | ||
| Gold | 8.7 | % | ||
| Steel | 7.5 | % | ||
| Coal & Consumable Fuels | 7.4 | % | ||
| Paper Products | 5.0 | % | ||
| Industrial Gases | 3.8 | % | ||
| Aluminum | 2.9 | % | ||
X
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FBM — Focus Morningstar Basic Materials Index ETF
MBMST — Morningstar Basic Materials Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_fbm.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FBM — NAV return | (15.61 | )%# | ||
| FBM — Market Price | (15.66 | )% | ||
| MBMST Index | (15.51 | )% | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.26% and the net operating expense ratio is 0.19% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
XI
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Communication Services Index ETF (Ticker: FCQ)
The Focus Morningstar Communication Services Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Communication Services Index (the “Underlying Index”). The Underlying Index is a subset of the Morningstar US Market Index and consists of companies that provide communication services using fixed-line networks or those that provide wireless access and services. This sector also includes companies that provide Internet services such as access, navigation and internet related software and services. The Morningstar Communication Services Index is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index and is a subset of the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded companies that are domiciled or principally traded in the United States). The Underlying Index consists of companies that provide Internet services such as access, navigation and internet related software and services that meet specific criteria developed by Morningstar Inc. (“Morningstar”) based on the standard industrial classification (“SIC”) codes attributable to the industries covered by the Underlying Index.
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was -6.83% and its market price return was -6.88%. The index return was -6.61% during the same period.
The best performing sub-sector over the period was Pay TV, however it should be noted this was a drag on the Fund, while the Telecom Services sub-sector was the worst drag on the Fund.
Among the top holdings, American Tower Corp. and DIRECTV Inc. performed the best, while Sprint Nextel Corp. and Frontier Communications Corp. had negative returns working against the Fund.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| AT&T, Inc. | 20.9 | % | ||
| Verizon Communications, Inc. | 13.7 | % | ||
| Comcast Corp. | 12.5 | % | ||
| DIRECTV, Class A | 6.6 | % | ||
| American Tower Corp., Class A | 5.2 | % | ||
| Liberty Global, Inc. | 5.2 | % | ||
| Time Warner Cable, Inc. | 5.0 | % | ||
| CenturyLink, Inc. | 5.0 | % | ||
| Frontier Communications Corp. | 3.0 | % | ||
| Windstream Corp. | 3.0 | % | ||
Sub-Industry Holdings
| | |||
| % of Total Investments | ||||
| Integrated Telecommunication Services | 45.6 | % | ||
| Cable & Satellite | 34.2 | % | ||
| Wireless Telecommunication Services | 12.2 | % | ||
| Internet Software & Services | 2.7 | % | ||
| Alternative Carriers | 2.1 | % | ||
| Data Processing & Outsourced Services | 1.3 | % | ||
| Communications Equipment | 1.1 | % | ||
| Application Software | 0.8 | % | ||
XII
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FCQ — Focus Morningstar Communications Services Index ETF
MCSST — Morningstar Communications Services Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_fcq.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FCQ — NAV return | (6.83 | )%# | ||
| FCQ — Market Price | (6.88 | )% | ||
| MCSST Index | (6.61 | )% | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.26% and the net operating expense ratio is 0.19% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
XIII
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Consumer Cyclical Index ETF (Ticker: FCL)
The Focus Morningstar Consumer Cyclical Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Consumer Cyclical Index (the “Underlying Index”). The Underlying Index is a subset of the Morningstar US Market Index and includes retail stores, auto and auto parts manufacturers, companies engaged in residential construction, lodging facilities, restaurants and entertainment companies. The Morningstar Consumer Cyclical Index is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index and is a subset of the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded companies that are domiciled or principally traded in the United States). The Underlying Index consists of retail stores, auto and auto parts manufacturers, companies engaged in residential construction, lodging facilities, restaurants and entertainment companies that meet specific criteria developed by Morningstar Inc. (“Morningstar”) based on the standard industrial classification (“SIC”) codes attributable to the industries covered by the Underlying Index.
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was 0.22% and its market price return was 0.11%. The index return was 0.34% during the same period.
The best performing sub-sector over the period was Specialty Retail, while the Diversified Media sub-sector was the worst drag on the Fund.
Among the top holdings, McDonald’s Corp. and Starbucks Corp. performed the best, while Ford Motor Co. and The Walt Disney Co. had negative returns working against the Fund.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| McDonald's Corp. | 6.8 | % | ||
| Amazon.com, Inc. | 5.4 | % | ||
| Walt Disney Co./The | 4.3 | % | ||
| Home Depot, Inc. | 4.1 | % | ||
| Ford Motor Co. | 3.1 | % | ||
| News Corp. | 2.9 | % | ||
| Time Warner, Inc. | 2.6 | % | ||
| NIKE, Inc., Class B | 2.6 | % | ||
| eBay, Inc. | 2.5 | % | ||
| Starbucks Corp. | 2.2 | % | ||
Largest Sub-Industry Holdings
| | |||
| % of Total Investments | ||||
| Restaurants | 13.4 | % | ||
| Movies & Entertainment | 12.2 | % | ||
| Internet Retail | 7.8 | % | ||
| Apparel Retail | 6.1 | % | ||
| Home Improvement Retail | 6.0 | % | ||
| Apparel, Accessories & Luxury Goods | 4.6 | % | ||
| Automobile Manufacturers | 4.2 | % | ||
| Hotels, Resorts & Cruise Lines | 3.5 | % | ||
| Department Stores | 3.4 | % | ||
| Auto Parts & Equipment | 3.3 | % | ||
XIV
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FCL — Focus Morningstar Consumer Cyclical Index ETF
MCCST — Morningstar Consumer Cyclical Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_fcl.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FCL — NAV return | 0.22 | %# | ||
| FCL — Market Price | 0.11 | % | ||
| MCCST Index | 0.34 | % | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.26% and the net operating expense ratio is 0.19% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
XV
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Consumer Defensive Index ETF (Ticker: FCD)
The Focus Morningstar Consumer Defensive Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Consumer Defensive Index (the “Underlying Index”). The Underlying Index is a subset of the Morningstar US Market Index and consists of companies engaged in the manufacturing of food, beverages, household and personal products, packaging, or tobacco. This sector also includes companies that provide such services as education and training. The Morningstar Consumer Defensive Index is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index and a subset of the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded companies that are domiciled or principally traded in the United States). The Underlying Index consists of companies engaged in the manufacturing of food, beverages, household and personal products, packaging, or tobacco. This sector also includes companies that provide such services as education and training that meet specific criteria developed by Morningstar Inc. (“Morningstar”) based on the standard industrial classification (“SIC”) codes attributable to the industries covered by the Underlying Index.
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was 5.95% and its market price return was 5.89%. The index return was 6.07% during the same period.
The best performing sub-sector over the period was Discount Stores, while the Pharmaceutical Retailers sub-sector was the worst drag on the Fund.
Among the top holdings, Costco Wholesale Corp. and Kraft Foods Inc. performed the best, while Walgreen Co. had negative return working against the Fund.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| Procter & Gamble Co./The | 12.6 | % | ||
| Coca-Cola Co./The | 10.4 | % | ||
| Philip Morris International, Inc. | 8.8 | % | ||
| Wal-Mart Stores, Inc. | 7.2 | % | ||
| PepsiCo, Inc. | 7.2 | % | ||
| Kraft Foods, Inc., Class A | 4.1 | % | ||
| Altria Group, Inc. | 4.1 | % | ||
| CVS Caremark Corp. | 3.5 | % | ||
| Colgate-Palmolive Co. | 3.2 | % | ||
| Costco Wholesale Corp. | 2.6 | % | ||
Largest Sub-Industry Holdings
| | |||
| % of Total Investments | ||||
| Soft Drinks | 19.3 | % | ||
| Household Products | 19.2 | % | ||
| Packaged Foods & Meats | 15.6 | % | ||
| Tobacco | 15.1 | % | ||
| Hypermarkets & Super Centers | 9.9 | % | ||
| Drug Retail | 5.7 | % | ||
| General Merchandise Stores | 4.1 | % | ||
| Food Retail | 2.7 | % | ||
| Agricultural Products | 2.4 | % | ||
| Personal Products | 1.6 | % | ||
XVI
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FCD — Focus Morningstar Consumer Defensive Index ETF
MCDST — Morningstar Consumer Defensive Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_fcd.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FCD — NAV return | 5.95 | %# | ||
| FCD — Market Price | 5.89 | % | ||
| MCDST Index | 6.07 | % | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.26% and the net operating expense ratio is 0.19% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
XVII
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Energy Index ETF (Ticker: FEG)
The Focus Morningstar Energy Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Energy Index (the “Underlying Index”). The Underlying Index is a subset of the Morningstar US Market Index and consists of companies that produce or refine oil and gas, oil field services and equipment companies, and pipeline operators. This sector also includes companies engaged in the mining of coal. The Morningstar Energy Index is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index and a subset of the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded companies that are domiciled or principally traded in the United States). The Underlying Index consists of companies that produce or refine oil and gas, oil field services and equipment companies, and pipeline operators. This sector also includes companies engaged in the mining of coal that meet specific criteria developed by Morningstar Inc. (“Morningstar”) based on the standard industrial classification (“SIC”) codes attributable to the industries covered by the Underlying Index.
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was -10.79% and its market price return was -10.83%. The index return was -10.68% during the same period.
The best performing sub-sector over the period was Energy Equipment and Services, however it should be noted this was a drag on the Fund, while the Oil, Gas and Consumable Fuels sub-sector was the worst drag on the Fund.
Among the top holdings, all returned negative performance.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| Exxon Mobil Corp. | 20.6 | % | ||
| Chevron Corp. | 14.7 | % | ||
| Schlumberger Ltd. | 6.9 | % | ||
| ConocoPhillips | 6.2 | % | ||
| Occidental Petroleum Corp. | 4.4 | % | ||
| Anadarko Petroleum Corp. | 2.8 | % | ||
| Apache Corp. | 2.7 | % | ||
| Halliburton Co. | 2.4 | % | ||
| National Oilwell Varco, Inc. | 2.1 | % | ||
| Devon Energy Corp. | 1.8 | % | ||
Sub-Industry Holdings
| | |||
| % of Total Investments | ||||
| Integrated Oil & Gas | 48.0 | % | ||
| Oil & Gas Exploration & Production | 23.0 | % | ||
| Oil & Gas Equipment & Services | 17.4 | % | ||
| Oil & Gas Storage & Transportation | 4.3 | % | ||
| Oil & Gas Refining & Marketing | 3.3 | % | ||
| Oil & Gas Drilling | 3.2 | % | ||
| Gas Utilities | 0.8 | % | ||
XVIII
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FEG — Focus Morningstar Energy Index ETF
MBMST — Morningstar Energy Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_feg.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FEG — NAV return | (10.79 | )%# | ||
| FEG — Market Price | (10.83 | )% | ||
| MEST Index | (10.68 | )% | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.26% and the net operating expense ratio is 0.19% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
XIX
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Financial Services Index ETF (Ticker: FFL)
The Focus Morningstar Financial Services Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Financial Services Index (the “Underlying Index”). The Underlying Index is a subset of the Morningstar US Market Index and consists of companies that provide financial services, which includes banks, savings and loans, asset management companies, credit services, investment brokerage firms, and insurance companies. The Morningstar Financial Services Index is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index and a subset of the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded companies that are domiciled or principally traded in the United States). The Underlying Index consists of companies that provide financial services, which includes banks, savings and loans, asset management companies, credit services, investment brokerage firms, and insurance companies that meet specific criteria developed by Morningstar Inc. (“Morningstar”) based on the standard industrial classification (“SIC”) codes attributable to the industries covered by the Underlying Index.
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was -16.45% and its market price return was -16.48%. The index return was -16.33% during the same period.
The best performing sub-sector over the period was Credit Services, while the Regional Banks sub-sector was the worst drag on the Fund.
Among the top holdings, MasterCard Inc. and Visa Inc. performed the best, while Bank of America Corp. and Morgan Stanley had negative returns working against the Fund.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| JPMorgan Chase & Co. | 8.4 | % | ||
| Wells Fargo & Co. | 8.0 | % | ||
| Citigroup, Inc. | 5.7 | % | ||
| Berkshire Hathaway, Inc., Class B | 4.7 | % | ||
| Bank of America Corp. | 4.3 | % | ||
| American Express Co. | 3.4 | % | ||
| U.S. Bancorp | 3.0 | % | ||
| Visa, Inc., Class A | 3.0 | % | ||
| Goldman Sachs Group, Inc./The | 2.9 | % | ||
| Mastercard, Inc., Class A | 2.3 | % | ||
Largest Sub-Industry Holdings
| | |||
| % of Total Investments | ||||
| Other Diversified Financial Services | 18.4 | % | ||
| Property & Casualty Insurance | 13.8 | % | ||
| Diversified Banks | 11.4 | % | ||
| Regional Banks | 10.4 | % | ||
| Asset Management & Custody Banks | 8.8 | % | ||
| Life & Health Insurance | 6.8 | % | ||
| Investment Banking & Brokerage | 6.7 | % | ||
| Consumer Finance | 6.2 | % | ||
| Data Processing & Outsourced Services | 5.4 | % | ||
| Multi-line Insurance | 3.0 | % | ||
XX
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FFL — Focus Morningstar Financial Services Index ETF
MFSST — Morningstar Financial Services Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_ffl.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FFL — NAV return | (16.45 | )%# | ||
| FFL — Market Price | (16.48 | )% | ||
| MFSST Index | (16.33 | )% | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.26% and the net operating expense ratio is 0.19% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
XXI
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Health Care Index ETF (Ticker: FHC)
The Focus Morningstar Health Care Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Health Care Index (the “Underlying Index”). The Underlying Index is a subset of the Morningstar US Market Index and consists of companies involved in biotechnology, pharmaceuticals, research services, home health care, hospitals, long-term care facilities, and medical equipment and supplies. The Morningstar Health Care Index is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index and a subset of the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded companies that are domiciled or principally traded in the United States). The Underlying Index consists of companies involved in biotechnology, pharmaceuticals, research services, home health care, hospitals, long-term care facilities, and medical equipment and supplies that meet specific criteria developed by Morningstar Inc. (“Morningstar”) based on the standard industrial classification (“SIC”) codes attributable to the industries covered by the Underlying Index.
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was 2.20% and its market price return was 2.17%. The index return was 2.32% during the same period.
The best performing sub-sector over the period was Diagnostics & Research, while the Long-Term Care Facilities sub-sector was the worst drag on the Fund.
Among the top holdings, Bristol-Myers Squibb Co. and Abbott Laboratories performed the best, while Gilead Sciences Inc. and Medtronic Inc. had negative returns working against the Fund.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| Johnson & Johnson | 12.0 | % | ||
| Pfizer, Inc. | 10.3 | % | ||
| Merck & Co., Inc. | 7.2 | % | ||
| Abbott Laboratories | 5.7 | % | ||
| Bristol-Myers Squibb Co. | 3.7 | % | ||
| Amgen, Inc. | 3.7 | % | ||
| UnitedHealth Group, Inc. | 3.5 | % | ||
| Medtronic, Inc. | 2.5 | % | ||
| Eli Lilly & Co. | 2.5 | % | ||
| Gilead Sciences, Inc. | 2.2 | % | ||
Sub-Industry Holdings
| | |||
| % of Total Investments | ||||
| Pharmaceuticals | 47.1 | % | ||
| Health Care Equipment | 16.2 | % | ||
| Biotechnology | 12.2 | % | ||
| Managed Health Care | 9.4 | % | ||
| Health Care Services | 5.4 | % | ||
| Health Care Distributors | 4.1 | % | ||
| Life Sciences Tools & Services | 3.4 | % | ||
| Health Care Supplies | 1.1 | % | ||
| Health Care Facilities | 1.0 | % | ||
| Office Services & Supplies | 0.1 | % | ||
XXII
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FHC — Focus Morningstar Health Care Index ETF
MHST — Morningstar Health Care Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_fhc.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FHC — NAV return | 2.20 | %# | ||
| FHC — Market Price | 2.17 | % | ||
| MHST Index | 2.32 | % | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.26% and the net operating expense ratio is 0.19% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
XXIII
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Industrials Index ETF (Ticker: FIL)
The Focus Morningstar Industrials Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Industrials Index (the “Underlying Index”). The Underlying Index is a subset of the Morningstar US Market Index and consists of companies that manufacture machinery, hand-held tools and industrial products. This sector also includes aerospace and defense firms, as well as companies engaged in transportations and logistic services. The Morningstar Industrials Index is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index and a subset of the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded companies that are domiciled or principally traded in the United States). The Underlying Index consists of companies that manufacture machinery, hand-held tools and industrial products. This sector also includes aerospace and defense firms, as well as companies engaged in transportations and logistic services that meet specific criteria developed by Morningstar Inc. (“Morningstar”) based on the standard industrial classification (“SIC”) codes attributable to the industries covered by the Underlying Index.
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was -9.60% and its market price return was -9.63%. The index return was -9.50% during the same period.
The best performing sub-sector over the period was Industrial Distribution, while the Diversified Industrials sub-sector was the worst drag on the Fund.
Among the top holdings, Union Pacific Corp. and Accenture PLC performed the best, while General Electric Co. and Deere & Co. had negative returns working against the Fund.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| General Electric Co. | 10.5 | % | ||
| United Technologies Corp. | 3.6 | % | ||
| Caterpillar, Inc. | 3.3 | % | ||
| United Parcel Service, Inc., Class B | 3.1 | % | ||
| 3M Co. | 3.0 | % | ||
| Union Pacific Corp. | 2.9 | % | ||
| E.I. du Pont de Nemours & Co. | 2.7 | % | ||
| Boeing Co./The | 2.6 | % | ||
| Accenture plc, Class A | 2.3 | % | ||
| Honeywell International, Inc. | 2.2 | % | ||
Largest Sub-Industry Holdings
| | |||
| % of Total Investments | ||||
| Aerospace & Defense | 17.8 | % | ||
| Industrial Conglomerates | 16.4 | % | ||
| Industrial Machinery | 9.0 | % | ||
| Construction & Farm Machinery & Heavy Trucks | 8.8 | % | ||
| Railroads | 6.4 | % | ||
| Air Freight & Logistics | 6.0 | % | ||
| Data Processing & Outsourced Services | 4.8 | % | ||
| Electrical Components & Equipment | 4.6 | % | ||
| IT Consulting & Other Services | 2.8 | % | ||
| Diversified Chemicals | 2.6 | % | ||
XXIV
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FIL — Focus Morningstar Industrials Index ETF
MIST — Morningstar Industrials Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_fil.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FIL — NAV return | (9.60 | )%# | ||
| FIL — Market Price | (9.63 | )% | ||
| MIST Index | (9.50 | )% | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.26% and the net operating expense ratio is 0.19% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
XXV
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Real Estate Index ETF (Ticker: FRL)
The Focus Morningstar Real Estate Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Real Estate Index (the “Underlying index”). The Underlying Index is a subset of the Morningstar US Market Index and consists of mortgage companies, property management companies and REITs. The Morningstar Real Estate Index is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index and a subset of the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded companies that are domiciled or principally traded in the United States). The Underlying Index consists of mortgage companies, property management companies and REITs that meet specific criteria developed by Morningstar Inc. (“Morningstar”) based on the standard industrial classification (“SIC”) codes attributable to the industries covered by the Underlying Index.
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was 1.30% and its market price return was 1.25%. The index return was 1.38% during the same period.
The best performing sub-sector over the period was Retail, while the Real Estate Services sub-sector was the worst drag on the Fund.
Among the top holdings, Simon Property Group Inc. and Public Storage performed the best, while Weyerhaeuser Co. and Host Hotels & Resorts Inc. had negative returns working against the Fund.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| Simon Property Group, Inc. | 9.2 | % | ||
| Public Storage | 4.5 | % | ||
| Equity Residential | 4.2 | % | ||
| Annaly Capital Management, Inc. | 4.0 | % | ||
| HCP, Inc. | 4.0 | % | ||
| Vornado Realty Trust | 3.7 | % | ||
| Ventas, Inc. | 3.6 | % | ||
| Boston Properties, Inc. | 3.5 | % | ||
| ProLogis, Inc. | 3.4 | % | ||
| AvalonBay Communities, Inc. | 3.1 | % | ||
Largest Sub-Industry Holdings
| | |||
| % of Total Investments | ||||
| Specialized REITs | 27.1 | % | ||
| Retail REITs | 22.8 | % | ||
| Residential REITs | 15.5 | % | ||
| Office REITs | 13.1 | % | ||
| Mortgage REITs | 7.5 | % | ||
| Diversified REITs | 5.9 | % | ||
| Industrial REITs | 4.3 | % | ||
| Real Estate Services | 2.0 | % | ||
| Security & Alarm Services | 0.6 | % | ||
| Real Estate Operating Companies | 0.5 | % | ||
XXVI
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FRL — Focus Morningstar Real Estate Index ETF
MRETST — Morningstar Real Estate Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_frl.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FRL — NAV return | 1.30 | %# | ||
| FRL — Market Price | 1.25 | % | ||
| MRETST Index | 1.38 | % | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.19% and the net operating expense ratio is 0.12% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns
XXVII
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Technology Index ETF (Ticker: FTQ)
The Focus Morningstar Technology Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Technology Index (the “Underlying Index”). The Underlying Index is a subset of the Morningstar US Market Index and consists of companies engaged in the design, development, and support of computer operating systems and applications. This sector also includes companies that provide computer technology consulting services and companies engaged in the manufacturing of computer equipment, data storage products, networking products, semiconductors, and components. The Morningstar Technology Index is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index and a subset of the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded companies that are domiciled or principally traded in the United States). The Underlying Index consists of companies engaged in the design, development, and support of computer operating systems and applications. This sector also includes companies that provide computer technology consulting services and companies engaged in the manufacturing of computer equipment, data storage products, networking products, semiconductors, and components that meet specific criteria developed by Morningstar Inc. (“Morningstar”) based on the standard industrial classification (“SIC”) codes attributable to the industries covered by the Underlying Index.
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was -1.12% and its market price return was -1.08%. The index return was -1.01% during the same period.
The best performing sub-sector over the period was Computer Systems, while the Communication Equipment sub-sector was the worst drag on the Fund.
Among the top holdings, Intel Corp. and Apple Inc. performed the best, while Hewlett-Packard Co. and Texas Instruments Inc. had negative returns working against the Fund.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| Apple, Inc. | 16.0 | % | ||
| International Business Machines Corp. | 9.4 | % | ||
| Microsoft Corp. | 8.5 | % | ||
| Google, Inc., Class A | 6.4 | % | ||
| Oracle Corp. | 4.7 | % | ||
| Intel Corp. | 4.7 | % | ||
| Cisco Systems, Inc. | 4.5 | % | ||
| QUALCOMM, Inc. | 3.8 | % | ||
| Hewlett-Packard Co. | 2.4 | % | ||
| EMC Corp. | 2.2 | % | ||
Largest Sub-Industry Holdings
| | |||
| % of Total Investments | ||||
| Computer Hardware | 19.7 | % | ||
| Systems Software | 16.1 | % | ||
| Semiconductors | 12.7 | % | ||
| Communications Equipment | 11.6 | % | ||
| IT Consulting & Other Services | 11.3 | % | ||
| Internet Software & Services | 8.4 | % | ||
| Application Software | 5.6 | % | ||
| Computer Storage & Peripherals | 4.2 | % | ||
| Semiconductor Equipment | 2.1 | % | ||
| Electronic Components | 1.5 | % | ||
XXVIII
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FTQ — Focus Morningstar Technology Index ETF
MTST — Morningstar Technology Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_ftq.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FTQ — NAV return | (1.12 | )%# | ||
| FTQ — Market Price | (1.08 | )% | ||
| MTST Index | (1.01 | )% | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.26% and the net operating expense ratio is 0.19% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
XXIX
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Focus Morningstar Utilities Index ETF (Ticker: FUI)
The Focus Morningstar Utilities Index ETF (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Utilities Index (the “Underlying Index”). The Underlying Index is a subset of the Morningstar US Market Index and consists of electric, gas, and water utilities. The Morningstar Utilities Index is determined on the basis of capital value of component securities that are publicly held, which typifies a “float adjusted” capitalization index and a subset of the Morningstar US Market Index (a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded companies that are domiciled or principally traded in the United States). The Underlying Index consists of companies that are electric, gas, and water utilities that meet specific criteria developed by Morningstar Inc. (“Morningstar”) based on the standard industrial classification (“SIC”) codes attributable to the industries covered by the Underlying Index.
During the period of March 30, 2011 (inception), through October 31, 2011, the fund’s net asset value (NAV) return was 10.61% and its market price return was 10.59%. The index return was 10.76% during the same period.
The best performing sub-sector over the period was Diversified Utilities, while the Independent Power Producers sub-sector was the worst drag on the Fund.
Among the top holdings, FirstEnergy Corp. and PPL Corp. performed the best, while PG&E Corporation had negative return working against the Fund.
Largest Equity Holdings
| | |||
| Company | % of Net Assets | |||
| Southern Co. | 7.3 | % | ||
| Dominion Resources, Inc. | 5.8 | % | ||
| Exelon Corp. | 5.8 | % | ||
| Duke Energy Corp. | 5.3 | % | ||
| NextEra Energy, Inc. | 4.7 | % | ||
| American Electric Power Co., Inc. | 3.7 | % | ||
| FirstEnergy Corp. | 3.7 | % | ||
| PG&E Corp. | 3.4 | % | ||
| Public Service Enterprise Group, Inc. | 3.4 | % | ||
| PPL Corp. | 3.3 | % | ||
Sub-Industry Holdings
| | |||
| % of Total Investments | ||||
| Electric Utilities | 51.4 | % | ||
| Multi-Utilities | 35.8 | % | ||
| Independent Power Producers & Energy Traders | 5.8 | % | ||
| Gas Utilities | 5.1 | % | ||
| Water Utilities | 1.6 | % | ||
| Environmental & Facilities Services | 0.3 | % | ||
XXX
FocusShares Trust
Management Discussion of Fund Performance (continued)
October 31, 2011
Growth of a $10,000 Investment Since Inception at Net Asset Value*
FUI — Focus Morningstar Utilities Index ETF
MUST — Morningstar Utilities Index
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSR/0001144204-12-000402/v243394_fui.jpg)
| * | The line graph represents historical performance of a hypothetical investment of $10,000 from March 30, 2011 (inception) to October 31, 2011 assuming the reinvestment of distributions. |
| | |||
| Average Annual Total Return | Since Inception | |||
| FUI — NAV return | 10.61 | %# | ||
| FUI — Market Price | 10.59 | % | ||
| MUST Index | 10.76 | % | ||
| # | Represents NAV return from the commencement of trading on the New York Stock Exchange (March 30, 2011) through October 31, 2011 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.26% and the net operating expense ratio is 0.19% (Actual expenses are referenced in the Financial Highlights section later in this report). The Fund’s advisor has contractually agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent performance, please visit www.focusshares.com. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a Fund or brokerage commissions on transactions in Fund shares. Such fees, expenses and commissions reduce Fund returns.
XXXI
FocusShares Trust
Focus Morningstar US Market Index ETF
Summary Schedule of Portfolio Investments
October 31, 2011
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks – 100.0% | ||||||||||||
| 489 | 3M Co. (Industrials) | 0.4 | % | $ | 38,641 | |||||||
| 1,121 | Abbott Laboratories (Health Care) | 0.6 | % | 60,388 | ||||||||
| 1,487 | Altria Group, Inc. (Consumer Staples) | 0.4 | % | 40,967 | ||||||||
| 255 | Amazon.com, Inc.* (Consumer Discretionary) | 0.6 | % | 54,445 | ||||||||
| 776 | American Express Co. (Financials) | 0.4 | % | 39,281 | ||||||||
| 670 | Amgen, Inc. (Health Care) | 0.4 | % | 38,371 | ||||||||
| 672 | Apple, Inc.* (Information Technology) | 2.8 | % | 272,012 | ||||||||
| 4,307 | AT&T, Inc. (Telecommunication Services) | 1.3 | % | 126,238 | ||||||||
| 7,357 | Bank of America Corp. (Financials) | 0.5 | % | 50,248 | ||||||||
| 709 | Berkshire Hathaway, Inc., Class B* (Financials) | 0.6 | % | 55,203 | ||||||||
| 1,248 | Bristol-Myers Squibb Co. (Health Care) | 0.4 | % | 39,424 | ||||||||
| 435 | Caterpillar, Inc. (Industrials) | 0.4 | % | 41,090 | ||||||||
| 1,460 | Chevron Corp. (Energy) | 1.6 | % | 153,373 | ||||||||
| 4,028 | Cisco Systems, Inc. (Information Technology) | 0.8 | % | 74,639 | ||||||||
| 2,125 | Citigroup, Inc. (Financials) | 0.7 | % | 67,129 | ||||||||
| 1,535 | Coca-Cola Co./The (Consumer Staples) | 1.1 | % | 104,871 | ||||||||
| 1,517 | Comcast Corp., Class A (Consumer Discretionary) | 0.4 | % | 35,574 | ||||||||
| 935 | ConocoPhillips (Energy) | 0.7 | % | 65,123 | ||||||||
| 992 | CVS Caremark Corp. (Consumer Staples) | 0.4 | % | 36,010 | ||||||||
| 1,503 | EMC Corp.* (Information Technology) | 0.4 | % | 36,838 | ||||||||
| 3,525 | Exxon Mobil Corp. (Energy) | 2.9 | % | 275,267 | ||||||||
| 7,765 | General Electric Co. (Industrials) | 1.3 | % | 129,753 | ||||||||
| 184 | Google, Inc., Class A* (Information Technology) | 1.1 | % | 109,046 | ||||||||
| 1,514 | Hewlett-Packard Co. (Information Technology) | 0.4 | % | 40,288 | ||||||||
| 1,169 | Home Depot, Inc. (Consumer Discretionary) | 0.4 | % | 41,850 | ||||||||
| 3,785 | Intel Corp. (Information Technology) | 1.0 | % | 92,884 | ||||||||
| 863 | International Business Machines Corp. (Information Technology) | 1.7 | % | 159,336 | ||||||||
| 1,979 | Johnson & Johnson (Health Care) | 1.3 | % | 127,428 | ||||||||
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks (continued) | ||||||||||||
| 2,835 | JPMorgan Chase & Co. (Financials) | 1.0 | % | $ | 98,545 | |||||||
| 1,180 | Kraft Foods, Inc., Class A (Consumer Staples) | 0.4 | % | 41,512 | ||||||||
| 727 | McDonald’s Corp. (Consumer Discretionary) | 0.7 | % | 67,502 | ||||||||
| 2,220 | Merck & Co., Inc. (Health Care) | 0.8 | % | 76,590 | ||||||||
| 5,436 | Microsoft Corp. (Information Technology) | 1.5 | % | 144,761 | ||||||||
| 587 | Occidental Petroleum Corp. (Energy) | 0.6 | % | 54,556 | ||||||||
| 2,851 | Oracle Corp. (Information Technology) | 1.0 | % | 93,427 | ||||||||
| 1,162 | PepsiCo, Inc. (Consumer Staples) | 0.8 | % | 73,148 | ||||||||
| 5,606 | Pfizer, Inc. (Health Care) | 1.1 | % | 107,972 | ||||||||
| 1,257 | Philip Morris International, Inc. (Consumer Staples) | 0.9 | % | 87,827 | ||||||||
| 1,973 | Procter & Gamble Co./The (Consumer Staples) | 1.3 | % | 126,252 | ||||||||
| 1,212 | QUALCOMM, Inc. (Information Technology) | 0.6 | % | 62,539 | ||||||||
| 976 | Schlumberger Ltd. (Energy) | 0.7 | % | 71,707 | ||||||||
| 1,405 | U.S. Bancorp (Financials) | 0.4 | % | 35,954 | ||||||||
| 558 | United Parcel Service, Inc., Class B (Industrials) | 0.4 | % | 39,194 | ||||||||
| 595 | United Technologies Corp. (Industrials) | 0.5 | % | 46,398 | ||||||||
| 779 | UnitedHealth Group, Inc. (Health Care) | 0.4 | % | 37,384 | ||||||||
| 2,048 | Verizon Communications, Inc. (Telecommunication Services) | 0.8 | % | 75,735 | ||||||||
| 385 | Visa, Inc., Class A (Information Technology) | 0.4 | % | 35,905 | ||||||||
| 1,270 | Wal-Mart Stores, Inc. (Consumer Staples) | 0.7 | % | 72,034 | ||||||||
| 1,255 | Walt Disney Co./The (Consumer Discretionary) | 0.5 | % | 43,774 | ||||||||
| 3,629 | Wells Fargo & Co. (Financials) | 1.0 | % | 94,027 | ||||||||
| 167,877 | Other Common Stocks | 58.5 | % | 5,645,910 | ||||||||
| Total Common Stocks (Cost $9,618,417) | 9,638,370 | |||||||||||
| Total Investment Securities (Cost $9,618,417) – 100.0% | 9,638,370 | |||||||||||
| Other assets less liabilities – 0.0%† | 2,887 | |||||||||||
| Net Assets – 100.0% | $ | 9,641,257 | ||||||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
See accompanying notes to the financial statements.
1
FocusShares Trust
Focus Morningstar US Market Index ETF
Summary Schedule of Portfolio Investments (continued)
October 31, 2011
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| Aggregate gross unrealized appreciation | $538,273 | |||
| Aggregate gross unrealized depreciation | (530,709) | |||
| Net unrealized appreciation | $7,564 | |||
| Federal income tax cost of investments | $9,630,806 | |||
Focus Morningstar US Market Index ETF invested, as a percentage of net assets, in the following industries, as of October 31, 2011:
| | |||
| Consumer Discretionary | 11.5 | % | ||
| Consumer Staples | 9.9 | % | ||
| Energy | 11.7 | % | ||
| Financials | 14.4 | % | ||
| Health Care | 11.3 | % | ||
| Industrials | 11.3 | % | ||
| Information Technology | 19.0 | % | ||
| Materials | 4.3 | % | ||
| Telecommunication Services | 2.6 | % | ||
| Utilities | 4.0 | % | ||
| Other1 | 0.0 | %† | ||
| 100.0 | % | |||
| 1 | Represents net other assets (liabilities). |
| † | Amount represents less than 0.05%. |
See accompanying notes to the financial statements.
2
FocusShares Trust
Focus Morningstar Large Cap Index ETF
Summary Schedule of Portfolio Investments
October 31, 2011
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks – 100.0% | ||||||||||||
| 320 | 3M Co. (Industrials) | 0.5 | % | $ | 25,286 | |||||||
| 763 | Abbott Laboratories (Health Care) | 0.9 | % | 41,103 | ||||||||
| 1,021 | Altria Group, Inc. (Consumer Staples) | 0.6 | % | 28,129 | ||||||||
| 173 | Amazon.com, Inc.* (Consumer Discretionary) | 0.8 | % | 36,937 | ||||||||
| 522 | American Express Co. (Financials) | 0.5 | % | 26,424 | ||||||||
| 458 | Amgen, Inc. (Health Care) | 0.5 | % | 26,230 | ||||||||
| 455 | Apple, Inc.* (Information Technology) | 3.8 | % | 184,175 | ||||||||
| 2,915 | AT&T, Inc. (Telecommunication Services) | 1.8 | % | 85,439 | ||||||||
| 4,949 | Bank of America Corp. (Financials) | 0.7 | % | 33,802 | ||||||||
| 472 | Berkshire Hathaway, Inc., Class B* (Financials) | 0.8 | % | 36,750 | ||||||||
| 842 | Bristol-Myers Squibb Co. (Health Care) | 0.6 | % | 26,599 | ||||||||
| 287 | Caterpillar, Inc. (Industrials) | 0.6 | % | 27,110 | ||||||||
| 983 | Chevron Corp. (Energy) | 2.1 | % | 103,264 | ||||||||
| 2,717 | Cisco Systems, Inc. (Information Technology) | 1.0 | % | 50,346 | ||||||||
| 1,421 | Citigroup, Inc. (Financials) | 0.9 | % | 44,889 | ||||||||
| 1,044 | Coca-Cola Co./The (Consumer Staples) | 1.5 | % | 71,326 | ||||||||
| 1,025 | Comcast Corp., Class A (Consumer Discretionary) | 0.5 | % | 24,036 | ||||||||
| 626 | ConocoPhillips (Energy) | 0.9 | % | 43,601 | ||||||||
| 1,012 | EMC Corp.* (Information Technology) | 0.5 | % | 24,804 | ||||||||
| 2,384 | Exxon Mobil Corp. (Energy) | 3.9 | % | 186,167 | ||||||||
| 5,233 | General Electric Co. (Industrials) | 1.8 | % | 87,443 | ||||||||
| 125 | Google, Inc., Class A* (Information Technology) | 1.5 | % | 74,080 | ||||||||
| 1,017 | Hewlett-Packard Co. (Information Technology) | 0.6 | % | 27,062 | ||||||||
| 784 | Home Depot, Inc. (Consumer Discretionary) | 0.6 | % | 28,067 | ||||||||
| 2,574 | Intel Corp. (Information Technology) | 1.3 | % | 63,166 | ||||||||
| 586 | International Business Machines Corp. (Information Technology) | 2.2 | % | 108,193 | ||||||||
| 1,341 | Johnson & Johnson (Health Care) | 1.8 | % | 86,347 | ||||||||
| 1,912 | JPMorgan Chase & Co. (Financials) | 1.4 | % | 66,461 | ||||||||
| 803 | Kraft Foods, Inc., Class A (Consumer Staples) | 0.6 | % | 28,250 | ||||||||
| 506 | McDonald’s Corp. (Consumer Discretionary) | 1.0 | % | 46,982 | ||||||||
| 1,507 | Merck & Co., Inc. (Health Care) | 1.1 | % | 51,991 | ||||||||
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks (continued) | ||||||||||||
| 3,669 | Microsoft Corp. (Information Technology) | 2.0 | % | $ | 97,706 | |||||||
| 397 | Occidental Petroleum Corp. (Energy) | 0.8 | % | 36,897 | ||||||||
| 1,907 | Oracle Corp. (Information Technology) | 1.3 | % | 62,492 | ||||||||
| 780 | PepsiCo, Inc. (Consumer Staples) | 1.0 | % | 49,101 | ||||||||
| 3,830 | Pfizer, Inc. (Health Care) | 1.5 | % | 73,766 | ||||||||
| 861 | Philip Morris International, Inc. (Consumer Staples) | 1.3 | % | 60,158 | ||||||||
| 1,347 | Procter & Gamble Co./The (Consumer Staples) | 1.8 | % | 86,195 | ||||||||
| 824 | QUALCOMM, Inc. (Information Technology) | 0.9 | % | 42,518 | ||||||||
| 662 | Schlumberger Ltd. (Energy) | 1.0 | % | 48,637 | ||||||||
| 938 | U.S. Bancorp (Financials) | 0.5 | % | 24,003 | ||||||||
| 241 | Union Pacific Corp. (Industrials) | 0.5 | % | 23,996 | ||||||||
| 361 | United Parcel Service, Inc., Class B (Industrials) | 0.5 | % | 25,357 | ||||||||
| 388 | United Technologies Corp. (Industrials) | 0.6 | % | 30,256 | ||||||||
| 528 | UnitedHealth Group, Inc. (Health Care) | 0.5 | % | 25,339 | ||||||||
| 257 | Visa Inc., Class A. (Information Technology) | 0.5 | % | 23,968 | ||||||||
| 1,386 | Verizon Communications, Inc. (Telecommunication Services) | 1.1 | % | 51,254 | ||||||||
| 868 | Wal-Mart Stores, Inc. (Consumer Staples) | 1.0 | % | 49,233 | ||||||||
| 845 | Walt Disney Co./The (Consumer Discretionary) | 0.6 | % | 29,474 | ||||||||
| 2,444 | Wells Fargo & Co. (Financials) | 1.3 | % | 63,324 | ||||||||
| 53,793 | Other Common Stocks | 44.0 | % | 2,118,888 | ||||||||
| Total Common Stocks (Cost $4,995,373) | 4,817,021 | |||||||||||
| Total Investment Securities (Cost $4,995,373) – 100.0% | 4,817,021 | |||||||||||
| Other assets less liabilities – 0.0%† | 2,025 | |||||||||||
| Net Assets – 100.0% | $ | 4,819,046 | ||||||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| Aggregate gross unrealized appreciation | $221,270 | |||
| Aggregate gross unrealized depreciation | (402,865) | |||
| Net unrealized depreciation | $(181,595) | |||
| Federal income tax cost of investments | $4,998,616 | |||
See accompanying notes to the financial statements.
3
FocusShares Trust
Focus Morningstar Large Cap Index ETF
Summary Schedule of Portfolio Investments (continued)
October 31, 2011
Focus Morningstar Large Cap Index ETF invested, as a percentage of net assets, in the following industries, as of October 31, 2011:
| | |||
| Consumer Discretionary | 10.0 | % | ||
| Consumer Staples | 11.4 | % | ||
| Energy | 13.1 | % | ||
| Financials | 13.2 | % | ||
| Health Care | 11.9 | % | ||
| Industrials | 9.9 | % | ||
| Information Technology | 20.7 | % | ||
| Materials | 3.3 | % | ||
| Telecommunication Services | 3.4 | % | ||
| Utilities | 3.1 | % | ||
| Other1 | 0.0 | %† | ||
| 100.0 | % | |||
| 1 | Represents net other assets (liabilities). |
| † | Amount represents less than 0.05%. |
See accompanying notes to the financial statements.
4
FocusShares Trust
Focus Morningstar Mid Cap Index ETF
Summary Schedule of Portfolio Investments
October 31, 2011
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks – 100.0% | ||||||||||||
| 330 | Alexion Pharmaceuticals, Inc.* (Health Care) | 0.5 | % | $ | 22,278 | |||||||
| 482 | AmerisourceBergen Corp. (Health Care) | 0.4 | % | 19,666 | ||||||||
| 532 | Analog Devices, Inc. (Information Technology) | 0.4 | % | 19,455 | ||||||||
| 168 | AvalonBay Communities, Inc. (REIT) (Financials) | 0.5 | % | 22,460 | ||||||||
| 2,733 | Boston Scientific Corp.* (Health Care) | 0.3 | % | 16,097 | ||||||||
| 263 | Bunge Ltd. (Consumer Staples) | 0.3 | % | 16,246 | ||||||||
| 256 | Cerner Corp.* (Health Care) | 0.3 | % | 16,238 | ||||||||
| 127 | CF Industries Holdings, Inc. (Materials) | 0.4 | % | 20,608 | ||||||||
| 56 | Chipotle Mexican Grill, Inc.* (Consumer Discretionary) | 0.4 | % | 18,823 | ||||||||
| 238 | Clorox Co./The (Consumer Staples) | 0.3 | % | 15,932 | ||||||||
| 741 | ConAgra Foods, Inc. (Consumer Staples) | 0.4 | % | 18,770 | ||||||||
| 185 | Concho Resources, Inc.* (Energy) | 0.4 | % | 17,523 | ||||||||
| 404 | Consol Energy, Inc. (Energy) | 0.4 | % | 17,275 | ||||||||
| 218 | Dollar Tree, Inc.* (Consumer Discretionary) | 0.4 | % | 17,431 | ||||||||
| 267 | EQT Corp. (Energy) | 0.4 | % | 16,955 | ||||||||
| 381 | Expeditors International of Washington, Inc. (Industrials) | 0.4 | % | 17,374 | ||||||||
| 527 | Fastenal Co. (Industrials) | 0.4 | % | 20,074 | ||||||||
| 1,640 | Fifth Third Bancorp (Financials) | 0.4 | % | 19,696 | ||||||||
| 311 | Fluor Corp. (Industrials) | 0.4 | % | 17,680 | ||||||||
| 429 | FMC Technologies, Inc.* (Energy) | 0.4 | % | 19,228 | ||||||||
| 282 | Genuine Parts Co. (Consumer Discretionary) | 0.3 | % | 16,195 | ||||||||
| 223 | Goodrich Corp. (Industrials) | 0.6 | % | 27,347 | ||||||||
| 423 | Harley-Davidson, Inc. (Consumer Discretionary) | 0.3 | % | 16,455 | ||||||||
| 316 | Health Care REIT, Inc. (REIT) (Financials) | 0.4 | % | 16,650 | ||||||||
| 1,263 | Host Hotels & Resorts, Inc. (REIT) (Financials) | 0.4 | % | 18,023 | ||||||||
| 131 | IntercontinentalExchange, Inc.* (Financials) | 0.4 | % | 17,014 | ||||||||
| 806 | Invesco Ltd. (Financials) | 0.3 | % | 16,176 | ||||||||
| 187 | Joy Global, Inc. (Industrials) | 0.3 | % | 16,306 | ||||||||
| 1,024 | Liberty Interactive Corp., Class A* (Consumer Discretionary) | 0.4 | % | 16,824 | ||||||||
| 224 | M&T Bank Corp. (Financials) | 0.4 | % | 17,049 | ||||||||
| 762 | Macy’s, Inc. (Consumer Discretionary) | 0.5 | % | 23,264 | ||||||||
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks (continued) | ||||||||||||
| 613 | Mattel, Inc. (Consumer Discretionary) | 0.4 | % | $ | 17,311 | |||||||
| 243 | O’Reilly Automotive, Inc.* (Consumer Discretionary) | 0.4 | % | 18,480 | ||||||||
| 580 | Paychex, Inc. (Information Technology) | 0.4 | % | 16,901 | ||||||||
| 208 | Pioneer Natural Resources Co. (Energy) | 0.4 | % | 17,451 | ||||||||
| 821 | ProLogis, Inc. (REIT) (Financials) | 0.5 | % | 24,433 | ||||||||
| 288 | Range Resources Corp. (Energy) | 0.4 | % | 19,826 | ||||||||
| 345 | Red Hat, Inc.* (Information Technology) | 0.4 | % | 17,129 | ||||||||
| 210 | Ross Stores, Inc. (Consumer Discretionary) | 0.4 | % | 18,423 | ||||||||
| 426 | SanDisk Corp.* (Information Technology) | 0.5 | % | 21,585 | ||||||||
| 990 | Sara Lee Corp. (Consumer Staples) | 0.4 | % | 17,622 | ||||||||
| 349 | Starwood Hotels & Resorts Worldwide, Inc. (Consumer Discretionary) | 0.4 | % | 17,488 | ||||||||
| 301 | Teradata Corp.* (Information Technology) | 0.4 | % | 17,958 | ||||||||
| 228 | Tiffany & Co. (Consumer Discretionary) | 0.4 | % | 18,179 | ||||||||
| 469 | Ventas, Inc. (REIT) (Financials) | 0.6 | % | 26,081 | ||||||||
| 155 | VF Corp. (Consumer Discretionary) | 0.5 | % | 21,424 | ||||||||
| 105 | W.W. Grainger, Inc. (Industrials) | 0.4 | % | 17,988 | ||||||||
| 240 | Watson Pharmaceuticals, Inc.* (Health Care) | 0.3 | % | 16,118 | ||||||||
| 280 | Whole Foods Market, Inc. (Consumer Staples) | 0.4 | % | 20,194 | ||||||||
| 866 | Xcel Energy, Inc. (Utilities) | 0.5 | % | 22,386 | ||||||||
| 141,658 | Other Common Stocks | 79.8 | % | 3,713,837 | ||||||||
| Total Common Stocks (Cost $4,988,403) | 4,651,926 | |||||||||||
| Money Market Fund – 0.0%† | ||||||||||||
| 1,221 | JPMorgan U.S. Government Money Market Premier, 0.01% (Cost $1,221) | 1,221 | ||||||||||
| Total Investment Securities (Cost $4,989,624) – 100.0% | 4,653,147 | |||||||||||
| Other assets less liabilities – 0.0%† | 354 | |||||||||||
| Net Assets – 100.0% | $ | 4,653,501 | ||||||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
| REIT | Real Estate Investment Trust |
See accompanying notes to the financial statements.
5
FocusShares Trust
Focus Morningstar Mid Cap Index ETF
Summary Schedule of Portfolio Investments (continued)
October 31, 2011
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| Aggregate gross unrealized appreciation | $234,753 | |||
| Aggregate gross unrealized depreciation | (578,960) | |||
| Net unrealized depreciation | $(344,207) | |||
| Federal income tax cost of investments | $4,997,354 | |||
Focus Morningstar Mid Cap Index ETF invested, as a percentage of net assets, in the following industries, as of October 31, 2011:
| | |||
| Consumer Discretionary | 17.0 | % | ||
| Consumer Staples | 6.7 | % | ||
| Energy | 7.8 | % | ||
| Financials | 17.2 | % | ||
| Health Care | 9.7 | % | ||
| Industrials | 12.4 | % | ||
| Information Technology | 15.0 | % | ||
| Materials | 6.4 | % | ||
| Telecommunication Services | 0.9 | % | ||
| Utilities | 6.9 | % | ||
| Other1 | 0.0 | %† | ||
| 100.0 | % | |||
| 1 | Represents net other assets (liabilities). |
| † | Amount represents less than 0.05%. |
See accompanying notes to the financial statements.
6
FocusShares Trust
Focus Morningstar Small Cap Index ETF
Summary Schedule of Portfolio Investments
October 31, 2011
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks – 100.0% | ||||||||||||
| 183 | Alaska Air Group, Inc.* (Industrials) | 0.3 | % | $ | 12,175 | |||||||
| 353 | American Campus Communities, Inc. (REIT) (Financials) | 0.3 | % | 13,742 | ||||||||
| 495 | Ariba, Inc.* (Information Technology) | 0.3 | % | 15,682 | ||||||||
| 286 | Atwood Oceanics, Inc.* (Energy) | 0.3 | % | 12,224 | ||||||||
| 563 | BioMarin Pharmaceutical, Inc.* (Health Care) | 0.4 | % | 19,204 | ||||||||
| 665 | BioMed Realty Trust, Inc. (REIT) (Financials) | 0.3 | % | 12,043 | ||||||||
| 1,373 | Cadence Design Systems, Inc.* (Information Technology) | 0.3 | % | 15,199 | ||||||||
| 310 | Carlisle Cos., Inc. (Industrials) | 0.3 | % | 12,933 | ||||||||
| 224 | Carpenter Technology Corp. (Materials) | 0.3 | % | 12,705 | ||||||||
| 220 | Catalyst Health Solutions, Inc.* (Health Care) | 0.3 | % | 12,093 | ||||||||
| 458 | CBOE Holdings, Inc. (Financials) | 0.2 | % | 11,968 | ||||||||
| 256 | CLARCOR, Inc. (Industrials) | 0.3 | % | 12,411 | ||||||||
| 236 | Clean Harbors, Inc.* (Industrials) | 0.3 | % | 13,752 | ||||||||
| 403 | Complete Production Services, Inc.* (Energy) | 0.3 | % | 13,218 | ||||||||
| 310 | Cubist Pharmaceuticals, Inc.* (Health Care) | 0.2 | % | 11,721 | ||||||||
| 198 | Equity Lifestyle Properties, Inc. (REIT) (Financials) | 0.3 | % | 13,094 | ||||||||
| 699 | Flowers Foods, Inc. (Consumer Staples) | 0.3 | % | 14,113 | ||||||||
| 204 | Genesee & Wyoming, Inc., Class A* (Industrials) | 0.3 | % | 12,079 | ||||||||
| 3,919 | GenOn Energy, Inc.* (Utilities) | 0.2 | % | 11,953 | ||||||||
| 396 | Hancock Holding Co. (Financials) | 0.3 | % | 11,999 | ||||||||
| 487 | Hawaiian Electric Industries, Inc. (Utilities) | 0.3 | % | 12,336 | ||||||||
| 345 | Healthspring, Inc.* (Health Care) | 0.4 | % | 18,609 | ||||||||
| 500 | Hexcel Corp.* (Industrials) | 0.3 | % | 12,355 | ||||||||
| 208 | Home Properties, Inc. (REIT) (Financials) | 0.3 | % | 12,251 | ||||||||
| 438 | Jack Henry & Associates, Inc. (Information Technology) | 0.3 | % | 14,196 | ||||||||
| 403 | Lexmark International, Inc., Class A* (Information Technology) | 0.3 | % | 12,775 | ||||||||
| 322 | Medicis Pharmaceutical Corp., Class A (Health Care) | 0.3 | % | 12,329 | ||||||||
| 1,809 | MFA Financial, Inc. (REIT) (Financials) | 0.3 | % | 12,211 | ||||||||
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks (continued) | ||||||||||||
| 189 | Mid-America Apartment Communities, Inc. (REIT) (Financials) | 0.2 | % | $ | 11,794 | |||||||
| 478 | National Retail Properties, Inc. (REIT) (Financials) | 0.3 | % | 13,025 | ||||||||
| 350 | Netlogic Microsystems, Inc.* (Information Technology) | 0.4 | % | 17,220 | ||||||||
| 373 | NeuStar, Inc., Class A* (Information Technology) | 0.2 | % | 11,858 | ||||||||
| 231 | Nicor, Inc. (Utilities) | 0.3 | % | 12,994 | ||||||||
| 298 | Nu Skin Enterprises, Inc., Class A (Consumer Staples) | 0.3 | % | 15,058 | ||||||||
| 323 | Onyx Pharmaceuticals, Inc.* (Health Care) | 0.3 | % | 13,220 | ||||||||
| 364 | Piedmont Natural Gas Co., Inc. (Utilities) | 0.2 | % | 11,899 | ||||||||
| 296 | Questcor Pharmaceuticals, Inc.* (Health Care) | 0.3 | % | 12,021 | ||||||||
| 362 | Rock-Tenn Co., Class A (Materials) | 0.5 | % | 21,427 | ||||||||
| 269 | Rosetta Resources, Inc.* (Energy) | 0.2 | % | 11,927 | ||||||||
| 260 | Ryder System, Inc. (Industrials) | 0.3 | % | 13,244 | ||||||||
| 1,213 | Service Corp. International (Consumer Discretionary) | 0.3 | % | 12,130 | ||||||||
| 210 | Signature Bank/NY* (Financials) | 0.2 | % | 11,708 | ||||||||
| 436 | Tanger Factory Outlet Centers (REIT) (Financials) | 0.3 | % | 12,278 | ||||||||
| 176 | Techne Corp. (Health Care) | 0.3 | % | 12,109 | ||||||||
| 207 | Teleflex, Inc. (Health Care) | 0.3 | % | 12,391 | ||||||||
| 546 | Temple-Inland, Inc. (Materials) | 0.4 | % | 17,368 | ||||||||
| 942 | Teradyne, Inc.* (Information Technology) | 0.3 | % | 13,489 | ||||||||
| 244 | Unit Corp.* (Energy) | 0.2 | % | 11,971 | ||||||||
| 411 | Vectren Corp. (Utilities) | 0.3 | % | 11,664 | ||||||||
| 360 | World Fuel Services Corp. (Energy) | 0.3 | % | 14,346 | ||||||||
| 198,914 | Other Common Stocks | 85.3 | % | 3,879,539 | ||||||||
| Total Common Stocks (Cost $4,971,795) | 4,546,050 | |||||||||||
| Money Market Fund – 0.0%† | ||||||||||||
| 870 | JPMorgan U.S. Government Money Market Premier, 0.01% (Cost $870) | 870 | ||||||||||
| Total Investment Securities (Cost $4,972,665) – 100.0% | 4,546,920 | |||||||||||
| Other assets less liabilities – 0.0%† | 219 | |||||||||||
| Net Assets – 100.0% | $ | 4,547,139 | ||||||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
| REIT | Real Estate Investment Trust |
See accompanying notes to the financial statements.
7
FocusShares Trust
Focus Morningstar Small Cap Index ETF
Summary Schedule of Portfolio Investments (continued)
October 31, 2011
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| Aggregate gross unrealized appreciation | $218,376 | |||
| Aggregate gross unrealized depreciation | (657,127) | |||
| Net unrealized depreciation | $(438,751) | |||
| Federal income tax cost of investments | $4,985,671 | |||
Focus Morningstar Small Cap Index ETF invested, as a percentage of net assets, in the following industries, as of October 31, 2011:
| | |||
| Consumer Discretionary | 13.0 | % | ||
| Consumer Staples | 3.7 | % | ||
| Energy | 6.0 | % | ||
| Financials | 21.7 | % | ||
| Health Care | 10.3 | % | ||
| Industrials | 16.6 | % | ||
| Information Technology | 18.3 | % | ||
| Materials | 5.5 | % | ||
| Telecommunication Services | 0.2 | % | ||
| Utilities | 4.7 | % | ||
| Other 1 | 0.0 | %† | ||
| 100.0 | % | |||
| 1 | Represents net other assets (liabilities). |
| † | Amount represents less than 0.05%. |
See accompanying notes to the financial statements.
8
FocusShares Trust
Focus Morningstar Basic Materials Index ETF
Schedule of Portfolio Investments
October 31, 2011
| | | ||||||||||
| Shares | Value | |||||||||||
| Common Stocks – 100.0% | ||||||||||||
| Aluminum – 2.9% | ||||||||||||
| 9,977 | Alcoa, Inc. | $ | 107,353 | |||||||||
| 608 | Century Aluminum Co.* | 6,785 | ||||||||||
| 157 | Kaiser Aluminum Corp. | 7,294 | ||||||||||
| 207 | Noranda Aluminum Holding Corp.* | 1,917 | ||||||||||
| 123,349 | ||||||||||||
| Building Products – 1.4% | ||||||||||||
| 203 | Armstrong World Industries, Inc. | 8,646 | ||||||||||
| 473 | Lennox International, Inc. | 15,226 | ||||||||||
| 1,100 | Owens Corning* | 31,218 | ||||||||||
| 623 | USG Corp.* | 5,769 | ||||||||||
| 60,859 | ||||||||||||
| Coal & Consumable Fuels – 7.4% | ||||||||||||
| 2,111 | Alpha Natural Resources, Inc.* | 50,748 | ||||||||||
| 2,000 | Arch Coal, Inc. | 36,440 | ||||||||||
| 572 | Cloud Peak Energy, Inc.* | 13,127 | ||||||||||
| 2,119 | Consol Energy, Inc. | 90,609 | ||||||||||
| 857 | Patriot Coal Corp.* | 10,764 | ||||||||||
| 2,541 | Peabody Energy Corp. | 110,203 | ||||||||||
| 311,891 | ||||||||||||
| Commodity Chemicals – 0.6% | ||||||||||||
| 524 | Calgon Carbon Corp.* | 8,358 | ||||||||||
| 319 | Georgia Gulf Corp.* | 5,774 | ||||||||||
| 185 | Kronos Worldwide, Inc. | 4,105 | ||||||||||
| 184 | Westlake Chemical Corp. | 7,582 | ||||||||||
| 25,819 | ||||||||||||
| Construction Materials – 1.9% | ||||||||||||
| 422 | Eagle Materials, Inc. | 8,685 | ||||||||||
| 426 | Martin Marietta Materials, Inc. | 30,744 | ||||||||||
| 222 | Texas Industries, Inc. | 6,660 | ||||||||||
| 1,095 | Vulcan Materials Co. | 34,263 | ||||||||||
| 80,352 | ||||||||||||
| Diversified Chemicals – 15.2% | ||||||||||||
| 666 | Ashland, Inc. | 35,271 | ||||||||||
| 564 | Cabot Corp. | 17,022 | ||||||||||
| 11,015 | Dow Chemical Co./The | 307,098 | ||||||||||
| 1,241 | Eastman Chemical Co. | 48,759 | ||||||||||
| 672 | FMC Corp. | 53,014 | ||||||||||
| 1,840 | Huntsman Corp. | 21,602 | ||||||||||
| 670 | Olin Corp. | 12,636 | ||||||||||
| 1,485 | PPG Industries, Inc. | 128,319 | ||||||||||
| 1,140 | Solutia, Inc.* | 18,525 | ||||||||||
| 642,246 | ||||||||||||
| Diversified Metals & Mining – 11.4% | ||||||||||||
| 251 | AMCOL International Corp. | 7,578 | ||||||||||
| 307 | Compass Minerals International, Inc. | 23,353 | ||||||||||
| 8,833 | Freeport-McMoRan Copper & Gold, Inc. | 355,617 | ||||||||||
| | | ||||||
| Shares | Value | |||||||
| Common Stocks (continued) | ||||||||
| 493 | Globe Specialty Metals, Inc. | $ | 8,218 | |||||
| 575 | Molycorp, Inc.* | 22,005 | ||||||
| 282 | RTI International Metals, Inc.* | 7,442 | ||||||
| 789 | Titanium Metals Corp. | 13,216 | ||||||
| 586 | Walter Energy, Inc. | 44,331 | ||||||
| 481,760 | ||||||||
| Fertilizers & Agricultural Chemicals – 15.6% | ||||||||
| 667 | CF Industries Holdings, Inc. | 108,234 | ||||||
| 492 | Intrepid Potash, Inc.* | 13,692 | ||||||
| 5,020 | Monsanto Co. | 365,205 | ||||||
| 2,590 | Mosaic Co./The | 151,671 | ||||||
| 398 | Scotts Miracle-Gro Co./The, Class A | 19,307 | ||||||
| 658,109 | ||||||||
| Forest Products – 0.2% | ||||||||
| 1,239 | Louisiana-Pacific Corp.* | 8,239 | ||||||
| Gold – 8.7% | ||||||||
| 768 | Allied Nevada Gold Corp.* | 29,169 | ||||||
| 4,539 | Newmont Mining Corp. | 303,341 | ||||||
| 509 | Royal Gold, Inc. | 36,434 | ||||||
| 368,944 | ||||||||
| Industrial Gases – 3.8% | ||||||||
| 1,864 | Air Products & Chemicals, Inc. | 160,565 | ||||||
| Industrial Machinery – 0.4% | ||||||||
| 754 | Harsco Corp. | 17,380 | ||||||
| Multi-Sector Holdings – 1.2% | ||||||||
| 1,814 | Leucadia National Corp. | 48,670 | ||||||
| Multi-Utilities – 0.8% | ||||||||
| 1,630 | MDU Resources Group, Inc. | 33,594 | ||||||
| Office Services & Supplies – 0.6% | ||||||||
| 1,003 | Avery Dennison Corp. | 26,680 | ||||||
| Paper Packaging – 2.4% | ||||||||
| 669 | Rock-Tenn Co., Class A | 39,598 | ||||||
| 941 | Sonoco Products Co. | 29,538 | ||||||
| 1,010 | Temple-Inland, Inc. | 32,128 | ||||||
| 101,264 | ||||||||
| Paper Products – 5.0% | ||||||||
| 377 | Buckeye Technologies, Inc. | 11,400 | ||||||
| 216 | Clearwater Paper Corp.* | 7,156 | ||||||
| 370 | Domtar Corp. | 30,307 | ||||||
| 3,793 | International Paper Co. | 105,066 | ||||||
| 1,602 | MeadWestvaco Corp. | 44,712 | ||||||
| 151 | Schweitzer-Mauduit International, Inc. | 10,618 | ||||||
| 209,259 | ||||||||
See accompanying notes to the financial statements.
9
FocusShares Trust
Focus Morningstar Basic Materials Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| | | ||||||
| Shares | Value | |||||||
| Common Stocks (continued) | ||||||||
| Precious Metals & Minerals – 1.2% | ||||||||
| 842 | Coeur d’Alene Mines Corp.* | $ | 21,530 | |||||
| 2,621 | Hecla Mining Co.* | 16,434 | ||||||
| 967 | Stillwater Mining Co.* | 10,985 | ||||||
| 48,949 | ||||||||
| Specialized REITs – 1.1% | ||||||||
| 1,142 | Rayonier, Inc. | 47,656 | ||||||
| Specialty Chemicals – 10.5% | ||||||||
| 858 | Albemarle Corp. | 45,723 | ||||||
| 1,471 | Celanese Corp. | 64,062 | ||||||
| 466 | Cytec Industries, Inc. | 20,816 | ||||||
| 809 | Ferro Corp.* | 5,234 | ||||||
| 464 | H.B. Fuller Co. | 9,971 | ||||||
| 204 | Innophos Holdings, Inc. | 8,974 | ||||||
| 754 | International Flavors & Fragrances, Inc. | 45,662 | ||||||
| 299 | Kraton Performance Polymers, Inc.* | 5,884 | ||||||
| 170 | Minerals Technologies, Inc. | 9,323 | ||||||
| 91 | NewMarket Corp. | 17,667 | ||||||
| 303 | OM Group, Inc.* | 8,760 | ||||||
| 870 | PolyOne Corp. | 9,735 | ||||||
| 648 | Rockwood Holdings, Inc.* | 29,834 | ||||||
| 1,231 | RPM International, Inc. | 27,661 | ||||||
| 469 | Sensient Technologies Corp. | 17,334 | ||||||
| 982 | Sigma-Aldrich Corp. | 64,301 | ||||||
| 816 | Valspar Corp. | 28,454 | ||||||
| 578 | W.R. Grace & Co.* | 24,155 | ||||||
| 443,550 | ||||||||
| | | ||||||
| Shares | Value | |||||||
| Common Stocks (continued) | ||||||||
| Steel – 7.5% | ||||||||
| 1,026 | AK Steel Holding Corp. | $ | 8,547 | |||||
| 414 | Carpenter Technology Corp. | 23,482 | ||||||
| 1,371 | Cliffs Natural Resources, Inc. | 93,530 | ||||||
| 1,085 | Commercial Metals Co. | 13,487 | ||||||
| 2,675 | Nucor Corp. | 101,061 | ||||||
| 697 | Reliance Steel & Aluminum Co. | 30,800 | ||||||
| 230 | Schnitzer Steel Industries, Inc., Class A | 10,764 | ||||||
| 2,049 | Steel Dynamics, Inc. | 25,592 | ||||||
| 553 | Worthington Industries, Inc. | 9,556 | ||||||
| 316,819 | ||||||||
| Trading Companies & Distributors – 0.2% | ||||||||
| 433 | Beacon Roofing Supply, Inc.* | 7,980 | ||||||
| Total Common Stocks (Cost $4,937,284) | 4,223,934 | |||||||
| Total Investment Securities (Cost $4,937,284) – 100.0% | 4,223,934 | |||||||
| Other assets less liabilities – 0.0%† | 19 | |||||||
| Net Assets – 100.0% | $ | 4,223,953 | ||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
| REIT | Real Estate Investment Trust |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| Aggregate gross unrealized appreciation | $151,859 | |||
| Aggregate gross unrealized depreciation | (875,818) | |||
| Net unrealized depreciation | $(723,959) | |||
| Federal income tax cost of investments | $4,947,893 | |||
See accompanying notes to the financial statements.
10
FocusShares Trust
Focus Morningstar Communication Services Index ETF
Schedule of Portfolio Investments
October 31, 2011
| | | ||||||||||
| Shares | Value | |||||||||||
| Common Stocks – 100.0% | ||||||||||||
| Alternative Carriers – 2.1% | ||||||||||||
| 447 | AboveNet, Inc. | $ | 26,530 | |||||||||
| 3,270 | tw telecom, inc.* | 60,495 | ||||||||||
| 2,395 | Vonage Holdings Corp.* | 8,023 | ||||||||||
| 95,048 | ||||||||||||
| Application Software – 0.8% | ||||||||||||
| 3,386 | TiVo, Inc.* | 36,670 | ||||||||||
| Cable & Satellite – 34.2% | ||||||||||||
| 4,976 | Cablevision Systems Corp., Class A | 72,003 | ||||||||||
| 791 | Charter Communications, Inc., Class A* | 36,338 | ||||||||||
| 15,818 | Comcast Corp., Class A | 370,932 | ||||||||||
| 9,004 | Comcast Corp., Special, Class A | 207,092 | ||||||||||
| 6,660 | DIRECTV, Class A* | 302,764 | ||||||||||
| 5,000 | DISH Network Corp., Class A* | 120,850 | ||||||||||
| 2,847 | Liberty Global, Inc.* | 109,239 | ||||||||||
| 3,259 | Liberty Global, Inc., Class A* | 130,947 | ||||||||||
| 3,616 | Time Warner Cable, Inc. | 230,303 | ||||||||||
| 1,580,468 | ||||||||||||
| Communications Equipment – 1.1% | ||||||||||||
| 1,189 | InterDigital, Inc. | 51,662 | ||||||||||
| Data Processing & Outsourced Services – 1.3% | ||||||||||||
| 1,868 | NeuStar, Inc., Class A* | 59,384 | ||||||||||
| Integrated Telecommunication Services – 45.6% | ||||||||||||
| 32,939 | AT&T, Inc. | 965,442 | ||||||||||
| 6,483 | CenturyLink, Inc. | 228,590 | ||||||||||
| 22,268 | Frontier Communications Corp. | 139,398 | ||||||||||
| 17,070 | Verizon Communications, Inc. | 631,249 | ||||||||||
| 11,388 | Windstream Corp. | 138,592 | ||||||||||
| 2,103,271 | ||||||||||||
| | | ||||||
| Shares | Value | |||||||
| Common Stocks (continued) | ||||||||
| Internet Software & Services – 2.7% | ||||||||
| 2,067 | Earthlink, Inc. | $ | 14,490 | |||||
| 1,156 | Equinix, Inc.* | 110,987 | ||||||
| 125,477 | ||||||||
| Wireless Telecommunication Services – 12.2% | ||||||||
| 4,367 | American Tower Corp., Class A* | 240,622 | ||||||
| 6,803 | MetroPCS Communications, Inc.* | 57,826 | ||||||
| 3,848 | NII Holdings, Inc.* | 90,543 | ||||||
| 46,713 | Sprint Nextel Corp.* | 120,052 | ||||||
| 1,867 | Telephone & Data Systems, Inc. | 41,401 | ||||||
| 339 | United States Cellular Corp.* | 13,516 | ||||||
| 563,960 | ||||||||
| Total Common Stocks (Cost $4,993,174) | 4,615,940 | |||||||
| Total Investment Securities (Cost $4,993,174) – 100.0% | 4,615,940 | |||||||
| Other assets less liabilities – 0.0%† | 642 | |||||||
| Net Assets – 100.0% | $ | 4,616,582 | ||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| Aggregate gross unrealized appreciation | $48,226 | |||
| Aggregate gross unrealized depreciation | (464,150) | |||
| Net unrealized depreciation | $(415,924) | |||
| Federal income tax cost of investments | $5,031,864 | |||
See accompanying notes to the financial statements.
11
FocusShares Trust
Focus Morningstar Consumer Cyclical Index ETF
Summary Schedule of Portfolio Investments
October 31, 2011
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks – 100.0% | ||||||||||||
| 1,263 | Amazon.com, Inc.* (Internet Retail) | 5.4 | % | $ | 269,663 | |||||||
| 89 | AutoZone, Inc.* (Automotive Retail) | 0.6 | % | 28,800 | ||||||||
| 550 | Beam, Inc. (Distillers & Vintners) | 0.5 | % | 27,187 | ||||||||
| 896 | Bed Bath & Beyond, Inc.* (Homefurnishing Retail) | 1.1 | % | 55,409 | ||||||||
| 1,092 | Best Buy Co., Inc. (Computer & Electronics Retail) | 0.6 | % | 28,643 | ||||||||
| 392 | BorgWarner, Inc.* (Auto Parts & Equipment) | 0.6 | % | 29,984 | ||||||||
| 809 | CarMax, Inc. (Automotive Retail) | 0.5 | % | 24,319 | ||||||||
| 1,477 | Carnival Corp. (Hotels, Resorts & Cruise Lines) | 1.0 | % | 52,005 | ||||||||
| 2,239 | CBS Corp., Class B (Broadcasting) | 1.1 | % | 57,789 | ||||||||
| 111 | Chipotle Mexican Grill, Inc.* (Restaurants) | 0.7 | % | 37,309 | ||||||||
| 1,035 | Coach, Inc. (Apparel, Accessories & Luxury Goods) | 1.3 | % | 67,347 | ||||||||
| 3,969 | eBay, Inc.* (Internet Software & Services) | 2.5 | % | 126,333 | ||||||||
| 13,352 | Ford Motor Co.* (Automobile Manufacturers) | 3.1 | % | 155,951 | ||||||||
| 2,070 | General Motors Co.* (Automobile Manufacturers) | 1.1 | % | 53,510 | ||||||||
| 847 | Harley-Davidson, Inc. (Motorcycle Manufacturers) | 0.7 | % | 32,948 | ||||||||
| 5,725 | Home Depot, Inc. (Home Improvement Retail) | 4.1 | % | 204,955 | ||||||||
| 2,436 | Johnson Controls, Inc. (Auto Parts & Equipment) | 1.6 | % | 80,218 | ||||||||
| 949 | Kohl’s Corp. (Department Stores) | 1.0 | % | 50,307 | ||||||||
| 1,411 | Las Vegas Sands Corp.* (Casinos & Gaming) | 1.3 | % | 66,246 | ||||||||
| 2,052 | Liberty Interactive Corp., Class A* (Catalog Retail) | 0.7 | % | 33,714 | ||||||||
| 4,664 | Lowe’s Cos., Inc. (Home Improvement Retail) | 1.9 | % | 98,037 | ||||||||
| 940 | Ltd. Brands, Inc. (Apparel Retail) | 0.8 | % | 40,147 | ||||||||
| 1,526 | Macy’s, Inc. (Department Stores) | 0.9 | % | 46,589 | ||||||||
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks (continued) | ||||||||||||
| 1,104 | Marriott International, Inc., Class A (Hotels, Resorts & Cruise Lines) | 0.7 | % | $ | 34,776 | |||||||
| 1,229 | Mattel, Inc. (Leisure Products) | 0.7 | % | 34,707 | ||||||||
| 3,697 | McDonald’s Corp. (Restaurants) | 6.8 | % | 343,266 | ||||||||
| 1,079 | McGraw-Hill Cos., Inc./The (Publishing) | 0.9 | % | 45,858 | ||||||||
| 6,501 | News Corp., Class A (Movies & Entertainment) | 2.3 | % | 113,898 | ||||||||
| 1,559 | News Corp., Class B (Movies & Entertainment) | 0.6 | % | 27,828 | ||||||||
| 1,351 | NIKE, Inc., Class B (Footwear) | 2.6 | % | 130,169 | ||||||||
| 609 | Nordstrom, Inc. (Department Stores) | 0.6 | % | 30,870 | ||||||||
| 1,007 | Omnicom Group, Inc. (Advertising) | 0.9 | % | 44,791 | ||||||||
| 487 | O’Reilly Automotive, Inc.* (Automotive Retail) | 0.7 | % | 37,036 | ||||||||
| 178 | priceline.com, Inc.* (Internet Retail) | 1.8 | % | 90,374 | ||||||||
| 221 | Ralph Lauren Corp. (Apparel, Accessories & Luxury Goods) | 0.7 | % | 35,093 | ||||||||
| 421 | Ross Stores, Inc. (Apparel Retail) | 0.7 | % | 36,934 | ||||||||
| 320 | Sherwin-Williams Co./The (Specialty Chemicals) | 0.5 | % | 26,467 | ||||||||
| 14,064 | Sirius XM Radio, Inc.* (Cable & Satellite) | 0.5 | % | 25,175 | ||||||||
| 2,556 | Staples, Inc. (Specialty Stores) | 0.8 | % | 38,238 | ||||||||
| 2,664 | Starbucks Corp. (Restaurants) | 2.2 | % | 112,794 | ||||||||
| 699 | Starwood Hotels & Resorts Worldwide, Inc. (Hotels, Resorts & Cruise Lines) | 0.7 | % | 35,027 | ||||||||
| 458 | Tiffany & Co. (Specialty Stores) | 0.7 | % | 36,516 | ||||||||
| 3,744 | Time Warner, Inc. (Movies & Entertainment) | 2.6 | % | 131,003 | ||||||||
| 1,384 | TJX Cos., Inc. (Apparel Retail) | 1.6 | % | 81,559 | ||||||||
| 310 | VF Corp. (Apparel, Accessories & Luxury Goods) | 0.9 | % | 42,848 | ||||||||
| 1,875 | Viacom, Inc., Class B (Movies & Entertainment) | 1.6 | % | 82,219 | ||||||||
| 6,175 | Walt Disney Co./The (Movies & Entertainment) | 4.3 | % | 215,384 | ||||||||
| 2,250 | Western Union Co./The (Data Processing & Outsourced Services) | 0.8 | % | 39,308 | ||||||||
See accompanying notes to the financial statements.
12
FocusShares Trust
Focus Morningstar Consumer Cyclical Index ETF
Summary Schedule of Portfolio Investments (continued)
October 31, 2011
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks (continued) | ||||||||||||
| 318 | Wynn Resorts Ltd. (Casinos & Gaming) | 0.8 | % | $ | 42,230 | |||||||
| 1,675 | Yum! Brands, Inc. (Restaurants) | 1.8 | % | 89,730 | ||||||||
| 52,120 | Other Common Stocks | 27.1 | % | 1,363,714 | ||||||||
| Total Common Stocks (Cost $4,994,388) | 5,035,222 | |||||||||||
| Money Market Fund – 0.0%† | ||||||||||||
| 1,783 | JPMorgan U.S. Government Money Market Premier, 0.01% (Cost $1,783) | 1,783 | ||||||||||
| Total Investment Securities (Cost $4,996,171) – 100.0% | 5,037,005 | |||||||||||
| Liabilities in excess of other assets – 0.0%† | (188 | ) | ||||||||||
| Net Assets – 100.0% | $ | 5,036,817 | ||||||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| Aggregate gross unrealized appreciation | $411,896 | |||
| Aggregate gross unrealized depreciation | (374,648) | |||
| Net unrealized appreciation | $37,248 | |||
| Federal income tax cost of investments | $4,999,757 | |||
See accompanying notes to the financial statements.
13
FocusShares Trust
Focus Morningstar Consumer Cyclical Index ETF
Summary Schedule of Portfolio Investments (continued)
October 31, 2011
Focus Morningstar Consumer Cyclical Index ETF invested, as a percentage of net assets, in the following industries as of October 31, 2011:
| | |||
| Advertising | 1.5 | % | ||
| Apparel Retail | 6.1 | % | ||
| Apparel, Accessories & Luxury Goods | 4.6 | % | ||
| Auto Parts & Equipment | 3.3 | % | ||
| Automobile Manufacturers | 4.2 | % | ||
| Automotive Retail | 2.5 | % | ||
| Broadcasting | 2.4 | % | ||
| Building Products | 0.2 | % | ||
| Cable & Satellite | 0.5 | % | ||
| Casinos & Gaming | 3.3 | % | ||
| Catalog Retail | 0.7 | % | ||
| Computer & Electronics Retail | 0.9 | % | ||
| Construction & Farm Machinery & Heavy Trucks | 0.4 | % | ||
| Consumer Finance | 0.1 | % | ||
| Data Processing & Outsourced Services | 0.8 | % | ||
| Department Stores | 3.4 | % | ||
| Distillers & Vintners | 0.5 | % | ||
| Distributors | 0.1 | % | ||
| Diversified Support Services | 0.1 | % | ||
| Electronic Components | 0.1 | % | ||
| Footwear | 3.3 | % | ||
| Health Care Supplies | 0.1 | % | ||
| Home Furnishings | 0.8 | % | ||
| Home Improvement Retail | 6.0 | % | ||
| Homebuilding | 1.0 | % | ||
| Homefurnishing Retail | 1.5 | % | ||
| Hotels, Resorts & Cruise Lines | 3.5 | % | ||
| Household Appliances | 0.3 | % | ||
| Housewares & Specialties | 0.2 | % | ||
| Industrial Conglomerates | 0.2 | % | ||
| Industrial Machinery | 0.2 | % | ||
| Internet Retail | 7.8 | % | ||
| Internet Software & Services | 2.7 | % | ||
| Leisure Facilities | 0.4 | % | ||
| Leisure Products | 1.4 | % | ||
| Metal & Glass Containers | 1.4 | % | ||
| Motorcycle Manufacturers | 0.7 | % | ||
| Movies & Entertainment | 12.2 | % | ||
| Office Services & Supplies | 0.1 | % | ||
| Paper Packaging | 0.6 | % | ||
| Publishing | 1.5 | % | ||
| Restaurants | 13.4 | % | ||
| Specialized Consumer Services | 1.0 | % | ||
| Specialty Chemicals | 0.5 | % | ||
| Specialty Stores | 3.2 | % | ||
| Tires & Rubber | 0.3 | % | ||
| Other1 | 0.0 | %† | ||
| 100.0 | % | |||
| 1 | Represents net other assets (liabilities). |
| † | Amount represents less than 0.05%. |
See accompanying notes to the financial statements.
14
FocusShares Trust
Focus Morningstar Consumer Defensive Index ETF
Schedule of Portfolio Investments
October 31, 2011
| | | ||||||||||
| Shares | Value | |||||||||||
| Common Stocks – 100.0% | ||||||||||||
| Agricultural Products – 2.4% | ||||||||||||
| 2,324 | Archer-Daniels-Midland Co. | $ | 67,257 | |||||||||
| 555 | Bunge Ltd. | 34,282 | ||||||||||
| 289 | Corn Products International, Inc. | 14,016 | ||||||||||
| 440 | Darling International, Inc.* | 6,169 | ||||||||||
| 149 | Fresh Del Monte Produce, Inc. | 3,794 | ||||||||||
| 125,518 | ||||||||||||
| Brewers – 0.5% | ||||||||||||
| 34 | Boston Beer Co., Inc., Class A* | 3,008 | ||||||||||
| 600 | Molson Coors Brewing Co., Class B | 25,404 | ||||||||||
| 28,412 | ||||||||||||
| Catalog Retail – 0.1% | ||||||||||||
| 156 | HSN, Inc. | 5,564 | ||||||||||
| Distillers & Vintners – 0.7% | ||||||||||||
| 334 | Brown-Forman Corp., Class B | 24,960 | ||||||||||
| 705 | Constellation Brands, Inc., Class A* | 14,255 | ||||||||||
| 39,215 | ||||||||||||
| Drug Retail – 5.7% | ||||||||||||
| 5,068 | CVS Caremark Corp. | 183,968 | ||||||||||
| 3,412 | Walgreen Co. | 113,279 | ||||||||||
| 297,247 | ||||||||||||
| Education Services – 1.0% | ||||||||||||
| 463 | Apollo Group, Inc., Class A* | 21,923 | ||||||||||
| 70 | Bridgepoint Education, Inc.* | 1,517 | ||||||||||
| 51 | Capella Education Co.* | 1,775 | ||||||||||
| 231 | Career Education Corp.* | 3,726 | ||||||||||
| 226 | DeVry, Inc. | 8,516 | ||||||||||
| 105 | Education Management Corp.* | 2,085 | ||||||||||
| 102 | ITT Educational Services, Inc.* | 6,320 | ||||||||||
| 135 | K12, Inc.* | 4,732 | ||||||||||
| 45 | Strayer Education, Inc. | 3,834 | ||||||||||
| 54,428 | ||||||||||||
| Food Distributors – 1.3% | ||||||||||||
| 2,220 | Sysco Corp. | 61,539 | ||||||||||
| 183 | United Natural Foods, Inc.* | 6,681 | ||||||||||
| 68,220 | ||||||||||||
| Food Retail – 2.7% | ||||||||||||
| 143 | Casey’s General Stores, Inc. | 7,086 | ||||||||||
| 2,122 | Kroger Co./The | 49,188 | ||||||||||
| 161 | Ruddick Corp. | 7,037 | ||||||||||
| 1,319 | Safeway, Inc. | 25,549 | ||||||||||
| 799 | SUPERVALU, Inc. | 6,408 | ||||||||||
| 42 | Weis Markets, Inc. | 1,661 | ||||||||||
| 589 | Whole Foods Market, Inc. | 42,479 | ||||||||||
| 139,408 | ||||||||||||
| General Merchandise Stores – 4.1% | ||||||||||||
| 205 | 99 Cents Only Stores* | 4,469 | ||||||||||
| 285 | Big Lots, Inc.* | 10,742 | ||||||||||
| | | ||||||||||
| Shares | Value | |||||||||||
| Common Stocks (continued) | ||||||||||||
| 372 | Dollar General Corp.* | $ | 14,753 | |||||||||
| 460 | Dollar Tree, Inc.* | 36,781 | ||||||||||
| 427 | Family Dollar Stores, Inc. | 25,035 | ||||||||||
| 2,305 | Target Corp. | 126,199 | ||||||||||
| 217,979 | ||||||||||||
| Household Products – 19.2% | ||||||||||||
| 538 | Church & Dwight Co., Inc. | 23,769 | ||||||||||
| 502 | Clorox Co./The | 33,604 | ||||||||||
| 1,833 | Colgate-Palmolive Co. | 165,648 | ||||||||||
| 262 | Energizer Holdings, Inc.* | 19,333 | ||||||||||
| 1,480 | Kimberly-Clark Corp. | 103,171 | ||||||||||
| 10,354 | Procter & Gamble Co./The | 662,552 | ||||||||||
| 1,008,077 | ||||||||||||
| Housewares & Specialties – 0.6% | ||||||||||||
| 1,105 | Newell Rubbermaid, Inc. | 16,354 | ||||||||||
| 228 | Tupperware Brands Corp. | 12,891 | ||||||||||
| 29,245 | ||||||||||||
| Hypermarkets & Super Centers – 9.9% | ||||||||||||
| 1,650 | Costco Wholesale Corp. | 137,362 | ||||||||||
| 68 | Pricesmart, Inc. | 5,171 | ||||||||||
| 6,673 | Wal-Mart Stores, Inc. | 378,493 | ||||||||||
| 521,026 | ||||||||||||
| Industrial Conglomerates – 0.0%† | ||||||||||||
| 1 | Seaboard Corp. | 2,198 | ||||||||||
| Packaged Foods & Meats – 15.6% | ||||||||||||
| 748 | Campbell Soup Co. | 24,871 | ||||||||||
| 1,562 | ConAgra Foods, Inc. | 39,565 | ||||||||||
| 692 | Dean Foods Co.* | 6,726 | ||||||||||
| 82 | Diamond Foods, Inc. | 5,391 | ||||||||||
| 136 | Dole Food Co., Inc.* | 1,439 | ||||||||||
| 518 | Flowers Foods, Inc. | 10,458 | ||||||||||
| 2,281 | General Mills, Inc. | 87,887 | ||||||||||
| 456 | Green Mountain Coffee Roasters, Inc.* | 29,649 | ||||||||||
| 1,212 | H.J. Heinz Co. | 64,769 | ||||||||||
| 138 | Hain Celestial Group, Inc./The* | 4,631 | ||||||||||
| 584 | Hershey Co./The | 33,422 | ||||||||||
| 544 | Hormel Foods Corp. | 16,032 | ||||||||||
| 53 | J&J Snack Foods Corp. | 2,733 | ||||||||||
| 431 | J.M. Smucker Co./The | 33,196 | ||||||||||
| 928 | Kellogg Co. | 50,307 | ||||||||||
| 6,170 | Kraft Foods, Inc., Class A | 217,061 | ||||||||||
| 75 | Lancaster Colony Corp. | 4,989 | ||||||||||
| 451 | McCormick & Co., Inc. | 21,901 | ||||||||||
| 771 | Mead Johnson Nutrition Co. | 55,396 | ||||||||||
| 179 | Pilgrim’s Pride Corp.* | 902 | ||||||||||
| 206 | Ralcorp Holdings, Inc.* | 16,653 | ||||||||||
| 77 | Sanderson Farms, Inc. | 3,812 | ||||||||||
| 2,085 | Sara Lee Corp. | 37,113 | ||||||||||
See accompanying notes to the financial statements.
15
FocusShares Trust
Focus Morningstar Consumer Defensive Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| | | ||||||||||
| Shares | Value | |||||||||||
| Common Stocks (continued) | ||||||||||||
| 583 | Smithfield Foods, Inc.* | $ | 13,327 | |||||||||
| 235 | Snyders-Lance, Inc. | 4,987 | ||||||||||
| 106 | Tootsie Roll Industries, Inc. | 2,626 | ||||||||||
| 135 | TreeHouse Foods, Inc.* | 8,281 | ||||||||||
| 1,159 | Tyson Foods, Inc., Class A | 22,369 | ||||||||||
| 820,493 | ||||||||||||
| Personal Products – 1.6% | ||||||||||||
| 449 | Estee Lauder Cos., Inc./The, Class A | 44,204 | ||||||||||
| 446 | Herbalife Ltd. | 27,813 | ||||||||||
| 221 | Nu Skin Enterprises, Inc., Class A | 11,167 | ||||||||||
| 83,184 | ||||||||||||
| Publishing – 0.1% | ||||||||||||
| 18 | Washington Post Co./The, Class B | 6,123 | ||||||||||
| Soft Drinks – 19.3% | ||||||||||||
| 8,022 | Coca-Cola Co./The | 548,063 | ||||||||||
| 1,202 | Coca-Cola Enterprises, Inc. | 32,238 | ||||||||||
| 818 | Dr. Pepper Snapple Group, Inc. | 30,634 | ||||||||||
| 266 | Hansen Natural Corp.* | 23,698 | ||||||||||
| 5,995 | PepsiCo, Inc. | 377,385 | ||||||||||
| 1,012,018 | ||||||||||||
| Specialty Chemicals – 0.1% | ||||||||||||
| 109 | Balchem Corp. | 4,019 | ||||||||||
| | | ||||||||||
| Shares | Value | |||||||||||
| Common Stocks (continued) | ||||||||||||
| Tobacco – 15.1% | ||||||||||||
| 7,847 | Altria Group, Inc. | $ | 216,185 | |||||||||
| 522 | Lorillard, Inc. | 57,765 | ||||||||||
| 6,619 | Philip Morris International, Inc. | 462,470 | ||||||||||
| 1,274 | Reynolds American, Inc. | 49,278 | ||||||||||
| 88 | Universal Corp. | 3,768 | ||||||||||
| 150 | Vector Group Ltd. | 2,635 | ||||||||||
| 792,101 | ||||||||||||
| Total Common Stocks (Cost $5,001,222) | 5,254,475 | |||||||||||
| Total Investment Securities (Cost $5,001,222) – 100.0% | 5,254,475 | |||||||||||
| Other assets less liabilities – 0.0%† | 280 | |||||||||||
| Net Assets – 100.0% | $ | 5,254,755 | ||||||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| Aggregate gross unrealized appreciation | $331,396 | |||
| Aggregate gross unrealized depreciation | (81,014 | ) | ||
| Net unrealized appreciation | $250,382 | |||
| Federal income tax cost of investments | $5,004,093 | |||
See accompanying notes to the financial statements.
16
FocusShares Trust
Focus Morningstar Energy Index ETF
Schedule of Portfolio Investments
October 31, 2011
| | | ||||||||||
| Shares | Value | |||||||||||
| Common Stocks – 100.0% | ||||||||||||
| Gas Utilities – 0.8% | ||||||||||||
| 308 | Oneok, Inc. | $ | 23,423 | |||||||||
| 563 | Questar Corp. | 10,849 | ||||||||||
| 34,272 | ||||||||||||
| Integrated Oil & Gas – 48.0% | ||||||||||||
| 6,261 | Chevron Corp. | 657,718 | ||||||||||
| 3,990 | ConocoPhillips | 277,904 | ||||||||||
| 11,781 | Exxon Mobil Corp. | 919,978 | ||||||||||
| 972 | Hess Corp. | 60,808 | ||||||||||
| 615 | Murphy Oil Corp. | 34,053 | ||||||||||
| 2,129 | Occidental Petroleum Corp. | 197,869 | ||||||||||
| 2,148,330 | ||||||||||||
| Oil & Gas Drilling – 3.2% | ||||||||||||
| 179 | Atwood Oceanics, Inc.* | 7,650 | ||||||||||
| 208 | Diamond Offshore Drilling, Inc. | 13,632 | ||||||||||
| 312 | Helmerich & Payne, Inc. | 16,592 | ||||||||||
| 914 | Nabors Industries Ltd.* | 16,754 | ||||||||||
| 492 | Patterson-UTI Energy, Inc. | 9,997 | ||||||||||
| 401 | Rowan Cos., Inc.* | 13,831 | ||||||||||
| 1,017 | Transocean Ltd. | 58,122 | ||||||||||
| 153 | Unit Corp.* | 7,506 | ||||||||||
| 144,084 | ||||||||||||
| Oil & Gas Equipment & Services – 17.4% | ||||||||||||
| 1,381 | Baker Hughes, Inc. | 80,084 | ||||||||||
| 93 | Basic Energy Services, Inc.* | 1,706 | ||||||||||
| 110 | Bristow Group, Inc. | 5,476 | ||||||||||
| 774 | Cameron International Corp.* | 38,034 | ||||||||||
| 64 | CARBO Ceramics, Inc. | 8,694 | ||||||||||
| 252 | Complete Production Services, Inc.* | 8,266 | ||||||||||
| 256 | Dresser-Rand Group, Inc.* | 12,390 | ||||||||||
| 115 | Dril-Quip, Inc.* | 7,486 | ||||||||||
| 203 | Exterran Holdings, Inc.* | 1,929 | ||||||||||
| 763 | FMC Technologies, Inc.* | 34,198 | ||||||||||
| 331 | Global Industries Ltd.* | 2,631 | ||||||||||
| 84 | Gulfmark Offshore, Inc., Class A* | 3,494 | ||||||||||
| 2,924 | Halliburton Co. | 109,241 | ||||||||||
| 320 | Helix Energy Solutions Group, Inc.* | 5,779 | ||||||||||
| 455 | Key Energy Services, Inc.* | 5,883 | ||||||||||
| 97 | Lufkin Industries, Inc. | 5,732 | ||||||||||
| 1,344 | National Oilwell Varco, Inc. | 95,868 | ||||||||||
| 344 | Oceaneering International, Inc. | 14,390 | ||||||||||
| 163 | Oil States International, Inc.* | 11,346 | ||||||||||
| 156 | RPC, Inc. | 2,897 | ||||||||||
| 4,214 | Schlumberger Ltd. | 309,603 | ||||||||||
| 69 | SEACOR Holdings, Inc. | 5,875 | ||||||||||
| 254 | Superior Energy Services, Inc.* | 7,142 | ||||||||||
| 244 | TETRA Technologies, Inc.* | 2,318 | ||||||||||
| 780,462 | ||||||||||||
| | | ||||||
| Shares | Value | |||||||
| Common Stocks (continued) | ||||||||
| Oil & Gas Exploration & Production – 23.0% | ||||||||
| 1,583 | Anadarko Petroleum Corp. | $ | 124,265 | |||||
| 1,217 | Apache Corp. | 121,250 | ||||||
| 29 | Apco Oil and Gas International, Inc. | 2,407 | ||||||
| 139 | ATP Oil & Gas Corp.* | 1,466 | ||||||
| 165 | Berry Petroleum Co., Class A | 5,701 | ||||||
| 137 | Bill Barrett Corp.* | 5,699 | ||||||
| 370 | Brigham Exploration Co.* | 13,474 | ||||||
| 330 | Cabot Oil & Gas Corp. | 25,648 | ||||||
| 112 | Carrizo Oil & Gas, Inc.* | 3,046 | ||||||
| 2,096 | Chesapeake Energy Corp. | 58,940 | ||||||
| 272 | Cimarex Energy Co. | 17,408 | ||||||
| 29 | Clayton Williams Energy, Inc.* | 1,895 | ||||||
| 152 | Comstock Resources, Inc.* | 2,772 | ||||||
| 330 | Concho Resources, Inc.* | 31,258 | ||||||
| 42 | Contango Oil & Gas Co.* | 2,702 | ||||||
| 184 | Continental Resources, Inc.* | 11,160 | ||||||
| 1,279 | Denbury Resources, Inc.* | 20,080 | ||||||
| 1,250 | Devon Energy Corp. | 81,187 | ||||||
| 230 | Energen Corp. | 11,284 | ||||||
| 854 | EOG Resources, Inc. | 76,373 | ||||||
| 474 | EQT Corp. | 30,099 | ||||||
| 483 | EXCO Resources, Inc. | 6,091 | ||||||
| 361 | Forest Oil Corp.* | 4,209 | ||||||
| 133 | Gulfport Energy Corp.* | 4,142 | ||||||
| 2,259 | Marathon Oil Corp. | 58,802 | ||||||
| 424 | Newfield Exploration Co.* | 17,070 | ||||||
| 561 | Noble Energy, Inc. | 50,120 | ||||||
| 201 | Northern Oil and Gas, Inc.* | 4,858 | ||||||
| 223 | Oasis Petroleum, Inc.* | 6,543 | ||||||
| 371 | Pioneer Natural Resources Co. | 31,127 | ||||||
| 448 | Plains Exploration & Production Co.* | 14,112 | ||||||
| 563 | QEP Resources, Inc. | 20,015 | ||||||
| 385 | Quicksilver Resources, Inc.* | 2,964 | ||||||
| 512 | Range Resources Corp. | 35,246 | ||||||
| 162 | Resolute Energy Corp.* | 2,106 | ||||||
| 169 | Rosetta Resources, Inc.* | 7,493 | ||||||
| 1,221 | SandRidge Energy, Inc.* | 9,353 | ||||||
| 202 | SM Energy Co. | 16,748 | ||||||
| 1,101 | Southwestern Energy Co.* | 46,286 | ||||||
| 156 | Stone Energy Corp.* | 3,789 | ||||||
| 135 | Swift Energy Co.* | 4,134 | ||||||
| 483 | Ultra Petroleum Corp.* | 15,388 | ||||||
| 90 | Venoco, Inc.* | 877 | ||||||
| 115 | W&T Offshore, Inc. | 2,264 | ||||||
| 372 | Whiting Petroleum Corp.* | 17,317 | ||||||
| 1,029,168 | ||||||||
See accompanying notes to the financial statements.
17
FocusShares Trust
Focus Morningstar Energy Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| | | ||||||
| Shares | Value | |||||||
| Common Stocks (continued) | ||||||||
| Oil & Gas Refining & Marketing – 3.3% | ||||||||
| 275 | CVR Energy, Inc.* | $ | 6,809 | |||||
| 616 | HollyFrontier Corp. | 18,905 | ||||||
| 1,129 | Marathon Petroleum Corp. | 40,531 | ||||||
| 383 | Sunoco, Inc. | 14,259 | ||||||
| 455 | Tesoro Corp.* | 11,803 | ||||||
| 1,812 | Valero Energy Corp. | 44,575 | ||||||
| 174 | Western Refining, Inc.* | 2,781 | ||||||
| 225 | World Fuel Services Corp. | 8,966 | ||||||
| 148,629 | ||||||||
| Oil & Gas Storage & Transportation – 4.3% | ||||||||
| 2,434 | El Paso Corp. | 60,874 | ||||||
| 370 | Southern Union Co. | 15,551 | ||||||
| 2,059 | Spectra Energy Corp. | 58,949 | ||||||
| 1,859 | Williams Cos., Inc./The | 55,975 | ||||||
| 191,349 | ||||||||
| | | ||||||
| Shares | Value | |||||||
| Total Common Stocks (Cost $4,960,021) | $ | 4,476,294 | ||||||
| Total Investment Securities (Cost $4,960,021) – 100.0% | 4,476,294 | |||||||
| Liabilities in excess of other assets – 0.0%† | (79 | ) | ||||||
| Net Assets – 100.0% | $ | 4,476,215 | ||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| | |||
| Aggregate gross unrealized appreciation | $74,228 | |||
| Aggregate gross unrealized depreciation | (574,246) | |||
| Net unrealized depreciation | $(500,018) | |||
| Federal income tax cost of investments | $4,976,312 | |||
See accompanying notes to the financial statements.
18
FocusShares Trust
Focus Morningstar Financial Services Index ETF
Summary Schedule of Portfolio Investments
October 31, 2011
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks – 100.0% | ||||||||||||
| 876 | ACE Ltd. (Property & Casualty Insurance) | 1.5 | % | $ | 63,203 | |||||||
| 1,219 | Aflac, Inc. (Life & Health Insurance) | 1.3 | % | 54,965 | ||||||||
| 1,257 | Allstate Corp./The (Property & Casualty Insurance) | 0.8 | % | 33,109 | ||||||||
| 2,753 | American Express Co. (Consumer Finance) | 3.4 | % | 139,357 | ||||||||
| 1,124 | American International Group, Inc.* (Multi-line Insurance) | 0.7 | % | 27,752 | ||||||||
| 610 | Ameriprise Financial, Inc. (Asset Management & Custody Banks) | 0.7 | % | 28,475 | ||||||||
| 845 | Aon Corp. (Insurance Brokers) | 1.0 | % | 39,394 | ||||||||
| 26,079 | Bank of America Corp. (Other Diversified Financial Services) | 4.3 | % | 178,120 | ||||||||
| 3,208 | Bank of New York Mellon Corp./The (Asset Management & Custody Banks) | 1.6 | % | 68,266 | ||||||||
| 1,788 | BB&T Corp. (Regional Banks) | 1.0 | % | 41,732 | ||||||||
| 2,489 | Berkshire Hathaway, Inc., Class B* (Property & Casualty Insurance) | 4.7 | % | 193,793 | ||||||||
| 255 | BlackRock, Inc. (Asset Management & Custody Banks) | 1.0 | % | 40,236 | ||||||||
| 1,180 | Capital One Financial Corp. (Consumer Finance) | 1.3 | % | 53,879 | ||||||||
| 2,663 | Charles Schwab Corp./The (Investment Banking & Brokerage) | 0.8 | % | 32,702 | ||||||||
| 739 | Chubb Corp./The (Property & Casualty Insurance) | 1.2 | % | 49,550 | ||||||||
| 517 | CIT Group, Inc.* (Regional Banks) | 0.4 | % | 18,017 | ||||||||
| 7,494 | Citigroup, Inc. (Other Diversified Financial Services) | 5.7 | % | 236,735 | ||||||||
| 165 | CME Group, Inc. (Specialized Finance) | 1.1 | % | 45,467 | ||||||||
| 1,406 | Discover Financial Services (Consumer Finance) | 0.8 | % | 33,125 | ||||||||
| 2,371 | Fifth Third Bancorp (Regional Banks) | 0.7 | % | 28,476 | ||||||||
| 386 | Franklin Resources, Inc. (Asset Management & Custody Banks) | 1.0 | % | 41,159 | ||||||||
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks (continued) | ||||||||||||
| 1,103 | Goldman Sachs Group, Inc./The (Investment Banking & Brokerage) | 2.9 | % | $ | 120,834 | |||||||
| 1,148 | Hartford Financial Services Group, Inc. (Multi-line Insurance) | 0.5 | % | 22,099 | ||||||||
| 190 | IntercontinentalExchange, Inc.* (Specialized Finance) | 0.6 | % | 24,677 | ||||||||
| 1,166 | Invesco Ltd. (Asset Management & Custody Banks) | 0.6 | % | 23,402 | ||||||||
| 10,083 | JPMorgan Chase & Co. (Other Diversified Financial Services) | 8.4 | % | 350,485 | ||||||||
| 2,459 | KeyCorp (Regional Banks) | 0.4 | % | 17,360 | ||||||||
| 909 | Loews Corp. (Multi-line Insurance) | 0.9 | % | 36,087 | ||||||||
| 325 | M&T Bank Corp. (Regional Banks) | 0.6 | % | 24,736 | ||||||||
| 1,401 | Marsh & McLennan Cos., Inc. (Insurance Brokers) | 1.0 | % | 42,899 | ||||||||
| 274 | Mastercard, Inc., Class A (Data Processing & Outsourced Services) | 2.3 | % | 95,144 | ||||||||
| 2,128 | MetLife, Inc. (Life & Health Insurance) | 1.8 | % | 74,820 | ||||||||
| 510 | Moody’s Corp. (Specialized Finance) | 0.4 | % | 18,100 | ||||||||
| 4,547 | Morgan Stanley (Investment Banking & Brokerage) | 1.9 | % | 80,209 | ||||||||
| 562 | Northern Trust Corp. (Asset Management & Custody Banks) | 0.6 | % | 22,744 | ||||||||
| 678 | NYSE Euronext (Specialized Finance) | 0.4 | % | 18,015 | ||||||||
| 1,360 | PNC Financial Services Group, Inc. (Regional Banks) | 1.8 | % | 73,046 | ||||||||
| 763 | Principal Financial Group, Inc. (Life & Health Insurance) | 0.5 | % | 19,670 | ||||||||
| 1,554 | Progressive Corp./The (Property & Casualty Insurance) | 0.7 | % | 29,542 | ||||||||
| 1,250 | Prudential Financial, Inc. (Life & Health Insurance) | 1.6 | % | 67,750 | ||||||||
| 1,330 | SLM Corp. (Consumer Finance) | 0.4 | % | 18,181 | ||||||||
| 1,298 | State Street Corp. (Asset Management & Custody Banks) | 1.3 | % | 52,426 | ||||||||
| 1,385 | SunTrust Banks, Inc. (Regional Banks) | 0.7 | % | 27,326 | ||||||||
| 663 | T. Rowe Price Group, Inc. (Asset Management & Custody Banks) | 0.8 | % | 35,033 | ||||||||
See accompanying notes to the financial statements.
19
FocusShares Trust
Focus Morningstar Financial Services Index ETF
Summary Schedule of Portfolio Investments (continued)
October 31, 2011
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks (continued) | ||||||||||||
| 1,083 | Travelers Cos., Inc./The (Property & Casualty Insurance) | 1.5 | % | $ | 63,193 | |||||||
| 4,944 | U.S. Bancorp (Diversified Banks) | 3.0 | % | 126,517 | ||||||||
| 785 | Unum Group (Life & Health Insurance) | 0.5 | % | 18,714 | ||||||||
| 1,353 | Visa, Inc., Class A (Data Processing & Outsourced Services) | 3.0 | % | 126,181 | ||||||||
| 12,886 | Wells Fargo & Co. (Diversified Banks) | 8.0 | % | 333,876 | ||||||||
| 770 | XL Group plc (Property & Casualty Insurance) | 0.4 | % | 16,740 | ||||||||
| 43,954 | Other Common Stocks | 17.5 | % | 727,633 | ||||||||
| Total Common Stocks (Cost $4,981,402) | 4,154,951 | |||||||||||
| | | ||||||
| Shares | Value | |||||||
| Money Market Fund – 0.0%† | ||||||||
| 10 | JPMorgan U.S. Government Money Market Premier, 0.01% (Cost $10) | $ | 10 | |||||
| Total Investment Securities (Cost $4,981,412) – 100.0% | 4,154,961 | |||||||
| Other assets less liabilities – 0.0%† | 955 | |||||||
| Net Assets – 100.0% | $ | 4,155,916 | ||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| | |||
| Aggregate gross unrealized appreciation | $99,809 | |||
| Aggregate gross unrealized depreciation | (937,186) | |||
| Net unrealized depreciation | $(837,377) | |||
| Federal income tax cost of investments | $4,992,338 | |||
Focus Morningstar Financial Services Index ETF invested, as a percentage of net assets, in the following industries as of October 31, 2011:
| | |||
| Asset Management & Custody Banks | 8.8 | % | ||
| Consumer Finance | 6.2 | % | ||
| Data Processing & Outsourced Services | 5.4 | % | ||
| Diversified Banks | 11.4 | % | ||
| Insurance Brokers | 2.4 | % | ||
| Investment Banking & Brokerage | 6.7 | % | ||
| Life & Health Insurance | 6.8 | % | ||
| Mortgage REITs | 0.3 | % | ||
| Multi-line Insurance | 3.0 | % | ||
| Other Diversified Financial Services | 18.4 | % | ||
| Property & Casualty Insurance | 13.8 | % | ||
| Regional Banks | 10.4 | % | ||
| Reinsurance | 1.8 | % | ||
| Specialized Finance | 3.0 | % | ||
| Thrifts & Mortgage Finance | 1.6 | % | ||
| Other1 | 0.0 | %† | ||
| 100.0 | % | |||
| 1 | Represents net other assets (liabilities). |
| † | Amount represents less than 0.05%. |
| REIT | Real Estate Investment Trust |
See accompanying notes to the financial statements.
20
FocusShares Trust
Focus Morningstar Health Care Index ETF
Schedule of Portfolio Investments
October 31, 2011
| | | ||||||
| Shares | Value | |||||||
| Common Stocks – 100.0% | ||||||||
| Biotechnology – 12.2% | ||||||||
| 137 | Acorda Therapeutics, Inc.* | $ | 2,992 | |||||
| 642 | Alexion Pharmaceuticals, Inc.* | 43,341 | ||||||
| 330 | Alkermes plc* | 5,772 | ||||||
| 3,249 | Amgen, Inc. | 186,070 | ||||||
| 460 | Ariad Pharmaceuticals, Inc.* | 5,350 | ||||||
| 842 | Biogen Idec, Inc.* | 97,975 | ||||||
| 386 | BioMarin Pharmaceutical, Inc.* | 13,166 | ||||||
| 1,597 | Celgene Corp.* | 103,533 | ||||||
| 218 | Cepheid, Inc.* | 7,822 | ||||||
| 213 | Cubist Pharmaceuticals, Inc.* | 8,054 | ||||||
| 2,686 | Gilead Sciences, Inc.* | 111,899 | ||||||
| 664 | Human Genome Sciences, Inc.* | 6,813 | ||||||
| 212 | InterMune, Inc.* | 5,406 | ||||||
| 328 | Isis Pharmaceuticals, Inc.* | 2,719 | ||||||
| 298 | Myriad Genetics, Inc.* | 6,341 | ||||||
| 221 | Onyx Pharmaceuticals, Inc.* | 9,046 | ||||||
| 178 | United Therapeutics Corp.* | 7,784 | ||||||
| 624,083 | ||||||||
| Health Care Distributors – 4.1% | ||||||||
| 937 | AmerisourceBergen Corp. | 38,230 | ||||||
| 1,214 | Cardinal Health, Inc. | 53,744 | ||||||
| 322 | Henry Schein, Inc.* | 22,321 | ||||||
| 858 | McKesson Corp. | 69,970 | ||||||
| 44 | MWI Veterinary Supply, Inc.* | 3,322 | ||||||
| 222 | Owens & Minor, Inc. | 6,642 | ||||||
| 344 | Patterson Cos., Inc. | 10,826 | ||||||
| 186 | PSS World Medical, Inc.* | 4,138 | ||||||
| 209,193 | ||||||||
| Health Care Equipment – 16.2% | ||||||||
| 96 | Arthrocare Corp.* | 2,894 | ||||||
| 1,998 | Baxter International, Inc. | 109,850 | ||||||
| 716 | Becton Dickinson and Co. | 56,013 | ||||||
| 5,320 | Boston Scientific Corp.* | 31,335 | ||||||
| 301 | C.R. Bard, Inc. | 25,871 | ||||||
| 779 | CareFusion Corp.* | 19,942 | ||||||
| 1,719 | Covidien plc | 80,862 | ||||||
| 98 | Cyberonics, Inc.* | 2,822 | ||||||
| 400 | Edwards Lifesciences Corp.* | 30,168 | ||||||
| 168 | Gen-Probe, Inc.* | 10,097 | ||||||
| 218 | Hill-Rom Holdings, Inc. | 7,340 | ||||||
| 913 | Hologic, Inc.* | 14,718 | ||||||
| 198 | IDEXX Laboratories, Inc.* | 14,254 | ||||||
| 73 | Integra LifeSciences Holdings Corp.* | 2,340 | ||||||
| 137 | Intuitive Surgical, Inc.* | 59,439 | ||||||
| 107 | Invacare Corp. | 2,402 | ||||||
| 222 | Kinetic Concepts, Inc.* | 15,183 | ||||||
| 190 | Masimo Corp. | 3,929 | ||||||
| 3,694 | Medtronic, Inc. | 128,330 | ||||||
| 138 | NuVasive, Inc.* | 2,045 | ||||||
| 532 | ResMed, Inc.* | 15,056 | ||||||
| 194 | Sirona Dental Systems, Inc.* | 9,293 | ||||||
| 1,136 | St. Jude Medical, Inc. | 44,304 | ||||||
| | | ||||||
| Shares | Value | |||||||
| Common Stocks (continued) | ||||||||
| 188 | STERIS Corp. | $ | 5,824 | |||||
| 1,039 | Stryker Corp. | 49,778 | ||||||
| 142 | Teleflex, Inc. | 8,500 | ||||||
| 208 | Thoratec Corp.* | 7,594 | ||||||
| 408 | Varian Medical Systems, Inc.* | 23,958 | ||||||
| 183 | Volcano Corp.* | 4,562 | ||||||
| 670 | Zimmer Holdings, Inc.* | 35,262 | ||||||
| 77 | Zoll Medical Corp.* | 2,911 | ||||||
| 826,876 | ||||||||
| Health Care Facilities – 1.0% | ||||||||
| 885 | Health Management Associates, Inc., Class A* | 7,752 | ||||||
| 332 | HealthSouth Corp.* | 5,863 | ||||||
| 181 | Kindred Healthcare, Inc.* | 2,109 | ||||||
| 181 | LifePoint Hospitals, Inc.* | 6,997 | ||||||
| 196 | Select Medical Holdings Corp.* | 1,705 | ||||||
| 1,649 | Tenet Healthcare Corp.* | 7,800 | ||||||
| 312 | Universal Health Services, Inc., Class B | 12,471 | ||||||
| 299 | VCA Antech, Inc.* | 6,076 | ||||||
| 50,773 | ||||||||
| Health Care Services – 5.4% | ||||||||
| 103 | Amedisys, Inc.* | 1,352 | ||||||
| 151 | Catalyst Health Solutions, Inc.* | 8,300 | ||||||
| 74 | Chemed Corp. | 4,393 | ||||||
| 325 | DaVita, Inc.* | 22,750 | ||||||
| 1,576 | Express Scripts, Inc.* | 72,070 | ||||||
| 106 | Gentiva Health Services, Inc.* | 439 | ||||||
| 353 | Laboratory Corp of America Holdings* | 29,599 | ||||||
| 325 | Lincare Holdings, Inc. | 7,654 | ||||||
| 1,342 | Medco Health Solutions, Inc.* | 73,622 | ||||||
| 170 | Mednax, Inc.* | 11,186 | ||||||
| 405 | Omnicare, Inc. | 12,077 | ||||||
| 547 | Quest Diagnostics, Inc. | 30,523 | ||||||
| 273,965 | ||||||||
| Health Care Supplies – 1.1% | ||||||||
| 299 | Alere, Inc.* | 7,792 | ||||||
| 213 | Align Technology, Inc.* | 4,905 | ||||||
| 163 | Cooper Cos., Inc./The | 11,296 | ||||||
| 492 | DENTSPLY International, Inc. | 18,184 | ||||||
| 90 | Haemonetics Corp.* | 5,486 | ||||||
| 143 | Meridian Bioscience, Inc. | 2,605 | ||||||
| 81 | Neogen Corp.* | 3,131 | ||||||
| 53,399 | ||||||||
| Life Sciences Tools & Services – 3.4% | ||||||||
| 180 | Charles River Laboratories International, Inc.* | 5,811 | ||||||
| 210 | Covance, Inc.* | 10,653 | ||||||
| 210 | Illumina, Inc.* | 6,430 | ||||||
| 627 | Life Technologies Corp.* | 25,500 | ||||||
| 205 | PAREXEL International Corp.* | 4,516 | ||||||
| 396 | PerkinElmer, Inc. | 8,185 | ||||||
See accompanying notes to the financial statements.
21
FocusShares Trust
Focus Morningstar Health Care Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| | | ||||||
| Shares | Value | |||||||
| Common Stocks (continued) | ||||||||
| 368 | Pharmaceutical Product Development, Inc. | $ | 12,141 | |||||
| 121 | Techne Corp. | 8,325 | ||||||
| 1,334 | Thermo Fisher Scientific, Inc.* | 67,060 | ||||||
| 318 | Waters Corp.* | 25,478 | ||||||
| 174,099 | ||||||||
| Managed Health Care – 9.4% | ||||||||
| 1,298 | Aetna, Inc. | 51,608 | ||||||
| 173 | AMERIGROUP Corp.* | 9,624 | ||||||
| 174 | Centene Corp.* | 6,116 | ||||||
| 945 | CIGNA Corp. | 41,901 | ||||||
| 516 | Coventry Health Care, Inc.* | 16,414 | ||||||
| 310 | Health Net, Inc.* | 8,615 | ||||||
| 236 | Healthspring, Inc.* | 12,730 | ||||||
| 586 | Humana, Inc. | 49,746 | ||||||
| 107 | Magellan Health Services, Inc.* | 5,507 | ||||||
| 105 | Molina Healthcare, Inc.* | 2,224 | ||||||
| 3,747 | UnitedHealth Group, Inc. | 179,819 | ||||||
| 126 | Universal American Corp. | 1,449 | ||||||
| 149 | WellCare Health Plans, Inc.* | 7,303 | ||||||
| 1,256 | WellPoint, Inc. | 86,538 | ||||||
| 479,594 | ||||||||
| Office Services & Supplies – 0.1% | ||||||||
| 112 | Mine Safety Appliances Co. | 3,758 | ||||||
| Pharmaceuticals – 47.1% | ||||||||
| 5,419 | Abbott Laboratories | 291,922 | ||||||
| 1,071 | Allergan, Inc. | 90,092 | ||||||
| 5,981 | Bristol-Myers Squibb Co. | 188,940 | ||||||
| 3,418 | Eli Lilly & Co. | 127,013 | ||||||
| 406 | Endo Pharmaceuticals Holdings, Inc.* | 13,118 | ||||||
| 889 | Forest Laboratories, Inc.* | 27,826 | ||||||
| 574 | Hospira, Inc.* | 18,052 | ||||||
| 229 | Impax Laboratories, Inc.* | 4,330 | ||||||
| | | ||||||
| Shares | Value | |||||||
| Common Stocks (continued) | ||||||||
| 84 | Jazz Pharmaceuticals, Inc.* | $ | 3,273 | |||||
| 9,523 | Johnson & Johnson | 613,186 | ||||||
| 221 | Medicis Pharmaceutical Corp., Class A | 8,462 | ||||||
| 10,701 | Merck & Co., Inc. | 369,184 | ||||||
| 1,484 | Mylan, Inc.* | 29,042 | ||||||
| 126 | Par Pharmaceutical Cos., Inc.* | 3,856 | ||||||
| 290 | Perrigo Co. | 26,181 | ||||||
| 27,164 | Pfizer, Inc. | 523,179 | ||||||
| 203 | Questcor Pharmaceuticals, Inc.* | 8,244 | ||||||
| 185 | Salix Pharmaceuticals Ltd.* | 6,337 | ||||||
| 264 | Viropharma, Inc.* | 5,343 | ||||||
| 609 | Warner Chilcott plc, Class A* | 11,035 | ||||||
| 467 | Watson Pharmaceuticals, Inc.* | 31,364 | ||||||
| 2,399,979 | ||||||||
| Total Common Stocks (Cost $4,995,419) | 5,095,719 | |||||||
| Total Investment Securities (Cost $4,995,419) – 100.0% | 5,095,719 | |||||||
| Liabilities in excess of other assets – 0.0%† | (303 | ) | ||||||
| Net Assets – 100.0% | $ | 5,095,416 | ||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| Aggregate gross unrealized appreciation | $330,158 | |||
| Aggregate gross unrealized depreciation | (234,469) | |||
| Net unrealized appreciation | $95,689 | |||
| Federal income tax cost of investments | $5,000,030 | |||
See accompanying notes to the financial statements.
22
FocusShares Trust
Focus Morningstar Industrials Index ETF
Summary Schedule of Portfolio Investments
October 31, 2011
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks – 100.0% | ||||||||||||
| 1,739 | 3M Co. (Industrial Conglomerates) | 3.0 | % | $ | 137,416 | |||||||
| 1,706 | Accenture plc, Class A (IT Consulting & Other Services) | 2.3 | % | 102,803 | ||||||||
| 1,311 | Automatic Data Processing, Inc. (Data Processing & Outsourced Services) | 1.5 | % | 68,605 | ||||||||
| 1,763 | Boeing Co./The (Aerospace & Defense) | 2.6 | % | 115,988 | ||||||||
| 1,558 | Caterpillar, Inc. (Construction & Farm Machinery & Heavy Trucks) | 3.3 | % | 147,169 | ||||||||
| 442 | CH Robinson Worldwide, Inc. (Air Freight & Logistics) | 0.7 | % | 30,688 | ||||||||
| 440 | Cooper Industries plc (Electrical Components & Equipment) | 0.5 | % | 23,082 | ||||||||
| 2,918 | CSX Corp. (Railroads) | 1.4 | % | 64,809 | ||||||||
| 464 | Cummins, Inc. (Construction & Farm Machinery & Heavy Trucks) | 1.0 | % | 46,136 | ||||||||
| 1,515 | Danaher Corp. (Industrial Conglomerates) | 1.6 | % | 73,250 | ||||||||
| 1,122 | Deere & Co. (Construction & Farm Machinery & Heavy Trucks) | 1.9 | % | 85,160 | ||||||||
| 495 | Dover Corp. (Industrial Machinery) | 0.6 | % | 27,487 | ||||||||
| 2,483 | E.I. du Pont de Nemours & Co. (Diversified Chemicals) | 2.7 | % | 119,358 | ||||||||
| 908 | Eaton Corp. (Industrial Machinery) | 0.9 | % | 40,697 | ||||||||
| 622 | Ecolab, Inc. (Specialty Chemicals) | 0.7 | % | 33,488 | ||||||||
| 1,984 | Emerson Electric Co. (Electrical Components & Equipment) | 2.1 | % | 95,470 | ||||||||
| 568 | Expeditors International of Washington, Inc. (Air Freight & Logistics) | 0.6 | % | 25,901 | ||||||||
| 785 | Fastenal Co. (Trading Companies & Distributors) | 0.7 | % | 29,901 | ||||||||
| 783 | FedEx Corp. (Air Freight & Logistics) | 1.4 | % | 64,073 | ||||||||
| 377 | Fiserv, Inc. (Data Processing & Outsourced Services) | 0.5 | % | 22,194 | ||||||||
| 463 | Fluor Corp. (Construction & Engineering) | 0.6 | % | 26,322 | ||||||||
| 805 | General Dynamics Corp. (Aerospace & Defense) | 1.2 | % | 51,673 | ||||||||
| 28,423 | General Electric Co. (Industrial Conglomerates) | 10.5 | % | 474,948 | ||||||||
| 420 | Genuine Parts Co. (Distributors) | 0.5 | % | 24,121 | ||||||||
| 332 | Goodrich Corp. (Aerospace & Defense) | 0.9 | % | 40,713 | ||||||||
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks (continued) | ||||||||||||
| 1,901 | Honeywell International, Inc. (Aerospace & Defense) | 2.2 | % | $ | 99,612 | |||||||
| 1,124 | Illinois Tool Works, Inc. (Industrial Machinery) | 1.2 | % | 54,660 | ||||||||
| 882 | Ingersoll-Rand plc (Industrial Machinery) | 0.6 | % | 27,457 | ||||||||
| 494 | ITT Corp.* (Industrial Machinery) | 0.5 | % | 22,526 | ||||||||
| 279 | Joy Global, Inc. (Construction & Farm Machinery & Heavy Trucks) | 0.5 | % | 24,329 | ||||||||
| 712 | Lockheed Martin Corp. (Aerospace & Defense) | 1.2 | % | 54,041 | ||||||||
| 926 | Norfolk Southern Corp. (Railroads) | 1.5 | % | 68,515 | ||||||||
| 690 | Northrop Grumman Corp. (Aerospace & Defense) | 0.9 | % | 39,847 | ||||||||
| 966 | PACCAR, Inc. (Construction & Farm Machinery & Heavy Trucks) | 0.9 | % | 41,770 | ||||||||
| 429 | Parker Hannifin Corp. (Industrial Machinery) | 0.8 | % | 34,985 | ||||||||
| 863 | Paychex, Inc. (Data Processing & Outsourced Services) | 0.6 | % | 25,148 | ||||||||
| 809 | Praxair, Inc. (Industrial Gases) | 1.8 | % | 82,251 | ||||||||
| 383 | Precision Castparts Corp. (Aerospace & Defense) | 1.4 | % | 62,486 | ||||||||
| 942 | Raytheon Co. (Aerospace & Defense) | 0.9 | % | 41,627 | ||||||||
| 823 | Republic Services, Inc. (Environmental & Facilities Services) | 0.5 | % | 23,422 | ||||||||
| 381 | Rockwell Automation, Inc. (Electrical Components & Equipment) | 0.6 | % | 25,775 | ||||||||
| 413 | Rockwell Collins, Inc. (Aerospace & Defense) | 0.5 | % | 23,058 | ||||||||
| 446 | Stanley Black & Decker, Inc. (Industrial Machinery) | 0.6 | % | 28,477 | ||||||||
| 1,249 | Tyco International Ltd. (Industrial Conglomerates) | 1.3 | % | 56,892 | ||||||||
| 1,307 | Union Pacific Corp. (Railroads) | 2.9 | % | 130,138 | ||||||||
| 1,962 | United Parcel Service, Inc., Class B (Air Freight & Logistics) | 3.1 | % | 137,811 | ||||||||
| 2,106 | United Technologies Corp. (Aerospace & Defense) | 3.6 | % | 164,226 | ||||||||
| 157 | W.W. Grainger, Inc. (Trading Companies & Distributors) | 0.6 | % | 26,896 | ||||||||
| 1,094 | Waste Management, Inc. (Environmental & Facilities Services) | 0.8 | % | 36,025 | ||||||||
| 3,739 | Xerox Corp. (Office Electronics) | 0.7 | % | 30,585 | ||||||||
See accompanying notes to the financial statements.
23
FocusShares Trust
Focus Morningstar Industrials Index ETF
Summary Schedule of Portfolio Investments (continued)
October 31, 2011
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks (continued) | ||||||||||||
| 42,325 | Other Common Stocks | 26.1 | % | $ | 1,178,612 | |||||||
| Total Common Stocks (Cost $4,983,762) | 4,512,623 | |||||||||||
| Total Investment Securities (Cost $4,983,762) – 100.0% | 4,512,623 | |||||||||||
| Other assets less liabilities – 0.0%† | 681 | |||||||||||
| Net Assets – 100.0% | $ | 4,513,304 | ||||||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| Aggregate gross unrealized appreciation | $94,128 | |||
| Aggregate gross unrealized depreciation | (571,778) | |||
| Net unrealized depreciation | $(477,650) | |||
| Federal income tax cost of investments | $4,990,273 | |||
See accompanying notes to the financial statements.
24
FocusShares Trust
Focus Morningstar Industrials Index ETF
Summary Schedule of Portfolio Investments (continued)
October 31, 2011
Focus Morningstar Industrials Index ETF invested, as a percentage of net assets, in the following industries as of October 31, 2011:
| | |||
| Advertising | 0.0 | %† | ||
| Aerospace & Defense | 17.8 | % | ||
| Air Freight & Logistics | 6.0 | % | ||
| Airlines | 1.6 | % | ||
| Application Software | 0.3 | % | ||
| Building Products | 0.2 | % | ||
| Commercial Printing | 0.3 | % | ||
| Computer & Electronics Retail | 0.1 | % | ||
| Computer Hardware | 0.1 | % | ||
| Construction & Engineering | 2.1 | % | ||
| Construction & Farm Machinery & Heavy Trucks | 8.8 | % | ||
| Consumer Finance | 0.0 | %† | ||
| Data Processing & Outsourced Services | 4.8 | % | ||
| Distributors | 0.8 | % | ||
| Diversified Chemicals | 2.6 | % | ||
| Diversified Support Services | 0.8 | % | ||
| Electrical Components & Equipment | 4.6 | % | ||
| Electronic Components | 0.1 | % | ||
| Electronic Equipment & Instruments | 0.3 | % | ||
| Environmental & Facilities Services | 2.4 | % | ||
| Health Care Services | 0.2 | % | ||
| Health Care Technology | 0.0 | %† | ||
| Heavy Electrical Equipment | 0.1 | % | ||
| Homefurnishing Retail | 0.1 | % | ||
| Household Products | 0.0 | %† | ||
| Human Resource & Employment Services | 0.7 | % | ||
| Industrial Conglomerates | 16.4 | % | ||
| Industrial Gases | 2.1 | % | ||
| Industrial Machinery | 9.0 | % | ||
| Internet Software & Services | 0.2 | % | ||
| IT Consulting & Other Services | 2.8 | % | ||
| Marine | 0.3 | % | ||
| Office Electronics | 0.7 | % | ||
| Office Services & Supplies | 0.5 | % | ||
| Oil & Gas Equipment & Services | 0.3 | % | ||
| Oil & Gas Storage & Transportation | 0.1 | % | ||
| Publishing | 0.1 | % | ||
| Railroads | 6.4 | % | ||
| Research & Consulting Services | 0.9 | % | ||
| Security & Alarm Services | 0.1 | % | ||
| Semiconductor Equipment | 0.1 | % | ||
| Specialized Consumer Services | 0.2 | % | ||
| Specialized Finance | 0.3 | % | ||
| Specialty Chemicals | 1.0 | % | ||
| Steel | 0.5 | % | ||
| Technology Distributors | 0.0 | %† | ||
| Trading Companies & Distributors | 1.9 | % | ||
| Trucking | 1.3 | % | ||
| Other1 | 0.0 | %† | ||
| 100.0 | % | |||
| 1 | Represents net other assets (liabilities). |
| † | Amount represents less than 0.05%. |
See accompanying notes to the financial statements.
25
FocusShares Trust
Focus Morningstar Real Estate Index ETF
Schedule of Portfolio Investments
October 31, 2011
| | | ||||||
| Shares | Value | |||||||
| Common Stocks — 100.0% | ||||||||
| Diversified Real Estate Activities – 0.3% | ||||||||
| 1,132 | St Joe Co./The* | $ | 16,244 | |||||
| Diversified REITs – 5.9% | ||||||||
| 1,077 | Colonial Properties Trust | 21,842 | ||||||
| 1,036 | Cousins Properties, Inc. | 6,796 | ||||||
| 1,414 | Liberty Property Trust | 45,248 | ||||||
| 235 | PS Business Parks, Inc. | 12,509 | ||||||
| 2,275 | Vornado Realty Trust | 188,393 | ||||||
| 814 | Washington Real Estate Investment Trust | 23,573 | ||||||
| 298,361 | ||||||||
| Industrial REITs – 4.3% | ||||||||
| 3,033 | DCT Industrial Trust, Inc. | 15,044 | ||||||
| 771 | DuPont Fabros Technology, Inc. | 16,029 | ||||||
| 333 | EastGroup Properties, Inc. | 14,522 | ||||||
| 5,667 | ProLogis, Inc. | 168,650 | ||||||
| 214,245 | ||||||||
| Mortgage REITs – 7.5% | ||||||||
| 2,204 | American Capital Agency Corp. | 60,632 | ||||||
| 11,965 | Annaly Capital Management, Inc. | 201,610 | ||||||
| 1,631 | Anworth Mortgage Asset Corp. | 10,520 | ||||||
| 12,682 | Chimera Investment Corp. | 38,173 | ||||||
| 1,019 | CYS Investments, Inc. | 12,921 | ||||||
| 928 | Hatteras Financial Corp. | 23,850 | ||||||
| 872 | Redwood Trust, Inc. | 10,133 | ||||||
| 1,156 | Starwood Property Trust, Inc. | 21,721 | ||||||
| 379,560 | ||||||||
| Office REITs – 13.1% | ||||||||
| 765 | Alexandria Real Estate Equities, Inc. | 50,559 | ||||||
| 1,615 | BioMed Realty Trust, Inc. | 29,248 | ||||||
| 1,798 | Boston Properties, Inc. | 177,984 | ||||||
| 1,660 | Brandywine Realty Trust | 15,123 | ||||||
| 1,033 | CommonWealth REIT | 19,989 | ||||||
| 888 | Corporate Office Properties Trust | 21,534 | ||||||
| 1,227 | Digital Realty Trust, Inc. | 76,479 | ||||||
| 3,113 | Duke Realty Corp. | 38,228 | ||||||
| 909 | Franklin Street Properties Corp. | 11,544 | ||||||
| 458 | Government Properties Income Trust | 10,777 | ||||||
| 894 | Highwoods Properties, Inc. | 27,696 | ||||||
| 722 | Kilroy Realty Corp. | 26,490 | ||||||
| 1,715 | Lexington Realty Trust | 13,480 | ||||||
| 1,074 | Mack-Cali Realty Corp. | 30,136 | ||||||
| 2,132 | Piedmont Office Realty Trust, Inc., Class A | 36,201 | ||||||
| 1,055 | SL Green Realty Corp. | 72,784 | ||||||
| 658,252 | ||||||||
| | | ||||||
| Shares | Value | |||||||
| Common Stocks (continued) | ||||||||
| Real Estate Operating Companies – 0.5% | ||||||||
| 1,651 | Forest City Enterprises, Inc., Class A* | $ | 22,586 | |||||
| Real Estate Services – 2.0% | ||||||||
| 3,630 | CBRE Group, Inc.* | 64,541 | ||||||
| 535 | Jones Lang LaSalle, Inc. | 34,572 | ||||||
| 99,113 | ||||||||
| Research & Consulting Services – 0.4% | ||||||||
| 312 | CoStar Group, Inc.* | 19,197 | ||||||
| Residential REITs – 15.5% | ||||||||
| 858 | American Campus Communities, Inc. | 33,402 | ||||||
| 1,492 | Apartment Investment & Management Co., Class A | 36,808 | ||||||
| 1,161 | AvalonBay Communities, Inc. | 155,214 | ||||||
| 923 | BRE Properties, Inc. | 46,261 | ||||||
| 879 | Camden Property Trust | 53,302 | ||||||
| 481 | Equity Lifestyle Properties, Inc. | 31,808 | ||||||
| 3,636 | Equity Residential | 213,360 | ||||||
| 418 | Essex Property Trust, Inc. | 59,674 | ||||||
| 506 | Home Properties, Inc. | 29,803 | ||||||
| 459 | Mid-America Apartment Communities, Inc. | 28,642 | ||||||
| 623 | Post Properties, Inc. | 25,593 | ||||||
| 2,705 | UDR, Inc. | 67,436 | ||||||
| 781,303 | ||||||||
| Retail REITs – 22.8% | ||||||||
| 495 | Acadia Realty Trust | 10,256 | ||||||
| 43 | Alexander’s, Inc. | 18,649 | ||||||
| 1,738 | CBL & Associates Properties, Inc. | 26,730 | ||||||
| 2,800 | DDR Corp. | 35,868 | ||||||
| 764 | Equity One, Inc. | 13,103 | ||||||
| 768 | Federal Realty Investment Trust | 68,168 | ||||||
| 4,750 | General Growth Properties, Inc. | 69,825 | ||||||
| 350 | Getty Realty Corp. | 5,579 | ||||||
| 1,327 | Glimcher Realty Trust | 12,155 | ||||||
| 952 | Inland Real Estate Corp. | 7,140 | ||||||
| 5,018 | Kimco Realty Corp. | 87,664 | ||||||
| 1,629 | Macerich Co./The | 81,059 | ||||||
| 1,163 | National Retail Properties, Inc. | 31,692 | ||||||
| 684 | Pennsylvania Real Estate Investment Trust | 7,018 | ||||||
| 1,566 | Realty Income Corp. | 52,320 | ||||||
| 1,110 | Regency Centers Corp. | 45,466 | ||||||
| 3,615 | Simon Property Group, Inc. | 464,311 | ||||||
| 1,061 | Tanger Factory Outlet Centers | 29,878 | ||||||
| 715 | Taubman Centers, Inc. | 43,779 | ||||||
| 1,492 | Weingarten Realty Investors | 34,629 | ||||||
| 1,145,289 | ||||||||
See accompanying notes to the financial statements.
26
FocusShares Trust
Focus Morningstar Real Estate Index ETF
Schedule of Portfolio Investments (continued)
April 30, 2011 (Unaudited)
| | | ||||||
| Shares | Value | |||||||
| Common Stocks (continued) | ||||||||
| Security & Alarm Services – 0.6% | ||||||||
| 1,323 | Corrections Corp. of America* | $ | 29,410 | |||||
| Specialized REITs – 27.1% | ||||||||
| 1,082 | CubeSmart | 10,615 | ||||||
| 2,078 | DiamondRock Hospitality Co. | 18,806 | ||||||
| 574 | Entertainment Properties Trust | 25,715 | ||||||
| 1,164 | Extra Space Storage, Inc. | 26,225 | ||||||
| 5,013 | HCP, Inc. | 199,768 | ||||||
| 2,182 | Health Care REIT, Inc. | 114,970 | ||||||
| 961 | Healthcare Realty Trust, Inc. | 18,153 | ||||||
| 1,854 | Hersha Hospitality Trust | 8,176 | ||||||
| 1,523 | Hospitality Properties Trust | 36,598 | ||||||
| 8,718 | Host Hotels & Resorts, Inc. | 124,406 | ||||||
| 1,051 | LaSalle Hotel Properties | 25,129 | ||||||
| 1,373 | Medical Properties Trust, Inc. | 13,867 | ||||||
| 289 | National Health Investors, Inc. | 12,915 | ||||||
| 1,273 | Omega Healthcare Investors, Inc. | 22,609 | ||||||
| 628 | Pebblebrook Hotel Trust | 11,951 | ||||||
| 2,010 | Plum Creek Timber Co., Inc. | 75,697 | ||||||
| 493 | Potlatch Corp. | 16,013 | ||||||
| 1,741 | Public Storage | 224,676 | ||||||
| 1,894 | Senior Housing Properties Trust | 42,501 | ||||||
| 339 | Sovran Self Storage, Inc. | 14,984 | ||||||
| 1,833 | Strategic Hotels & Resorts, Inc.* | 10,430 | ||||||
| 1,453 | Sunstone Hotel Investors, Inc.* | 10,098 | ||||||
| | | ||||||
| Shares | Value | |||||||
| Common Stocks (continued) | ||||||||
| 3,235 | Ventas, Inc. | $ | 179,898 | |||||
| 6,592 | Weyerhaeuser Co. | 118,524 | ||||||
| 1,362,724 | ||||||||
| Total Common Stocks (Cost $5,034,638) | 5,026,284 | |||||||
| Money Market Fund – 0.0%† | ||||||||
| 1,035 | JPMorgan U.S. Government Money Market Premier, 0.01% (Cost $1,035) | $ | 1,035 | |||||
| Total Investment Securities (Cost $5,035,673) – 100.0% | 5,027,319 | |||||||
| Other assets less liabilities – 0.0%† | 1,920 | |||||||
| Net Assets – 100.0% | $ | 5,029,239 | ||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
| REIT | Real Estate Investment Trust |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| Aggregate gross unrealized appreciation | $269,525 | |||
| Aggregate gross unrealized depreciation | (285,741) | |||
| Net unrealized depreciation | $(16,216) | |||
| Federal income tax cost of investments | $5,043,535 | |||
See accompanying notes to the financial statements.
27
FocusShares Trust
Focus Morningstar Technology Index ETF
Summary Schedule of Portfolio Investments
October 31, 2011
| | | | |||||||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||||||
| Common Stocks – 100.0% | ||||||||||||||||
| 1,075 | Adobe Systems, Inc.* (Application Software) | 0.6 | % | $ | 31,616 | |||||||||||
| 751 | Agilent Technologies, Inc.* (Life Sciences Tools & Services) | 0.6 | % | 27,840 | ||||||||||||
| 705 | Altera Corp. (Semiconductors) | 0.5 | % | 26,734 | ||||||||||||
| 370 | Amphenol Corp., Class A (Electronic Components) | 0.4 | % | 17,571 | ||||||||||||
| 648 | Analog Devices, Inc. (Semiconductors) | 0.5 | % | 23,697 | ||||||||||||
| 1,957 | Apple, Inc.* (Computer Hardware) | 16.0 | % | 792,154 | ||||||||||||
| 2,876 | Applied Materials, Inc. (Semiconductor Equipment) | 0.7 | % | 35,432 | ||||||||||||
| 499 | Autodesk, Inc.* (Application Software) | 0.3 | % | 17,265 | ||||||||||||
| 382 | BMC Software, Inc. (Systems Software) | 0.3 | % | 13,279 | ||||||||||||
| 1,055 | Broadcom Corp., Class A* (Semiconductors) | 0.8 | % | 38,075 | ||||||||||||
| 878 | CA, Inc. (Systems Software) | 0.4 | % | 19,017 | ||||||||||||
| 311 | Cerner Corp.* (Health Care Technology) | 0.4 | % | 19,727 | ||||||||||||
| 12,066 | Cisco Systems, Inc. (Communications Equipment) | 4.5 | % | 223,583 | ||||||||||||
| 409 | Citrix Systems, Inc.* (Application Software) | 0.6 | % | 29,787 | ||||||||||||
| 661 | Cognizant Technology Solutions Corp., Class A* (IT Consulting & Other Services) | 1.0 | % | 48,088 | ||||||||||||
| 3,405 | Corning, Inc. (Electronic Components) | 1.0 | % | 48,657 | ||||||||||||
| 3,620 | Dell, Inc.* (Computer Hardware) | 1.2 | % | 57,232 | ||||||||||||
| 728 | Electronic Arts, Inc.* (Home Entertainment Software) | 0.3 | % | 16,999 | ||||||||||||
| 4,490 | EMC Corp.* (Computer Storage & Peripherals) | 2.2 | % | 110,050 | ||||||||||||
| 175 | F5 Networks, Inc.* (Communications Equipment) | 0.4 | % | 18,191 | ||||||||||||
| 537 | Google, Inc., Class A* (Internet Software & Services) | 6.4 | % | 318,248 | ||||||||||||
| 4,515 | Hewlett-Packard Co. (Computer Hardware) | 2.4 | % | 120,144 | ||||||||||||
| 9,471 | Intel Corp. (Semiconductors) | 4.7 | % | 232,418 | ||||||||||||
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks (continued) | ||||||||||||
| 2,521 | International Business Machines Corp. (IT Consulting & Other Services) | 9.4 | % | $ | 465,452 | |||||||
| 604 | Intuit, Inc. (Application Software) | 0.6 | % | 32,417 | ||||||||
| 1,149 | Juniper Networks, Inc.* (Communications Equipment) | 0.6 | % | 28,116 | ||||||||
| 365 | KLA-Tencor Corp. (Semiconductor Equipment) | 0.3 | % | 17,188 | ||||||||
| 460 | Linear Technology Corp. (Semiconductors) | 0.3 | % | 14,863 | ||||||||
| 1,118 | Marvell Technology Group Ltd.* (Semiconductors) | 0.3 | % | 15,641 | ||||||||
| 642 | Maxim Integrated Products, Inc. (Semiconductors) | 0.3 | % | 16,795 | ||||||||
| 415 | Microchip Technology, Inc. (Semiconductors) | 0.3 | % | 15,006 | ||||||||
| 15,776 | Microsoft Corp. (Systems Software) | 8.5 | % | 420,115 | ||||||||
| 657 | Motorola Solutions, Inc. (Communications Equipment) | 0.6 | % | 30,820 | ||||||||
| 811 | NetApp, Inc.* (Computer Storage & Peripherals) | 0.7 | % | 33,219 | ||||||||
| 1,295 | NVIDIA Corp.* (Semiconductors) | 0.4 | % | 19,166 | ||||||||
| 7,104 | Oracle Corp. (Systems Software) | 4.7 | % | 232,798 | ||||||||
| 3,657 | QUALCOMM, Inc. (Communications Equipment) | 3.8 | % | 188,701 | ||||||||
| 420 | Red Hat, Inc.* (Systems Software) | 0.4 | % | 20,853 | ||||||||
| 209 | Roper Industries, Inc. (Electrical Components & Equipment) | 0.3 | % | 16,950 | ||||||||
| 263 | Salesforce.com, Inc.* (Application Software) | 0.7 | % | 35,024 | ||||||||
| 519 | SanDisk Corp.* (Computer Storage & Peripherals) | 0.5 | % | 26,298 | ||||||||
| 913 | Seagate Technology plc (Computer Storage & Peripherals) | 0.3 | % | 14,745 | ||||||||
| 1,632 | Symantec Corp.* (Systems Software) | 0.6 | % | 27,760 | ||||||||
| 943 | TE Connectivity Ltd. (Electronic Manufacturing Services) | 0.7 | % | 33,524 | ||||||||
See accompanying notes to the financial statements.
28
FocusShares Trust
Focus Morningstar Technology Index ETF
Summary Schedule of Portfolio Investments (continued)
October 31, 2011
| | | | |||||||||
| Shares | Percentage of Net Assets | Value | ||||||||||
| Common Stocks (continued) | ||||||||||||
| 367 | Teradata Corp.* (IT Consulting & Other Services) | 0.4 | % | $ | 21,895 | |||||||
| 2,515 | Texas Instruments, Inc. (Semiconductors) | 1.6 | % | 77,286 | ||||||||
| 183 | VMware, Inc., Class A* (Systems Software) | 0.4 | % | 17,888 | ||||||||
| 506 | Western Digital Corp.* (Computer Storage & Peripherals) | 0.3 | % | 13,480 | ||||||||
| 577 | Xilinx, Inc. (Semiconductors) | 0.4 | % | 19,306 | ||||||||
| 2,578 | Yahoo!, Inc.* (Internet Software & Services) | 0.8 | % | 40,320 | ||||||||
| 38,886 | Other Common Stocks | 15.6 | % | 777,700 | ||||||||
| Total Common Stocks (Cost $4,999,918) | 4,959,130 | |||||||||||
| | | | |||||||||
| Shares | Value | |||||||||||
| Money Market Fund – 0.0%† | ||||||||||||
| 900 | JPMorgan U.S. Government Money Market Premier, 0.01% (Cost $900) | $ | 900 | |||||||||
| Total Investment Securities (Cost $5,000,818) – 100.0% | 4,960,030 | |||||||||||
| Liabilities in excess of other assets – 0.0%† | (805 | ) | ||||||||||
| Net Assets – 100.0% | $ | 4,959,225 | ||||||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| Aggregate gross unrealized appreciation | $308,421 | |||
| Aggregate gross unrealized depreciation | (353,680) | |||
| Net unrealized depreciation | $(45,259) | |||
| Federal income tax cost of investments | $5,005,289 | |||
See accompanying notes to the financial statements.
29
FocusShares Trust
Focus Morningstar Technology Index ETF
Summary Schedule of Portfolio Investments (continued)
October 31, 2011
Focus Morningstar Technology Index ETF invested, as a percentage of net assets, in the following industries as of October 31, 2011:
| | |||
| Aerospace & Defense | 0.0 | %† | ||
| Application Software | 5.6 | % | ||
| Casinos & Gaming | 0.0 | %† | ||
| Communications Equipment | 11.6 | % | ||
| Computer Hardware | 19.7 | % | ||
| Computer Storage & Peripherals | 4.2 | % | ||
| Consumer Electronics | 0.3 | % | ||
| Data Processing & Outsourced Services | 0.3 | % | ||
| Electrical Components & Equipment | 0.6 | % | ||
| Electronic Components | 1.5 | % | ||
| Electronic Equipment & Instruments | 0.4 | % | ||
| Electronic Manufacturing Services | 1.4 | % | ||
| Health Care Services | 0.1 | % | ||
| Health Care Technology | 0.7 | % | ||
| Home Entertainment Software | 0.7 | % | ||
| Industrial Conglomerates | 0.1 | % | ||
| Industrial Machinery | 0.1 | % | ||
| Internet Retail | 0.0 | %† | ||
| Internet Software & Services | 8.4 | % | ||
| IT Consulting & Other Services | 11.3 | % | ||
| Life Sciences Tools & Services | 0.9 | % | ||
| Office Electronics | 0.1 | % | ||
| Office Services & Supplies | 0.0 | %† | ||
| Oil & Gas Equipment & Services | 0.0 | %† | ||
| Research & Consulting Services | 0.2 | % | ||
| Semiconductor Equipment | 2.1 | % | ||
| Semiconductors | 12.7 | % | ||
| Systems Software | 16.1 | % | ||
| Technology Distributors | 0.7 | % | ||
| Trading Companies & Distributors | 0.2 | % | ||
| Other1 | 0.0 | %† | ||
| 100.0 | % | |||
| 1 | Represents net other assets (liabilities). |
| † | Amount represents less than 0.05%. |
See accompanying notes to the financial statements.
30
FocusShares Trust
Focus Morningstar Utilities Index ETF
Schedule of Portfolio Investments
October 31, 2011
| | | ||||||||||
| Shares | Value | |||||||||||
| Common Stocks – 100.0% | ||||||||||||
| Electric Utilities – 51.4% | ||||||||||||
| 349 | Allete, Inc. | $ | 13,789 | |||||||||
| 5,189 | American Electric Power Co., Inc. | 203,824 | ||||||||||
| 657 | Cleco Corp. | 24,224 | ||||||||||
| 1,261 | DPL, Inc. | 38,271 | ||||||||||
| 14,188 | Duke Energy Corp. | 289,719 | ||||||||||
| 3,220 | Edison International | 130,732 | ||||||||||
| 450 | El Paso Electric Co. | 14,413 | ||||||||||
| 451 | Empire District Electric Co./The | 9,006 | ||||||||||
| 1,902 | Entergy Corp. | 131,561 | ||||||||||
| 7,100 | Exelon Corp. | 315,169 | ||||||||||
| 4,495 | FirstEnergy Corp. | 202,095 | ||||||||||
| 1,454 | Great Plains Energy, Inc. | 30,156 | ||||||||||
| 1,032 | Hawaiian Electric Industries, Inc. | 26,141 | ||||||||||
| 535 | IDACORP, Inc. | 21,603 | ||||||||||
| 552 | ITC Holdings Corp. | 40,119 | ||||||||||
| 248 | MGE Energy, Inc. | 10,823 | ||||||||||
| 4,529 | NextEra Energy, Inc. | 255,436 | ||||||||||
| 1,884 | Northeast Utilities | 65,130 | ||||||||||
| 2,514 | NV Energy, Inc. | 40,325 | ||||||||||
| 350 | Otter Tail Corp. | 6,794 | ||||||||||
| 2,425 | Pepco Holdings, Inc. | 48,015 | ||||||||||
| 1,167 | Pinnacle West Capital Corp. | 53,192 | ||||||||||
| 844 | PNM Resources, Inc. | 15,175 | ||||||||||
| 808 | Portland General Electric Co. | 19,828 | ||||||||||
| 6,216 | PPL Corp. | 182,564 | ||||||||||
| 3,148 | Progress Energy, Inc. | 164,011 | ||||||||||
| 9,227 | Southern Co. | 398,606 | ||||||||||
| 543 | UIL Holdings Corp. | 18,505 | ||||||||||
| 395 | Unisource Energy Corp. | 14,726 | ||||||||||
| 1,246 | Westar Energy, Inc. | 33,966 | ||||||||||
| 2,817,918 | ||||||||||||
| Environmental & Facilities Services – 0.3% | ||||||||||||
| 1,294 | Covanta Holding Corp. | 18,970 | ||||||||||
| Gas Utilities – 5.1% | ||||||||||||
| 839 | AGL Resources, Inc. | 35,188 | ||||||||||
| 970 | Atmos Energy Corp. | 33,290 | ||||||||||
| 225 | Laclede Group, Inc./The | 9,027 | ||||||||||
| 838 | National Fuel Gas Co. | 51,361 | ||||||||||
| 447 | New Jersey Resources Corp. | 21,018 | ||||||||||
| 490 | Nicor, Inc. | 27,562 | ||||||||||
| 286 | Northwest Natural Gas Co. | 13,362 | ||||||||||
| 772 | Piedmont Natural Gas Co., Inc. | 25,237 | ||||||||||
| 321 | South Jersey Industries, Inc. | 18,076 | ||||||||||
| 493 | Southwest Gas Corp. | 19,464 | ||||||||||
| 552 | WGL Holdings, Inc. | 23,631 | ||||||||||
| 277,216 | ||||||||||||
| Independent Power Producers & Energy Traders – 5.8% | ||||||||||||
| 8,418 | AES Corp./The* | 94,450 | ||||||||||
| 3,904 | Calpine Corp.* | 59,224 | ||||||||||
| | | ||||||
| Shares | Value | |||||||
| Common Stocks (continued) | ||||||||
| 1,938 | Constellation Energy Group, Inc. | $ | 76,939 | |||||
| 8,302 | GenOn Energy, Inc.* | 25,321 | ||||||
| 2,594 | NRG Energy, Inc.* | 55,563 | ||||||
| 193 | Ormat Technologies, Inc. | 3,665 | ||||||
| 315,162 | ||||||||
| Multi-Utilities – 35.8% | ||||||||
| 1,187 | Alliant Energy Corp. | 48,406 | ||||||
| 2,580 | Ameren Corp. | 82,250 | ||||||
| 624 | Avista Corp. | 15,881 | ||||||
| 424 | Black Hills Corp. | 14,293 | ||||||
| 4,247 | CenterPoint Energy, Inc. | 88,508 | ||||||
| 2,715 | CMS Energy Corp. | 56,526 | ||||||
| 3,126 | Consolidated Edison, Inc. | 180,902 | ||||||
| 6,124 | Dominion Resources, Inc. | 315,937 | ||||||
| 1,812 | DTE Energy Co. | 94,423 | ||||||
| 840 | Integrys Energy Group, Inc. | 44,444 | ||||||
| 3,019 | NiSource, Inc. | 66,690 | ||||||
| 386 | NorthWestern Corp. | 13,298 | ||||||
| 1,114 | NSTAR | 50,230 | ||||||
| 1,045 | OGE Energy Corp. | 54,068 | ||||||
| 4,328 | PG&E Corp. | 185,671 | ||||||
| 5,470 | Public Service Enterprise Group, Inc. | 184,339 | ||||||
| 1,245 | SCANA Corp. | 52,639 | ||||||
| 2,401 | Sempra Energy | 129,006 | ||||||
| 2,170 | TECO Energy, Inc. | 40,297 | ||||||
| 871 | Vectren Corp. | 24,719 | ||||||
| 2,515 | Wisconsin Energy Corp. | 81,561 | ||||||
| 5,209 | Xcel Energy, Inc. | 134,653 | ||||||
| 1,958,741 | ||||||||
| Water Utilities – 1.6% | ||||||||
| 1,878 | American Water Works Co., Inc. | 57,335 | ||||||
| 1,489 | Aqua America, Inc. | 33,041 | ||||||
| 90,376 | ||||||||
| Total Common Stocks (Cost $5,006,579) | 5,478,383 | |||||||
| Total Investment Securities (Cost $5,006,579) – 100.0% | 5,478,383 | |||||||
| Other assets less liabilities – 0.0%† | 95 | |||||||
| Net Assets – 100.0% | $ | 5,478,478 | ||||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| | |||
| Aggregate gross unrealized appreciation | $506,396 | |||
| Aggregate gross unrealized depreciation | (35,712) | |||
| Net unrealized appreciation | $470,684 | |||
| Federal income tax cost of investments | $5,007,699 | |||
See accompanying notes to the financial statements.
31
FocusShares Trust
Statements of Assets and Liabilities
October 31, 2011
| | | | | | | | | ||||||||||||||||||||||||||
| Focus Morningstar US Market Index ETF | Focus Morningstar Large Cap Index ETF | Focus Morningstar Mid Cap Index ETF | Focus Morningstar Small Cap Index ETF | Focus Morningstar Basic Materials Index ETF | Focus Morningstar Communication Services Index ETF | Focus Morningstar Consumer Cyclical Index ETF | Focus Morningstar Consumer Defensive Index ETF | |||||||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||||||||
| Securities, at value | $ | 9,638,370 | $ | 4,817,021 | $ | 4,653,147 | $ | 4,546,920 | $ | 4,223,934 | $ | 4,615,940 | $ | 5,037,005 | $ | 5,254,475 | ||||||||||||||||||
| Dividends and interest receivable | 9,986 | 5,889 | 2,251 | 2,085 | 4,770 | 22,699 | 2,091 | 8,650 | ||||||||||||||||||||||||||
| Receivable from advisor (Note 3) | 1,242 | 210 | 188 | 155 | 130 | 220 | 241 | 317 | ||||||||||||||||||||||||||
| Receivable for investments sold | — | — | — | — | — | — | — | 29,501 | ||||||||||||||||||||||||||
| Total Assets | 9,649,598 | 4,823,120 | 4,655,586 | 4,549,160 | 4,228,834 | 4,638,859 | 5,039,337 | 5,292,943 | ||||||||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||||||||
| Due to Custodian | 4,581 | 2,194 | — | — | 2,695 | 15,820 | — | 3,766 | ||||||||||||||||||||||||||
| Payable for investments purchased | — | — | — | — | — | 4,012 | — | 31,699 | ||||||||||||||||||||||||||
| Management fees payable (Note 3) | 392 | 197 | 448 | 435 | 635 | 744 | 778 | 834 | ||||||||||||||||||||||||||
| Trustees fees payable | 3,368 | 1,683 | 1,637 | 1,586 | 1,551 | 1,701 | 1,742 | 1,889 | ||||||||||||||||||||||||||
| Total Liabilities | 8,341 | 4,074 | 2,085 | 2,021 | 4,881 | 22,277 | 2,520 | 38,188 | ||||||||||||||||||||||||||
| NET ASSETS | $ | 9,641,257 | $ | 4,819,046 | $ | 4,653,501 | $ | 4,547,139 | $ | 4,223,953 | $ | 4,616,582 | $ | 5,036,817 | $ | 5,254,755 | ||||||||||||||||||
| NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||||||||
| Paid in Capital | $ | 9,651,384 | $ | 5,001,253 | $ | 5,000,000 | $ | 5,000,002 | $ | 5,000,000 | $ | 5,000,000 | $ | 5,000,000 | $ | 5,001,572 | ||||||||||||||||||
| Accumulated undistributed net investment income | 16,920 | 9,211 | 5,491 | 9,133 | 9,317 | 27,347 | 3,190 | 16,282 | ||||||||||||||||||||||||||
| Accumulated net realized gains (loss) on investments | (47,000 | ) | (13,066 | ) | (15,513 | ) | (36,251 | ) | (72,014 | ) | (33,531 | ) | (7,207 | ) | (16,352 | ) | ||||||||||||||||||
| Net unrealized appreciation (depreciation) on investments | 19,953 | (178,352 | ) | (336,477 | ) | (425,745 | ) | (713,350 | ) | (377,234 | ) | 40,834 | 253,253 | |||||||||||||||||||||
| NET ASSETS | $ | 9,641,257 | $ | 4,819,046 | $ | 4,653,501 | $ | 4,547,139 | $ | 4,223,953 | $ | 4,616,582 | $ | 5,036,817 | $ | 5,254,755 | ||||||||||||||||||
| Shares (unlimited number of shares authorized, no par value) | 404,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | ||||||||||||||||||||||||||
| Net Asset Value | $ | 23.86 | $ | 24.10 | $ | 23.27 | $ | 22.74 | $ | 21.12 | $ | 23.08 | $ | 25.18 | $ | 26.27 | ||||||||||||||||||
| Securities, at cost | $ | 9,618,417 | $ | 4,995,373 | $ | 4,989,624 | $ | 4,972,665 | $ | 4,937,284 | $ | 4,993,174 | $ | 4,996,171 | $ | 5,001,222 | ||||||||||||||||||
See accompanying notes to the financial statements.
32
FocusShares Trust
Statements of Assets and Liabilities (continued)
October 31, 2011
| | | | | | | | |||||||||||||||||||||
| Focus Morningstar Energy Index ETF | Focus Morningstar Financial Services Index ETF | Focus Morningstar Health Care Index ETF | Focus Morningstar Industrials Index ETF | Focus Morningstar Real Estate Index ETF | Focus Morningstar Technology Index ETF | Focus Morningstar Utilities Index ETF | ||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Securities, at value | $ | 4,476,294 | $ | 4,154,961 | $ | 5,095,719 | $ | 4,512,623 | $ | 5,027,319 | $ | 4,960,030 | $ | 5,478,383 | ||||||||||||||
| Dividends and interest receivable | 3,016 | 2,960 | 5,012 | 4,083 | 3,912 | 942 | 4,885 | |||||||||||||||||||||
| Receivable from advisor (Note 3) | 147 | 69 | 267 | 148 | 248 | 228 | 340 | |||||||||||||||||||||
| Receivable for investments sold | 37,368 | — | 12,462 | — | — | 75,993 | 34,488 | |||||||||||||||||||||
| Total Assets | 4,516,825 | 4,157,990 | 5,113,460 | 4,516,854 | 5,031,479 | 5,037,193 | 5,518,096 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Due to Custodian | 795 | — | 2,908 | 1,299 | — | — | 305 | |||||||||||||||||||||
| Payable for investments purchased | 37,570 | — | 12,535 | — | — | 75,508 | 36,520 | |||||||||||||||||||||
| Management fees payable (Note 3) | 679 | 631 | 797 | 690 | 471 | 768 | 862 | |||||||||||||||||||||
| Trustees fees payable | 1,566 | 1,443 | 1,804 | 1,561 | 1,769 | 1,692 | 1,931 | |||||||||||||||||||||
| Total Liabilities | 40,610 | 2,074 | 18,044 | 3,550 | 2,240 | 77,968 | 39,618 | |||||||||||||||||||||
| NET ASSETS | $ | 4,476,215 | $ | 4,155,916 | $ | 5,095,416 | $ | 4,513,304 | $ | 5,029,239 | $ | 4,959,225 | $ | 5,478,478 | ||||||||||||||
| NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||
| Paid in Capital | $ | 5,003,409 | $ | 5,000,000 | $ | 5,000,921 | $ | 5,000,001 | $ | 5,001,584 | $ | 5,000,000 | $ | 5,000,833 | ||||||||||||||
| Accumulated undistributed net investment income | 2,507 | 7,362 | 5,931 | 4,485 | 55,650 | 782 | 10,289 | |||||||||||||||||||||
| Accumulated net realized gains (loss) on investments | (45,974 | ) | (24,995 | ) | (11,736 | ) | (20,043 | ) | (19,641 | ) | (769 | ) | (4,448 | ) | ||||||||||||||
| Net unrealized appreciation (depreciation) on investments | (483,727 | ) | (826,451 | ) | 100,300 | (471,139 | ) | (8,354 | ) | (40,788 | ) | 471,804 | ||||||||||||||||
| NET ASSETS | $ | 4,476,215 | $ | 4,155,916 | $ | 5,095,416 | $ | 4,513,304 | $ | 5,029,239 | $ | 4,959,225 | $ | 5,478,478 | ||||||||||||||
| Shares (unlimited number of shares authorized, no par value) | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | |||||||||||||||||||||
| Net Asset Value | $ | 22.38 | $ | 20.78 | $ | 25.48 | $ | 22.57 | $ | 25.15 | $ | 24.80 | $ | 27.39 | ||||||||||||||
| Securities, at cost | $ | 4,960,021 | $ | 4,981,412 | $ | 4,995,419 | $ | 4,983,762 | $ | 5,035,673 | $ | 5,000,818 | $ | 5,006,579 | ||||||||||||||
See accompanying notes to the financial statements.
33
FocusShares Trust
Statements of Operations
For the period from March 28, 2011 (commencement of investment operations) through October 31, 2011
| | | | | | | | | ||||||||||||||||||||||||||
| Focus Morningstar US Market Index ETF | Focus Morningstar Large Cap Index ETF | Focus Morningstar Mid Cap Index ETF | Focus Morningstar Small Cap Index ETF | Focus Morningstar Basic Materials Index ETF | Focus Morningstar Communication Services Index ETF | Focus Morningstar Consumer Cyclical Index ETF | Focus Morningstar Consumer Defensive Index ETF | |||||||||||||||||||||||||||
| INVESTMENT INCOME: | ||||||||||||||||||||||||||||||||||
| Dividends and interest income | $ | 75,166 | $ | 61,494 | $ | 40,138 | $ | 38,462 | $ | 54,558 | $ | 110,454 | $ | 35,099 | $ | 85,667 | ||||||||||||||||||
| Foreign withholding tax on dividends | (1 | ) | — | (3 | ) | — | — | — | — | — | ||||||||||||||||||||||||
| Total investment income | 75,165 | 61,494 | 40,135 | 38,462 | 54,558 | 110,454 | 35,099 | 85,667 | ||||||||||||||||||||||||||
| EXPENSES: | ||||||||||||||||||||||||||||||||||
| Management fees (Note 3) | 1,930 | 1,442 | 3,419 | 3,362 | 5,181 | 5,591 | 5,631 | 5,885 | ||||||||||||||||||||||||||
| Trustee fees (Note 3) | 3,711 | 2,026 | 1,979 | 1,928 | 1,893 | 2,043 | 2,084 | 2,232 | ||||||||||||||||||||||||||
| Gross expenses before fees waived and/or reimbursed | 5,641 | 3,468 | 5,398 | 5,290 | 7,074 | 7,634 | 7,715 | 8,117 | ||||||||||||||||||||||||||
| LESS: | ||||||||||||||||||||||||||||||||||
| Advisor expenses waived and/or reimbursed (Note 3) | (3,522 | ) | (1,885 | ) | (1,840 | ) | (1,792 | ) | (1,762 | ) | (1,900 | ) | (1,938 | ) | (2,081 | ) | ||||||||||||||||||
| Total expenses (Note 3) | 2,119 | 1,583 | 3,558 | 3,498 | 5,312 | 5,734 | 5,777 | 6,036 | ||||||||||||||||||||||||||
| Net investment income (loss) | 73,046 | 59,911 | 36,577 | 34,964 | 49,246 | 104,720 | 29,322 | 79,631 | ||||||||||||||||||||||||||
| NET REALIZED GAIN (LOSS) ON: | ||||||||||||||||||||||||||||||||||
| Investments | (47,000 | ) | (13,096 | ) | (15,513 | ) | (36,251 | ) | (72,014 | ) | (33,531 | ) | (7,207 | ) | (16,371 | ) | ||||||||||||||||||
| In-kind redemptions of investments | — | 1,283 | — | — | — | — | — | 1,591 | ||||||||||||||||||||||||||
| Net realized gain (loss) | (47,000 | ) | (11,813 | ) | (15,513 | ) | (36,251 | ) | (72,014 | ) | (33,531 | ) | (7,207 | ) | (14,780 | ) | ||||||||||||||||||
| CHANGE IN NET UNREALIZED APPRECIATION ON: | ||||||||||||||||||||||||||||||||||
| Investments | 19,953 | (178,352 | ) | (336,477 | ) | (425,745 | ) | (713,350 | ) | (377,234 | ) | 40,834 | 253,253 | |||||||||||||||||||||
| Change in net unrealized appreciation (depreciation) | 19,953 | (178,352 | ) | (336,477 | ) | (425,745 | ) | (713,350 | ) | (377,234 | ) | 40,834 | 253,253 | |||||||||||||||||||||
| Net realized and unrealized gain (loss) on investments | (27,047 | ) | (190,165 | ) | (351,990 | ) | (461,996 | ) | (785,364 | ) | (410,765 | ) | 33,627 | 238,473 | ||||||||||||||||||||
| Change in net assets resulting from operations | $ | 45,999 | $ | (130,254 | ) | $ | (315,413 | ) | $ | (427,032 | ) | $ | (736,118 | ) | $ | (306,045 | ) | $ | 62,949 | $ | 318,104 | |||||||||||||
See accompanying notes to the financial statements.
34
FocusShares Trust
Statements of Operations (continued)
For the period from March 28, 2011 (commencement of investment operations) through October 31, 2011
| | | | | | | | |||||||||||||||||||||
| Focus Morningstar Energy Index ETF | Focus Morningstar Financial Services Index ETF | Focus Morningstar Health Care Index ETF | Focus Morningstar Industrials Index ETF | Focus Morningstar Real Estate Index ETF | Focus Morningstar Technology Index ETF | Focus Morningstar Utilities Index ETF | ||||||||||||||||||||||
| INVESTMENT INCOME: | ||||||||||||||||||||||||||||
| Dividends and interest income | $ | 42,977 | $ | 43,554 | $ | 59,937 | $ | 50,706 | $ | 125,378 | $ | 26,563 | $ | 117,763 | ||||||||||||||
| Foreign withholding tax on dividends | (6 | ) | — | — | — | — | — | — | ||||||||||||||||||||
| Total investment income | 42,971 | 43,554 | 59,937 | 50,706 | 125,378 | 26,563 | 117,763 | |||||||||||||||||||||
| EXPENSES: | ||||||||||||||||||||||||||||
| Management fees (Note 3) | 5,200 | 5,009 | 5,825 | 5,275 | 3,590 | 5,453 | 5,940 | |||||||||||||||||||||
| Trustee fees (Note 3) | 1,908 | 1,785 | 2,147 | 1,904 | 2,111 | 2,035 | 2,274 | |||||||||||||||||||||
| Gross expenses before fees waived and/or reimbursed | 7,108 | 6,794 | 7,972 | 7,179 | 5,701 | 7,488 | 8,214 | |||||||||||||||||||||
| LESS: | �� | |||||||||||||||||||||||||||
| Advisor expenses waived and/or reimbursed (Note 3) | (1,776 | ) | (1,660 | ) | (1,999 | ) | (1,770 | ) | (1,964 | ) | (1,894 | ) | (2,121 | ) | ||||||||||||||
| Total expenses (Note 3) | 5,332 | 5,134 | 5,973 | 5,409 | 3,737 | 5,594 | 6,093 | |||||||||||||||||||||
| Net investment income (loss) | 37,639 | 38,420 | 53,964 | 45,297 | 121,641 | 20,969 | 111,670 | |||||||||||||||||||||
| NET REALIZED GAIN (LOSS) ON: | ||||||||||||||||||||||||||||
| Investments | (45,993 | ) | (25,035 | ) | (11,736 | ) | (20,043 | ) | (19,689 | ) | (769 | ) | (4,448 | ) | ||||||||||||||
| In-kind redemptions of investments | 3,426 | — | 921 | — | 1,632 | — | 833 | |||||||||||||||||||||
| Net realized gain (loss) | (42,567 | ) | (25,035 | ) | (10,815 | ) | (20,043 | ) | (18,057 | ) | (769 | ) | (3,615 | ) | ||||||||||||||
| CHANGE IN NET UNREALIZED APPRECIATION ON: | ||||||||||||||||||||||||||||
| Investments | (483,727 | ) | (826,451 | ) | 100,300 | (471,139 | ) | (8,354 | ) | (40,788 | ) | 471,804 | ||||||||||||||||
| Change in net unrealized appreciation (depreciation) | (483,727 | ) | (826,451 | ) | 100,300 | (471,139 | ) | (8,354 | ) | (40,788 | ) | 471,804 | ||||||||||||||||
| Net realized and unrealized gain (loss) on investments | (526,294 | ) | (851,486 | ) | 89,485 | (491,182 | ) | (26,411 | ) | (41,557 | ) | 468,189 | ||||||||||||||||
| Change in net assets resulting from operations | $ | (488,655 | ) | $ | (813,066 | ) | $ | 143,449 | $ | (445,885 | ) | $ | 95,230 | $ | (20,588 | ) | $ | 579,859 | ||||||||||
See accompanying notes to the financial statements.
35
FocusShares Trust
Statements of Changes in Net Assets
For the period from March 28, 2011 (commencement of investment operations) through October 31, 2011
| | | | | | | | | ||||||||||||||||||||||||
| Focus Morningstar US Market Index ETF | Focus Morningstar Large Cap Index ETF | Focus Morningstar Mid Cap Index ETF | Focus Morningstar Small Cap Index ETF | Focus Morningstar Basic Materials Index ETF | Focus Morningstar Communication Services Index ETF | Focus Morningstar Consumer Cyclical Index ETF | Focus Morningstar Consumer Defensive Index ETF | |||||||||||||||||||||||||
| FROM INVESTMENT ACTIVITIES: | ||||||||||||||||||||||||||||||||
| OPERATIONS: | ||||||||||||||||||||||||||||||||
| Net investments income (loss) | $ | 73,046 | $ | 59,911 | $ | 36,577 | $ | 34,964 | $ | 49,246 | $ | 104,720 | $ | 29,322 | $ | 79,631 | ||||||||||||||||
| Net realized gain (loss) | (47,000 | ) | (11,813 | ) | (15,513 | ) | (36,251 | ) | (72,014 | ) | (33,531 | ) | (7,207 | ) | (14,780 | ) | ||||||||||||||||
| Change in net unrealized appreciation (depreciation) | 19,953 | (178,352 | ) | (336,477 | ) | (425,745 | ) | (713,350 | ) | (377,234 | ) | 40,834 | 253,253 | |||||||||||||||||||
| Change in net assets resulting from operations | 45,999 | (130,254 | ) | (315,413 | ) | (427,032 | ) | (736,118 | ) | (306,045 | ) | 62,949 | 318,104 | |||||||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||||||
| Net investment income | (56,126 | ) | (50,700 | ) | (31,086 | ) | (25,831 | ) | (39,929 | ) | (77,373 | ) | (26,132 | ) | (63,349 | ) | ||||||||||||||||
| Total distributions | (56,126 | ) | (50,700 | ) | (31,086 | ) | (25,831 | ) | (39,929 | ) | (77,373 | ) | (26,132 | ) | (63,349 | ) | ||||||||||||||||
| CAPITAL TRANSACTIONS: | ||||||||||||||||||||||||||||||||
| Issued in-kind | 9,551,384 | 6,174,030 | 5,000,000 | 5,000,002 | 5,000,000 | 5,000,000 | 5,000,000 | 6,317,628 | ||||||||||||||||||||||||
| Redeemed in-kind | — | (1,174,030 | ) | — | — | — | — | — | (1,317,628 | ) | ||||||||||||||||||||||
| Change in net assets resulting from capital transactions | 9,551,384 | 5,000,000 | 5,000,000 | 5,000,002 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | ||||||||||||||||||||||||
| Change in net assets | 9,541,257 | 4,819,046 | 4,653,501 | 4,547,139 | 4,223,953 | 4,616,582 | 5,036,817 | 5,254,755 | ||||||||||||||||||||||||
| NET ASSETS: | ||||||||||||||||||||||||||||||||
| Beginning of period | $ | 100,000 | (a) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| End of period | $ | 9,641,257 | $ | 4,819,046 | $ | 4,653,501 | $ | 4,547,139 | $ | 4,223,953 | $ | 4,616,582 | $ | 5,036,817 | $ | 5,254,755 | ||||||||||||||||
| Accumulated undistributed net investment income (loss) included in end of period net assets | $ | 16,920 | $ | 9,211 | $ | 5,491 | $ | 9,133 | $ | 9,317 | $ | 27,347 | $ | 3,190 | $ | 16,282 | ||||||||||||||||
| SHARE TRANSACTIONS: | ||||||||||||||||||||||||||||||||
| Issued | 4,000 | (a) | — | — | — | — | — | — | — | |||||||||||||||||||||||
| Issued in-kind (Note 7) | 400,000 | 250,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 250,000 | ||||||||||||||||||||||||
| Redeemed in-kind (Note 7) | — | (50,000 | ) | — | — | — | — | — | (50,000 | ) | ||||||||||||||||||||||
| Shares outstanding, end of period | 404,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | ||||||||||||||||||||||||
| (a) | Represents initial seed capital. |
See accompanying notes to the financial statements.
36
FocusShares Trust
Statements of Changes in Net Assets (continued)
For the period from March 28, 2011 (commencement of investment operations) through October 31, 2011
| | | | | | | | |||||||||||||||||||||
| Focus Morningstar Energy Index ETF | Focus Morningstar Financial Services Index ETF | Focus Morningstar Health Care Index ETF | Focus Morningstar Industrials Index ETF | Focus Morningstar Real Estate Index ETF | Focus Morningstar Technology Index ETF | Focus Morningstar Utilities Index ETF | ||||||||||||||||||||||
| FROM INVESTMENT ACTIVITIES: | ||||||||||||||||||||||||||||
| OPERATIONS: | ||||||||||||||||||||||||||||
| Net investments income (loss) | $ | 37,639 | $ | 38,420 | $ | 53,964 | $ | 45,297 | $ | 121,641 | $ | 20,969 | $ | 111,670 | ||||||||||||||
| Net realized gain (loss) | (42,567 | ) | (25,035 | ) | (10,815 | ) | (20,043 | ) | (18,057 | ) | (769 | ) | (3,615 | ) | ||||||||||||||
| Change in net unrealized appreciation (depreciation) | (483,727 | ) | (826,451 | ) | 100,300 | (471,139 | ) | (8,354 | ) | (40,788 | ) | 471,804 | ||||||||||||||||
| Change in net assets resulting from operations | (488,655 | ) | (813,066 | ) | 143,449 | (445,885 | ) | 95,230 | (20,588 | ) | 579,859 | |||||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
| Net investment income | (35,132 | ) | (31,018 | ) | (48,033 | ) | (40,812 | ) | (65,991 | ) | (20,187 | ) | (101,381 | ) | ||||||||||||||
| Total distributions | (35,132 | ) | (31,018 | ) | (48,033 | ) | (40,812 | ) | (65,991 | ) | (20,187 | ) | (101,381 | ) | ||||||||||||||
| CAPITAL TRANSACTIONS: | ||||||||||||||||||||||||||||
| Issued in-kind | 6,084,778 | 5,000,000 | 6,256,823 | 5,000,001 | 6,236,332 | 5,000,000 | 6,351,103 | |||||||||||||||||||||
| Redeemed in-kind | (1,084,776 | ) | — | (1,256,823 | ) | — | (1,236,332 | ) | — | (1,351,103 | ) | |||||||||||||||||
| Change in net assets resulting from capital transactions | 5,000,002 | 5,000,000 | 5,000,000 | 5,000,001 | 5,000,000 | 5,000,000 | 5,000,000 | |||||||||||||||||||||
| Change in net assets | 4,476,215 | 4,155,916 | 5,095,416 | 4,513,304 | 5,029,239 | 4,959,225 | 5,478,478 | |||||||||||||||||||||
| NET ASSETS: | ||||||||||||||||||||||||||||
| Beginning of period | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
| End of period | $ | 4,476,215 | $ | 4,155,916 | $ | 5,095,416 | $ | 4,513,304 | $ | 5,029,239 | $ | 4,959,225 | $ | 5,478,478 | ||||||||||||||
| Accumulated undistributed net investment income (loss) included in end of period net assets | $ | 2,507 | $ | 7,362 | $ | 5,931 | $ | 4,485 | $ | 55,650 | $ | 782 | $ | 10,289 | ||||||||||||||
| SHARE TRANSACTIONS: | ||||||||||||||||||||||||||||
| Issued | — | — | — | — | — | — | — | |||||||||||||||||||||
| Issued in-kind (Note 7) | 250,000 | 200,000 | 250,000 | 200,000 | 250,000 | 200,000 | 250,000 | |||||||||||||||||||||
| Redeemed in-kind (Note 7) | (50,000 | ) | — | (50,000 | ) | — | (50,000 | ) | — | (50,000 | ) | |||||||||||||||||
| Shares outstanding, end of period | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | |||||||||||||||||||||
See accompanying notes to the financial statements.
37
Financial Highlights
| | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||
| PER SHARE OPERATING PERFORMANCE | RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INVESTMENT OPERATIONS | DISTRIBUTIONS | Net asset value, end of period | TOTAL RETURN(b) | RATIOS TO AVERAGE NET ASSETS(e) | Net assets, end of period (000’s) | SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net asset value, beginning of period | Net investment income(a) | Net realized and unrealized gains on investments | Total from investment operations | Net investment income | Total distributions | Net asset value(c) | Market value(d) | Expenses (Note 4) | Expenses net of waivers (Note 4) | Net investment income | Portfolio turnover rate(b)(f) | |||||||||||||||||||||||||||||||||||||||||||||||
| Focus Morningstar US Market Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | $ | 25.00 | $ | 0.27 | $ | (1.22 | ) | $ | (0.95 | ) | $ | (0.19 | ) | $ | (0.19 | ) | $ | 23.86 | (3.76 | )% | (4.49 | )% | 0.15 | % | 0.05 | % | 1.89 | % | $ | 9,641 | 9 | % | ||||||||||||||||||||||||||
| Focus Morningstar Large Cap Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | 25.00 | 0.30 | (0.95 | ) | (0.65 | ) | (0.25 | ) | (0.25 | ) | 24.10 | (2.53 | ) | (3.23 | ) | 0.12 | 0.05 | 2.08 | 4,819 | 4 | ||||||||||||||||||||||||||||||||||||||
| Focus Morningstar Mid Cap Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | 25.00 | 0.18 | (1.75 | ) | (1.57 | ) | (0.16 | ) | (0.16 | ) | 23.27 | (6.28 | ) | (6.77 | ) | 0.19 | 0.12 | 1.28 | 4,654 | 16 | ||||||||||||||||||||||||||||||||||||||
| Focus Morningstar Small Cap Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | 25.00 | 0.17 | (2.30 | ) | (2.13 | ) | (0.13 | ) | (0.13 | ) | 22.74 | (8.50 | ) | (9.37 | ) | 0.19 | 0.12 | 1.25 | 4,547 | 21 | ||||||||||||||||||||||||||||||||||||||
| Focus Morningstar Basic Materials Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | 25.00 | 0.25 | (3.93 | ) | (3.68 | ) | (0.20 | ) | (0.20 | ) | 21.12 | (14.71 | ) | (15.66 | ) | 0.26 | 0.19 | 1.81 | 4,224 | 19 | ||||||||||||||||||||||||||||||||||||||
| Focus Morningstar Communication Services Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | 25.00 | 0.52 | (2.05 | ) | (1.53 | ) | (0.39 | ) | (0.39 | ) | 23.08 | (6.17 | ) | (6.88 | ) | 0.26 | 0.19 | 3.56 | 4,617 | 22 | ||||||||||||||||||||||||||||||||||||||
| Focus Morningstar Consumer Cyclical Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | 25.00 | 0.15 | 0.16 | 0.31 | (0.13 | ) | (0.13 | ) | 25.18 | 1.27 | 0.11 | 0.26 | 0.19 | 0.99 | 5,037 | 4 | ||||||||||||||||||||||||||||||||||||||||||
| * | Commencement of investment operations. |
See accompanying notes to the financial statements.
38
FocusShares Trust
Financial Highlights (continued)
| | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||
| PER SHARE OPERATING PERFORMANCE | RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INVESTMENT OPERATIONS | DISTRIBUTIONS | Net asset value, end of period | TOTAL RETURN(b) | RATIOS TO AVERAGE NET ASSETS(e) | Net assets, end of period (000’s) | SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net asset value, beginning of period | Net investment income(a) | Net realized and unrealized gains on investments | Total from investment operations | Net investment income | Total distributions | Net asset value(c) | Market value(d) | Expenses (Note 4) | Expenses net of waivers (Note 4) | Net investment income | Portfolio turnover rate(b)(f) | |||||||||||||||||||||||||||||||||||||||||||||
| Focus Morningstar Consumer Defensive Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | $ | 25.00 | $ | 0.40 | $ | 1.19 | $ | 1.59 | $ | (0.32 | ) | $ | (0.32 | ) | $ | 26.27 | 6.40 | % | 5.89 | % | 0.26 | % | 0.19 | % | 2.57 | % | $ | 5,255 | 4 | % | ||||||||||||||||||||||||||
| Focus Morningstar Energy Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | 25.00 | 0.19 | (2.63 | ) | (2.44 | ) | (0.18 | ) | (0.18 | ) | 22.38 | (9.71 | ) | (10.83 | ) | 0.26 | 0.19 | 1.38 | 4,476 | 13 | ||||||||||||||||||||||||||||||||||||
| Focus Morningstar Financial Services Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | 25.00 | 0.19 | (4.25 | ) | (4.06 | ) | (0.16 | ) | (0.16 | ) | 20.78 | (16.24 | ) | (16.48 | ) | 0.26 | 0.19 | 1.46 | 4,156 | 5 | ||||||||||||||||||||||||||||||||||||
| Focus Morningstar Health Care Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | 25.00 | 0.27 | 0.45 | 0.72 | (0.24 | ) | (0.24 | ) | 25.48 | 2.90 | 2.17 | 0.26 | 0.19 | 1.76 | 5,095 | 6 | ||||||||||||||||||||||||||||||||||||||||
| Focus Morningstar Industrials Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | 25.00 | 0.23 | (2.46 | ) | (2.23 | ) | (0.20 | ) | (0.20 | ) | 22.57 | (8.87 | ) | (9.63 | ) | 0.26 | 0.19 | 1.63 | 4,513 | 6 | ||||||||||||||||||||||||||||||||||||
| Focus Morningstar Real Estate Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | 25.00 | 0.61 | (0.13 | ) | 0.48 | (0.33 | ) | (0.33 | ) | 25.15 | 1.97 | 1.25 | 0.19 | 0.12 | 4.07 | 5,029 | 21 | |||||||||||||||||||||||||||||||||||||||
| Focus Morningstar Technology Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | 25.00 | 0.10 | (0.20 | ) | (0.10 | ) | (0.10 | ) | (0.10 | ) | 24.80 | (0.37 | ) | (1.08 | ) | 0.26 | 0.19 | 0.73 | 4,959 | 5 | ||||||||||||||||||||||||||||||||||||
| Focus Morningstar Utilities Index ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2011* through October 31, 2011 | 25.00 | 0.56 | 2.34 | 2.90 | (0.51 | ) | (0.51 | ) | 27.39 | 11.70 | 10.59 | 0.26 | 0.19 | 3.57 | 5,478 | 4 | ||||||||||||||||||||||||||||||||||||||||
| * | Commencement of investment operations. |
See accompanying notes to the financial statements.
39
FocusShares Trust Notes to Financial Highlights:
| (a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
| (b) | Not annualized for periods less than one year. |
| (c) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period at net asset value. This percentage is not an indication of the performance of a shareholder’s investment in the Fund based on market value due to differences between the market price of the shares and the net asset value per share of the Fund. |
| (d) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, if any, and redemption on the last day of the period at market value. Market value is determined by the official midpoint bid/ask from the NYSE Euronext Exchange. Market value may be greater or less than net asset value, depending on the Fund’s closing price on the listing market. |
| (e) | Annualized for periods less than one year. |
| (f) | In-kind transactions are not included in the portfolio turnover calculations. |
See accompanying notes to the financial statements.
40
FocusShares Trust
Notes to Financial Statements
October 31, 2011
1. Organization
FocusShares Trust (the “Trust”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”), currently consisting of fifteen (15) investment portfolios (each, a “Fund”). FocusShares, LLC (the “Advisor”) is the investment adviser to each Fund. Each of the Focus Morningstar US Market Index ETF, Focus Morningstar Large Cap Index ETF, Focus Morningstar Mid Cap Index ETF and Focus Morningstar Small Cap Index ETF is a diversified investment company. Each other Fund is a non-diversified investment company. The Trust was organized as a Delaware statutory trust on July 10, 2007. From November 28, 2007 until October 30, 2008, the Trust operated four exchange-traded funds that have been closed and liquidated.
The investment objective of each Fund is to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of a specified benchmark index (each, an “Underlying Index”) representing publicly-traded equity securities of issuers in a particular broad market, market segment, market sector or group of industries.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by each Fund in preparation of its financial statements. These estimates and assumptions that affect the reported amounts. The actual results could differ from those estimates.
Investment Valuation
The value of each Fund’s equity securities is based on such securities’ closing price on local markets when available. If an equity security’s market price is not readily available or does not otherwise accurately reflect the fair value of such security, the security will be valued by another method that the Advisor believes will better reflect fair value in accordance with the Trust’s valuation guidelines which are approved by the Board of Trustees (the “Trustees”). Each Fund may use fair value pricing in a variety of circumstances, including but not limited to, situations when the value of a Fund’s security has been materially affected by events occurring after the close of the market on which such security is principally traded (such as a corporate action or other news that may materially affect the price of such security) or trading in such security has been suspended or halted. Fair value pricing involves subjective judgments and it is possible that a fair value determination for a security is materially different than the value that could be realized upon the sale of such security. In addition, fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s Underlying Index. This may adversely affect a Fund’s ability to track its Underlying Index. Open-end investment companies are valued at their net asset value.
Short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost, which approximates fair market value, based on their value on the 61st day where such securities are of the highest credit quality. Amortized cost shall not be used if the use of amortized cost would be inappropriate due to credit or other impairments of the issuer.
The Funds disclose the fair value of their investments in a hierarchy that distinguishes between: (1) market participant assumptions developed based on market data obtained from sources independent of the Funds (observable inputs) and (2) the Funds’ own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:
| • | Level 1 — valuation inputs consist of unadjusted quoted prices in an active market for identical securities; |
41
FocusShares Trust
Notes to Financial Statements (continued)
October 31, 2011
| • | Level 2 — valuation inputs consist of direct or indirect observable market data (including quoted prices for similar securities, evaluations of subsequent market evens, interest rates, prepayment speeds, credit risk, etc.); or |
| • | Level 3 — valuation inputs consist of unobservable data (including a Fund’s own assumptions). |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuations as of October 31, 2011, for each Fund based upon the three levels defined above:
Please refer to the Schedules of Portfolio Investments to view equity securities segregated by industry type. There were no significant transfers between Level 1 and Level 2 for the period ending October 31, 2011. The Fund held no Level 2 securities for the period ended October 31, 2011.
| | | | | ||||||||||||
| LEVEL 1 – Quoted Prices | LEVEL 1 – Quoted Prices | LEVEL 3 – Unobservable inputs | Total | |||||||||||||
| Fund | Common Stocks | Money Market Funds | Common Stocks | Investment Securities | ||||||||||||
| Focus Morningstar US Market Index ETF | $ | 9,638,370 | $ | — | $ | — | $ | 9,638,370 | ||||||||
| Focus Morningstar Large Cap Index ETF | 4,817,021 | — | — | 4,817,021 | ||||||||||||
| Focus Morningstar Mid Cap Index ETF | 4,651,926 | 1,221 | — | 4,653,147 | ||||||||||||
| Focus Morningstar Small Cap Index ETF | 4,546,050 | 870 | — † | 4,546,920 | ||||||||||||
| Focus Morningstar Basic Materials Index ETF | 4,223,934 | — | — | 4,223,934 | ||||||||||||
| Focus Morningstar Communication Services Index ETF | 4,615,940 | — | — | 4,615,940 | ||||||||||||
| Focus Morningstar Consumer Cyclical Index ETF | 5,035,222 | 1,783 | — | 5,037,005 | ||||||||||||
| Focus Morningstar Consumer Defensive Index ETF | 5,254,475 | — | — | 5,254,475 | ||||||||||||
| Focus Morningstar Energy Index ETF | 4,476,294 | — | — | 4,476,294 | ||||||||||||
| Focus Morningstar Financial Services Index ETF | 4,154,951 | 10 | — † | 4,154,961 | ||||||||||||
| Focus Morningstar Health Care Index ETF | 5,095,719 | — | — | 5,095,719 | ||||||||||||
| Focus Morningstar Industrials Index ETF | 4,512,623 | — | — | 4,512,623 | ||||||||||||
| Focus Morningstar Real Estate Index ETF | 5,026,284 | 1,035 | — | 5,027,319 | ||||||||||||
| Focus Morningstar Technology Index ETF | 4,959,130 | 900 | — | 4,960,030 | ||||||||||||
| Focus Morningstar Utilities Index ETF | 5,478,383 | — | — | 5,478,383 | ||||||||||||
| † | The security designated as Level 3 in the table above was considered a Level 3 security because it was fair valued on October 31, 2011 using significant unobservable inputs under procedures adopted by the Board. Such valuation was based on a review of inputs such as, but not limited to, company specific financial information, the liquidity of the security and company specific news. The security as of October 31, 2011 that was classified as Level 3 was MF Global Inc.. It was valued at $0 by management due to bankruptcy proceedings filed by the company. |
42
FocusShares Trust
Notes to Financial Statements (continued)
October 31, 2011
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| | | ||||||
| Focus Morningstar Small Cap Index ETF | Focus Morningstar Financial Services Index ETF | |||||||
| Balance as of 03/28/11 | $ | — | $ | — | ||||
| Total gain or loss (realized/unrealized) included in earnings | (6,646 | ) | (3,397 | ) | ||||
| Purchases, sales, issuances, and settlements (net) | — | — | ||||||
| Transfer into Level 3 | 6,646 | 3,397 | ||||||
| Transfer out of Level 3 | — | — | ||||||
| Balance as of 10/31/11 | $ | — | $ | — | ||||
| The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at 10/31/11 | $ | (6,646 | ) | $ | (3,397 | ) | ||
Investment Transactions and Related Income
Throughout the reporting period, investment transactions are accounted for no later than one business day following the trade date. For financial reporting purposes, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are determined using the specific identification method by comparing the identified cost of the security lot sold with the net sales proceeds.
Repurchase Agreements
The Funds may enter into repurchase agreements. A repurchase agreement is an instrument under which the purchaser (i.e., a Fund) acquires the security and the seller agrees, at the time of the sale, to repurchase the security at a mutually agreed upon time and price, thereby determining the yield during the purchaser’s holding period. Repurchase agreements may be construed to be collateralized loans by the purchaser to the seller secured by the securities transferred to the purchaser. If a repurchase agreement is construed to be a collateralized loan, the underlying securities will not be considered to be owned by each Fund but only to constitute collateral for the seller’s obligation to pay the repurchase price, and, in the event of a default by the seller, each Fund may suffer time delays and incur costs or losses in connection with the disposition of the collateral.
Futures Contracts
The Funds may utilize futures contracts. Futures contracts generally provide for the future sale by one party and purchase by another party of a specified instrument, index or commodity at a specified future time and at a specified price. Stock index futures contracts are settled daily with a payment by one party to the other of a cash amount based on the difference between the level of the stock index specified in the contract from one day to the next. Futures contracts are standardized as to maturity date and underlying instrument and are traded on futures exchanges. The Funds may use futures contracts based on other indexes or combinations of indexes that the Advisor believes to be representative of each Fund’s respective Underlying Index.
Although futures contracts (other than cash settled futures contracts including most stock index futures contracts) by their terms call for actual delivery or acceptance of the underlying instrument or commodity, in most cases the contracts are closed out before the maturity date without the making or taking of delivery. Closing out an open futures position is done by taking an opposite position (“buying” a contract which has previously been “sold” or “selling” a contract previously “purchased”) in an identical contract to terminate the position. Brokerage commissions are incurred when a futures contract position is opened or closed.
43
FocusShares Trust
Notes to Financial Statements (continued)
October 31, 2011
Futures traders are required to make a good faith margin deposit in cash or government securities with a broker or custodian to initiate and maintain open positions in futures contracts. A margin deposit is intended to assure completion of the contract (delivery or acceptance of the underlying instrument or commodity or payment of the cash settlement amount) if it is not terminated prior to the specified delivery date. Brokers may establish deposit requirements which are higher than the exchange minimums. Futures contracts are customarily purchased and sold on margin deposits which may range upward from less than 5% of the value of the contract being traded.
After a futures contract position is opened, the value of the contract is marked to market daily. If the futures contract price changes, to the extent that the margin on deposit does not satisfy margin requirements, payment of additional “variation” margin will be required.
Conversely, a change in the contract value may reduce the required margin, resulting in a repayment of excess margin to the contract holder. Variation margin payments are made to and from the futures broker for as long as the contract remains open. The Funds expect to earn interest income on their margin deposits.
The Funds may use futures contracts thereon, together with positions in cash and money market instruments, to simulate full investment in each Fund’s respective Underlying Index. Liquid futures contracts are not currently available for the Underlying Index of each Fund. Under such circumstances, the Advisor may seek to utilize other instruments that it believes to be correlated to each Fund’s respective Underlying Index components or a subset of the components.
Taxes
Each of the Funds intends to qualify as a regulated investment company and distribute substantially all of its net investment income and capital gains to shareholders at least annually. Accordingly, no provision for Federal income taxes is required in the financial statements. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months. On an ongoing basis, management will monitor the tax positions taken to determine if adjustment to conclusions are necessary based on factors including but not limited to further implementation on guidance expected from Financial Accounting Standards Board and ongoing analysis of tax law, regulation, and interpretations thereof. As of October 31, 2011, management of the Funds has reviewed the open tax period and major jurisdictions and concluded that there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns.
The tax character of distributions paid may differ from the character of distributions shown on the Statement of Changes in Net Assets due to short-term capital gains being treated as ordinary income for tax purposes.
44
FocusShares Trust
Notes to Financial Statements (continued)
October 31, 2011
The tax character of distributions paid for the tax year ended October 31, 2011, were as follows:
| | | | |||||||||
| Distributions paid from | ||||||||||||
| Fund | Distributions paid from ordinary income | Distributions paid from net long term capital gains | Total Distributions | |||||||||
| Focus Morningstar US Market Index ETF | $ | 56,126 | $ | — | $ | 56,126 | ||||||
| Focus Morningstar Large Cap Index ETF | 50,700 | — | 50,700 | |||||||||
| Focus Morningstar Mid Cap Index ETF | 31,086 | — | 31,086 | |||||||||
| Focus Morningstar Small Cap Index ETF | 25,831 | — | 25,831 | |||||||||
| Focus Morningstar Basic Materials Index ETF | 39,929 | — | 39,929 | |||||||||
| Focus Morningstar Communication Services Index ETF | 77,373 | — | 77,373 | |||||||||
| Focus Morningstar Consumer Cyclical Index ETF | 26,132 | — | 26,132 | |||||||||
| Focus Morningstar Consumer Defensive Index ETF | 63,349 | — | 63,349 | |||||||||
| Focus Morningstar Energy Index ETF | 35,132 | — | 35,132 | |||||||||
| Focus Morningstar Financial Services Index ETF | 31,018 | — | 31,018 | |||||||||
| Focus Morningstar Health Care Index ETF | 48,033 | — | 48,033 | |||||||||
| Focus Morningstar Industrials Index ETF | 40,812 | — | 40,812 | |||||||||
| Focus Morningstar Real Estate Index ETF | 65,991 | — | 65,991 | |||||||||
| Focus Morningstar Technology Index ETF | 20,187 | — | 20,187 | |||||||||
| Focus Morningstar Utilities Index ETF | 101,381 | — | 101,381 | |||||||||
At October 31, 2011, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | | ||||||||||||
| Fund | Undistributed Ordinary Income | Undistributed Short-Term Capital Gains | Accumulated Capital and Other Losses | Unrealized Appreciated / (Depreciated)* | ||||||||||||
| Focus Morningstar US Market Index ETF | $ | 16,920 | $ | — | $ | — | $ | 7,564 | ||||||||
| Focus Morningstar Large Cap Index ETF | 9,211 | — | — | (181,595 | ) | |||||||||||
| Focus Morningstar Mid Cap Index ETF | 5,491 | — | — | (344,207 | ) | |||||||||||
| Focus Morningstar Small Cap Index ETF | 9,173 | — | — | (438,751 | ) | |||||||||||
| Focus Morningstar Basic Materials Index ETF | 9,317 | — | — | (723,959 | ) | |||||||||||
| Focus Morningstar Communication Services Index ETF | 27,347 | — | — | (415,924 | ) | |||||||||||
| Focus Morningstar Consumer Cyclical Index ETF | 3,190 | — | — | 37,248 | ||||||||||||
| Focus Morningstar Consumer Defensive Index ETF | 16,282 | — | — | 250,382 | ||||||||||||
| Focus Morningstar Energy Index ETF | 2,507 | — | — | (500,018 | ) | |||||||||||
| Focus Morningstar Financial Services Index ETF | 7,402 | — | — | (837,377 | ) | |||||||||||
| Focus Morningstar Health Care Index ETF | 5,931 | — | — | 95,689 | ||||||||||||
| Focus Morningstar Industrials Index ETF | 4,485 | — | — | (477,650 | ) | |||||||||||
| Focus Morningstar Real Estate Index ETF | 55,651 | — | — | (16,216 | ) | |||||||||||
| Focus Morningstar Technology Index ETF | 782 | 3,702 | — | (45,259 | ) | |||||||||||
| Focus Morningstar Utilities Index ETF | 10,289 | — | — | 470,684 | ||||||||||||
| * | The difference between the book basis and tax basis unrealized appreciation (depreciation) is attributable to: tax deferral of losses on wash sales, the difference between book and tax amortization methods for premium and market discounts, passive foreign investment company losses and return of capital distributions. |
45
FocusShares Trust
Notes to Financial Statements (continued)
October 31, 2011
Permanent differences, primarily due to gain (loss) on in-kind redemptions, designation of tax distributions as a return of capital, equalization and nondeductible expenses resulted in the following reclassifications, as of October 31, 2011 among the Funds’ components of net assets:
| | | | |||||||||
| Fund | Accumulated undistributed net investment income (loss) | Accumulated net realized gain (loss) on investments | Paid in capital | |||||||||
| Focus Morningstar US Market Index ETF | $ | — | $ | — | $ | — | ||||||
| Focus Morningstar Large Cap Index ETF | — | (1,253 | ) | 1,253 | ||||||||
| Focus Morningstar Mid Cap Index ETF | — | — | — | |||||||||
| Focus Morningstar Small Cap Index ETF | — | — | — | |||||||||
| Focus Morningstar Basic Materials Index ETF | — | — | — | |||||||||
| Focus Morningstar Communication Services Index ETF | — | — | — | |||||||||
| Focus Morningstar Consumer Cyclical Index ETF | — | — | — | |||||||||
| Focus Morningstar Consumer Defensive Index ETF | — | (1,572 | ) | 1,572 | ||||||||
| Focus Morningstar Energy Index ETF | — | (3,407 | ) | 3,407 | ||||||||
| Focus Morningstar Financial Services Index ETF | (40 | ) | 40 | — | ||||||||
| Focus Morningstar Health Care Index ETF | — | (921 | ) | 921 | ||||||||
| Focus Morningstar Industrials Index ETF | — | — | — | |||||||||
| Focus Morningstar Real Estate Index ETF | — | (1,584 | ) | 1,584 | ||||||||
| Focus Morningstar Technology Index ETF | — | — | — | |||||||||
| Focus Morningstar Utilities Index ETF | — | (833 | ) | 833 | ||||||||
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. Under the Act, the Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period; however, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. Post-enactment capital loss carry forwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous law.
For the tax year ended October 31, 2011, the following Funds had available post-enactment capital loss carryforwards to offset future net capital gains, to the extent provided by regulations:
| | | | |||||||||
| Fund | Short-Term | Long-Term | Total | |||||||||
| Focus Morningstar US Market Index ETF | $ | (34,611 | ) | $ | — | $ | (34,611 | ) | ||||
| Focus Morningstar Large Cap Index ETF | (9,823 | ) | — | (9,823 | ) | |||||||
| Focus Morningstar Mid Cap Index ETF | (7,783 | ) | — | (7,783 | ) | |||||||
| Focus Morningstar Small Cap Index ETF | (23,286 | ) | — | (23,286 | ) | |||||||
| Focus Morningstar Basic Materials Index ETF | (61,405 | ) | — | (61,405 | ) | |||||||
| Focus Morningstar Communication Services Index ETF | — | — | — | |||||||||
| Focus Morningstar Consumer Cyclical Index ETF | (3,621 | ) | — | (3,621 | ) | |||||||
| Focus Morningstar Consumer Defensive Index ETF | (13,481 | ) | — | (13,481 | ) | |||||||
| Focus Morningstar Energy Index ETF | (29,683 | ) | — | (29,683 | ) | |||||||
| Focus Morningstar Financial Services Index ETF | (14,108 | ) | — | (14,108 | ) | |||||||
| Focus Morningstar Health Care Index ETF | (7,125 | ) | — | (7,125 | ) | |||||||
| Focus Morningstar Industrials Index ETF | (13,548 | ) | — | (13,548 | ) | |||||||
| Focus Morningstar Real Estate Index ETF | (11,778 | ) | — | (11,778 | ) | |||||||
| Focus Morningstar Technology Index ETF | — | — | — | |||||||||
| Focus Morningstar Utilities Index ETF | (3,328 | ) | — | (3,328 | ) | |||||||
46
FocusShares Trust
Notes to Financial Statements (continued)
October 31, 2011
3. Fees and Other Transactions with Affiliates
Under the terms of an Investment Advisory Agreement between the Trust and Advisor with respect to each of the Funds (the “Investment Advisory Agreement”), FocusShares, LLC serves as the Advisor to the Funds and, subject to the supervision of the Board of Trustees, is responsible for the day-to-day investment management of the Funds.
The Advisor receives fees from each Fund, based on a percentage of the Fund’s average daily net assets, as shown in the following table:
| | |||
| Fund | Management Fee | |||
| Focus Morningstar US Market Index ETF | 0.05 | % | ||
| Focus Morningstar Large Cap Index ETF | 0.05 | % | ||
| Focus Morningstar Mid Cap Index ETF | 0.12 | % | ||
| Focus Morningstar Small Cap Index ETF | 0.12 | % | ||
| Focus Morningstar Basic Materials Index ETF | 0.19 | % | ||
| Focus Morningstar Communication Services Index ETF | 0.19 | % | ||
| Focus Morningstar Consumer Cyclical Index ETF | 0.19 | % | ||
| Focus Morningstar Consumer Defensive Index ETF | 0.19 | % | ||
| Focus Morningstar Energy Index ETF | 0.19 | % | ||
| Focus Morningstar Financial Services Index ETF | 0.19 | % | ||
| Focus Morningstar Health Care Index ETF | 0.19 | % | ||
| Focus Morningstar Industrials Index ETF | 0.19 | % | ||
| Focus Morningstar Real Estate Index ETF | 0.12 | % | ||
| Focus Morningstar Technology Index ETF | 0.19 | % | ||
| Focus Morningstar Utilities Index ETF | 0.19 | % | ||
Under the Investment Advisory Agreement, the Advisor has agreed to pay all expenses of the Trust, except for: (i) brokerage expenses and other expenses (such as stamp taxes) connected with the execution of portfolio transactions or in connection with creation and redemption transactions; (ii) interest and tax expenses; (iii) dividend or distribution expenses; (iv) legal fees or expenses in connection with any arbitration, litigation or pending or threatened arbitration or litigation, including any settlements in connection therewith; (v) compensation and expenses of each Independent Trustee; (vi) compensation and expenses of counsel to the Independent Trustees; (vii) distribution fees and expenses, if any, paid by the Trust under any distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act; (viii) extraordinary expenses, as determined under generally accepted accounting principles; and (ix) the advisory fee payable to the Advisor.
The Advisor may voluntarily waive any portion of its advisory fee from time to time, and may discontinue or modify any such voluntary limitations in the future, at its discretion. The Advisor has entered into an Expense Limitation Agreement with the Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Fund, if necessary, in an amount that limits “Total Annual Fund Operating Expenses” to not more than the below listed operating expense limit of the average daily net assets for each Fund during any fiscal year for the period beginning at such Fund’s inception and ending December 30, 2012.
47
FocusShares Trust
Notes to Financial Statements (continued)
October 31, 2011
| | |||
| Fund | Expense Limitations | |||
| Focus Morningstar US Market Index ETF | 0.0549 | % | ||
| Focus Morningstar Large Cap Index ETF | 0.0549 | % | ||
| Focus Morningstar Mid Cap Index ETF | 0.1249 | % | ||
| Focus Morningstar Small Cap Index ETF | 0.1249 | % | ||
| Focus Morningstar Basic Materials Index ETF | 0.1949 | % | ||
| Focus Morningstar Communication Services Index ETF | 0.1949 | % | ||
| Focus Morningstar Consumer Cyclical Index ETF | 0.1949 | % | ||
| Focus Morningstar Consumer Defensive Index ETF | 0.1949 | % | ||
| Focus Morningstar Energy Index ETF | 0.1949 | % | ||
| Focus Morningstar Financial Services Index ETF | 0.1949 | % | ||
| Focus Morningstar Health Care Index ETF | 0.1949 | % | ||
| Focus Morningstar Industrials Index ETF | 0.1949 | % | ||
| Focus Morningstar Real Estate Index ETF | 0.1249 | % | ||
| Focus Morningstar Technology Index ETF | 0.1949 | % | ||
| Focus Morningstar Utilities Index ETF | 0.1949 | % | ||
These expense limitations remain in effect until the dates specified in the table below, after which they may be terminated or revised. Additionally, for the year ended October 31, 2011, advisory and management services fees waivers and expense reimbursements were as follows:
| | | | |||||||||
| Fund | Advisory Fees Waived | Expense Reimbursements | Expense Limitation Effective Through | |||||||||
| Focus Morningstar US Market Index ETF | $ | 1,930 | $ | 1,592 | December 30, 2012 | |||||||
| Focus Morningstar Large Cap Index ETF | 1,442 | 443 | December 30, 2012 | |||||||||
| Focus Morningstar Mid Cap Index ETF | 1,840 | — | December 30, 2012 | |||||||||
| Focus Morningstar Small Cap Index ETF | 1,792 | — | December 30, 2012 | |||||||||
| Focus Morningstar Basic Materials Index ETF | 1,762 | — | December 30, 2012 | |||||||||
| Focus Morningstar Communication Services Index ETF | 1,900 | — | December 30, 2012 | |||||||||
| Focus Morningstar Consumer Cyclical Index ETF | 1,938 | — | December 30, 2012 | |||||||||
| Focus Morningstar Consumer Defensive Index ETF | 2,081 | — | December 30, 2012 | |||||||||
| Focus Morningstar Energy Index ETF | 1,776 | — | December 30, 2012 | |||||||||
| Focus Morningstar Financial Services Index ETF | 1,660 | — | December 30, 2012 | |||||||||
| Focus Morningstar Health Care Index ETF | 1,999 | — | December 30, 2012 | |||||||||
| Focus Morningstar Industrials Index ETF | 1,770 | — | December 30, 2012 | |||||||||
| Focus Morningstar Real Estate Index ETF | 1,964 | — | December 30, 2012 | |||||||||
| Focus Morningstar Technology Index ETF | 1,894 | — | December 30, 2012 | |||||||||
| Focus Morningstar Utilities Index ETF | 2,121 | — | December 30, 2012 | |||||||||
Amounts waived or reimbursed by the Advisor may be recouped by the Advisor within three years of the end of the applicable contractual period to the extent that such recoupment will not cause the Fund’s expenses to
48
FocusShares Trust
Notes to Financial Statements (continued)
October 31, 2011
exceed any expense limitation in place at that time. As of October 31, 2011, the amounts eligible for recoupment and the date of expiration are as follows:
| | | | | ||||||||||||
| Expires October 31, | Total Amount Eligible for Recoupment | |||||||||||||||
| Fund | 2014 | 2015 | 2016 | |||||||||||||
| Focus Morningstar US Market Index ETF | $ | 3,522 | $ | — | $ | — | $ | 3,522 | ||||||||
| Focus Morningstar Large Cap Index ETF | 1,885 | — | — | 1,885 | ||||||||||||
| Focus Morningstar Mid Cap Index ETF | 1,840 | — | — | 1,840 | ||||||||||||
| Focus Morningstar Small Cap Index ETF | 1,792 | — | — | 1,792 | ||||||||||||
| Focus Morningstar Basic Materials Index ETF | 1,762 | — | — | 1,762 | ||||||||||||
| Focus Morningstar Communication Services Index ETF | 1,900 | — | — | 1,900 | ||||||||||||
| Focus Morningstar Consumer Cyclical Index ETF | 1,938 | — | — | 1,938 | ||||||||||||
| Focus Morningstar Consumer Defensive Index ETF | 2,081 | — | — | 2,081 | ||||||||||||
| Focus Morningstar Energy Index ETF | 1,776 | — | — | 1,776 | ||||||||||||
| Focus Morningstar Financial Services Index ETF | 1,660 | — | — | 1,660 | ||||||||||||
| Focus Morningstar Health Care Index ETF | 1,999 | — | — | 1,999 | ||||||||||||
| Focus Morningstar Industrials Index ETF | 1,770 | — | — | 1,770 | ||||||||||||
| Focus Morningstar Real Estate Index ETF | 1,964 | — | — | 1,964 | ||||||||||||
| Focus Morningstar Technology Index ETF | 1,894 | — | — | 1,894 | ||||||||||||
| Focus Morningstar Utilities Index ETF | 2,121 | — | — | 2,121 | ||||||||||||
The Trust pays each Independent Trustee an annual retainer of $15,000, a per meeting fee of $500 for in-person meetings of the Board and a per meeting fee of $250 for telephonic meetings. The Trust pays the Chairman of the Board an additional annual retainer of $4,000 and each Trustee who acts as chairman of a committee an additional annual retainer of $1,000. The Trust also reimburses each Trustee for travel and other out-of-pocket expenses incurred in attending such meetings. No pension or retirement benefits are accrued as part of Trustee compensation. Each Fund’s portion of Trustees’ fees and expenses is disclosed in the Statement of Operations.
4. Distribution and Service Plan
Foreside Fund Services, LLC (the “Distributor”) serves as the Funds’ distributor. The Trust has adopted a Distribution and Service (12b-1) Plan pursuant to which each Fund may bear a 12b-1 fee not to exceed 0.25% per annum of the Fund’s average daily net assets. The Trust’s Board of Trustees has resolved not to authorize the payment of Rule 12b-1 fees prior to March 31, 2012. However, in the event Rule 12b-1 fees are charged in the future, they will be paid out of the respective Fund’s assets.
5. Issuance and Redemption of Fund Shares
The Trust issues and redeems Shares only in whole creation units (“Creation Units”) on a continuous basis through the Distributor, without an initial sales load, at their NAV next determined after receipt, on any business day, of an order in proper form only through an authorized participant.
The Board reserves the right to declare a split or a consolidation in the number of shares outstanding of any fund of the Trust, and to make a corresponding change in the number of shares constituting a Creation Unit, in the event that the per share price in the secondary market rises (or declines) to an amount that falls outside the range deemed desirable by the Board.
49
FocusShares Trust
Notes to Financial Statements (continued)
October 31, 2011
A fixed creation transaction fee (“Transaction Fee”) of $500 per transaction payable to the custodian is imposed on each purchaser of Creation Units using the normal clearing process. The creation Transaction Fee is the same regardless of the number of Creation Units purchased by an authorized participant on the same day.
The basic redemption Transaction Fees are the same no matter how many Creation Units are being redeemed pursuant to any one redemption request. The Funds may adjust these Transaction Fees from time to time based upon actual experience. An additional charge up to four times the redemption Transaction Fee may be charged with respect to redemptions outside of the normal clearing process. An additional variable charge for cash redemptions or partial cash redemptions (when cash redemptions are available) may also be imposed. Investors who use the services of a broker or other such intermediary may be charged a fee for such services.
6. Investment Transactions
For the period ended October 31, 2011, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, derivatives and in-kind transactions, were as follows:
| | | ||||||
| Fund | Purchases | Sales | ||||||
| Focus Morningstar US Market Index ETF | $ | 683,782 | $ | 573,271 | ||||
| Focus Morningstar Large Cap Index ETF | 204,332 | 223,021 | ||||||
| Focus Morningstar Mid Cap Index ETF | 880,314 | 755,194 | ||||||
| Focus Morningstar Small Cap Index ETF | 1,093,349 | 997,544 | ||||||
| Focus Morningstar Basic Materials Index ETF | 911,315 | 901,770 | ||||||
| Focus Morningstar Communication Services Index ETF | 1,108,830 | 1,132,931 | ||||||
| Focus Morningstar Consumer Cyclical Index ETF | 297,733 | 225,701 | ||||||
| Focus Morningstar Consumer Defensive Index ETF | 195,457 | 185,336 | ||||||
| Focus Morningstar Energy Index ETF | 599,217 | 644,849 | ||||||
| Focus Morningstar Financial Services Index ETF | 215,583 | 204,184 | ||||||
| Focus Morningstar Health Care Index ETF | 302,465 | 340,974 | ||||||
| Focus Morningstar Industrials Index ETF | 307,698 | 321,790 | ||||||
| Focus Morningstar Real Estate Index ETF | 1,088,039 | 1,091,852 | ||||||
| Focus Morningstar Technology Index ETF | 277,231 | 249,083 | ||||||
| Focus Morningstar Utilities Index ETF | 234,027 | 228,161 | ||||||
7. In-Kind Transactions
During the period presented in this report, certain Funds of the Trust delivered securities of the Funds in exchange for the redemption of shares (redemption-in-kind). Cash and securities were transferred for redemptions at fair value. For financial reporting purposes, the Funds recorded net realized gains and losses in connection with each transaction.
50
FocusShares Trust
Notes to Financial Statements (continued)
October 31, 2011
For the period ended October 31, 2011, the fair value of the securities transferred for redemptions, and the net realized gains recorded in connection with the transactions were as follows:
| | | ||||||
| Fund | Fair Value | Net Realized Gains | ||||||
| Focus Morningstar Large Cap Index ETF | $ | 13,577 | $ | 1,283 | ||||
| Focus Morningstar Consumer Defensive Index ETF | 21,960 | 1,591 | ||||||
| Focus Morningstar Energy Index ETF | 21,135 | 3,426 | ||||||
| Focus Morningstar Health Care Index ETF | 9,700 | 921 | ||||||
| Focus Morningstar Real Estate Index ETF | 18,909 | 1,632 | ||||||
| Focus Morningstar Utilities Index ETF | 7,389 | 833 | ||||||
During the period, certain Funds of the Trust received securities in exchange for subscriptions of shares (subscriptions-in-kind). For the period ended October 31, 2011, the fair value of the securities received for subscriptions were as follows:
| | |||
| Fund | Fair Value | |||
| Focus Morningstar US Market Index ETF | $ | 9,554,907 | ||
| Focus Morningstar Large Cap Index ETF | 5,039,452 | |||
| Focus Morningstar Mid Cap Index ETF | 4,878,796 | |||
| Focus Morningstar Small Cap Index ETF | 4,912,241 | |||
| Focus Morningstar Basic Materials Index ETF | 4,999,753 | |||
| Focus Morningstar Communication Services Index ETF | 5,050,806 | |||
| Focus Morningstar Consumer Cyclical Index ETF | 4,929,563 | |||
| Focus Morningstar Consumer Defensive Index ETF | 5,027,841 | |||
| Focus Morningstar Energy Index ETF | 5,069,354 | |||
| Focus Morningstar Financial Services Index ETF | 4,995,037 | |||
| Focus Morningstar Health Care Index ETF | 5,054,441 | |||
| Focus Morningstar Industrials Index ETF | 5,017,897 | |||
| Focus Morningstar Real Estate Index ETF | 5,075,417 | |||
| Focus Morningstar Technology Index ETF | 4,972,539 | |||
| Focus Morningstar Utilities Index ETF | 5,011,717 | |||
8. Risk
| • | Index Risk |
Except with regard to the Focus Morningstar US Market Index ETF, the Focus Morningstar Large Cap Index ETF, the Focus Morningstar Mid Cap Index ETF and the Focus Morningstar Small Cap Index ETF, each Fund’s Underlying Index is new and has limited historical performance data that is not predictive of future results. Each Underlying Index and Fund rebalance only when Morningstar determines to rebalance the Underlying Index, which occurs on a quarterly basis, which may cause the performance of the Underlying Indexes and the Funds to deviate from that of the market or sector the Underlying Indexes seek to track due to changes that are reflected in the market or sector more quickly than the quarterly rebalancing process can track.
51
FocusShares Trust
Notes to Financial Statements (continued)
October 31, 2011
| • | Index Tracking Risk |
Imperfect correlation between the Fund’s portfolio securities and those in the Underlying Index, rounding of prices, changes to the Underlying Index and regulatory requirements may cause tracking error, which is the divergence of the Fund’s performance from that of the Underlying Index. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses while the Underlying Index does not.
| • | Concentration Risk |
This risk applies to all Funds except the Focus Morningstar US Market Index ETF, Focus Morningstar Large Cap Index ETF, Focus Morningstar Mid Cap Index ETF and Focus Morningstar Small Cap Index ETF. To the extent that the Underlying Index is concentrated in a particular industry, the Fund also will be concentrated in that industry. Concentrated Fund investments will subject the Fund to a greater risk of loss as a result of adverse economic, business or other developments than if its investments were diversified across different industry sectors.
| • | Non-Diversified Risk |
This risk applies to each Fund except the Focus Morningstar US Market Index ETF, Focus Morningstar Large Cap Index ETF, Focus Morningstar Mid Cap Index ETF and Focus Morningstar Small Cap Index ETF. The Funds are separate investment portfolios of the Trust, which is an open-end investment company registered under the 1940 Act. The Funds are classified as “non-diversified” investment companies under the 1940 Act. As a result, the Funds are subject to the risk that they will be more volatile than a diversified fund because each Fund may invest its assets in a smaller number of issuers or may invest larger proportions of its assets in a single industry within the industries that comprise its Underlying Index. As a result, the gains and losses on a single security may have a greater impact on a Fund’s NAV and may make the Fund more volatile than diversified funds.
| • | Market Risk |
The market price of investments owned by a Fund may go up or down, sometimes rapidly or unpredictably. Investments may decline in value due to factors affecting securities markets generally or particular industries represented in the securities markets.
9. Guarantees and Indemnifications
In the normal course of business the Funds enter into contracts with third-party service providers that contain a variety of representations and warranties and that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as it involves possible future claims that may or may not be made against the Funds. Based on experience, the Advisor is of the view that the risk of loss to the Funds in connection with the Funds’ indemnification obligations is remote; however, there can be no assurance that such obligations will not result in material liabilities that adversely affect the Funds.
10. Subsequent Events
Subsequent events occurring after the date of this report have been evaluated for potential impact, for purposes of recognition or disclosure in the financial statements, through the date the report was issued.
52
FocusShares Trust
Report of Independent Registered Public Accounting Firm
The Board of Trustees and Shareholders of
FocusShares Trust:
We have audited the accompanying statements of assets and liabilities of FocusShares Trust (the “Trust”), including the summary schedules of portfolio investments of Focus Morningstar U.S. Market Index ETF, Focus Morningstar Large Cap Index ETF, Focus Morningstar Mid Cap Index ETF, Focus Morningstar Small Cap Index ETF, Focus Morningstar Consumer Cyclical Index ETF, Focus Morningstar Financial Services Index ETF, Focus Morningstar Industrials Index ETF and Focus Morningstar Technology Index ETF, eight of funds constituting the Trust as of October 31, 2011, and the schedules of portfolio investments of Focus Morningstar Basic Materials Index ETF, Focus Morningstar Communications Services Index ETF, Focus Morningstar Consumer Defensive Index ETF, Focus Morningstar Energy Index ETF, Focus Morningstar Health Care Index ETF, Focus Morningstar Real Estate Index ETF, and Focus Morningstar Utilities Index ETF, seven of the funds constituting the Trust as of October 31, 2011, and the related statements of operations, changes in net assets, and the financial highlights for the period from March 28, 2011 (commencement of operations) through October 31, 2011. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the funds constituting FocusShares Trust as of October 31, 2011, and the results of their operations, changes in their net assets, and financial highlights for the period from March 28, 2011 (commencement of operations) through October 31, 2011, in conformity with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
Kansas City, Missouri
December 23, 2011
53
As a shareholder, you incur two types of costs: (1) transaction costs for purchasing and selling shares and (2) ongoing costs, including advisory fees and trustee. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses
The actual expense examples are based on an investment of $1,000 invested at the beginning of a six-month period and held through the period ended, October 31, 2011.
The first line in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 =8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The hypothetical expense examples are based on an investment of $1,000 invested at the beginning of a six month period and held through the period ended, October 31, 2011.
The second line in the following tables provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as creation or redemption fees, or brokerage charges. Therefore, the second line for each Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | ||||||||||||||
| Beginning Account Value | Ending Account Value 10/31/11 | Expenses Paid During the Period* | Annualized Expense Ratio During Period | |||||||||||||||
| Focus Morningstar US Market Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 921.90 | $ | 0.19 | 0.04 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,025.00 | $ | 0.20 | 0.04 | % | ||||||||||
| Focus Morningstar Large Cap Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 935.00 | $ | 0.20 | 0.04 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,025.00 | $ | 0.20 | 0.04 | % | ||||||||||
| Focus Morningstar Mid Cap Index ETF | �� | |||||||||||||||||
| Actual | $ | 1,000.00 | $ | 893.60 | $ | 0.53 | 0.11 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,024.65 | $ | 0.56 | 0.11 | % | ||||||||||
| Focus Morningstar Small Cap Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 870.80 | $ | 0.52 | 0.11 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,024.65 | $ | 0.56 | 0.11 | % | ||||||||||
| Focus Morningstar Basic Materials Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 817.60 | $ | 0.82 | 0.18 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,024.30 | $ | 0.92 | 0.18 | % | ||||||||||
54
FocusShares Trust
Expense Examples (Unaudited) (continued)
| | | | | ||||||||||||||
| Beginning Account Value | Ending Account Value 10/31/11 | Expenses Paid During the Period* | Annualized Expense Ratio During Period | |||||||||||||||
| Focus Morningstar Communication Services Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 889.60 | $ | 0.86 | 0.18 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,024.30 | $ | 0.92 | 0.18 | % | ||||||||||
| Focus Morningstar Consumer Cyclical Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 956.10 | $ | 0.89 | 0.18 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,024.30 | $ | 0.92 | 0.18 | % | ||||||||||
| Focus Morningstar Consumer Defensive Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,004.90 | $ | 0.91 | 0.18 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,024.30 | $ | 0.92 | 0.18 | % | ||||||||||
| Focus Morningstar Energy Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 876.60 | $ | 0.85 | 0.18 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,024.30 | $ | 0.92 | 0.18 | % | ||||||||||
| Focus Morningstar Financial Services Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 832.00 | $ | 0.83 | 0.18 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,024.30 | $ | 0.92 | 0.18 | % | ||||||||||
| Focus Morningstar Health Care Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 953.10 | $ | 0.89 | 0.18 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,024.30 | $ | 0.92 | 0.18 | % | ||||||||||
| Focus Morningstar Industrials Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 874.30 | $ | 0.85 | 0.18 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,024.30 | $ | 0.92 | 0.18 | % | ||||||||||
| Focus Morningstar Real Estate Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 942.50 | $ | 0.54 | 0.11 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,024.65 | $ | 0.56 | 0.11 | % | ||||||||||
| Focus Morningstar Technology Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 961.70 | $ | 0.89 | 0.18 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,024.30 | $ | 0.92 | 0.18 | % | ||||||||||
| Focus Morningstar Utilities Index ETF | ||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,055.30 | $ | 0.93 | 0.18 | % | ||||||||||
| Hypothetical | $ | 1,000.00 | $ | 1,024.30 | $ | 0.92 | 0.18 | % | ||||||||||
| * | Expenses are equal to the Funds’ annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 the number of days in the most recent fiscal half year, divided by 365, to reflect the one half year period. |
55
Misc. information (Unaudited)
Proxy Voting Information
A description of FocusShares Trust’s (1) proxy voting policies, (2) proxy voting procedures and (3) information regarding how FocusShares Trust voted any proxies related to portfolio securities is attached to the Fund’s Statement of Additional Information, which is available, without charge, upon request by contacting the Funds directly at 1-855-933-6287 or emailing info@focusshares.com or on the IDEA Database on the Securities and Exchange Commission (“SEC”) Website (http://www.sec.gov).
Quarterly Portfolio Holdings Information
FocusShares Trust will file its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. FocusShares Trust’s Form N-Q will be available on the SEC’s Website at http://www.sec.gov. The Trust’s Form N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Premium/Discount Information
Information about the differences between the daily market price on the secondary markets for shares of a Fund and the Fund’s net asset value may be found on the FocusShares website at www.FocusShares.com.
56
Trustees and Officers of FocusShares Trust (Unaudited)
| | | | | | |||||
| Name, Address and Year of Birth | Position(s) Held with Funds | Term of Office and Length of Time Served | Principal Occupation(s) During Past Five Years | Number of Portfolios in Fund Complex Overseen | Other Directorships Held by Trustee | |||||
| Independent Trustees | ||||||||||
| Karl-Otto Hartmann 210 Summit Avenue, Suite C-11 Montvale, NJ 07645 Birth Date: 1955 | Trustee and Audit Committee Chairman | Since March 2008 | Attorney at Law, Fund Directors’ Counsel (since 2009); Consultant, IntelliMagic LLC (strategic, business and compliance consulting for investment companies, investment advisors and start-up companies, since 2005); Chief Operations Officer (and Vice President of Operations), East Hill Holding Company, LLC and affiliates (investment management, hedge fund and venture capital, 2007 to 2008); Senior Vice President, General Counsel, and Director, JPMorgan Investor Services Co. (1991 to 2005); Independent Director and Audit Committee Financial Expert, The Thirty-Eight Hundred Fund, LLC (closed-end fund, since 2008) | 15 | The Thirty-Eight Hundred Fund, LLC (1 portfolio) | |||||
| Christopher C. Fox 210 Summit Avenue, Suite C-11 Montvale, NJ 07645 Birth Date: 1968 | Trustee | Since December 2010 | Managing Director, Summit Strategies Group (since 1995) | 15 | None | |||||
| Joan D. Malloy 210 Summit Avenue, Suite C-11 Montvale, NJ 07645 Birth Date: 1964 | Trustee | Since December 2010 | Managing Partner, Greenway Family Officer (since 2010); President, The St. Louis Trust Company (2002 to 2009) | 15 | None | |||||
| Interested Trustee | ||||||||||
| Patricia A. Milon* 210 Summit Avenue, Suite C-11 Montvale, NJ 07645 Birth Date: 1963 | Trustee | Since December 2010 | Chief Counsel, Scottrade Bank (since 2009); Independent Consultant (2008 to 2009); Chief Legal Officer and Senior Vice President, Regulatory Affairs, America’s Community Bankers (ACB) (2006-2007); Vice President and Deputy General Counsel, Fannie Mae (1998 to 2006) | 15 | None | |||||
| * | Ms. Milon may be deemed to be an “interested person” as defined by the 1940 Act, because her employment with, and ownership interest in, the Advisor. |
The Statement of Additional Information (“SAI”) includes additional information about the Trust’s Trustees and is available, without charge, upon request by contacting the Fund directly at (855) 933-6287.
57
FocusShares Trust
Trustees and Officers of FocusShares Trust (Unaudited) (continued)
| | | | |||
| Name, Address and Year of Birth | Position(s) Held with Funds | Term of Office and Length of Time Served | Principal Occupation(s) During Past Five Years | |||
| Officers | ||||||
| Erik Liik 210 Summit Avenue, Suite C-11 Montvale, NJ 07645 Birth Date: 1958 | President Secretary | Since September 2007 September 2007 to June 2010 | President and Chief Executive Officer, FocusShares, LLC (since 2007); Managing Director, American Stock Exchange (2001 to 2006) | |||
| Brent Arvidson Three Canal Plaza, Suite 100 Portland, ME 04101 Birth Date: 1969 | Chief Financial Officer and Treasurer | Since December 2010 | Director, Foreside Management Services, LLC (since 2010); Head of Fund Reporting, Assistant Treasurer, Fund Administration, Grantham, Mayo Van Otterloo & Co. LLC (1997 to 2009). | |||
| Charles J. Daly 70 Fargo Street, Boston, MA 02110 Birth Date: 1971 | Secretary | Since December 2010 | Vice President and Assistant General Counsel, Fund Regulatory Services Department, J.P. Morgan Investor Services Co. (since 2010); General Counsel and Chief Compliance Officer, Ironwood Investment Management LLC (2006 to 2010); Senior Counsel, Citi Fund Services (2003 to 2006) | |||
| Donna Rogers Three Canal Plaza, Suite 100 Portland, ME 04101 Birth Date: 1966 | Chief Compliance Officer | Since 2010 | Managing Director, Foreside Compliance Services LLC (since 2011); Senior Vice President, State Street Bank & Trust Company (2007 to 2010); Senior Director, Investors Bank & Trust Company (prior to merger with State Street) (2002 to 2007) | |||
| Drew Dennison 210 Summit Avenue Suite C-11 Montvale, N.J. 07645 Birth Date: 1976 | Assistant Treasurer | Since February 2011 | Managing Director of Accounting and Finance and Chief Accounting Officer of Scottrade, Inc. (since 2008); Vice President and Accounting Director of Wachovia Securities (2007 to 2008); Vice President, Assistant Treasurer, Controller and Manager of General Accounting and Financial Reports of A.G. Edwards (2006 to 2007); Associate Vice President and Manager of Regulatory Reports and Business Analysis (2005 to 2006) | |||
| Andrew C. Small 210 Summit Avenue Suite C-11 Montvale, NJ 07645 Birth Date: 1963 | Chief Legal Officer | Since February 2011 | Executive Director and General Counsel of Scottrade, Inc. (since 2003) | |||
58
Distributor:
Foreside Fund Services, LLC
3 Canal Plaza, Suite 100
Portland, ME 04101
Item 2. Code Of Ethics.
As of the end of the period, October 31, 2011, the Registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics is included as Exhibit 12 (a)(1).
Item 3. Audit Committee Financial Expert.
The Board of Trustees has determined that Karl-Otto Hartmann is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Karl-Otto Hartmann is independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Aggregate fees for professional services rendered for FocusShares Trust by Deloitte & Touche, LLP (“Deloitte”) for the year ended October 31, 2011 was:
| 2011 | |
| Audit Fees (a) | $ 165,000 |
| Audit Related Fees (b) | – |
| Tax Fees (c) | 15,000 |
| All Other Fees (d) | – |
| Total: | 180,000 |
| (b) | Audit Fees: These fees relate to professional services rendered by Deloitte for the audits of the Registrant’s annual financial statements or services normally provided by the independent registered public accounting firm in connection with statutory and regulatory filing or engagements. These services include the audits of the financial statements of the Registrant and issuance of consents. |
| (b) | Audit Related Fees: These fees relate to assurance and related services by Deloitte related to audit services in connection with October 31, 2011 annual financial statements. |
| (c) | Tax Fees: These fees relate to professional services rendered by Deloitte for tax compliance, tax advice and tax planning. |
| (d) | All Other Fees: These fees relate to products and services provided by Deloitte other than those reported under “Audit Fees,” “Audit-Related Fees,” and “Tax Fees” above. |
| (e)(1) | Per Rule 2-01(c)(7)(A) and the charter of the Registrant’s Audit Committee, the Audit Committee approves and recommends the principal accountant for the Registrant, pre-approves (i) the principal accountant’s provision of all audit and permissible non-audit services to the Registrant (including the fees and other compensation to be paid to the principal accountant), and (ii) the principal accountant’s provision of any permissible non-audit services to the Registrant’s investment adviser (the “Adviser”), sub-adviser or any entity controlling, controlled by, or under common control with any investment adviser or sub-adviser, if the engagement relates directly to the operations of the financial reporting of the Trust. |
| (e)(2) | 100% of services described in each of Items 4(b) through (d) were approved by the Audit Committee pursuant to paragraph (c)(7)(A) of Rule 2-01 of Regulation S-X. |
| (f) | If greater than 50%, disclose the percentage of hours expended on the principal accountant’s engagement to audit the Registrant’s financial statements for the most recent fiscal year that were attributable to work performed by persons other than the principal accountant’s full-time, permanent employees: [ N/A]. |
| (g) | Disclose the aggregate non-audit fees billed by the Registrant’s accountant for services rendered to the Registrant, and rendered to the Registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant for the fiscal year ended October 31, 2011: $49,454; October 31, 2010: $118,800. |
| (h) | The Registrant's Audit Committee has considered that the provision of non-audit services that were rendered to the Registrant's investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. |
Item 5. Audit Committee of Listed Registrants.
| (a) | The Registrant is an issuer as defined in Section 10A-3 of the Securities Exchange Act of 1934 and has a separately-designated standing Audit Committee in accordance with Section 3(a)(58)(A) of such Act. All of the Board’s independent Trustees, Karl-Otto Hartmann, Christopher C. Fox, and Joan D. Malloy, are members of the Audit Committee. |
| (b) | Not Applicable. |
Item 6. Investments
(a) Schedule I – Investments in Securities of Unaffiliated Issuers.
FocusShares Trust
Focus Morningstar US Market Index ETF
Schedule of Portfolio Investments
October 31, 2011
| Shares | Value | ||||||
Common Stocks - 100.0% | |||||||
| Consumer Discretionary - 11.5% | |||||||
| 61 | Aaron's, Inc. | $ | 1,632 | ||||
| 68 | Abercrombie & Fitch Co., Class A | 5,059 | |||||
| 53 | Advance Auto Parts, Inc. | 3,449 | |||||
| 255 | Amazon.com, Inc.* | 54,445 | |||||
| 154 | American Eagle Outfitters, Inc. | 2,022 | |||||
| 92 | Apollo Group, Inc., Class A* | 4,356 | |||||
| 94 | Ascena Retail Group, Inc.* | 2,717 | |||||
| 40 | AutoNation, Inc.* | 1,558 | |||||
| 17 | AutoZone, Inc.* | 5,501 | |||||
| 187 | Bed Bath & Beyond, Inc.* | 11,564 | |||||
| 231 | Best Buy Co., Inc. | 6,059 | |||||
| 58 | Big Lots, Inc.* | 2,186 | |||||
| 94 | BorgWarner, Inc.* | 7,190 | |||||
| 93 | Brinker International, Inc. | 2,130 | |||||
| 189 | Cablevision Systems Corp., Class A | 2,735 | |||||
| 183 | CarMax, Inc.* | 5,501 | |||||
| 304 | Carnival Corp. | 10,704 | |||||
| 455 | CBS Corp., Class B | 11,744 | |||||
| 27 | Charter Communications, Inc., Class A* | 1,240 | |||||
| 194 | Chico's FAS, Inc. | 2,398 | |||||
| 23 | Chipotle Mexican Grill, Inc.* | 7,731 | |||||
| 87 | Cinemark Holdings, Inc. | 1,798 | |||||
| 219 | Coach, Inc. | 14,250 | |||||
| 1,517 | Comcast Corp., Class A | 35,574 | |||||
| 475 | Comcast Corp., Special, Class A | 10,925 | |||||
| 74 | Crocs, Inc.* | 1,308 | |||||
| 243 | D.R. Horton, Inc. | 2,705 | |||||
| 110 | Darden Restaurants, Inc. | 5,267 | |||||
| 34 | Deckers Outdoor Corp.* | 3,918 | |||||
| 48 | DeVry, Inc. | 1,809 | |||||
| 99 | Dick's Sporting Goods, Inc.* | 3,870 | |||||
| 41 | Dillard's, Inc., Class A | 2,113 | |||||
| 565 | DIRECTV, Class A* | 25,685 | |||||
| 101 | Discovery Communications, Inc., Class A* | 4,389 | |||||
| 88 | Discovery Communications, Inc., Class C* | 3,482 | |||||
| 162 | DISH Network Corp., Class A* | 3,916 | |||||
| 68 | Dollar General Corp.* | 2,697 | |||||
| 90 | Dollar Tree, Inc.* | 7,196 | |||||
| 144 | Expedia, Inc. | 3,781 | |||||
| 80 | Family Dollar Stores, Inc. | 4,690 | |||||
| 149 | Foot Locker, Inc. | 3,257 | |||||
| 2,717 | Ford Motor Co.* | 31,735 | |||||
| 49 | Fossil, Inc.* | 5,079 | |||||
| 100 | GameStop Corp., Class A* | 2,557 | |||||
| 182 | Gannett Co., Inc. | 2,128 | |||||
| 213 | Gap, Inc./The | 4,026 | |||||
| 74 | Garmin Ltd. | 2,545 | |||||
| 419 | General Motors Co.* | 10,831 | |||||
| 121 | Gentex Corp. | 3,645 | |||||
| 125 | Genuine Parts Co. | 7,179 | |||||
| 195 | Goodyear Tire & Rubber Co./The* | 2,800 | |||||
| 60 | Guess?, Inc. | 1,979 | |||||
| 226 | H&R Block, Inc. | 3,456 | |||||
| 80 | Hanesbrands, Inc.* | 2,110 | |||||
| 175 | Harley-Davidson, Inc. | 6,807 | |||||
| 67 | Harman International Industries, Inc. | 2,892 | |||||
| 92 | Hasbro, Inc. | 3,501 | |||||
| 1,169 | Home Depot, Inc. | 41,850 | |||||
| 257 | International Game Technology | 4,521 | |||||
| 398 | Interpublic Group of Cos., Inc./The | 3,773 | |||||
| 23 | ITT Educational Services, Inc.* | 1,425 | |||||
| 120 | J.C. Penney Co., Inc. | 3,850 | |||||
| 114 | Jarden Corp. | 3,651 | |||||
| 64 | John Wiley & Sons, Inc., Class A | 3,044 | |||||
| 562 | Johnson Controls, Inc. | 18,507 | |||||
| 212 | Kohl's Corp. | 11,238 | |||||
| 291 | Las Vegas Sands Corp.* | 13,662 | |||||
| 81 | Lear Corp. | 3,800 | |||||
| 107 | Leggett & Platt, Inc. | 2,343 | |||||
| 153 | Lennar Corp., Class A | 2,531 | |||||
| 96 | Liberty Global, Inc.* | 3,683 | |||||
| 107 | Liberty Global, Inc., Class A* | 4,299 | |||||
| 444 | Liberty Interactive Corp., Class A* | 7,295 | |||||
| 61 | Liberty Media Corp. - Liberty Capital* | 4,686 | |||||
| 37 | Liberty Media Corp. - Liberty Starz* | 2,527 | |||||
| 121 | LKQ Corp.* | 3,531 | |||||
| 968 | Lowe's Cos., Inc. | 20,347 | |||||
| 202 | Ltd. Brands, Inc. | 8,627 | |||||
| 334 | Macy's, Inc. | 10,197 | |||||
| 267 | Marriott International, Inc., Class A | 8,410 | |||||
| 259 | Mattel, Inc. | 7,314 | |||||
| 727 | McDonald's Corp. | 67,502 | |||||
| 222 | McGraw-Hill Cos., Inc./The | 9,435 | |||||
| 256 | MGM Resorts International* | 2,949 | |||||
| 51 | Mohawk Industries, Inc.* | 2,685 | |||||
| 39 | Netflix, Inc.* | 3,201 | |||||
| 312 | Newell Rubbermaid, Inc. | 4,618 | |||||
| 1,312 | News Corp., Class A | 22,986 | |||||
| 303 | News Corp., Class B | 5,409 | |||||
| 277 | NIKE, Inc., Class B | 26,689 | |||||
| 140 | Nordstrom, Inc. | 7,097 | |||||
| 4 | NVR, Inc.* | 2,571 | |||||
| 228 | Omnicom Group, Inc. | 10,141 | |||||
| 101 | O'Reilly Automotive, Inc.* | 7,681 | |||||
| 25 | Panera Bread Co., Class A* | 3,342 | |||||
| 58 | Penn National Gaming, Inc.* | 2,088 | |||||
| 100 | PetSmart, Inc. | 4,695 | |||||
| 48 | Polaris Industries, Inc. | 3,040 | |||||
| 36 | priceline.com, Inc.* | 18,278 | |||||
| 54 | PVH Corp. | 4,018 | |||||
| 46 | Ralph Lauren Corp. | 7,304 | |||||
| 64 | Rent-A-Center, Inc. | 2,186 | |||||
| 91 | Ross Stores, Inc. | 7,983 | |||||
| 114 | Royal Caribbean Cruises Ltd. | 3,388 | |||||
| 95 | Sally Beauty Holdings, Inc.* | 1,823 | |||||
| 67 | Scripps Networks Interactive, Inc., Class A | 2,846 | |||||
| 42 | Sears Holdings Corp.* | 3,284 | |||||
| 199 | Service Corp. International | 1,990 | |||||
| 3,011 | Sirius XM Radio, Inc.* | 5,390 | |||||
| 42 | Six Flags Entertainment Corp. | 1,508 | |||||
| 61 | Sotheby's | 2,148 | |||||
| 537 | Staples, Inc. | 8,033 | |||||
| 543 | Starbucks Corp. | 22,991 | |||||
| 158 | Starwood Hotels & Resorts Worldwide, Inc. | 7,917 | |||||
| 456 | Target Corp. | 24,966 | |||||
| 54 | Tempur-Pedic International, Inc.* | 3,675 | |||||
| 60 | Tenneco, Inc.* | 1,963 | |||||
| 98 | Tiffany & Co. | 7,814 | |||||
| 240 | Time Warner Cable, Inc. | 15,286 | |||||
| 761 | Time Warner, Inc. | 26,627 | |||||
| 291 | TJX Cos., Inc. | 17,149 | |||||
| 141 | Toll Brothers, Inc.* | 2,459 | |||||
| 66 | Tractor Supply Co. | 4,682 | |||||
| 91 | TRW Automotive Holdings Corp.* | 3,831 | |||||
| 50 | Tupperware Brands Corp. | 2,827 | |||||
| 40 | Ulta Salon Cosmetics & Fragrance, Inc.* | 2,692 | |||||
| 36 | Under Armour, Inc., Class A* | 3,039 | |||||
| 100 | Urban Outfitters, Inc.* | 2,725 | |||||
| 72 | VF Corp. | 9,952 | |||||
| 387 | Viacom, Inc., Class B | 16,970 | |||||
| 1,255 | Walt Disney Co./The | 43,774 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar US Market Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 36 | Warnaco Group, Inc./The* | $ | 1,768 | ||||
| 24 | Weight Watchers International, Inc. | 1,791 | |||||
| 73 | Whirlpool Corp. | 3,709 | |||||
| 83 | Williams-Sonoma, Inc. | 3,116 | |||||
| 60 | Wolverine World Wide, Inc. | 2,276 | |||||
| 142 | Wyndham Worldwide Corp. | 4,781 | |||||
| 68 | Wynn Resorts Ltd. | 9,030 | |||||
| 332 | Yum! Brands, Inc. | 17,785 | |||||
| 1,104,835 | |||||||
| Consumer Staples - 9.9% | |||||||
| 1,487 | Altria Group, Inc. | 40,967 | |||||
| 467 | Archer-Daniels-Midland Co. | 13,515 | |||||
| 338 | Avon Products, Inc. | 6,179 | |||||
| 115 | Beam, Inc. | 5,684 | |||||
| 71 | Brown-Forman Corp., Class B | 5,306 | |||||
| 112 | Bunge Ltd. | 6,918 | |||||
| 149 | Campbell Soup Co. | 4,954 | |||||
| 35 | Casey's General Stores, Inc. | 1,734 | |||||
| 105 | Church & Dwight Co., Inc. | 4,639 | |||||
| 95 | Clorox Co./The | 6,359 | |||||
| 1,535 | Coca-Cola Co./The | 104,871 | |||||
| 232 | Coca-Cola Enterprises, Inc. | 6,222 | |||||
| 348 | Colgate-Palmolive Co. | 31,449 | |||||
| 371 | ConAgra Foods, Inc. | 9,397 | |||||
| 130 | Constellation Brands, Inc., Class A* | 2,629 | |||||
| 73 | Corn Products International, Inc. | 3,540 | |||||
| 317 | Costco Wholesale Corp. | 26,390 | |||||
| 992 | CVS Caremark Corp. | 36,010 | |||||
| 126 | Darling International, Inc.* | 1,767 | |||||
| 20 | Diamond Foods, Inc. | 1,315 | |||||
| 161 | Dr. Pepper Snapple Group, Inc. | 6,029 | |||||
| 55 | Energizer Holdings, Inc.* | 4,058 | |||||
| 91 | Estee Lauder Cos., Inc./The, Class A | 8,959 | |||||
| 125 | Flowers Foods, Inc. | 2,524 | |||||
| 420 | General Mills, Inc. | 16,183 | |||||
| 88 | Green Mountain Coffee Roasters, Inc.* | 5,722 | |||||
| 218 | H.J. Heinz Co. | 11,650 | |||||
| 52 | Hansen Natural Corp.* | 4,633 | |||||
| 90 | Herbalife Ltd. | 5,612 | |||||
| 114 | Hershey Co./The | 6,524 | |||||
| 105 | Hormel Foods Corp. | 3,094 | |||||
| 83 | J.M. Smucker Co./The | 6,393 | |||||
| 167 | Kellogg Co. | 9,053 | |||||
| 274 | Kimberly-Clark Corp. | 19,101 | |||||
| 1,180 | Kraft Foods, Inc., Class A | 41,512 | |||||
| 402 | Kroger Co./The | 9,318 | |||||
| 103 | Lorillard, Inc. | 11,398 | |||||
| 93 | McCormick & Co., Inc. | 4,516 | |||||
| 147 | Mead Johnson Nutrition Co. | 10,562 | |||||
| 123 | Molson Coors Brewing Co., Class B | 5,208 | |||||
| 57 | Nu Skin Enterprises, Inc., Class A | 2,880 | |||||
| 1,162 | PepsiCo, Inc. | 73,148 | |||||
| 1,257 | Philip Morris International, Inc. | 87,827 | |||||
| 1,973 | Procter & Gamble Co./The | 126,252 | |||||
| 33 | Ralcorp Holdings, Inc.* | 2,668 | |||||
| 241 | Reynolds American, Inc. | 9,322 | |||||
| 39 | Ruddick Corp. | 1,705 | |||||
| 294 | Safeway, Inc. | 5,695 | |||||
| 412 | Sara Lee Corp. | 7,334 | |||||
| 132 | Smithfield Foods, Inc.* | 3,018 | |||||
| 468 | Sysco Corp. | 12,973 | |||||
| 28 | TreeHouse Foods, Inc.* | 1,718 | |||||
| 239 | Tyson Foods, Inc., Class A | 4,613 | |||||
| 65 | United Natural Foods, Inc.* | 2,373 | |||||
| 661 | Walgreen Co. | 21,945 | |||||
| 1,270 | Wal-Mart Stores, Inc. | 72,034 | |||||
| 120 | Whole Foods Market, Inc. | 8,654 | |||||
| 956,053 | |||||||
| Energy - 11.7% | |||||||
| 186 | Alpha Natural Resources, Inc.* | 4,471 | |||||
| 362 | Anadarko Petroleum Corp. | 28,417 | |||||
| 283 | Apache Corp. | 28,195 | |||||
| 175 | Arch Coal, Inc. | 3,188 | |||||
| 48 | Atwood Oceanics, Inc.* | 2,052 | |||||
| 315 | Baker Hughes, Inc. | 18,267 | |||||
| 51 | Berry Petroleum Co., Class A | 1,762 | |||||
| 29 | Bill Barrett Corp.* | 1,206 | |||||
| 88 | Brigham Exploration Co.* | 3,205 | |||||
| 73 | Cabot Oil & Gas Corp. | 5,674 | |||||
| 183 | Cameron International Corp.* | 8,993 | |||||
| 14 | CARBO Ceramics, Inc. | 1,902 | |||||
| 474 | Chesapeake Energy Corp. | 13,329 | |||||
| 1,460 | Chevron Corp. | 153,373 | |||||
| 71 | Cimarex Energy Co. | 4,544 | |||||
| 70 | Complete Production Services, Inc.* | 2,296 | |||||
| 80 | Concho Resources, Inc.* | 7,578 | |||||
| 935 | ConocoPhillips | 65,123 | |||||
| 165 | Consol Energy, Inc. | 7,055 | |||||
| 46 | Continental Resources, Inc.* | 2,790 | |||||
| 76 | CVR Energy, Inc.* | 1,882 | |||||
| 303 | Denbury Resources, Inc.* | 4,757 | |||||
| 288 | Devon Energy Corp. | 18,706 | |||||
| 53 | Diamond Offshore Drilling, Inc. | 3,474 | |||||
| 75 | Dresser-Rand Group, Inc.* | 3,630 | |||||
| 35 | Dril-Quip, Inc.* | 2,278 | |||||
| 541 | El Paso Corp. | 13,530 | |||||
| 68 | Energen Corp. | 3,336 | |||||
| 193 | EOG Resources, Inc. | 17,260 | |||||
| 106 | EQT Corp. | 6,731 | |||||
| 100 | EXCO Resources, Inc. | 1,261 | |||||
| 3,525 | Exxon Mobil Corp. | 275,267 | |||||
| 186 | FMC Technologies, Inc.* | 8,336 | |||||
| 71 | Forest Oil Corp.* | 828 | |||||
| 673 | Halliburton Co. | 25,143 | |||||
| 85 | Helix Energy Solutions Group, Inc.* | 1,535 | |||||
| 82 | Helmerich & Payne, Inc. | 4,361 | |||||
| 229 | Hess Corp. | 14,326 | |||||
| 152 | HollyFrontier Corp. | 4,665 | |||||
| 135 | Key Energy Services, Inc.* | 1,746 | |||||
| 30 | Lufkin Industries, Inc. | 1,773 | |||||
| 513 | Marathon Oil Corp. | 13,353 | |||||
| 255 | Marathon Petroleum Corp. | 9,154 | |||||
| 237 | McDermott International, Inc.* | 2,602 | |||||
| 149 | Murphy Oil Corp. | 8,250 | |||||
| 216 | Nabors Industries Ltd.* | 3,959 | |||||
| 311 | National Oilwell Varco, Inc. | 22,184 | |||||
| 108 | Newfield Exploration Co.* | 4,348 | |||||
| 134 | Noble Energy, Inc. | 11,972 | |||||
| 54 | Oasis Petroleum, Inc.* | 1,584 | |||||
| 587 | Occidental Petroleum Corp. | 54,556 | |||||
| 87 | Oceaneering International, Inc. | 3,639 | |||||
| 64 | Oil States International, Inc.* | 4,455 | |||||
| 122 | Patterson-UTI Energy, Inc. | 2,479 | |||||
| 208 | Peabody Energy Corp. | 9,021 | |||||
| 92 | Pioneer Natural Resources Co. | 7,719 | |||||
| 123 | Plains Exploration & Production Co.* | 3,874 | |||||
| 131 | QEP Resources, Inc. | 4,657 | |||||
| 112 | Range Resources Corp. | 7,710 | |||||
| 46 | Rosetta Resources, Inc.* | 2,040 | |||||
| 93 | Rowan Cos., Inc.* | 3,208 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar US Market Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 309 | SandRidge Energy, Inc.* | $ | 2,367 | ||||
| 976 | Schlumberger Ltd. | 71,707 | |||||
| 20 | SEACOR Holdings, Inc. | 1,703 | |||||
| 52 | SM Energy Co. | 4,311 | |||||
| 88 | Southern Union Co. | 3,699 | |||||
| 244 | Southwestern Energy Co.* | 10,258 | |||||
| 466 | Spectra Energy Corp. | 13,342 | |||||
| 92 | Sunoco, Inc. | 3,425 | |||||
| 66 | Superior Energy Services, Inc.* | 1,856 | |||||
| 111 | Tesoro Corp.* | 2,879 | |||||
| 46 | Tidewater, Inc. | 2,265 | |||||
| 233 | Transocean Ltd. | 13,316 | |||||
| 107 | Ultra Petroleum Corp.* | 3,409 | |||||
| 58 | Unit Corp.* | 2,845 | |||||
| 429 | Valero Energy Corp. | 10,553 | |||||
| 86 | Whiting Petroleum Corp.* | 4,003 | |||||
| 406 | Williams Cos., Inc./The | 12,225 | |||||
| 75 | World Fuel Services Corp. | 2,989 | |||||
| 1,126,161 | |||||||
| Financials - 14.4% | |||||||
| 244 | ACE Ltd. | 17,605 | |||||
| 51 | Affiliated Managers Group, Inc.* | 4,723 | |||||
| 365 | Aflac, Inc. | 16,458 | |||||
| 47 | Alexandria Real Estate Equities, Inc. (REIT) | 3,106 | |||||
| 9 | Alleghany Corp.* | 2,856 | |||||
| 355 | Allstate Corp./The | 9,351 | |||||
| 41 | American Campus Communities, Inc. (REIT) | 1,596 | |||||
| 118 | American Capital Agency Corp. (REIT) | 3,246 | |||||
| 776 | American Express Co. | 39,281 | |||||
| 139 | American Financial Group, Inc./OH | 4,980 | |||||
| 316 | American International Group, Inc.* | 7,802 | |||||
| 188 | Ameriprise Financial, Inc. | 8,776 | |||||
| 667 | Annaly Capital Management, Inc. (REIT) | 11,239 | |||||
| 239 | Aon Corp. | 11,142 | |||||
| 93 | Apartment Investment & Management Co., Class A (REIT) | 2,294 | |||||
| 80 | Arch Capital Group Ltd.* | 2,878 | |||||
| 93 | Arthur J. Gallagher & Co. | 2,874 | |||||
| 47 | Aspen Insurance Holdings Ltd. | 1,245 | |||||
| 189 | Associated Banc-Corp. | 2,107 | |||||
| 76 | Assurant, Inc. | 2,929 | |||||
| 140 | Assured Guaranty Ltd. | 1,784 | |||||
| 61 | AvalonBay Communities, Inc. (REIT) | 8,155 | |||||
| 101 | Axis Capital Holdings Ltd. | 3,166 | |||||
| 7,357 | Bank of America Corp. | 50,248 | |||||
| 50 | Bank of Hawaii Corp. | 2,112 | |||||
| 929 | Bank of New York Mellon Corp./The | 19,769 | |||||
| 498 | BB&T Corp. | 11,623 | |||||
| 709 | Berkshire Hathaway, Inc., Class B* | 55,203 | |||||
| 81 | BioMed Realty Trust, Inc. (REIT) | 1,467 | |||||
| 76 | BlackRock, Inc. | 11,992 | |||||
| 104 | Boston Properties, Inc. (REIT) | 10,295 | |||||
| 45 | BRE Properties, Inc. (REIT) | 2,255 | |||||
| 118 | Brown & Brown, Inc. | 2,605 | |||||
| 41 | Camden Property Trust (REIT) | 2,486 | |||||
| 339 | Capital One Financial Corp. | 15,479 | |||||
| 247 | CapitalSource, Inc. | 1,571 | |||||
| 135 | Capitol Federal Financial, Inc. | 1,497 | |||||
| 33 | Cash America International, Inc. | 1,807 | |||||
| 151 | CBL & Associates Properties, Inc. (REIT) | 2,322 | |||||
| 60 | CBOE Holdings, Inc. | 1,568 | |||||
| 224 | CBRE Group, Inc.* | 3,983 | |||||
| 854 | Charles Schwab Corp./The | 10,487 | |||||
| 979 | Chimera Investment Corp. (REIT) | 2,947 | |||||
| 202 | Chubb Corp./The | 13,544 | |||||
| 155 | Cincinnati Financial Corp. | 4,486 | |||||
| 147 | CIT Group, Inc.* | 5,123 | |||||
| 2,125 | Citigroup, Inc. | 67,129 | |||||
| 69 | City National Corp./CA | 2,927 | |||||
| 49 | CME Group, Inc. | 13,502 | |||||
| 64 | Colonial Properties Trust (REIT) | 1,298 | |||||
| 167 | Comerica, Inc. | 4,267 | |||||
| 93 | Commerce Bancshares, Inc./MO | 3,608 | |||||
| 64 | Corporate Office Properties Trust (REIT) | 1,552 | |||||
| 57 | Cullen/Frost Bankers, Inc. | 2,795 | |||||
| 163 | DDR Corp. (REIT) | 2,088 | |||||
| 59 | Digital Realty Trust, Inc. (REIT) | 3,677 | |||||
| 412 | Discover Financial Services | 9,707 | |||||
| 208 | Duke Realty Corp. (REIT) | 2,554 | |||||
| 210 | E*Trade Financial Corp.* | 2,279 | |||||
| 141 | East West Bancorp, Inc. | 2,745 | |||||
| 121 | Eaton Vance Corp. | 3,181 | |||||
| 50 | Entertainment Properties Trust (REIT) | 2,240 | |||||
| 30 | Equity Lifestyle Properties, Inc. (REIT) | 1,984 | |||||
| 204 | Equity Residential (REIT) | 11,971 | |||||
| 36 | Erie Indemnity Co., Class A | 2,842 | |||||
| 20 | Essex Property Trust, Inc. (REIT) | 2,855 | |||||
| 34 | Everest Re Group Ltd. | 3,057 | |||||
| 66 | Extra Space Storage, Inc. (REIT) | 1,487 | |||||
| 41 | Federal Realty Investment Trust (REIT) | 3,639 | |||||
| 153 | Federated Investors, Inc., Class B | 2,990 | |||||
| 152 | Fidelity National Financial, Inc., Class A | 2,347 | |||||
| 678 | Fifth Third Bancorp | 8,143 | |||||
| 358 | First Horizon National Corp. | 2,502 | |||||
| 225 | First Niagara Financial Group, Inc. | 2,068 | |||||
| 138 | Forest City Enterprises, Inc., Class A* | 1,888 | |||||
| 115 | Franklin Resources, Inc. | 12,262 | |||||
| 214 | Fulton Financial Corp. | 2,020 | |||||
| 287 | General Growth Properties, Inc. (REIT) | 4,219 | |||||
| 401 | Genworth Financial, Inc., Class A* | 2,558 | |||||
| 311 | Goldman Sachs Group, Inc./The | 34,070 | |||||
| 79 | Hancock Holding Co. | 2,394 | |||||
| 372 | Hartford Financial Services Group, Inc. | 7,161 | |||||
| 47 | Hatteras Financial Corp. (REIT) | 1,208 | |||||
| 134 | HCC Insurance Holdings, Inc. | 3,566 | |||||
| 297 | HCP, Inc. (REIT) | 11,835 | |||||
| 119 | Health Care REIT, Inc. (REIT) | 6,270 | |||||
| 60 | Highwoods Properties, Inc. (REIT) | 1,859 | |||||
| 17 | Home Properties, Inc. (REIT) | 1,001 | |||||
| 122 | Hospitality Properties Trust (REIT) | 2,932 | |||||
| 591 | Host Hotels & Resorts, Inc. (REIT) | 8,434 | |||||
| 426 | Hudson City Bancorp, Inc. | 2,662 | |||||
| 683 | Huntington Bancshares, Inc./OH | 3,538 | |||||
| 57 | IntercontinentalExchange, Inc.* | 7,403 | |||||
| 380 | Invesco Ltd. | 7,627 | |||||
| 81 | Invesco Mortgage Capital, Inc. (REIT) | 1,278 | |||||
| 146 | Jefferies Group, Inc. | 1,936 | |||||
| 39 | Jones Lang LaSalle, Inc. | 2,520 | |||||
| 2,835 | JPMorgan Chase & Co. | 98,545 | |||||
| 754 | KeyCorp | 5,323 | |||||
| 48 | Kilroy Realty Corp. (REIT) | 1,761 | |||||
| 318 | Kimco Realty Corp. (REIT) | 5,555 | |||||
| 147 | Legg Mason, Inc. | 4,042 | |||||
| 164 | Leucadia National Corp. | 4,400 | |||||
| 80 | Liberty Property Trust (REIT) | 2,560 | |||||
| 263 | Lincoln National Corp. | 5,010 | |||||
| 278 | Loews Corp. | 11,037 | |||||
| 98 | M&T Bank Corp. | 7,459 | |||||
| 104 | Macerich Co./The (REIT) | 5,175 | |||||
| 75 | Mack-Cali Realty Corp. (REIT) | 2,104 | |||||
| 7 | Markel Corp.* | 2,706 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar US Market Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 384 | Marsh & McLennan Cos., Inc. | $ | 11,758 | ||||
| 623 | MetLife, Inc. | 21,905 | |||||
| 184 | MFA Financial, Inc. (REIT) | 1,242 | |||||
| 30 | Mid-America Apartment Communities, Inc. (REIT) | 1,872 | |||||
| 144 | Moody's Corp. | 5,111 | |||||
| 1,306 | Morgan Stanley | 23,038 | |||||
| 106 | MSCI, Inc., Class A* | 3,539 | |||||
| 111 | NASDAQ OMX Group, Inc./The* | 2,781 | |||||
| 75 | National Retail Properties, Inc. (REIT) | 2,044 | |||||
| 346 | New York Community Bancorp, Inc. | 4,605 | |||||
| 176 | Northern Trust Corp. | 7,123 | |||||
| 204 | NYSE Euronext | 5,420 | |||||
| 211 | Old Republic International Corp. | 1,865 | |||||
| 105 | Omega Healthcare Investors, Inc. (REIT) | 1,865 | |||||
| 63 | PartnerRe Ltd. | 3,920 | |||||
| 315 | People's United Financial, Inc. | 4,016 | |||||
| 116 | Piedmont Office Realty Trust, Inc., Class A (REIT) | 1,970 | |||||
| 136 | Plum Creek Timber Co., Inc. (REIT) | 5,122 | |||||
| 387 | PNC Financial Services Group, Inc. | 20,786 | |||||
| 37 | Post Properties, Inc. (REIT) | 1,520 | |||||
| 249 | Principal Financial Group, Inc. | 6,419 | |||||
| 27 | ProAssurance Corp. | 2,067 | |||||
| 464 | Progressive Corp./The | 8,821 | |||||
| 375 | ProLogis, Inc. (REIT) | 11,160 | |||||
| 69 | Prosperity Bancshares, Inc. | 2,656 | |||||
| 372 | Prudential Financial, Inc. | 20,162 | |||||
| 101 | Public Storage (REIT) | 13,034 | |||||
| 110 | Raymond James Financial, Inc. | 3,341 | |||||
| 104 | Rayonier, Inc. (REIT) | 4,340 | |||||
| 76 | Realty Income Corp. (REIT) | 2,539 | |||||
| 84 | Regency Centers Corp. (REIT) | 3,441 | |||||
| 994 | Regions Financial Corp. | 3,906 | |||||
| 78 | Reinsurance Group of America, Inc. | 4,074 | |||||
| 39 | RenaissanceRe Holdings Ltd. | 2,657 | |||||
| 170 | SEI Investments Co. | 2,752 | |||||
| 95 | Senior Housing Properties Trust (REIT) | 2,132 | |||||
| 39 | Signature Bank/NY* | 2,174 | |||||
| 211 | Simon Property Group, Inc. (REIT) | 27,101 | |||||
| 70 | SL Green Realty Corp. (REIT) | 4,829 | |||||
| 406 | SLM Corp. | 5,550 | |||||
| 81 | Starwood Property Trust, Inc. (REIT) | 1,522 | |||||
| 394 | State Street Corp. | 15,914 | |||||
| 409 | SunTrust Banks, Inc. | 8,070 | |||||
| 53 | SVB Financial Group* | 2,435 | |||||
| 195 | T. Rowe Price Group, Inc. | 10,304 | |||||
| 54 | Tanger Factory Outlet Centers (REIT) | 1,521 | |||||
| 51 | Taubman Centers, Inc. (REIT) | 3,123 | |||||
| 197 | TD Ameritrade Holding Corp. | 3,306 | |||||
| 100 | Torchmark Corp. | 4,093 | |||||
| 66 | Transatlantic Holdings, Inc. | 3,435 | |||||
| 301 | Travelers Cos., Inc./The | 17,563 | |||||
| 1,405 | U.S. Bancorp | 35,954 | |||||
| 159 | UDR, Inc. (REIT) | 3,964 | |||||
| 254 | Unum Group | 6,055 | |||||
| 203 | Valley National Bancorp | 2,436 | |||||
| 189 | Ventas, Inc. (REIT) | 10,510 | |||||
| 130 | Vornado Realty Trust (REIT) | 10,765 | |||||
| 72 | W.R. Berkley Corp. | 2,506 | |||||
| 88 | Waddell & Reed Financial, Inc., Class A | 2,440 | |||||
| 49 | Washington Real Estate Investment Trust (REIT) | 1,419 | |||||
| 117 | Weingarten Realty Investors (REIT) | 2,716 | |||||
| 3,629 | Wells Fargo & Co. | 94,027 | |||||
| 404 | Weyerhaeuser Co. (REIT) | 7,264 | |||||
| 5 | White Mountains Insurance Group Ltd. | 2,100 | |||||
| 239 | XL Group plc | 5,196 | |||||
| 179 | Zions Bancorp. | 3,107 | |||||
| 1,388,616 | |||||||
| Health Care - 11.3% | |||||||
| 1,121 | Abbott Laboratories | 60,388 | |||||
| 268 | Aetna, Inc. | 10,656 | |||||
| 258 | Agilent Technologies, Inc.* | 9,564 | |||||
| 107 | Alere, Inc.* | 2,788 | |||||
| 139 | Alexion Pharmaceuticals, Inc.* | 9,384 | |||||
| 222 | Allergan, Inc. | 18,675 | |||||
| 156 | Allscripts Healthcare Solutions, Inc.* | 2,987 | |||||
| 45 | AMERIGROUP Corp.* | 2,503 | |||||
| 204 | AmerisourceBergen Corp. | 8,323 | |||||
| 670 | Amgen, Inc. | 38,371 | |||||
| 24 | athenahealth, Inc.* | 1,270 | |||||
| 420 | Baxter International, Inc. | 23,092 | |||||
| 154 | Becton Dickinson and Co. | 12,047 | |||||
| 178 | Biogen Idec, Inc.* | 20,712 | |||||
| 88 | BioMarin Pharmaceutical, Inc.* | 3,002 | |||||
| 23 | Bio-Rad Laboratories, Inc., Class A* | 2,290 | |||||
| 1,140 | Boston Scientific Corp.* | 6,715 | |||||
| 1,248 | Bristol-Myers Squibb Co. | 39,424 | |||||
| 79 | C.R. Bard, Inc. | 6,790 | |||||
| 260 | Cardinal Health, Inc. | 11,510 | |||||
| 154 | CareFusion Corp.* | 3,942 | |||||
| 35 | Catalyst Health Solutions, Inc.* | 1,924 | |||||
| 333 | Celgene Corp.* | 21,588 | |||||
| 44 | Cepheid, Inc.* | 1,579 | |||||
| 109 | Cerner Corp.* | 6,914 | |||||
| 207 | CIGNA Corp. | 9,178 | |||||
| 80 | Community Health Systems, Inc.* | 1,398 | |||||
| 36 | Cooper Cos., Inc./The | 2,495 | |||||
| 51 | Covance, Inc.* | 2,587 | |||||
| 121 | Coventry Health Care, Inc.* | 3,849 | |||||
| 354 | Covidien plc | 16,652 | |||||
| 48 | Cubist Pharmaceuticals, Inc.* | 1,815 | |||||
| 78 | DaVita, Inc.* | 5,460 | |||||
| 139 | DENTSPLY International, Inc. | 5,137 | |||||
| 86 | Edwards Lifesciences Corp.* | 6,486 | |||||
| 701 | Eli Lilly & Co. | 26,049 | |||||
| 103 | Endo Pharmaceuticals Holdings, Inc.* | 3,328 | |||||
| 326 | Express Scripts, Inc.* | 14,908 | |||||
| 184 | Forest Laboratories, Inc.* | 5,759 | |||||
| 34 | Gen-Probe, Inc.* | 2,043 | |||||
| 549 | Gilead Sciences, Inc.* | 22,871 | |||||
| 255 | Health Management Associates, Inc., Class A* | 2,234 | |||||
| 79 | Health Net, Inc.* | 2,195 | |||||
| 81 | HealthSouth Corp.* | 1,431 | |||||
| 58 | Healthspring, Inc.* | 3,129 | |||||
| 91 | Henry Schein, Inc.* | 6,308 | |||||
| 49 | Hill-Rom Holdings, Inc. | 1,650 | |||||
| 90 | HMS Holdings Corp.* | 2,200 | |||||
| 222 | Hologic, Inc.* | 3,579 | |||||
| 130 | Hospira, Inc.* | 4,089 | |||||
| 162 | Human Genome Sciences, Inc.* | 1,662 | |||||
| 125 | Humana, Inc. | 10,611 | |||||
| 50 | IDEXX Laboratories, Inc.* | 3,600 | |||||
| 101 | Illumina, Inc.* | 3,093 | |||||
| 28 | Intuitive Surgical, Inc.* | 12,148 | |||||
| 1,979 | Johnson & Johnson | 127,428 | |||||
| 52 | Kinetic Concepts, Inc.* | 3,556 | |||||
| 73 | Laboratory Corp of America Holdings* | 6,121 | |||||
| 139 | Life Technologies Corp.* | 5,653 | |||||
| 46 | LifePoint Hospitals, Inc.* | 1,778 | |||||
| 109 | Lincare Holdings, Inc. | 2,567 | |||||
| 177 | McKesson Corp. | 14,434 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar US Market Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 272 | Medco Health Solutions, Inc.* | $ | 14,922 | ||||
| 52 | Medicis Pharmaceutical Corp., Class A | 1,991 | |||||
| 44 | Mednax, Inc.* | 2,895 | |||||
| 771 | Medtronic, Inc. | 26,785 | |||||
| 2,220 | Merck & Co., Inc. | 76,590 | |||||
| 22 | Mettler-Toledo International, Inc.* | 3,379 | |||||
| 330 | Mylan, Inc.* | 6,458 | |||||
| 70 | Myriad Genetics, Inc.* | 1,490 | |||||
| 90 | Omnicare, Inc. | 2,684 | |||||
| 44 | Onyx Pharmaceuticals, Inc.* | 1,801 | |||||
| 97 | Owens & Minor, Inc. | 2,902 | |||||
| 92 | Patterson Cos., Inc. | 2,895 | |||||
| 101 | PerkinElmer, Inc. | 2,088 | |||||
| 62 | Perrigo Co. | 5,597 | |||||
| 5,606 | Pfizer, Inc. | 107,972 | |||||
| 72 | Pharmaceutical Product Development, Inc. | 2,375 | |||||
| 34 | Quality Systems, Inc. | 1,323 | |||||
| 116 | Quest Diagnostics, Inc. | 6,473 | |||||
| 141 | ResMed, Inc.* | 3,990 | |||||
| 57 | Sirona Dental Systems, Inc.* | 2,730 | |||||
| 236 | St. Jude Medical, Inc. | 9,204 | |||||
| 225 | Stryker Corp. | 10,780 | |||||
| 33 | Techne Corp. | 2,270 | |||||
| 43 | Teleflex, Inc. | 2,574 | |||||
| 357 | Tenet Healthcare Corp.* | 1,689 | |||||
| 279 | Thermo Fisher Scientific, Inc.* | 14,025 | |||||
| 50 | Thoratec Corp.* | 1,826 | |||||
| 39 | United Therapeutics Corp.* | 1,706 | |||||
| 779 | UnitedHealth Group, Inc. | 37,384 | |||||
| 73 | Universal Health Services, Inc., Class B | 2,918 | |||||
| 110 | Varian Medical Systems, Inc.* | 6,459 | |||||
| 159 | Warner Chilcott plc, Class A* | 2,881 | |||||
| 74 | Waters Corp.* | 5,929 | |||||
| 100 | Watson Pharmaceuticals, Inc.* | 6,716 | |||||
| 44 | WellCare Health Plans, Inc.* | 2,157 | |||||
| 264 | WellPoint, Inc. | 18,190 | |||||
| 145 | Zimmer Holdings, Inc.* | 7,631 | |||||
| 1,087,598 | |||||||
| Industrials - 11.3% | |||||||
| 489 | 3M Co. | 38,641 | |||||
| 56 | Acuity Brands, Inc. | 2,593 | |||||
| 116 | AECOM Technology Corp.* | 2,427 | |||||
| 86 | AGCO Corp.* | 3,769 | |||||
| 34 | Alaska Air Group, Inc.* | 2,262 | |||||
| 35 | Alexander & Baldwin, Inc. | 1,453 | |||||
| 38 | Alliant Techsystems, Inc. | 2,207 | |||||
| 144 | AMETEK, Inc. | 5,691 | |||||
| 174 | Avery Dennison Corp. | 4,628 | |||||
| 89 | Babcock & Wilcox Co./The* | 1,957 | |||||
| 101 | BE Aerospace, Inc.* | 3,811 | |||||
| 479 | Boeing Co./The | 31,513 | |||||
| 57 | Carlisle Cos., Inc. | 2,378 | |||||
| 435 | Caterpillar, Inc. | 41,090 | |||||
| 139 | CH Robinson Worldwide, Inc. | 9,651 | |||||
| 81 | Cintas Corp. | 2,421 | |||||
| 65 | CLARCOR, Inc. | 3,151 | |||||
| 53 | Clean Harbors, Inc.* | 3,088 | |||||
| 134 | Cooper Industries plc | 7,030 | |||||
| 52 | Copart, Inc.* | 2,265 | |||||
| 71 | Corrections Corp. of America* | 1,578 | |||||
| 139 | Covanta Holding Corp. | 2,038 | |||||
| 68 | Crane Co. | 2,999 | |||||
| 822 | CSX Corp. | 18,257 | |||||
| 131 | Cummins, Inc. | 13,025 | |||||
| 429 | Danaher Corp. | 20,742 | |||||
| 311 | Deere & Co. | 23,605 | |||||
| 601 | Delta Air Lines, Inc.* | 5,121 | |||||
| 22 | Dollar Thrifty Automotive Group, Inc.* | 1,343 | |||||
| 66 | Donaldson Co., Inc. | 4,227 | |||||
| 168 | Dover Corp. | 9,329 | |||||
| 46 | Dun & Bradstreet Corp./The | 3,076 | |||||
| 300 | Eaton Corp. | 13,446 | |||||
| 578 | Emerson Electric Co. | 27,813 | |||||
| 111 | Equifax, Inc. | 3,902 | |||||
| 49 | Esterline Technologies Corp.* | 2,739 | |||||
| 173 | Expeditors International of Washington, Inc. | 7,889 | |||||
| 230 | Fastenal Co. | 8,761 | |||||
| 232 | FedEx Corp. | 18,985 | |||||
| 44 | Flowserve Corp. | 4,078 | |||||
| 131 | Fluor Corp. | 7,447 | |||||
| 49 | Gardner Denver, Inc. | 3,789 | |||||
| 240 | General Dynamics Corp. | 15,406 | |||||
| 7,765 | General Electric Co. | 129,753 | |||||
| 58 | Genesee & Wyoming, Inc., Class A* | 3,434 | |||||
| 98 | Goodrich Corp. | 12,018 | |||||
| 67 | Graco, Inc. | 2,877 | |||||
| 117 | GrafTech International Ltd.* | 1,838 | |||||
| 95 | Harsco Corp. | 2,190 | |||||
| 206 | Hertz Global Holdings, Inc.* | 2,390 | |||||
| 96 | Hexcel Corp.* | 2,372 | |||||
| 551 | Honeywell International, Inc. | 28,872 | |||||
| 55 | Hubbell, Inc., Class B | 3,288 | |||||
| 146 | IDEX Corp. | 5,176 | |||||
| 36 | IHS, Inc., Class A* | 3,024 | |||||
| 330 | Illinois Tool Works, Inc. | 16,048 | |||||
| 267 | Ingersoll-Rand plc | 8,312 | |||||
| 146 | Iron Mountain, Inc. | 4,516 | |||||
| 146 | ITT Corp.* | 6,658 | |||||
| 108 | J.B. Hunt Transport Services, Inc. | 4,569 | |||||
| 106 | Jacobs Engineering Group, Inc.* | 4,113 | |||||
| 77 | Joy Global, Inc. | 6,714 | |||||
| 77 | Kansas City Southern* | 4,864 | |||||
| 124 | KBR, Inc. | 3,461 | |||||
| 90 | Kennametal, Inc. | 3,500 | |||||
| 52 | Kirby Corp.* | 3,200 | |||||
| 94 | L-3 Communications Holdings, Inc. | 6,371 | |||||
| 61 | Landstar System, Inc. | 2,722 | |||||
| 98 | Lincoln Electric Holdings, Inc. | 3,567 | |||||
| 195 | Lockheed Martin Corp. | 14,800 | |||||
| 86 | Manpower, Inc. | 3,710 | |||||
| 287 | Masco Corp. | 2,755 | |||||
| 42 | MSC Industrial Direct Co., Class A | 2,856 | |||||
| 49 | Mueller Industries, Inc. | 1,982 | |||||
| 66 | Navistar International Corp.* | 2,777 | |||||
| 62 | Nordson Corp. | 2,875 | |||||
| 248 | Norfolk Southern Corp. | 18,350 | |||||
| 196 | Northrop Grumman Corp. | 11,319 | |||||
| 57 | Old Dominion Freight Line, Inc.* | 2,084 | |||||
| 108 | Oshkosh Corp.* | 2,253 | |||||
| 102 | Owens Corning* | 2,895 | |||||
| 290 | PACCAR, Inc. | 12,540 | |||||
| 107 | Pall Corp. | 5,475 | |||||
| 119 | Parker Hannifin Corp. | 9,704 | |||||
| 166 | Pentair, Inc. | 5,968 | |||||
| 162 | Pitney Bowes, Inc. | 3,302 | |||||
| 31 | Polypore International, Inc.* | 1,626 | |||||
| 106 | Precision Castparts Corp. | 17,294 | |||||
| 178 | Quanta Services, Inc.* | 3,718 | |||||
| 198 | R.R. Donnelley & Sons Co. | 3,227 | |||||
| 263 | Raytheon Co. | 11,622 | |||||
| 38 | Regal-Beloit Corp. | 2,019 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar US Market Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 215 | Republic Services, Inc. | $ | 6,119 | ||||
| 37 | Robbins & Myers, Inc. | 1,654 | |||||
| 111 | Robert Half International, Inc. | 2,934 | |||||
| 115 | Rockwell Automation, Inc. | 7,780 | |||||
| 139 | Rockwell Collins, Inc. | 7,760 | |||||
| 81 | Roper Industries, Inc. | 6,569 | |||||
| 52 | Ryder System, Inc. | 2,649 | |||||
| 49 | Shaw Group, Inc./The* | 1,140 | |||||
| 108 | Snap-on, Inc. | 5,796 | |||||
| 636 | Southwest Airlines Co. | 5,438 | |||||
| 102 | Spirit AeroSystems Holdings, Inc., Class A* | 1,741 | |||||
| 61 | SPX Corp. | 3,331 | |||||
| 132 | Stanley Black & Decker, Inc. | 8,428 | |||||
| 71 | Stericycle, Inc.* | 5,934 | |||||
| 59 | Teledyne Technologies, Inc.* | 3,214 | |||||
| 261 | Textron, Inc. | 5,069 | |||||
| 62 | Thomas & Betts Corp.* | 3,081 | |||||
| 85 | Timken Co. | 3,580 | |||||
| 53 | Towers Watson & Co., Class A | 3,482 | |||||
| 38 | TransDigm Group, Inc.* | 3,569 | |||||
| 108 | Trinity Industries, Inc. | 2,945 | |||||
| 51 | Triumph Group, Inc. | 2,963 | |||||
| 342 | Tyco International Ltd. | 15,578 | |||||
| 353 | Union Pacific Corp. | 35,148 | |||||
| 237 | United Continental Holdings, Inc.* | 4,579 | |||||
| 558 | United Parcel Service, Inc., Class B | 39,194 | |||||
| 595 | United Technologies Corp. | 46,398 | |||||
| 111 | URS Corp.* | 3,963 | |||||
| 25 | Valmont Industries, Inc. | 2,144 | |||||
| 92 | Verisk Analytics, Inc., Class A* | 3,234 | |||||
| 49 | W.W. Grainger, Inc. | 8,394 | |||||
| 59 | WABCO Holdings, Inc.* | 2,962 | |||||
| 37 | Wabtec Corp. | 2,486 | |||||
| 100 | Waste Connections, Inc. | 3,405 | |||||
| 343 | Waste Management, Inc. | 11,295 | |||||
| 51 | WESCO International, Inc.* | 2,471 | |||||
| 82 | Woodward, Inc. | 2,778 | |||||
| 1,091,824 | |||||||
| Information Technology - 19.0% | |||||||
| 475 | Accenture plc, Class A | 28,623 | |||||
| 42 | Acme Packet, Inc.* | 1,521 | |||||
| 413 | Activision Blizzard, Inc. | 5,530 | |||||
| 368 | Adobe Systems, Inc.* | 10,823 | |||||
| 42 | ADTRAN, Inc. | 1,411 | |||||
| 406 | Advanced Micro Devices, Inc.* | 2,367 | |||||
| 144 | Akamai Technologies, Inc.* | 3,879 | |||||
| 42 | Alliance Data Systems Corp.* | 4,302 | |||||
| 239 | Altera Corp. | 9,063 | |||||
| 153 | Amdocs Ltd.* | 4,593 | |||||
| 126 | Amphenol Corp., Class A | 5,984 | |||||
| 214 | Analog Devices, Inc. | 7,826 | |||||
| 36 | Anixter International, Inc.* | 2,113 | |||||
| 66 | ANSYS, Inc.* | 3,588 | |||||
| 672 | Apple, Inc.* | 272,012 | |||||
| 964 | Applied Materials, Inc. | 11,876 | |||||
| 90 | Ariba, Inc.* | 2,851 | |||||
| 104 | Arrow Electronics, Inc.* | 3,749 | |||||
| 65 | Aruba Networks, Inc.* | 1,540 | |||||
| 342 | Atmel Corp.* | 3,611 | |||||
| 191 | Autodesk, Inc.* | 6,609 | |||||
| 402 | Automatic Data Processing, Inc. | 21,037 | |||||
| 134 | Avnet, Inc.* | 4,061 | |||||
| 162 | BMC Software, Inc.* | 5,631 | |||||
| 349 | Broadcom Corp., Class A* | 12,595 | |||||
| 103 | Broadridge Financial Solutions, Inc. | 2,292 | |||||
| 370 | Brocade Communications Systems, Inc.* | 1,621 | |||||
| 324 | CA, Inc. | 7,018 | |||||
| 238 | Cadence Design Systems, Inc.* | 2,635 | |||||
| 42 | Cavium, Inc.* | 1,373 | |||||
| 4,028 | Cisco Systems, Inc. | 74,639 | |||||
| 138 | Citrix Systems, Inc.* | 10,051 | |||||
| 231 | Cognizant Technology Solutions Corp., Class A* | 16,805 | |||||
| 126 | Computer Sciences Corp. | 3,964 | |||||
| 198 | Compuware Corp.* | 1,673 | |||||
| 50 | Concur Technologies, Inc.* | 2,326 | |||||
| 1,149 | Corning, Inc. | 16,419 | |||||
| 78 | Cree, Inc.* | 2,078 | |||||
| 137 | Cypress Semiconductor Corp.* | 2,618 | |||||
| 1,227 | Dell, Inc.* | 19,399 | |||||
| 63 | Diebold, Inc. | 2,034 | |||||
| 46 | Dolby Laboratories, Inc., Class A* | 1,345 | |||||
| 43 | DST Systems, Inc. | 2,158 | |||||
| 804 | eBay, Inc.* | 25,591 | |||||
| 260 | Electronic Arts, Inc.* | 6,071 | |||||
| 1,503 | EMC Corp.* | 36,838 | |||||
| 36 | Equinix, Inc.* | 3,456 | |||||
| 60 | F5 Networks, Inc.* | 6,237 | |||||
| 38 | Factset Research Systems, Inc. | 3,778 | |||||
| 114 | Fairchild Semiconductor International, Inc.* | 1,707 | |||||
| 185 | Fidelity National Information Services, Inc. | 4,843 | |||||
| 71 | Finisar Corp.* | 1,455 | |||||
| 44 | First Solar, Inc.* | 2,190 | |||||
| 102 | Fiserv, Inc.* | 6,005 | |||||
| 130 | FLIR Systems, Inc. | 3,419 | |||||
| 91 | Fortinet, Inc.* | 2,098 | |||||
| 94 | Gartner, Inc.* | 3,621 | |||||
| 117 | Genpact Ltd.* | 1,890 | |||||
| 68 | Global Payments, Inc. | 3,123 | |||||
| 184 | Google, Inc., Class A* | 109,046 | |||||
| 99 | Harris Corp. | 3,737 | |||||
| 1,514 | Hewlett-Packard Co. | 40,288 | |||||
| 57 | IAC/InterActiveCorp* | 2,327 | |||||
| 91 | Informatica Corp.* | 4,140 | |||||
| 154 | Ingram Micro, Inc., Class A* | 2,753 | |||||
| 3,785 | Intel Corp. | 92,884 | |||||
| 31 | InterDigital, Inc. | 1,347 | |||||
| 863 | International Business Machines Corp. | 159,336 | |||||
| 209 | Intuit, Inc. | 11,217 | |||||
| 173 | Jabil Circuit, Inc. | 3,557 | |||||
| 120 | Jack Henry & Associates, Inc. | 3,889 | |||||
| 163 | JDS Uniphase Corp.* | 1,956 | |||||
| 396 | Juniper Networks, Inc.* | 9,690 | |||||
| 136 | KLA-Tencor Corp. | 6,404 | |||||
| 95 | Lam Research Corp.* | 4,084 | |||||
| 54 | Lexmark International, Inc., Class A* | 1,712 | |||||
| 160 | Linear Technology Corp. | 5,170 | |||||
| 427 | LSI Corp.* | 2,669 | |||||
| 394 | Marvell Technology Group Ltd.* | 5,512 | |||||
| 78 | Mastercard, Inc., Class A | 27,085 | |||||
| 220 | Maxim Integrated Products, Inc. | 5,755 | |||||
| 105 | Microchip Technology, Inc. | 3,797 | |||||
| 646 | Micron Technology, Inc.* | 3,611 | |||||
| 88 | MICROS Systems, Inc.* | 4,331 | |||||
| 5,436 | Microsoft Corp. | 144,761 | |||||
| 220 | Motorola Solutions, Inc. | 10,320 | |||||
| 102 | National Instruments Corp. | 2,724 | |||||
| 128 | NCR Corp.* | 2,437 | |||||
| 277 | NetApp, Inc.* | 11,346 | |||||
| 66 | Netlogic Microsystems, Inc.* | 3,247 | |||||
| 72 | NeuStar, Inc., Class A* | 2,289 | |||||
| 58 | Novellus Systems, Inc.* | 2,004 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar US Market Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 187 | Nuance Communications, Inc.* | $ | 4,952 | ||||
| 434 | NVIDIA Corp.* | 6,423 | |||||
| 360 | ON Semiconductor Corp.* | 2,725 | |||||
| 2,851 | Oracle Corp. | 93,427 | |||||
| 178 | Parametric Technology Corp.* | 3,708 | |||||
| 266 | Paychex, Inc. | 7,751 | |||||
| 130 | Polycom, Inc.* | 2,149 | |||||
| 58 | QLIK Technologies, Inc.* | 1,657 | |||||
| 1,212 | QUALCOMM, Inc. | 62,539 | |||||
| 86 | Rackspace Hosting, Inc.* | 3,559 | |||||
| 142 | Red Hat, Inc.* | 7,050 | |||||
| 204 | RF Micro Devices, Inc.* | 1,497 | |||||
| 128 | Riverbed Technology, Inc.* | 3,530 | |||||
| 86 | Rovi Corp.* | 4,260 | |||||
| 384 | SAIC, Inc.* | 4,773 | |||||
| 88 | Salesforce.com, Inc.* | 11,719 | |||||
| 180 | SanDisk Corp.* | 9,121 | |||||
| 332 | Seagate Technology plc | 5,362 | |||||
| 117 | Skyworks Solutions, Inc.* | 2,318 | |||||
| 57 | Solera Holdings, Inc. | 3,114 | |||||
| 70 | SuccessFactors, Inc.* | 1,869 | |||||
| 564 | Symantec Corp.* | 9,594 | |||||
| 149 | Synopsys, Inc.* | 3,995 | |||||
| 332 | TE Connectivity Ltd. | 11,803 | |||||
| 38 | Tech Data Corp.* | 1,869 | |||||
| 124 | Teradata Corp.* | 7,398 | |||||
| 169 | Teradyne, Inc.* | 2,420 | |||||
| 845 | Texas Instruments, Inc. | 25,967 | |||||
| 146 | TIBCO Software, Inc.* | 4,218 | |||||
| 160 | Total System Services, Inc. | 3,182 | |||||
| 107 | Trimble Navigation Ltd.* | 4,324 | |||||
| 28 | Universal Display Corp.* | 1,311 | |||||
| 54 | Varian Semiconductor Equipment Associates, Inc.* | 3,390 | |||||
| 84 | VeriFone Systems, Inc.* | 3,546 | |||||
| 95 | VeriSign, Inc. | 3,049 | |||||
| 385 | Visa, Inc., Class A | 35,905 | |||||
| 60 | VMware, Inc., Class A* | 5,865 | |||||
| 40 | WebMD Health Corp.* | 1,438 | |||||
| 179 | Western Digital Corp.* | 4,769 | |||||
| 480 | Western Union Co./The | 8,386 | |||||
| 1,100 | Xerox Corp. | 8,998 | |||||
| 195 | Xilinx, Inc. | 6,525 | |||||
| 846 | Yahoo!, Inc.* | 13,231 | |||||
| 57 | Zebra Technologies Corp., Class A* | 2,037 | |||||
| 1,832,113 | |||||||
| Materials - 4.3% | |||||||
| 155 | Air Products & Chemicals, Inc. | 13,352 | |||||
| 53 | Airgas, Inc. | 3,654 | |||||
| 83 | Albemarle Corp. | 4,423 | |||||
| 850 | Alcoa, Inc. | 9,146 | |||||
| 95 | Allegheny Technologies, Inc. | 4,408 | |||||
| 73 | Allied Nevada Gold Corp.* | 2,773 | |||||
| 85 | Aptargroup, Inc. | 4,077 | |||||
| 71 | Ashland, Inc. | 3,760 | |||||
| 147 | Ball Corp. | 5,082 | |||||
| 108 | Bemis Co., Inc. | 3,036 | |||||
| 75 | Cabot Corp. | 2,263 | |||||
| 40 | Carpenter Technology Corp. | 2,269 | |||||
| 146 | Celanese Corp. | 6,358 | |||||
| 52 | CF Industries Holdings, Inc. | 8,438 | |||||
| 115 | Cliffs Natural Resources, Inc. | 7,845 | |||||
| 76 | Coeur d'Alene Mines Corp.* | 1,943 | |||||
| 25 | Compass Minerals International, Inc. | 1,902 | |||||
| 103 | Crown Holdings, Inc.* | 3,480 | |||||
| 51 | Cytec Industries, Inc. | 2,278 | |||||
| 32 | Domtar Corp. | 2,621 | |||||
| 860 | Dow Chemical Co./The | 23,977 | |||||
| 727 | E.I. du Pont de Nemours & Co. | 34,947 | |||||
| 122 | Eastman Chemical Co. | 4,793 | |||||
| 197 | Ecolab, Inc. | 10,606 | |||||
| 67 | FMC Corp. | 5,286 | |||||
| 697 | Freeport-McMoRan Copper & Gold, Inc. | 28,061 | |||||
| 285 | Hecla Mining Co.* | �� | 1,787 | ||||
| 211 | Huntsman Corp. | 2,477 | |||||
| 91 | International Flavors & Fragrances, Inc. | 5,511 | |||||
| 308 | International Paper Co. | 8,532 | |||||
| 46 | Intrepid Potash, Inc.* | 1,280 | |||||
| 40 | Martin Marietta Materials, Inc. | 2,887 | |||||
| 190 | MeadWestvaco Corp. | 5,303 | |||||
| 45 | Molycorp, Inc.* | 1,722 | |||||
| 389 | Monsanto Co. | 28,300 | |||||
| 204 | Mosaic Co./The | 11,946 | |||||
| 100 | Nalco Holding Co. | 3,771 | |||||
| 357 | Newmont Mining Corp. | 23,858 | |||||
| 229 | Nucor Corp. | 8,652 | |||||
| 124 | Owens-Illinois, Inc.* | 2,490 | |||||
| 80 | Packaging Corp. of America | 2,086 | |||||
| 132 | PPG Industries, Inc. | 11,406 | |||||
| 239 | Praxair, Inc. | 24,299 | |||||
| 84 | Reliance Steel & Aluminum Co. | 3,712 | |||||
| 54 | Rock-Tenn Co., Class A | 3,196 | |||||
| 66 | Rockwood Holdings, Inc.* | 3,039 | |||||
| 41 | Royal Gold, Inc. | 2,935 | |||||
| 168 | RPM International, Inc. | 3,775 | |||||
| 52 | Scotts Miracle-Gro Co./The, Class A | 2,523 | |||||
| 196 | Sealed Air Corp. | 3,489 | |||||
| 76 | Sensient Technologies Corp. | 2,809 | |||||
| 76 | Sherwin-Williams Co./The | 6,286 | |||||
| 102 | Sigma-Aldrich Corp. | 6,679 | |||||
| 30 | Silgan Holdings, Inc. | 1,126 | |||||
| 118 | Solutia, Inc.* | 1,917 | |||||
| 113 | Sonoco Products Co. | 3,547 | |||||
| 223 | Steel Dynamics, Inc. | 2,785 | |||||
| 75 | Temple-Inland, Inc. | 2,386 | |||||
| 117 | United States Steel Corp. | 2,967 | |||||
| 88 | Valspar Corp. | 3,069 | |||||
| 88 | Vulcan Materials Co. | 2,754 | |||||
| 68 | W.R. Grace & Co.* | 2,842 | |||||
| 50 | Walter Energy, Inc. | 3,783 | |||||
| 412,704 | |||||||
| Telecommunication Services - 2.6% | |||||||
| 300 | American Tower Corp., Class A* | 16,530 | |||||
| 4,307 | AT&T, Inc. | 126,238 | |||||
| 432 | CenturyLink, Inc. | 15,232 | |||||
| 801 | Frontier Communications Corp. | 5,014 | |||||
| 243 | MetroPCS Communications, Inc.* | 2,066 | |||||
| 146 | NII Holdings, Inc.* | 3,435 | |||||
| 2,174 | Sprint Nextel Corp.* | 5,587 | |||||
| 113 | tw telecom, inc.* | 2,091 | |||||
| 2,048 | Verizon Communications, Inc. | 75,735 | |||||
| 327 | Windstream Corp. | 3,980 | |||||
| 255,908 | |||||||
| Utilities - 4.0% | |||||||
| 594 | AES Corp./The* | 6,665 | |||||
| 84 | AGL Resources, Inc. | 3,523 | |||||
| 108 | Alliant Energy Corp. | 4,404 | |||||
| 163 | Ameren Corp. | 5,196 | |||||
| 322 | American Electric Power Co., Inc. | 12,648 | |||||
| 150 | American Water Works Co., Inc. | 4,580 | |||||
| 148 | Aqua America, Inc. | 3,284 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar US Market Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 109 | Atmos Energy Corp. | $ | 3,741 | ||||
| 274 | Calpine Corp.* | 4,157 | |||||
| 284 | CenterPoint Energy, Inc. | 5,919 | |||||
| 60 | Cleco Corp. | 2,212 | |||||
| 167 | CMS Energy Corp. | 3,477 | |||||
| 195 | Consolidated Edison, Inc. | 11,285 | |||||
| 129 | Constellation Energy Group, Inc. | 5,121 | |||||
| 392 | Dominion Resources, Inc. | 20,223 | |||||
| 87 | DPL, Inc. | 2,640 | |||||
| 116 | DTE Energy Co. | 6,045 | |||||
| 969 | Duke Energy Corp. | 19,787 | |||||
| 213 | Edison International | 8,648 | |||||
| 127 | Entergy Corp. | 8,785 | |||||
| 476 | Exelon Corp. | 21,130 | |||||
| 290 | FirstEnergy Corp. | 13,038 | |||||
| 610 | GenOn Energy, Inc.* | 1,860 | |||||
| 192 | Great Plains Energy, Inc. | 3,982 | |||||
| 103 | Hawaiian Electric Industries, Inc. | 2,609 | |||||
| 92 | IDACORP, Inc. | 3,715 | |||||
| 66 | Integrys Energy Group, Inc. | 3,492 | |||||
| 47 | ITC Holdings Corp. | 3,416 | |||||
| 166 | MDU Resources Group, Inc. | 3,421 | |||||
| 72 | National Fuel Gas Co. | 4,413 | |||||
| 37 | New Jersey Resources Corp. | 1,740 | |||||
| 315 | NextEra Energy, Inc. | 17,766 | |||||
| 39 | Nicor, Inc. | 2,194 | |||||
| 225 | NiSource, Inc. | 4,970 | |||||
| 129 | Northeast Utilities | 4,460 | |||||
| 167 | NRG Energy, Inc.* | 3,577 | |||||
| 69 | NSTAR | 3,111 | |||||
| 173 | NV Energy, Inc. | 2,775 | |||||
| 81 | OGE Energy Corp. | 4,191 | |||||
| 83 | Oneok, Inc. | 6,312 | |||||
| 188 | Pepco Holdings, Inc. | 3,722 | |||||
| 306 | PG&E Corp. | 13,127 | |||||
| 71 | Piedmont Natural Gas Co., Inc. | 2,321 | |||||
| 83 | Pinnacle West Capital Corp. | 3,783 | |||||
| 95 | Portland General Electric Co. | 2,331 | |||||
| 417 | PPL Corp. | 12,247 | |||||
| 196 | Progress Energy, Inc. | 10,212 | |||||
| 351 | Public Service Enterprise Group, Inc. | 11,829 | |||||
| 107 | Questar Corp. | 2,062 | |||||
| 89 | SCANA Corp. | 3,763 | |||||
| 157 | Sempra Energy | 8,436 | |||||
| 602 | Southern Co. | 26,006 | |||||
| 187 | TECO Energy, Inc. | 3,473 | |||||
| 151 | UGI Corp. | 4,329 | |||||
| 70 | Vectren Corp. | 1,987 | |||||
| 117 | Westar Energy, Inc. | 3,189 | |||||
| 51 | WGL Holdings, Inc. | 2,183 | |||||
| 148 | Wisconsin Energy Corp. | 4,800 | |||||
| 319 | Xcel Energy, Inc. | 8,246 | |||||
| 382,558 | |||||||
| Total Common Stocks | |||||||
| (Cost $9,618,417) | 9,638,370 | ||||||
| Total Investment Securities | |||||||
| (Cost $9,618,417) — 100.0% | 9,638,370 | ||||||
| Other assets less liabilities — 0.0%† | 2,887 | ||||||
| Net Assets — 100.0% | $ | 9,641,257 | |||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
| REIT | Real Estate Investment Trust |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| Aggregate gross unrealized appreciation | $ | 538,273 | ||
| Aggregate gross unrealized depreciation | (530,709 | ) | ||
| Net unrealized appreciation | $ | 7,564 | ||
| Federal income tax cost of investments | $ | 9,630,806 | ||
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Large Cap Index ETF
Schedule of Portfolio Investments
October 31, 2011
| Shares | Value | ||||||
Common Stocks - 100.0% | |||||||
| Consumer Discretionary - 10.0% | |||||||
| 173 | Amazon.com, Inc.* | $ | 36,937 | ||||
| 12 | AutoZone, Inc.* | 3,883 | |||||
| 123 | Bed Bath & Beyond, Inc.* | 7,606 | |||||
| 149 | Best Buy Co., Inc. | 3,908 | |||||
| 202 | Carnival Corp. | 7,112 | |||||
| 306 | CBS Corp., Class B | 7,898 | |||||
| 142 | Coach, Inc. | 9,240 | |||||
| 1,025 | Comcast Corp., Class A | 24,036 | |||||
| 319 | Comcast Corp., Special, Class A | 7,337 | |||||
| 362 | DIRECTV, Class A* | 16,457 | |||||
| 1,828 | Ford Motor Co.* | 21,351 | |||||
| 135 | Gap, Inc./The | 2,552 | |||||
| 283 | General Motors Co.* | 7,316 | |||||
| 784 | Home Depot, Inc. | 28,067 | |||||
| 333 | Johnson Controls, Inc. | 10,966 | |||||
| 130 | Kohl's Corp. | 6,891 | |||||
| 193 | Las Vegas Sands Corp.* | 9,061 | |||||
| 639 | Lowe's Cos., Inc. | 13,432 | |||||
| 129 | Ltd. Brands, Inc. | 5,510 | |||||
| 151 | Marriott International, Inc., Class A | 4,756 | |||||
| 506 | McDonald's Corp. | 46,982 | |||||
| 148 | McGraw-Hill Cos., Inc./The | 6,290 | |||||
| 890 | News Corp., Class A | 15,593 | |||||
| 213 | News Corp., Class B | 3,802 | |||||
| 185 | NIKE, Inc., Class B | 17,825 | |||||
| 138 | Omnicom Group, Inc. | 6,138 | |||||
| 24 | priceline.com, Inc.* | 12,185 | |||||
| 30 | Ralph Lauren Corp. | 4,764 | |||||
| 350 | Staples, Inc. | 5,236 | |||||
| 365 | Starbucks Corp. | 15,454 | |||||
| 300 | Target Corp. | 16,425 | |||||
| 159 | Time Warner Cable, Inc. | 10,127 | |||||
| 512 | Time Warner, Inc. | 17,915 | |||||
| 189 | TJX Cos., Inc. | 11,138 | |||||
| 5 | Viacom, Inc., Class A | 267 | |||||
| 257 | Viacom, Inc., Class B | 11,269 | |||||
| 845 | Walt Disney Co./The | 29,474 | |||||
| 43 | Wynn Resorts Ltd. | 5,710 | |||||
| 229 | Yum! Brands, Inc. | 12,268 | |||||
| 483,178 | |||||||
| Consumer Staples - 11.4% | |||||||
| 1,021 | Altria Group, Inc. | 28,129 | |||||
| 302 | Archer-Daniels-Midland Co. | 8,740 | |||||
| 211 | Avon Products, Inc. | 3,857 | |||||
| 1,044 | Coca-Cola Co./The | 71,326 | |||||
| 239 | Colgate-Palmolive Co. | 21,598 | |||||
| 215 | Costco Wholesale Corp. | 17,899 | |||||
| 659 | CVS Caremark Corp. | 23,922 | |||||
| 58 | Estee Lauder Cos., Inc./The, Class A | 5,710 | |||||
| 297 | General Mills, Inc. | 11,443 | |||||
| 158 | H.J. Heinz Co. | 8,443 | |||||
| 76 | Hershey Co./The | 4,349 | |||||
| 121 | Kellogg Co. | 6,559 | |||||
| 193 | Kimberly-Clark Corp. | 13,454 | |||||
| 803 | Kraft Foods, Inc., Class A | 28,250 | |||||
| 276 | Kroger Co./The | 6,398 | |||||
| 68 | Lorillard, Inc. | 7,525 | |||||
| 100 | Mead Johnson Nutrition Co. | 7,185 | |||||
| 780 | PepsiCo, Inc. | 49,101 | |||||
| 861 | Philip Morris International, Inc. | 60,158 | |||||
| 1,347 | Procter & Gamble Co./The | 86,195 | |||||
| 166 | Reynolds American, Inc. | 6,421 | |||||
| 289 | Sysco Corp. | 8,011 | |||||
| 444 | Walgreen Co. | 14,741 | |||||
| 868 | Wal-Mart Stores, Inc. | 49,233 | |||||
| 548,647 | |||||||
| Energy - 13.1% | |||||||
| 244 | Anadarko Petroleum Corp. | 19,154 | |||||
| 188 | Apache Corp. | 18,730 | |||||
| 213 | Baker Hughes, Inc. | 12,352 | |||||
| 119 | Cameron International Corp.* | 5,848 | |||||
| 323 | Chesapeake Energy Corp. | 9,083 | |||||
| 983 | Chevron Corp. | 103,264 | |||||
| 626 | ConocoPhillips | 43,601 | |||||
| 193 | Devon Energy Corp. | 12,535 | |||||
| 375 | El Paso Corp. | 9,379 | |||||
| 132 | EOG Resources, Inc. | 11,805 | |||||
| 2,384 | Exxon Mobil Corp. | 186,167 | |||||
| 451 | Halliburton Co. | 16,849 | |||||
| 150 | Hess Corp. | 9,384 | |||||
| 348 | Marathon Oil Corp. | 9,058 | |||||
| 174 | Marathon Petroleum Corp. | 6,247 | |||||
| 95 | Murphy Oil Corp. | 5,260 | |||||
| 207 | National Oilwell Varco, Inc. | 14,765 | |||||
| 86 | Noble Energy, Inc. | 7,683 | |||||
| 397 | Occidental Petroleum Corp. | 36,897 | |||||
| 133 | Peabody Energy Corp. | 5,768 | |||||
| 662 | Schlumberger Ltd. | 48,637 | |||||
| 170 | Southwestern Energy Co.* | 7,147 | |||||
| 318 | Spectra Energy Corp. | 9,104 | |||||
| 157 | Transocean Ltd. | 8,973 | |||||
| 279 | Valero Energy Corp. | 6,863 | |||||
| 287 | Williams Cos., Inc./The | 8,642 | |||||
| 633,195 | |||||||
| Financials - 13.2% | |||||||
| 166 | ACE Ltd. | 11,977 | |||||
| 231 | Aflac, Inc. | 10,416 | |||||
| 238 | Allstate Corp./The | 6,269 | |||||
| 522 | American Express Co. | 26,424 | |||||
| 213 | American International Group, Inc.* | 5,259 | |||||
| 116 | Ameriprise Financial, Inc. | 5,415 | |||||
| 475 | Annaly Capital Management, Inc. (REIT) | 8,004 | |||||
| 160 | Aon Corp. | 7,459 | |||||
| 4,949 | Bank of America Corp. | 33,802 | |||||
| 608 | Bank of New York Mellon Corp./The | 12,938 | |||||
| 339 | BB&T Corp. | 7,912 | |||||
| 472 | Berkshire Hathaway, Inc., Class B* | 36,750 | |||||
| 48 | BlackRock, Inc. | 7,574 | |||||
| 71 | Boston Properties, Inc. (REIT) | 7,028 | |||||
| 224 | Capital One Financial Corp. | 10,228 | |||||
| 505 | Charles Schwab Corp./The | 6,201 | |||||
| 140 | Chubb Corp./The | 9,387 | |||||
| 1,421 | Citigroup, Inc. | 44,889 | |||||
| 31 | CME Group, Inc. | 8,542 | |||||
| 267 | Discover Financial Services | 6,291 | |||||
| 144 | Equity Residential (REIT) | 8,450 | |||||
| 73 | Franklin Resources, Inc. | 7,784 | |||||
| 189 | General Growth Properties, Inc. (REIT) | 2,778 | |||||
| 209 | Goldman Sachs Group, Inc./The | 22,896 | |||||
| 218 | Hartford Financial Services Group, Inc. | 4,197 | |||||
| 199 | HCP, Inc. (REIT) | 7,930 | |||||
| 1,912 | JPMorgan Chase & Co. | 66,461 | |||||
| 172 | Loews Corp. | 6,828 | |||||
| 266 | Marsh & McLennan Cos., Inc. | 8,145 | |||||
| 404 | MetLife, Inc. | 14,205 | |||||
| 862 | Morgan Stanley | 15,206 | |||||
| 107 | Northern Trust Corp. | 4,330 | |||||
| 258 | PNC Financial Services Group, Inc. | 13,857 | |||||
| 295 | Progressive Corp./The | 5,608 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Large Cap Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 237 | Prudential Financial, Inc. | $ | 12,845 | ||||
| 69 | Public Storage (REIT) | 8,905 | |||||
| 144 | Simon Property Group, Inc. (REIT) | 18,495 | |||||
| 246 | State Street Corp. | 9,936 | |||||
| 263 | SunTrust Banks, Inc. | 5,189 | |||||
| 126 | T. Rowe Price Group, Inc. | 6,658 | |||||
| 112 | TD Ameritrade Holding Corp. | 1,879 | |||||
| 205 | Travelers Cos., Inc./The | 11,962 | |||||
| 938 | U.S. Bancorp | 24,003 | |||||
| 90 | Vornado Realty Trust (REIT) | 7,453 | |||||
| 2,444 | Wells Fargo & Co. | 63,324 | |||||
| 262 | Weyerhaeuser Co. (REIT) | 4,711 | |||||
| 636,800 | |||||||
| Health Care - 11.9% | |||||||
| 763 | Abbott Laboratories | 41,103 | |||||
| 183 | Aetna, Inc. | 7,276 | |||||
| 169 | Agilent Technologies, Inc.* | 6,265 | |||||
| 151 | Allergan, Inc. | 12,702 | |||||
| 458 | Amgen, Inc. | 26,230 | |||||
| 281 | Baxter International, Inc. | 15,449 | |||||
| 101 | Becton Dickinson and Co. | 7,901 | |||||
| 119 | Biogen Idec, Inc.* | 13,847 | |||||
| 842 | Bristol-Myers Squibb Co. | 26,599 | |||||
| 171 | Cardinal Health, Inc. | 7,570 | |||||
| 225 | Celgene Corp.* | 14,587 | |||||
| 133 | CIGNA Corp. | 5,897 | |||||
| 242 | Covidien plc | 11,384 | |||||
| 481 | Eli Lilly & Co. | 17,874 | |||||
| 222 | Express Scripts, Inc.* | 10,152 | |||||
| 378 | Gilead Sciences, Inc.* | 15,747 | |||||
| 83 | Humana, Inc. | 7,046 | |||||
| 19 | Intuitive Surgical, Inc.* | 8,243 | |||||
| 1,341 | Johnson & Johnson | 86,347 | |||||
| 121 | McKesson Corp. | 9,868 | |||||
| 189 | Medco Health Solutions, Inc.* | 10,368 | |||||
| 520 | Medtronic, Inc. | 18,065 | |||||
| 1,507 | Merck & Co., Inc. | 51,991 | |||||
| 3,830 | Pfizer, Inc. | 73,766 | |||||
| 160 | St. Jude Medical, Inc. | 6,240 | |||||
| 146 | Stryker Corp. | 6,995 | |||||
| 188 | Thermo Fisher Scientific, Inc.* | 9,451 | |||||
| 528 | UnitedHealth Group, Inc. | 25,339 | |||||
| 177 | WellPoint, Inc. | 12,195 | |||||
| 94 | Zimmer Holdings, Inc.* | 4,947 | |||||
| 571,444 | |||||||
| Industrials - 9.9% | |||||||
| 320 | 3M Co. | 25,286 | |||||
| 325 | Boeing Co./The | 21,382 | |||||
| 287 | Caterpillar, Inc. | 27,110 | |||||
| 81 | CH Robinson Worldwide, Inc. | 5,624 | |||||
| 81 | Cooper Industries plc | 4,249 | |||||
| 537 | CSX Corp. | 11,927 | |||||
| 85 | Cummins, Inc. | 8,452 | |||||
| 279 | Danaher Corp. | 13,490 | |||||
| 206 | Deere & Co. | 15,635 | |||||
| 91 | Dover Corp. | 5,053 | |||||
| 167 | Eaton Corp. | 7,485 | |||||
| 365 | Emerson Electric Co. | 17,564 | |||||
| 144 | FedEx Corp. | 11,784 | |||||
| 148 | General Dynamics Corp. | 9,500 | |||||
| 5,233 | General Electric Co. | 87,443 | |||||
| 350 | Honeywell International, Inc. | 18,340 | |||||
| 207 | Illinois Tool Works, Inc. | 10,066 | |||||
| 162 | Ingersoll-Rand plc | 5,043 | |||||
| 131 | Lockheed Martin Corp. | 9,943 | |||||
| 171 | Norfolk Southern Corp. | 12,652 | |||||
| 127 | Northrop Grumman Corp. | 7,334 | |||||
| 178 | PACCAR, Inc. | 7,697 | |||||
| 79 | Parker Hannifin Corp. | 6,442 | |||||
| 71 | Precision Castparts Corp. | 11,584 | |||||
| 173 | Raytheon Co. | 7,645 | |||||
| 151 | Republic Services, Inc. | 4,297 | |||||
| 70 | Rockwell Automation, Inc. | 4,736 | |||||
| 82 | Stanley Black & Decker, Inc. | 5,236 | |||||
| 230 | Tyco International Ltd. | 10,477 | |||||
| 241 | Union Pacific Corp. | 23,996 | |||||
| 361 | United Parcel Service, Inc., Class B | 25,357 | |||||
| 388 | United Technologies Corp. | 30,256 | |||||
| 201 | Waste Management, Inc. | 6,619 | |||||
| 479,704 | |||||||
| Information Technology - 20.7% | |||||||
| 314 | Accenture plc, Class A | 18,922 | |||||
| 208 | Activision Blizzard, Inc. | 2,785 | |||||
| 242 | Adobe Systems, Inc.* | 7,117 | |||||
| 159 | Altera Corp. | 6,029 | |||||
| 455 | Apple, Inc.* | 184,175 | |||||
| 648 | Applied Materials, Inc. | 7,983 | |||||
| 242 | Automatic Data Processing, Inc. | 12,664 | |||||
| 238 | Broadcom Corp., Class A* | 8,589 | |||||
| 198 | CA, Inc. | 4,289 | |||||
| 2,717 | Cisco Systems, Inc. | 50,346 | |||||
| 92 | Citrix Systems, Inc.* | 6,700 | |||||
| 149 | Cognizant Technology Solutions Corp., Class A* | 10,840 | |||||
| 767 | Corning, Inc. | 10,960 | |||||
| 815 | Dell, Inc.* | 12,885 | |||||
| 543 | eBay, Inc.* | 17,284 | |||||
| 1,012 | EMC Corp.* | 24,804 | |||||
| 27 | First Solar, Inc.* | 1,344 | |||||
| 125 | Google, Inc., Class A* | 74,080 | |||||
| 1,017 | Hewlett-Packard Co. | 27,062 | |||||
| 2,574 | Intel Corp. | 63,166 | |||||
| 586 | International Business Machines Corp. | 108,193 | |||||
| 136 | Intuit, Inc. | 7,299 | |||||
| 259 | Juniper Networks, Inc.* | 6,338 | |||||
| 52 | Mastercard, Inc., Class A | 18,057 | |||||
| 3,669 | Microsoft Corp. | 97,705 | |||||
| 148 | Motorola Solutions, Inc. | 6,943 | |||||
| 183 | NetApp, Inc.* | 7,496 | |||||
| 1,907 | Oracle Corp. | 62,492 | |||||
| 824 | QUALCOMM, Inc. | 42,518 | |||||
| 59 | Salesforce.com, Inc.* | 7,857 | |||||
| 368 | Symantec Corp.* | 6,260 | |||||
| 213 | TE Connectivity Ltd. | 7,572 | |||||
| 567 | Texas Instruments, Inc. | 17,424 | |||||
| 257 | Visa, Inc., Class A | 23,968 | |||||
| 41 | VMware, Inc., Class A* | 4,008 | |||||
| 308 | Western Union Co./The | 5,381 | |||||
| 688 | Xerox Corp. | 5,628 | |||||
| 581 | Yahoo!, Inc.* | 9,087 | |||||
| 996,250 | |||||||
| Materials - 3.3% | |||||||
| 97 | Air Products & Chemicals, Inc. | 8,355 | |||||
| 521 | Alcoa, Inc. | 5,606 | |||||
| 72 | Cliffs Natural Resources, Inc. | 4,912 | |||||
| 575 | Dow Chemical Co./The | 16,031 | |||||
| 457 | E.I. du Pont de Nemours & Co. | 21,968 | |||||
| 114 | Ecolab, Inc. | 6,138 | |||||
| 461 | Freeport-McMoRan Copper & Gold, Inc. | 18,560 | |||||
| 198 | International Paper Co. | 5,484 | |||||
| 262 | Monsanto Co. | 19,060 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Large Cap Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 135 | Mosaic Co./The | $ | 7,906 | ||||
| 237 | Newmont Mining Corp. | 15,839 | |||||
| 140 | Nucor Corp. | 5,289 | |||||
| 78 | PPG Industries, Inc. | 6,740 | |||||
| 149 | Praxair, Inc. | 15,149 | |||||
| 157,037 | |||||||
| Telecommunication Services - 3.4% | |||||||
| 195 | American Tower Corp., Class A* | 10,745 | |||||
| 2,915 | AT&T, Inc. | 85,439 | |||||
| 301 | CenturyLink, Inc. | 10,613 | |||||
| 1,467 | Sprint Nextel Corp.* | 3,770 | |||||
| 1,386 | Verizon Communications, Inc. | 51,254 | |||||
| 161,821 | |||||||
| Utilities - 3.1% | |||||||
| 236 | American Electric Power Co., Inc. | 9,270 | |||||
| 142 | Consolidated Edison, Inc. | 8,218 | |||||
| 279 | Dominion Resources, Inc. | 14,394 | |||||
| 647 | Duke Energy Corp. | 13,212 | |||||
| 147 | Edison International | 5,968 | |||||
| 87 | Entergy Corp. | 6,018 | |||||
| 324 | Exelon Corp. | 14,382 | |||||
| 205 | FirstEnergy Corp. | 9,217 | |||||
| 206 | NextEra Energy, Inc. | 11,618 | |||||
| 197 | PG&E Corp. | 8,451 | |||||
| 283 | PPL Corp. | 8,312 | |||||
| 143 | Progress Energy, Inc. | 7,450 | |||||
| 249 | Public Service Enterprise Group, Inc. | 8,391 | |||||
| 109 | Sempra Energy | 5,857 | |||||
| 421 | Southern Co. | 18,187 | |||||
| 148,945 | |||||||
| Total Common Stocks | |||||||
| (Cost $4,995,373) | 4,817,021 | ||||||
| Total Investment Securities | |||||||
| (Cost $4,995,373) — 100.0% | 4,817,021 | ||||||
| Other assets less liabilities — 0.0%† | 2,025 | ||||||
| Net Assets — 100.0% | $ | 4,819,046 | |||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
| REIT | Real Estate Investment Trust |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| Aggregate gross unrealized appreciation | $ | 221,270 | ||
| Aggregate gross unrealized depreciation | (402,865 | ) | ||
| Net unrealized depreciation | $ | (181,595 | ) | |
| Federal income tax cost of investments | $ | 4,998,616 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Mid Cap Index ETF
Schedule of Portfolio Investments
October 31, 2011
| Shares | Value | ||||||
Common Stocks - 100.0% | |||||||
| Consumer Discretionary - 17.0% | |||||||
| 158 | Abercrombie & Fitch Co., Class A | $ | 11,755 | ||||
| 132 | Advance Auto Parts, Inc. | 8,589 | |||||
| 350 | American Eagle Outfitters, Inc. | 4,596 | |||||
| 220 | Apollo Group, Inc., Class A* | 10,417 | |||||
| 81 | AutoNation, Inc.* | 3,154 | |||||
| 135 | Big Lots, Inc.* | 5,088 | |||||
| 196 | BorgWarner, Inc.* | 14,992 | |||||
| 413 | Cablevision Systems Corp., Class A | 5,976 | |||||
| 404 | CarMax, Inc.* | 12,144 | |||||
| 69 | Charter Communications, Inc., Class A* | 3,170 | |||||
| 56 | Chipotle Mexican Grill, Inc.* | 18,823 | |||||
| 73 | Clear Channel Outdoor Holdings, Inc., Class A* | 803 | |||||
| 496 | D.R. Horton, Inc. | 5,520 | |||||
| 241 | Darden Restaurants, Inc. | 11,539 | |||||
| 69 | Deckers Outdoor Corp.* | 7,952 | |||||
| 107 | DeVry, Inc. | 4,032 | |||||
| 171 | Dick's Sporting Goods, Inc.* | 6,684 | |||||
| 252 | Discovery Communications, Inc., Class A* | 10,952 | |||||
| 226 | Discovery Communications, Inc., Class C* | 8,943 | |||||
| 371 | DISH Network Corp., Class A* | 8,967 | |||||
| 177 | Dollar General Corp.* | 7,020 | |||||
| 218 | Dollar Tree, Inc.* | 17,431 | |||||
| 39 | Dunkin' Brands Group, Inc.* | 1,135 | |||||
| 358 | Expedia, Inc. | 9,401 | |||||
| 203 | Family Dollar Stores, Inc. | 11,902 | |||||
| 277 | Foot Locker, Inc. | 6,055 | |||||
| 95 | Fossil, Inc.* | 9,848 | |||||
| 252 | GameStop Corp., Class A* | 6,444 | |||||
| 430 | Gannett Co., Inc. | 5,027 | |||||
| 206 | Garmin Ltd. | 7,084 | |||||
| 255 | Gentex Corp. | 7,681 | |||||
| 282 | Genuine Parts Co. | 16,195 | |||||
| 437 | Goodyear Tire & Rubber Co./The* | 6,275 | |||||
| 115 | Guess?, Inc. | 3,794 | |||||
| 546 | H&R Block, Inc. | 8,348 | |||||
| 172 | Hanesbrands, Inc.* | 4,536 | |||||
| 423 | Harley-Davidson, Inc. | 16,455 | |||||
| 124 | Harman International Industries, Inc. | 5,352 | |||||
| 216 | Hasbro, Inc. | 8,221 | |||||
| 14 | HomeAway, Inc.* | 463 | |||||
| 71 | Hyatt Hotels Corp., Class A* | 2,641 | |||||
| 536 | International Game Technology | 9,428 | |||||
| 856 | Interpublic Group of Cos., Inc./The | 8,115 | |||||
| 267 | J.C. Penney Co., Inc. | 8,565 | |||||
| 165 | Jarden Corp. | 5,285 | |||||
| 92 | John Wiley & Sons, Inc., Class A | 4,376 | |||||
| 104 | Lamar Advertising Co., Class A* | 2,339 | |||||
| 186 | Lear Corp. | 8,725 | |||||
| 256 | Leggett & Platt, Inc. | 5,606 | |||||
| 278 | Lennar Corp., Class A | 4,598 | |||||
| 223 | Liberty Global, Inc.* | 8,557 | |||||
| 255 | Liberty Global, Inc., Class A* | 10,246 | |||||
| 1,024 | Liberty Interactive Corp., Class A* | 16,824 | |||||
| 123 | Liberty Media Corp. - Liberty Capital* | 9,449 | |||||
| 88 | Liberty Media Corp. - Liberty Starz* | 6,010 | |||||
| 261 | LKQ Corp.* | 7,616 | |||||
| 762 | Macy's, Inc. | 23,264 | |||||
| 613 | Mattel, Inc. | 17,311 | |||||
| 577 | MGM Resorts International* | 6,647 | |||||
| 99 | Mohawk Industries, Inc.* | 5,212 | |||||
| 46 | Morningstar, Inc. | 2,713 | |||||
| 93 | Netflix, Inc.* | 7,633 | |||||
| 525 | Newell Rubbermaid, Inc. | 7,770 | |||||
| 304 | Nordstrom, Inc. | 15,410 | |||||
| 10 | NVR, Inc.* | 6,428 | |||||
| 243 | O'Reilly Automotive, Inc.* | 18,480 | |||||
| 52 | Panera Bread Co., Class A* | 6,952 | |||||
| 121 | Penn National Gaming, Inc.* | 4,356 | |||||
| 203 | PetSmart, Inc. | 9,531 | |||||
| 114 | Polaris Industries, Inc. | 7,221 | |||||
| 603 | Pulte Group, Inc.* | 3,124 | |||||
| 110 | PVH Corp. | 8,185 | |||||
| 210 | Ross Stores, Inc. | 18,423 | |||||
| 245 | Royal Caribbean Cruises Ltd. | 7,281 | |||||
| 157 | Scripps Networks Interactive, Inc., Class A | 6,669 | |||||
| 83 | Sears Holdings Corp.* | 6,489 | |||||
| 7,019 | Sirius XM Radio, Inc.* | 12,564 | |||||
| 120 | Sotheby's | 4,225 | |||||
| 349 | Starwood Hotels & Resorts Worldwide, Inc. | 17,488 | |||||
| 120 | Tempur-Pedic International, Inc.* | 8,167 | |||||
| 228 | Tiffany & Co. | 18,179 | |||||
| 268 | Toll Brothers, Inc.* | 4,674 | |||||
| 128 | Tractor Supply Co. | 9,080 | |||||
| 186 | TRW Automotive Holdings Corp.* | 7,831 | |||||
| 108 | Tupperware Brands Corp. | 6,106 | |||||
| 88 | Ulta Salon Cosmetics & Fragrance, Inc.* | 5,922 | |||||
| 70 | Under Armour, Inc., Class A* | 5,909 | |||||
| 226 | Urban Outfitters, Inc.* | 6,159 | |||||
| 155 | VF Corp. | 21,424 | |||||
| 77 | Warnaco Group, Inc./The* | 3,781 | |||||
| 9 | Washington Post Co./The, Class B | 3,061 | |||||
| 54 | Weight Watchers International, Inc. | 4,030 | |||||
| 136 | Whirlpool Corp. | 6,910 | |||||
| 169 | Williams-Sonoma, Inc. | 6,344 | |||||
| 293 | Wyndham Worldwide Corp. | 9,865 | |||||
| 791,961 | |||||||
| Consumer Staples - 6.7% | |||||||
| 275 | Beam, Inc. | 13,593 | |||||
| 158 | Brown-Forman Corp., Class B | 11,807 | |||||
| 263 | Bunge Ltd. | 16,246 | |||||
| 355 | Campbell Soup Co. | 11,804 | |||||
| 256 | Church & Dwight Co., Inc. | 11,310 | |||||
| 238 | Clorox Co./The | 15,932 | |||||
| 570 | Coca-Cola Enterprises, Inc. | 15,287 | |||||
| 741 | ConAgra Foods, Inc. | 18,770 | |||||
| 335 | Constellation Brands, Inc., Class A* | 6,774 | |||||
| 137 | Corn Products International, Inc. | 6,644 | |||||
| 388 | Dr. Pepper Snapple Group, Inc. | 14,531 | |||||
| 124 | Energizer Holdings, Inc.* | 9,150 | |||||
| 216 | Green Mountain Coffee Roasters, Inc.* | 14,044 | |||||
| 126 | Hansen Natural Corp.* | 11,225 | |||||
| 212 | Herbalife Ltd. | 13,220 | |||||
| 258 | Hormel Foods Corp. | 7,603 | |||||
| 204 | J.M. Smucker Co./The | 15,712 | |||||
| 214 | McCormick & Co., Inc. | 10,392 | |||||
| 285 | Molson Coors Brewing Co., Class B | 12,067 | |||||
| 98 | Ralcorp Holdings, Inc.* | 7,922 | |||||
| 626 | Safeway, Inc. | 12,126 | |||||
| 990 | Sara Lee Corp. | 17,622 | |||||
| 277 | Smithfield Foods, Inc.* | 6,332 | |||||
| 550 | Tyson Foods, Inc., Class A | 10,615 | |||||
| 280 | Whole Foods Market, Inc. | 20,194 | |||||
| 310,922 | |||||||
| Energy - 7.8% | |||||||
| 402 | Alpha Natural Resources, Inc.* | 9,664 | |||||
| 381 | Arch Coal, Inc. | 6,942 | |||||
| 208 | Brigham Exploration Co.* | 7,574 | |||||
| 186 | Cabot Oil & Gas Corp. | 14,456 | |||||
| 36 | CARBO Ceramics, Inc. | 4,891 | |||||
| 153 | Cimarex Energy Co. | 9,792 | |||||
| 185 | Concho Resources, Inc.* | 17,523 | |||||
| 404 | Consol Energy, Inc. | 17,275 | |||||
| 103 | Continental Resources, Inc.* | 6,247 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Mid Cap Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 720 | Denbury Resources, Inc.* | $ | 11,304 | ||||
| 117 | Diamond Offshore Drilling, Inc. | 7,668 | |||||
| 144 | Dresser-Rand Group, Inc.* | 6,969 | |||||
| 65 | Dril-Quip, Inc.* | 4,231 | |||||
| 129 | Energen Corp. | 6,329 | |||||
| 267 | EQT Corp. | 16,955 | |||||
| 272 | EXCO Resources, Inc. | 3,430 | |||||
| 429 | FMC Technologies, Inc.* | 19,228 | |||||
| 203 | Forest Oil Corp.* | 2,367 | |||||
| 176 | Helmerich & Payne, Inc. | 9,360 | |||||
| 347 | HollyFrontier Corp. | 10,649 | |||||
| 418 | McDermott International, Inc.* | 4,590 | |||||
| 514 | Nabors Industries Ltd.* | 9,422 | |||||
| 239 | Newfield Exploration Co.* | 9,622 | |||||
| 194 | Oceaneering International, Inc. | 8,115 | |||||
| 92 | Oil States International, Inc.* | 6,404 | |||||
| 277 | Patterson-UTI Energy, Inc. | 5,629 | |||||
| 208 | Pioneer Natural Resources Co. | 17,451 | |||||
| 252 | Plains Exploration & Production Co.* | 7,938 | |||||
| 316 | QEP Resources, Inc. | 11,234 | |||||
| 288 | Range Resources Corp. | 19,826 | |||||
| 226 | Rowan Cos., Inc.* | 7,795 | |||||
| 88 | RPC, Inc. | 1,634 | |||||
| 687 | SandRidge Energy, Inc.* | 5,262 | |||||
| 114 | SM Energy Co. | 9,452 | |||||
| 208 | Southern Union Co. | 8,742 | |||||
| 216 | Sunoco, Inc. | 8,042 | |||||
| 256 | Tesoro Corp.* | 6,641 | |||||
| 92 | Tidewater, Inc. | 4,529 | |||||
| 272 | Ultra Petroleum Corp.* | 8,666 | |||||
| 209 | Whiting Petroleum Corp.* | 9,729 | |||||
| 363,577 | |||||||
| Financials - 17.2% | |||||||
| 93 | Affiliated Managers Group, Inc.* | 8,613 | |||||
| 111 | Alexandria Real Estate Equities, Inc. (REIT) | 7,336 | |||||
| 15 | Alleghany Corp.* | 4,760 | |||||
| 319 | American Capital Agency Corp. (REIT) | 8,776 | |||||
| 158 | American Financial Group, Inc./OH | 5,661 | |||||
| 216 | Apartment Investment & Management Co., Class A (REIT) | 5,329 | |||||
| 237 | Arch Capital Group Ltd.* | 8,525 | |||||
| 201 | Arthur J. Gallagher & Co. | 6,211 | |||||
| 169 | Assurant, Inc. | 6,513 | |||||
| 301 | Assured Guaranty Ltd. | 3,835 | |||||
| 168 | AvalonBay Communities, Inc. (REIT) | 22,460 | |||||
| 231 | Axis Capital Holdings Ltd. | 7,242 | |||||
| 48 | BOK Financial Corp. | 2,507 | |||||
| 134 | BRE Properties, Inc. (REIT) | 6,716 | |||||
| 208 | Brown & Brown, Inc. | 4,593 | |||||
| 127 | Camden Property Trust (REIT) | 7,701 | |||||
| 526 | CBRE Group, Inc.* | 9,352 | |||||
| 1,837 | Chimera Investment Corp. (REIT) | 5,529 | |||||
| 272 | Cincinnati Financial Corp. | 7,872 | |||||
| 358 | CIT Group, Inc.* | 12,476 | |||||
| 87 | City National Corp./CA | 3,691 | |||||
| 53 | CNA Financial Corp. | 1,410 | |||||
| 359 | Comerica, Inc. | 9,172 | |||||
| 139 | Commerce Bancshares, Inc./MO | 5,393 | |||||
| 103 | Cullen/Frost Bankers, Inc. | 5,051 | |||||
| 406 | DDR Corp. (REIT) | 5,201 | |||||
| 178 | Digital Realty Trust, Inc. (REIT) | 11,095 | |||||
| 451 | Duke Realty Corp. (REIT) | 5,538 | |||||
| 465 | E*Trade Financial Corp.* | 5,045 | |||||
| 265 | East West Bancorp, Inc. | 5,160 | |||||
| 211 | Eaton Vance Corp. | 5,547 | |||||
| 49 | Erie Indemnity Co., Class A | 3,869 | |||||
| 60 | Essex Property Trust, Inc. (REIT) | 8,566 | |||||
| 80 | Everest Re Group Ltd. | 7,194 | |||||
| 111 | Federal Realty Investment Trust (REIT) | 9,852 | |||||
| 187 | Federated Investors, Inc., Class B | 3,654 | |||||
| 399 | Fidelity National Financial, Inc., Class A | 6,161 | |||||
| 1,640 | Fifth Third Bancorp | 19,696 | |||||
| 527 | First Niagara Financial Group, Inc. | 4,843 | |||||
| 874 | Genworth Financial, Inc., Class A* | 5,576 | |||||
| 197 | HCC Insurance Holdings, Inc. | 5,242 | |||||
| 316 | Health Care REIT, Inc. (REIT) | 16,650 | |||||
| 221 | Hospitality Properties Trust (REIT) | 5,311 | |||||
| 1,263 | Host Hotels & Resorts, Inc. (REIT) | 18,023 | |||||
| 872 | Hudson City Bancorp, Inc. | 5,450 | |||||
| 1,540 | Huntington Bancshares, Inc./OH | 7,977 | |||||
| 131 | IntercontinentalExchange, Inc.* | 17,014 | |||||
| 806 | Invesco Ltd. | 16,176 | |||||
| 260 | Jefferies Group, Inc. | 3,448 | |||||
| 78 | Jones Lang LaSalle, Inc. | 5,040 | |||||
| 1,701 | KeyCorp | 12,009 | |||||
| 727 | Kimco Realty Corp. (REIT) | 12,701 | |||||
| 245 | Legg Mason, Inc. | 6,738 | |||||
| 346 | Leucadia National Corp. | 9,283 | |||||
| 205 | Liberty Property Trust (REIT) | 6,560 | |||||
| 551 | Lincoln National Corp. | 10,497 | |||||
| 72 | LPL Investment Holdings, Inc.* | 2,089 | |||||
| 224 | M&T Bank Corp. | 17,049 | |||||
| 236 | Macerich Co./The (REIT) | 11,743 | |||||
| 156 | Mack-Cali Realty Corp. (REIT) | 4,377 | |||||
| 17 | Markel Corp.* | 6,570 | |||||
| 353 | Moody's Corp. | 12,528 | |||||
| 215 | MSCI, Inc., Class A* | 7,179 | |||||
| 249 | NASDAQ OMX Group, Inc./The* | 6,237 | |||||
| 779 | New York Community Bancorp, Inc. | 10,368 | |||||
| 469 | NYSE Euronext | 12,461 | |||||
| 436 | Old Republic International Corp. | 3,854 | |||||
| 121 | PartnerRe Ltd. | 7,529 | |||||
| 673 | People's United Financial, Inc. | 8,581 | |||||
| 309 | Piedmont Office Realty Trust, Inc., Class A (REIT) | 5,247 | |||||
| 291 | Plum Creek Timber Co., Inc. (REIT) | 10,959 | |||||
| 528 | Principal Financial Group, Inc. | 13,612 | |||||
| 821 | ProLogis, Inc. (REIT) | 24,433 | |||||
| 182 | Raymond James Financial, Inc. | 5,527 | |||||
| 218 | Rayonier, Inc. (REIT) | 9,097 | |||||
| 227 | Realty Income Corp. (REIT) | 7,584 | |||||
| 161 | Regency Centers Corp. (REIT) | 6,595 | |||||
| 2,246 | Regions Financial Corp. | 8,827 | |||||
| 132 | Reinsurance Group of America, Inc. | 6,894 | |||||
| 93 | RenaissanceRe Holdings Ltd. | 6,335 | |||||
| 267 | SEI Investments Co. | 4,323 | |||||
| 274 | Senior Housing Properties Trust (REIT) | 6,149 | |||||
| 153 | SL Green Realty Corp. (REIT) | 10,555 | |||||
| 920 | SLM Corp. | 12,576 | |||||
| 104 | Taubman Centers, Inc. (REIT) | 6,368 | |||||
| 166 | TFS Financial Corp.* | 1,529 | |||||
| 188 | Torchmark Corp. | 7,695 | |||||
| 112 | Transatlantic Holdings, Inc. | 5,828 | |||||
| 392 | UDR, Inc. (REIT) | 9,773 | |||||
| 543 | Unum Group | 12,945 | |||||
| 469 | Ventas, Inc. (REIT) | 26,081 | |||||
| 219 | W.R. Berkley Corp. | 7,623 | |||||
| 154 | Waddell & Reed Financial, Inc., Class A | 4,270 | |||||
| 216 | Weingarten Realty Investors (REIT) | 5,013 | |||||
| 12 | White Mountains Insurance Group Ltd. | 5,040 | |||||
| 533 | XL Group plc | 11,587 | |||||
| 327 | Zions Bancorp. | 5,677 | |||||
| 800,547 | |||||||
| Health Care - 9.7% | |||||||
| 154 | Alere, Inc.* | 4,013 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Mid Cap Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 330 | Alexion Pharmaceuticals, Inc.* | $ | 22,278 | ||||
| 333 | Allscripts Healthcare Solutions, Inc.* | 6,377 | |||||
| 89 | AMERIGROUP Corp.* | 4,951 | |||||
| 482 | AmerisourceBergen Corp. | 19,666 | |||||
| 35 | Bio-Rad Laboratories, Inc., Class A* | 3,484 | |||||
| 2,733 | Boston Scientific Corp.* | 16,097 | |||||
| 166 | Bruker Corp.* | 2,395 | |||||
| 154 | C.R. Bard, Inc. | 13,236 | |||||
| 400 | CareFusion Corp.* | 10,240 | |||||
| 256 | Cerner Corp.* | 16,238 | |||||
| 167 | Community Health Systems, Inc.* | 2,919 | |||||
| 84 | Cooper Cos., Inc./The | 5,821 | |||||
| 108 | Covance, Inc.* | 5,479 | |||||
| 265 | Coventry Health Care, Inc.* | 8,430 | |||||
| 167 | DaVita, Inc.* | 11,690 | |||||
| 253 | DENTSPLY International, Inc. | 9,351 | |||||
| 205 | Edwards Lifesciences Corp.* | 15,461 | |||||
| 208 | Endo Pharmaceuticals Holdings, Inc.* | 6,720 | |||||
| 457 | Forest Laboratories, Inc.* | 14,304 | |||||
| 86 | Gen-Probe, Inc.* | 5,169 | |||||
| 159 | Health Net, Inc.* | 4,419 | |||||
| 165 | Henry Schein, Inc.* | 11,438 | |||||
| 469 | Hologic, Inc.* | 7,560 | |||||
| 295 | Hospira, Inc.* | 9,278 | |||||
| 341 | Human Genome Sciences, Inc.* | 3,499 | |||||
| 102 | IDEXX Laboratories, Inc.* | 7,343 | |||||
| 222 | Illumina, Inc.* | 6,798 | |||||
| 114 | Kinetic Concepts, Inc.* | 7,796 | |||||
| 181 | Laboratory Corp of America Holdings* | 15,177 | |||||
| 322 | Life Technologies Corp.* | 13,096 | |||||
| 167 | Lincare Holdings, Inc. | 3,933 | |||||
| 87 | Mednax, Inc.* | 5,725 | |||||
| 57 | Mettler-Toledo International, Inc.* | 8,755 | |||||
| 762 | Mylan, Inc.* | 14,912 | |||||
| 208 | Omnicare, Inc. | 6,203 | |||||
| 177 | Patterson Cos., Inc. | 5,570 | |||||
| 203 | PerkinElmer, Inc. | 4,196 | |||||
| 149 | Perrigo Co. | 13,452 | |||||
| 189 | Pharmaceutical Product Development, Inc. | 6,235 | |||||
| 281 | Quest Diagnostics, Inc. | 15,680 | |||||
| 273 | ResMed, Inc.* | 7,726 | |||||
| 100 | Sirona Dental Systems, Inc.* | 4,790 | |||||
| 847 | Tenet Healthcare Corp.* | 4,006 | |||||
| 91 | United Therapeutics Corp.* | 3,979 | |||||
| 160 | Universal Health Services, Inc., Class B | 6,395 | |||||
| 210 | Varian Medical Systems, Inc.* | 12,331 | |||||
| 313 | Warner Chilcott plc, Class A* | 5,672 | |||||
| 163 | Waters Corp.* | 13,060 | |||||
| 240 | Watson Pharmaceuticals, Inc.* | 16,118 | |||||
| 449,461 | |||||||
| Industrials - 12.4% | |||||||
| 185 | AECOM Technology Corp.* | 3,870 | |||||
| 173 | AGCO Corp.* | 7,583 | |||||
| 288 | AMETEK, Inc. | 11,382 | |||||
| 191 | Avery Dennison Corp. | 5,081 | |||||
| 209 | Babcock & Wilcox Co./The* | 4,596 | |||||
| 172 | BE Aerospace, Inc.* | 6,490 | |||||
| 202 | Cintas Corp. | 6,038 | |||||
| 110 | Copart, Inc.* | 4,791 | |||||
| 192 | Corrections Corp. of America* | 4,268 | |||||
| 1,512 | Delta Air Lines, Inc.* | 12,882 | |||||
| 128 | Donaldson Co., Inc. | 8,198 | |||||
| 88 | Dun & Bradstreet Corp./The | 5,884 | |||||
| 221 | Equifax, Inc. | 7,768 | |||||
| 381 | Expeditors International of Washington, Inc. | 17,374 | |||||
| 527 | Fastenal Co. | 20,074 | |||||
| 100 | Flowserve Corp. | 9,269 | |||||
| 311 | Fluor Corp. | 17,680 | |||||
| 93 | Gardner Denver, Inc. | 7,192 | |||||
| 223 | Goodrich Corp. | 27,347 | |||||
| 109 | Graco, Inc. | 4,680 | |||||
| 423 | Hertz Global Holdings, Inc.* | 4,907 | |||||
| 94 | Hubbell, Inc., Class B | 5,620 | |||||
| 149 | IDEX Corp. | 5,282 | |||||
| 84 | IHS, Inc., Class A* | 7,055 | |||||
| 332 | Iron Mountain, Inc. | 10,269 | |||||
| 331 | ITT Corp.* | 15,094 | |||||
| 180 | J.B. Hunt Transport Services, Inc. | 7,616 | |||||
| 228 | Jacobs Engineering Group, Inc.* | 8,846 | |||||
| 187 | Joy Global, Inc. | 16,306 | |||||
| 196 | Kansas City Southern* | 12,381 | |||||
| 270 | KBR, Inc. | 7,536 | |||||
| 147 | Kennametal, Inc. | 5,717 | |||||
| 100 | Kirby Corp.* | 6,154 | |||||
| 190 | L-3 Communications Holdings, Inc. | 12,878 | |||||
| 151 | Lincoln Electric Holdings, Inc. | 5,496 | |||||
| 146 | Manpower, Inc. | 6,298 | |||||
| 643 | Masco Corp. | 6,173 | |||||
| 85 | MSC Industrial Direct Co., Class A | 5,781 | |||||
| 130 | Navistar International Corp.* | 5,469 | |||||
| 111 | Nordson Corp. | 5,147 | |||||
| 162 | Oshkosh Corp.* | 3,379 | |||||
| 210 | Owens Corning* | 5,960 | |||||
| 207 | Pall Corp. | 10,592 | |||||
| 176 | Pentair, Inc. | 6,327 | |||||
| 335 | Pitney Bowes, Inc. | 6,827 | |||||
| 371 | Quanta Services, Inc.* | 7,750 | |||||
| 336 | R.R. Donnelley & Sons Co. | 5,477 | |||||
| 259 | Robert Half International, Inc. | 6,845 | |||||
| 277 | Rockwell Collins, Inc. | 15,465 | |||||
| 134 | Rollins, Inc. | 2,919 | |||||
| 171 | Roper Industries, Inc. | 13,868 | |||||
| 129 | Shaw Group, Inc./The* | 3,000 | |||||
| 104 | Snap-on, Inc. | 5,582 | |||||
| 1,438 | Southwest Airlines Co. | 12,295 | |||||
| 210 | Spirit AeroSystems Holdings, Inc., Class A* | 3,585 | |||||
| 91 | SPX Corp. | 4,970 | |||||
| 154 | Stericycle, Inc.* | 12,871 | |||||
| 196 | Terex Corp.* | 3,261 | |||||
| 494 | Textron, Inc. | 9,593 | |||||
| 94 | Thomas & Betts Corp.* | 4,671 | |||||
| 141 | Timken Co. | 5,939 | |||||
| 97 | Towers Watson & Co., Class A | 6,373 | |||||
| 81 | TransDigm Group, Inc.* | 7,608 | |||||
| 591 | United Continental Holdings, Inc.* | 11,418 | |||||
| 142 | URS Corp.* | 5,069 | |||||
| 225 | Verisk Analytics, Inc., Class A* | 7,909 | |||||
| 105 | W.W. Grainger, Inc. | 17,988 | |||||
| 121 | WABCO Holdings, Inc.* | 6,075 | |||||
| 86 | Wabtec Corp. | 5,777 | |||||
| 203 | Waste Connections, Inc. | 6,912 | |||||
| 578,777 | |||||||
| Information Technology - 15.0% | |||||||
| 98 | Acme Packet, Inc.* | 3,549 | |||||
| 1,025 | Advanced Micro Devices, Inc.* | 5,976 | |||||
| 330 | Akamai Technologies, Inc.* | 8,890 | |||||
| 91 | Alliance Data Systems Corp.* | 9,322 | |||||
| 345 | Amdocs Ltd.* | 10,357 | |||||
| 304 | Amphenol Corp., Class A | 14,437 | |||||
| 532 | Analog Devices, Inc. | 19,455 | |||||
| 165 | ANSYS, Inc.* | 8,969 | |||||
| 208 | Arrow Electronics, Inc.* | 7,498 | |||||
| 160 | Aruba Networks, Inc.* | 3,790 | |||||
| 774 | Atmel Corp.* | 8,173 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Mid Cap Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 410 | Autodesk, Inc.* | $ | 14,186 | ||||
| 273 | Avnet, Inc.* | 8,275 | |||||
| 92 | AVX Corp. | 1,234 | |||||
| 314 | BMC Software, Inc.* | 10,915 | |||||
| 221 | Broadridge Financial Solutions, Inc. | 4,917 | |||||
| 815 | Brocade Communications Systems, Inc.* | 3,570 | |||||
| 275 | Computer Sciences Corp. | 8,652 | |||||
| 84 | Concur Technologies, Inc.* | 3,908 | |||||
| 196 | Cree, Inc.* | 5,221 | |||||
| 308 | Cypress Semiconductor Corp.* | 5,886 | |||||
| 95 | Dolby Laboratories, Inc., Class A* | 2,778 | |||||
| 69 | EchoStar Corp., Class A* | 1,819 | |||||
| 598 | Electronic Arts, Inc.* | 13,963 | |||||
| 84 | Equinix, Inc.* | 8,065 | |||||
| 144 | F5 Networks, Inc.* | 14,969 | |||||
| 75 | Factset Research Systems, Inc. | 7,457 | |||||
| 466 | Fidelity National Information Services, Inc. | 12,200 | |||||
| 253 | Fiserv, Inc.* | 14,894 | |||||
| 286 | FLIR Systems, Inc. | 7,522 | |||||
| 215 | Fortinet, Inc.* | 4,958 | |||||
| 159 | Gartner, Inc.* | 6,125 | |||||
| 189 | Genpact Ltd.* | 3,052 | |||||
| 143 | Global Payments, Inc. | 6,567 | |||||
| 227 | Harris Corp. | 8,569 | |||||
| 132 | IAC/InterActiveCorp* | 5,390 | |||||
| 189 | Informatica Corp.* | 8,600 | |||||
| 280 | Ingram Micro, Inc., Class A* | 5,006 | |||||
| 48 | IPG Photonics Corp.* | 2,537 | |||||
| 359 | Jabil Circuit, Inc. | 7,381 | |||||
| 399 | JDS Uniphase Corp.* | 4,788 | |||||
| 300 | KLA-Tencor Corp. | 14,127 | |||||
| 223 | Lam Research Corp.* | 9,587 | |||||
| 378 | Linear Technology Corp. | 12,213 | |||||
| 1,025 | LSI Corp.* | 6,406 | |||||
| 919 | Marvell Technology Group Ltd.* | 12,857 | |||||
| 527 | Maxim Integrated Products, Inc. | 13,786 | |||||
| 341 | Microchip Technology, Inc. | 12,331 | |||||
| 1,547 | Micron Technology, Inc.* | 8,648 | |||||
| 144 | MICROS Systems, Inc.* | 7,088 | |||||
| 115 | Molex, Inc. | 2,839 | |||||
| 143 | Molex, Inc., Class A | 2,917 | |||||
| 166 | National Instruments Corp. | 4,434 | |||||
| 281 | NCR Corp.* | 5,350 | |||||
| 125 | Novellus Systems, Inc.* | 4,319 | |||||
| 411 | Nuance Communications, Inc.* | 10,883 | |||||
| 1,064 | NVIDIA Corp.* | 15,747 | |||||
| 794 | ON Semiconductor Corp.* | 6,011 | |||||
| 211 | Parametric Technology Corp.* | 4,395 | |||||
| 580 | Paychex, Inc. | 16,901 | |||||
| 316 | Polycom, Inc.* | 5,223 | |||||
| 193 | Rackspace Hosting, Inc.* | 7,988 | |||||
| 345 | Red Hat, Inc.* | 17,129 | |||||
| 278 | Riverbed Technology, Inc.* | 7,667 | |||||
| 199 | Rovi Corp.* | 9,858 | |||||
| 632 | SAIC, Inc.* | 7,856 | |||||
| 426 | SanDisk Corp.* | 21,585 | |||||
| 750 | Seagate Technology plc | 12,113 | |||||
| 332 | Skyworks Solutions, Inc.* | 6,577 | |||||
| 126 | Solera Holdings, Inc. | 6,883 | |||||
| 262 | Synopsys, Inc.* | 7,024 | |||||
| 301 | Teradata Corp.* | 17,958 | |||||
| 298 | TIBCO Software, Inc.* | 8,609 | |||||
| 348 | Total System Services, Inc. | 6,922 | |||||
| 219 | Trimble Navigation Ltd.* | 8,850 | |||||
| 133 | Varian Semiconductor Equipment Associates, Inc.* | 8,348 | |||||
| 186 | VeriFone Systems, Inc.* | 7,851 | |||||
| 298 | VeriSign, Inc. | 9,563 | |||||
| 257 | Vishay Intertechnology, Inc.* | 2,763 | |||||
| 106 | WebMD Health Corp.* | 3,811 | |||||
| 416 | Western Digital Corp.* | 11,082 | |||||
| 474 | Xilinx, Inc. | 15,860 | |||||
| 696,179 | |||||||
| Materials - 6.4% | |||||||
| 117 | Airgas, Inc. | 8,067 | |||||
| 163 | Albemarle Corp. | 8,686 | |||||
| 190 | Allegheny Technologies, Inc. | 8,816 | |||||
| 146 | Allied Nevada Gold Corp.* | 5,545 | |||||
| 111 | Aptargroup, Inc. | 5,325 | |||||
| 127 | Ashland, Inc. | 6,726 | |||||
| 293 | Ball Corp. | 10,129 | |||||
| 185 | Bemis Co., Inc. | 5,200 | |||||
| 280 | Celanese Corp. | 12,194 | |||||
| 127 | CF Industries Holdings, Inc. | 20,608 | |||||
| 59 | Compass Minerals International, Inc. | 4,488 | |||||
| 270 | Crown Holdings, Inc.* | 9,123 | |||||
| 70 | Domtar Corp. | 5,734 | |||||
| 236 | Eastman Chemical Co. | 9,272 | |||||
| 128 | FMC Corp. | 10,098 | |||||
| 44 | Greif, Inc., Class A | 1,970 | |||||
| 350 | Huntsman Corp. | 4,109 | |||||
| 144 | International Flavors & Fragrances, Inc. | 8,721 | |||||
| 35 | Kronos Worldwide, Inc. | 777 | |||||
| 81 | Martin Marietta Materials, Inc. | 5,846 | |||||
| 305 | MeadWestvaco Corp. | 8,513 | |||||
| 110 | Molycorp, Inc.* | 4,210 | |||||
| 246 | Nalco Holding Co. | 9,277 | |||||
| 295 | Owens-Illinois, Inc.* | 5,924 | |||||
| 183 | Packaging Corp. of America | 4,773 | |||||
| 133 | Reliance Steel & Aluminum Co. | 5,877 | |||||
| 123 | Rockwood Holdings, Inc.* | 5,663 | |||||
| 97 | Royal Gold, Inc. | 6,943 | |||||
| 235 | RPM International, Inc. | 5,280 | |||||
| 76 | Scotts Miracle-Gro Co./The, Class A | 3,687 | |||||
| 343 | Sealed Air Corp. | 6,105 | |||||
| 160 | Sherwin-Williams Co./The | 13,234 | |||||
| 187 | Sigma-Aldrich Corp. | 12,245 | |||||
| 84 | Silgan Holdings, Inc. | 3,153 | |||||
| 217 | Solutia, Inc.* | 3,526 | |||||
| 179 | Sonoco Products Co. | 5,619 | |||||
| 390 | Steel Dynamics, Inc. | 4,871 | |||||
| 150 | Titanium Metals Corp. | 2,512 | |||||
| 256 | United States Steel Corp. | 6,492 | |||||
| 155 | Valspar Corp. | 5,405 | |||||
| 209 | Vulcan Materials Co. | 6,540 | |||||
| 110 | W.R. Grace & Co.* | 4,597 | |||||
| 111 | Walter Energy, Inc. | 8,397 | |||||
| 35 | Westlake Chemical Corp. | 1,442 | |||||
| 295,719 | |||||||
| Telecommunication Services - 0.9% | |||||||
| 1,784 | Frontier Communications Corp. | 11,168 | |||||
| 571 | MetroPCS Communications, Inc.* | 4,854 | |||||
| 306 | NII Holdings, Inc.* | 7,200 | |||||
| 165 | Telephone & Data Systems, Inc. | 3,655 | |||||
| 271 | tw telecom, inc.* | 5,014 | |||||
| 27 | United States Cellular Corp.* | 1,076 | |||||
| 912 | Windstream Corp. | 11,099 | |||||
| 44,066 | |||||||
| Utilities - 6.9% | |||||||
| 1,399 | AES Corp./The* | 15,697 | |||||
| 140 | AGL Resources, Inc. | 5,872 | |||||
| 197 | Alliant Energy Corp. | 8,034 | |||||
| 429 | Ameren Corp. | 13,676 | |||||
| 312 | American Water Works Co., Inc. | 9,525 | |||||
| 248 | Aqua America, Inc. | 5,503 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Mid Cap Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 161 | Atmos Energy Corp. | $ | 5,526 | ||||
| 649 | Calpine Corp.* | 9,845 | |||||
| 706 | CenterPoint Energy, Inc. | 14,713 | |||||
| 451 | CMS Energy Corp. | 9,390 | |||||
| 322 | Constellation Energy Group, Inc. | 12,783 | |||||
| 210 | DPL, Inc. | 6,373 | |||||
| 301 | DTE Energy Co. | 15,685 | |||||
| 242 | Great Plains Energy, Inc. | 5,019 | |||||
| 140 | Integrys Energy Group, Inc. | 7,407 | |||||
| 92 | ITC Holdings Corp. | 6,687 | |||||
| 311 | MDU Resources Group, Inc. | 6,410 | |||||
| 139 | National Fuel Gas Co. | 8,519 | |||||
| 502 | NiSource, Inc. | 11,089 | |||||
| 313 | Northeast Utilities | 10,820 | |||||
| 431 | NRG Energy, Inc.* | 9,232 | |||||
| 185 | NSTAR | 8,342 | |||||
| 418 | NV Energy, Inc. | 6,705 | |||||
| 174 | OGE Energy Corp. | 9,003 | |||||
| 173 | Oneok, Inc. | 13,157 | |||||
| 403 | Pepco Holdings, Inc. | 7,979 | |||||
| 194 | Pinnacle West Capital Corp. | 8,842 | |||||
| 317 | Questar Corp. | 6,109 | |||||
| 207 | SCANA Corp. | 8,752 | |||||
| 361 | TECO Energy, Inc. | 6,704 | |||||
| 200 | UGI Corp. | 5,734 | |||||
| 207 | Westar Energy, Inc. | 5,643 | |||||
| 418 | Wisconsin Energy Corp. | 13,556 | |||||
| 866 | Xcel Energy, Inc. | 22,386 | |||||
| 320,717 | |||||||
| Total Common Stocks | |||||||
| (Cost $4,988,403) | 4,651,926 | ||||||
| Money Market Fund - 0.0%† | |||||||
| 1,221 | JPMorgan U.S. Government Money Market Premier, 0.01% (Cost $1,221) | 1,221 | |||||
| Total Investment Securities | |||||||
| (Cost $4,989,624) — 100.0% | 4,653,147 | ||||||
| Other assets less liabilities — 0.0%† | 354 | ||||||
| Net Assets — 100.0% | $ | 4,653,501 | |||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
| REIT | Real Estate Investment Trust |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| Aggregate gross unrealized appreciation | $ | 234,753 | ||
| Aggregate gross unrealized depreciation | (578,960 | ) | ||
| Net unrealized depreciation | $ | (344,207 | ) | |
| Federal income tax cost of investments | $ | 4,997,354 | ||
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Small Cap Index ETF
Schedule of Portfolio Investments
October 31, 2011
| Shares | Value | ||||||
Common Stocks - 100.0% | |||||||
| Consumer Discretionary - 13.0% | |||||||
| 276 | 99 Cents Only Stores* | $ | 6,017 | ||||
| 360 | Aaron's, Inc. | 9,634 | |||||
| 410 | Aeropostale, Inc.* | 5,601 | |||||
| 192 | American Greetings Corp., Class A | 3,074 | |||||
| 166 | Ameristar Casinos, Inc. | 3,071 | |||||
| 263 | Ann, Inc.* | 7,006 | |||||
| 138 | Arbitron, Inc. | 5,483 | |||||
| 324 | Ascena Retail Group, Inc.* | 9,364 | |||||
| 270 | Bally Technologies, Inc.* | 9,793 | |||||
| 119 | BJ's Restaurants, Inc.* | 6,299 | |||||
| 154 | Bob Evans Farms, Inc. | 5,067 | |||||
| 94 | Bridgepoint Education, Inc.* | 2,037 | |||||
| 431 | Brinker International, Inc. | 9,870 | |||||
| 450 | Brunswick Corp. | 7,947 | |||||
| 138 | Buckle, Inc./The | 6,149 | |||||
| 93 | Buffalo Wild Wings, Inc.* | 6,158 | |||||
| 249 | Cabela's, Inc.* | 6,205 | |||||
| 68 | Capella Education Co.* | 2,367 | |||||
| 311 | Career Education Corp.* | 5,016 | |||||
| 257 | Carter's, Inc.* | 9,789 | |||||
| 273 | Cheesecake Factory, Inc./The* | 7,641 | |||||
| 895 | Chico's FAS, Inc. | 11,062 | |||||
| 132 | Childrens Place Retail Stores, Inc./The* | 6,197 | |||||
| 165 | Choice Hotels International, Inc. | 5,905 | |||||
| 446 | Cinemark Holdings, Inc. | 9,219 | |||||
| 156 | Coinstar, Inc.* | 7,447 | |||||
| 313 | Collective Brands, Inc.* | 4,573 | |||||
| 75 | Columbia Sportswear Co. | 4,031 | |||||
| 316 | Cooper Tire & Rubber Co. | 4,528 | |||||
| 117 | Cracker Barrel Old Country Store, Inc. | 4,960 | |||||
| 454 | Crocs, Inc.* | 8,022 | |||||
| 125 | DG FastChannel, Inc.* | 2,330 | |||||
| 189 | Dillard's, Inc., Class A | 9,739 | |||||
| 83 | DineEquity, Inc.* | 3,898 | |||||
| 293 | Domino's Pizza, Inc.* | 9,385 | |||||
| 347 | DreamWorks Animation SKG, Inc., Class A* | 6,437 | |||||
| 126 | DSW, Inc., Class A | 6,595 | |||||
| 142 | Education Management Corp.* | 2,820 | |||||
| 288 | Express, Inc. | 6,506 | |||||
| 127 | Federal-Mogul Corp.* | 2,141 | |||||
| 267 | Finish Line, Inc./The, Class A | 5,367 | |||||
| 214 | Gaylord Entertainment Co.* | 5,005 | |||||
| 121 | Genesco, Inc.* | 7,132 | |||||
| 120 | Group 1 Automotive, Inc. | 5,467 | |||||
| 146 | Helen of Troy Ltd.* | 4,224 | |||||
| 139 | Hibbett Sports, Inc.* | 5,725 | |||||
| 318 | Hillenbrand, Inc. | 6,713 | |||||
| 210 | HSN, Inc. | 7,491 | |||||
| 372 | Iconix Brand Group, Inc.* | 6,677 | |||||
| 139 | International Speedway Corp., Class A | 3,317 | |||||
| 206 | Interval Leisure Group, Inc.* | 2,845 | |||||
| 137 | ITT Educational Services, Inc.* | 8,489 | |||||
| 252 | Jack in the Box, Inc.* | 5,186 | |||||
| 437 | Jones Group, Inc./The | 4,881 | |||||
| 139 | JoS. A. Bank Clothiers, Inc.* | 7,428 | |||||
| 181 | K12, Inc.* | 6,344 | |||||
| 339 | KB Home | 2,363 | |||||
| 204 | Life Time Fitness, Inc.* | 8,799 | |||||
| 314 | Madison Square Garden Co./The, Class A* | 8,299 | |||||
| 148 | Matthews International Corp., Class A | 5,201 | |||||
| 186 | MDC Holdings, Inc. | 4,166 | |||||
| 261 | Men's Wearhouse, Inc./The | 8,060 | |||||
| 185 | Meredith Corp. | 4,964 | |||||
| 155 | Monro Muffler Brake, Inc. | 5,749 | |||||
| 280 | National CineMedia, Inc. | 3,388 | |||||
| 654 | New York Times Co./The, Class A* | 4,983 | |||||
| 1,410 | Office Depot, Inc.* | 3,229 | |||||
| 437 | OfficeMax, Inc.* | 2,237 | |||||
| 479 | Orient-Express Hotels Ltd., Class A* | 4,086 | |||||
| 228 | Penske Automotive Group, Inc. | 4,649 | |||||
| 113 | PF Chang's China Bistro, Inc. | 3,514 | |||||
| 595 | Pier 1 Imports, Inc.* | 7,443 | |||||
| 315 | Pinnacle Entertainment, Inc.* | 3,566 | |||||
| 247 | Pool Corp. | 7,217 | |||||
| 507 | RadioShack Corp. | 6,038 | |||||
| 402 | Regal Entertainment Group, Class A | 5,805 | |||||
| 293 | Regis Corp. | 4,793 | |||||
| 313 | Rent-A-Center, Inc. | 10,689 | |||||
| 623 | Saks, Inc.* | 6,585 | |||||
| 489 | Sally Beauty Holdings, Inc.* | 9,384 | |||||
| 311 | Scientific Games Corp., Class A* | 2,703 | |||||
| 1,213 | Service Corp. International | 12,130 | |||||
| 278 | Six Flags Entertainment Corp. | 9,980 | |||||
| 196 | Skechers U.S.A., Inc., Class A* | 2,795 | |||||
| 198 | Steven Madden Ltd.* | 7,306 | |||||
| 61 | Strayer Education, Inc. | 5,198 | |||||
| 307 | Tenneco, Inc.* | 10,045 | |||||
| 323 | Texas Roadhouse, Inc. | 4,629 | |||||
| 241 | Thor Industries, Inc. | 6,372 | |||||
| 184 | Vail Resorts, Inc. | 8,199 | |||||
| 239 | Valassis Communications, Inc.* | 4,668 | |||||
| 119 | Vera Bradley, Inc.* | 5,391 | |||||
| 141 | Vitamin Shoppe, Inc.* | 5,317 | |||||
| 1,580 | Wendy's Co./The | 7,995 | |||||
| 291 | WMS Industries, Inc.* | 6,376 | |||||
| 250 | Wolverine World Wide, Inc. | 9,482 | |||||
| 142 | World Wrestling Entertainment, Inc., Class A | 1,492 | |||||
| 108 | Zumiez, Inc.* | 2,457 | |||||
| 589,416 | |||||||
| Consumer Staples - 3.7% | |||||||
| 46 | Boston Beer Co., Inc., Class A* | 4,070 | |||||
| 192 | Casey's General Stores, Inc. | 9,514 | |||||
| 593 | Darling International, Inc.* | 8,314 | |||||
| 933 | Dean Foods Co.* | 9,069 | |||||
| 111 | Diamond Foods, Inc. | 7,298 | |||||
| 184 | Dole Food Co., Inc.* | 1,947 | |||||
| 699 | Flowers Foods, Inc. | 14,113 | |||||
| 201 | Fresh Del Monte Produce, Inc. | 5,117 | |||||
| 185 | Hain Celestial Group, Inc./The* | 6,209 | |||||
| 71 | J&J Snack Foods Corp. | 3,661 | |||||
| 101 | Lancaster Colony Corp. | 6,718 | |||||
| 298 | Nu Skin Enterprises, Inc., Class A | 15,058 | |||||
| 241 | Pilgrim's Pride Corp.* | 1,215 | |||||
| 92 | Pricesmart, Inc. | 6,996 | |||||
| 218 | Ruddick Corp. | 9,529 | |||||
| 104 | Sanderson Farms, Inc. | 5,148 | |||||
| 317 | Snyders-Lance, Inc. | 6,727 | |||||
| 127 | Spectrum Brands Holdings, Inc.* | 3,223 | |||||
| 1,077 | SUPERVALU, Inc. | 8,637 | |||||
| 142 | Tootsie Roll Industries, Inc. | 3,517 | |||||
| 182 | TreeHouse Foods, Inc.* | 11,164 | |||||
| 246 | United Natural Foods, Inc.* | 8,981 | |||||
| 119 | Universal Corp. | 5,096 | |||||
| 202 | Vector Group Ltd. | 3,549 | |||||
| 57 | Weis Markets, Inc. | 2,254 | |||||
| 167,124 | |||||||
| Energy - 6.0% | |||||||
| 46 | Apco Oil and Gas International, Inc. | 3,818 | |||||
| 222 | ATP Oil & Gas Corp.* | 2,342 | |||||
| 286 | Atwood Oceanics, Inc.* | 12,224 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Small Cap Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 148 | Basic Energy Services, Inc.* | $ | 2,714 | ||||
| 263 | Berry Petroleum Co., Class A | 9,087 | |||||
| 219 | Bill Barrett Corp.* | 9,110 | |||||
| 176 | Bristow Group, Inc. | 8,761 | |||||
| 178 | Carrizo Oil & Gas, Inc.* | 4,842 | |||||
| 46 | Clayton Williams Energy, Inc.* | 3,006 | |||||
| 309 | Cloud Peak Energy, Inc.* | 7,091 | |||||
| 403 | Complete Production Services, Inc.* | 13,218 | |||||
| 242 | Comstock Resources, Inc.* | 4,414 | |||||
| 67 | Contango Oil & Gas Co.* | 4,311 | |||||
| 440 | CVR Energy, Inc.* | 10,894 | |||||
| 325 | Exterran Holdings, Inc.* | 3,087 | |||||
| 529 | Global Industries Ltd.* | 4,206 | |||||
| 135 | Gulfmark Offshore, Inc., Class A* | 5,615 | |||||
| 212 | Gulfport Energy Corp.* | 6,602 | |||||
| 511 | Helix Energy Solutions Group, Inc.* | 9,229 | |||||
| 602 | ION Geophysical Corp.* | 4,587 | |||||
| 726 | Key Energy Services, Inc.* | 9,387 | |||||
| 155 | Lufkin Industries, Inc. | 9,159 | |||||
| 321 | Northern Oil and Gas, Inc.* | 7,759 | |||||
| 356 | Oasis Petroleum, Inc.* | 10,445 | |||||
| 136 | Overseas Shipholding Group, Inc. | 1,697 | |||||
| 464 | Patriot Coal Corp.* | 5,828 | |||||
| 614 | Quicksilver Resources, Inc.* | 4,728 | |||||
| 259 | Resolute Energy Corp.* | 3,367 | |||||
| 269 | Rosetta Resources, Inc.* | 11,927 | |||||
| 110 | SEACOR Holdings, Inc. | 9,366 | |||||
| 218 | Ship Finance International Ltd. | 3,120 | |||||
| 249 | Stone Energy Corp.* | 6,048 | |||||
| 405 | Superior Energy Services, Inc.* | 11,389 | |||||
| 216 | Swift Energy Co.* | 6,614 | |||||
| 215 | Teekay Corp. | 5,538 | |||||
| 389 | TETRA Technologies, Inc.* | 3,695 | |||||
| 244 | Unit Corp.* | 11,971 | |||||
| 144 | Venoco, Inc.* | 1,403 | |||||
| 184 | W&T Offshore, Inc. | 3,623 | |||||
| 279 | Western Refining, Inc.* | 4,458 | |||||
| 360 | World Fuel Services Corp. | 14,346 | |||||
| 275,026 | |||||||
| Financials - 21.7% | |||||||
| 204 | Acadia Realty Trust (REIT) | 4,227 | |||||
| 17 | Alexander's, Inc. (REIT) | 7,373 | |||||
| 353 | American Campus Communities, Inc. (REIT) | 13,742 | |||||
| 73 | American National Insurance Co. | 5,217 | |||||
| 121 | Amtrust Financial Services, Inc. | 3,071 | |||||
| 671 | Anworth Mortgage Asset Corp. (REIT) | 4,328 | |||||
| 158 | Argo Group International Holdings Ltd. | 4,770 | |||||
| 161 | Artio Global Investors, Inc. | 1,179 | |||||
| 360 | Aspen Insurance Holdings Ltd. | 9,536 | |||||
| 877 | Associated Banc-Corp. | 9,779 | |||||
| 455 | Astoria Financial Corp. | 3,776 | |||||
| 396 | BancorpSouth, Inc. | 3,869 | |||||
| 239 | Bank of Hawaii Corp. | 10,093 | |||||
| 665 | BioMed Realty Trust, Inc. (REIT) | 12,043 | |||||
| 683 | Brandywine Realty Trust (REIT) | 6,222 | |||||
| 1,629 | CapitalSource, Inc. | 10,360 | |||||
| 851 | Capitol Federal Financial, Inc. | 9,438 | |||||
| 429 | Capstead Mortgage Corp. (REIT) | 5,199 | |||||
| 150 | Cash America International, Inc. | 8,212 | |||||
| 399 | Cathay General Bancorp | 5,582 | |||||
| 715 | CBL & Associates Properties, Inc. (REIT) | 10,997 | |||||
| 458 | CBOE Holdings, Inc. | 11,968 | |||||
| 1,147 | CNO Financial Group, Inc.* | 7,169 | |||||
| 106 | Cohen & Steers, Inc. | 2,880 | |||||
| 443 | Colonial Properties Trust (REIT) | 8,984 | |||||
| 425 | CommonWealth REIT (REIT) | 8,224 | |||||
| 189 | Community Bank System, Inc. | 4,831 | |||||
| 365 | Corporate Office Properties Trust (REIT) | 8,851 | |||||
| 426 | Cousins Properties, Inc. (REIT) | 2,795 | |||||
| 34 | Credit Acceptance Corp.* | 2,343 | |||||
| 445 | CubeSmart (REIT) | 4,365 | |||||
| 480 | CVB Financial Corp. | 4,661 | |||||
| 419 | CYS Investments, Inc. (REIT) | 5,313 | |||||
| 1,248 | DCT Industrial Trust, Inc. (REIT) | 6,190 | |||||
| 250 | Delphi Financial Group, Inc., Class A | 6,620 | |||||
| 855 | DiamondRock Hospitality Co. (REIT) | 7,738 | |||||
| 317 | DuPont Fabros Technology, Inc. (REIT) | 6,590 | |||||
| 137 | EastGroup Properties, Inc. (REIT) | 5,975 | |||||
| 206 | Endurance Specialty Holdings Ltd. | 7,663 | |||||
| 51 | Enstar Group Ltd.* | 4,690 | |||||
| 236 | Entertainment Properties Trust (REIT) | 10,573 | |||||
| 198 | Equity Lifestyle Properties, Inc. (REIT) | 13,094 | |||||
| 314 | Equity One, Inc. (REIT) | 5,385 | |||||
| 479 | Extra Space Storage, Inc. (REIT) | 10,792 | |||||
| 222 | Ezcorp, Inc., Class A* | 6,167 | |||||
| 69 | FBL Financial Group, Inc., Class A | 2,253 | |||||
| 209 | Financial Engines, Inc.* | 4,746 | |||||
| 535 | First American Financial Corp. | 6,420 | |||||
| 144 | First Cash Financial Services, Inc.* | 5,976 | |||||
| 28 | First Citizens BancShares Inc./NC, Class A | 4,565 | |||||
| 294 | First Financial Bancorp. | 4,822 | |||||
| 160 | First Financial Bankshares, Inc. | 5,082 | |||||
| 1,327 | First Horizon National Corp. | 9,276 | |||||
| 376 | First Midwest Bancorp, Inc./IL | 3,388 | |||||
| 555 | FirstMerit Corp. | 7,776 | |||||
| 645 | FNB Corp./PA | 6,508 | |||||
| 679 | Forest City Enterprises, Inc., Class A* | 9,289 | |||||
| 374 | Franklin Street Properties Corp. (REIT) | 4,750 | |||||
| 1,015 | Fulton Financial Corp. | 9,582 | |||||
| 144 | Getty Realty Corp. (REIT) | 2,295 | |||||
| 365 | Glacier Bancorp, Inc. | 4,143 | |||||
| 546 | Glimcher Realty Trust (REIT) | 5,001 | |||||
| 189 | Government Properties Income Trust (REIT) | 4,447 | |||||
| 103 | Green Dot Corp., Class A* | 3,365 | |||||
| 148 | Greenhill & Co., Inc. | 5,591 | |||||
| 154 | Greenlight Capital Re Ltd., Class A* | 3,470 | |||||
| 396 | Hancock Holding Co. | 11,999 | |||||
| 231 | Hanover Insurance Group, Inc./The | 8,815 | |||||
| 61 | Harleysville Group, Inc. | 3,584 | |||||
| 382 | Hatteras Financial Corp. (REIT) | 9,817 | |||||
| 395 | Healthcare Realty Trust, Inc. (REIT) | 7,462 | |||||
| 763 | Hersha Hospitality Trust (REIT) | 3,365 | |||||
| 368 | Highwoods Properties, Inc. (REIT) | 11,401 | |||||
| 208 | Home Properties, Inc. (REIT) | 12,251 | |||||
| 154 | Iberiabank Corp. | 7,965 | |||||
| 392 | Inland Real Estate Corp. (REIT) | 2,940 | |||||
| 292 | International Bancshares Corp. | 5,291 | |||||
| 586 | Invesco Mortgage Capital, Inc. (REIT) | 9,247 | |||||
| 235 | Investors Bancorp, Inc.* | 3,262 | |||||
| 946 | Janus Capital Group, Inc. | 6,206 | |||||
| 157 | KBW, Inc. | 2,223 | |||||
| 225 | Kemper Corp. | 6,050 | |||||
| 297 | Kilroy Realty Corp. (REIT) | 10,897 | |||||
| 504 | Knight Capital Group, Inc., Class A* | 6,295 | |||||
| 432 | LaSalle Hotel Properties (REIT) | 10,329 | |||||
| 706 | Lexington Realty Trust (REIT) | 5,549 | |||||
| 277 | MB Financial, Inc. | 4,590 | |||||
| 778 | MBIA, Inc.* | 6,846 | |||||
| 565 | Medical Properties Trust, Inc. (REIT) | 5,706 | |||||
| 134 | Mercury General Corp. | 5,802 | |||||
| 838 | MF Global Holdings Ltd.*^ | — |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Small Cap Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 1,809 | MFA Financial, Inc. (REIT) | $ | 12,211 | ||||
| 947 | MGIC Investment Corp.* | 2,519 | |||||
| 189 | Mid-America Apartment Communities, Inc. (REIT) | 11,794 | |||||
| 313 | Montpelier Re Holdings Ltd. | 5,477 | |||||
| 119 | National Health Investors, Inc. (REIT) | 5,318 | |||||
| 647 | National Penn Bancshares, Inc. | 5,047 | |||||
| 478 | National Retail Properties, Inc. (REIT) | 13,025 | |||||
| 61 | Navigators Group, Inc./The* | 2,783 | |||||
| 141 | Nelnet, Inc., Class A | 3,029 | |||||
| 169 | Netspend Holdings, Inc.* | 972 | |||||
| 525 | Northwest Bancshares, Inc. | 6,547 | |||||
| 376 | Ocwen Financial Corp.* | 5,452 | |||||
| 481 | Old National Bancorp/IN | 5,565 | |||||
| 524 | Omega Healthcare Investors, Inc. (REIT) | 9,306 | |||||
| 118 | OneBeacon Insurance Group Ltd., Class A | 1,796 | |||||
| 27 | Pacific Capital Bancorp* | 699 | |||||
| 67 | Park National Corp. | 4,001 | |||||
| 259 | Pebblebrook Hotel Trust (REIT) | 4,929 | |||||
| 281 | Pennsylvania Real Estate Investment Trust (REIT) | 2,883 | |||||
| 286 | PHH Corp.* | 5,277 | |||||
| 189 | Platinum Underwriters Holdings Ltd. | 6,545 | |||||
| 86 | Portfolio Recovery Associates, Inc.* | 6,032 | |||||
| 256 | Post Properties, Inc. (REIT) | 10,516 | |||||
| 203 | Potlatch Corp. (REIT) | 6,593 | |||||
| 206 | Primerica, Inc. | 4,662 | |||||
| 330 | PrivateBancorp, Inc. | 3,597 | |||||
| 148 | ProAssurance Corp. | 11,329 | |||||
| 238 | Prosperity Bancshares, Inc. | 9,161 | |||||
| 430 | Protective Life Corp. | 7,998 | |||||
| 288 | Provident Financial Services, Inc. | 3,730 | |||||
| 97 | PS Business Parks, Inc. (REIT) | 5,163 | |||||
| 359 | Redwood Trust, Inc. (REIT) | 4,172 | |||||
| 89 | RLI Corp. | 6,260 | |||||
| 274 | Selective Insurance Group, Inc. | 4,392 | |||||
| 210 | Signature Bank/NY* | 11,708 | |||||
| 140 | Sovran Self Storage, Inc. (REIT) | 6,188 | |||||
| 466 | St Joe Co./The* | 6,687 | |||||
| 226 | StanCorp Financial Group, Inc. | 7,670 | |||||
| 476 | Starwood Property Trust, Inc. (REIT) | 8,944 | |||||
| 141 | Sterling Financial Corp.* | 2,116 | |||||
| 274 | Stifel Financial Corp.* | 8,732 | |||||
| 754 | Strategic Hotels & Resorts, Inc. (REIT)* | 4,290 | |||||
| 598 | Sunstone Hotel Investors, Inc. (REIT)* | 4,156 | |||||
| 794 | Susquehanna Bancshares, Inc. | 5,764 | |||||
| 220 | SVB Financial Group* | 10,107 | |||||
| 396 | Symetra Financial Corp. | 3,671 | |||||
| 3,709 | Synovus Financial Corp. | 5,563 | |||||
| 436 | Tanger Factory Outlet Centers (REIT) | 12,278 | |||||
| 766 | TCF Financial Corp. | 8,150 | |||||
| 189 | Texas Capital Bancshares, Inc.* | 5,292 | |||||
| 189 | Tower Group, Inc. | 4,485 | |||||
| 290 | Trustmark Corp. | 6,421 | |||||
| 177 | UMB Financial Corp. | 6,526 | |||||
| 582 | Umpqua Holdings Corp. | 6,664 | |||||
| 255 | United Bankshares, Inc. | 6,054 | |||||
| 865 | Valley National Bancorp | 10,380 | |||||
| 560 | Washington Federal, Inc. | 7,644 | |||||
| 335 | Washington Real Estate Investment Trust (REIT) | 9,702 | |||||
| 376 | Webster Financial Corp. | 7,385 | |||||
| 145 | Westamerica Bancorp. | 6,499 | |||||
| 180 | Wintrust Financial Corp. | 5,198 | |||||
| 76 | World Acceptance Corp.* | 5,141 | |||||
| 985,706 | |||||||
| Health Care – 10.3% | |||||||
| 200 | Accretive Health, Inc.* | 4,762 | |||||
| 200 | Acorda Therapeutics, Inc.* | 4,368 | |||||
| 311 | Align Technology, Inc.* | 7,162 | |||||
| 482 | Alkermes plc* | 8,430 | |||||
| 150 | Amedisys, Inc.* | 1,970 | |||||
| 670 | Ariad Pharmaceuticals, Inc.* | 7,792 | |||||
| 139 | Arthrocare Corp.* | 4,191 | |||||
| 178 | athenahealth, Inc.* | 9,418 | |||||
| 563 | BioMarin Pharmaceutical, Inc.* | 19,204 | |||||
| 220 | Catalyst Health Solutions, Inc.* | 12,093 | |||||
| 254 | Centene Corp.* | 8,928 | |||||
| 318 | Cepheid, Inc.* | 11,410 | |||||
| 262 | Charles River Laboratories International, Inc.* | 8,457 | |||||
| 108 | Chemed Corp. | 6,411 | |||||
| 310 | Cubist Pharmaceuticals, Inc.* | 11,721 | |||||
| 143 | Cyberonics, Inc.* | 4,118 | |||||
| 230 | Emdeon, Inc., Class A* | 4,363 | |||||
| 155 | Gentiva Health Services, Inc.* | 642 | |||||
| 131 | Haemonetics Corp.* | 7,984 | |||||
| 1,291 | Health Management Associates, Inc., Class A* | 11,309 | |||||
| 484 | HealthSouth Corp.* | 8,547 | |||||
| 345 | Healthspring, Inc.* | 18,609 | |||||
| 318 | Hill-Rom Holdings, Inc. | 10,707 | |||||
| 430 | HMS Holdings Corp.* | 10,509 | |||||
| 334 | Impax Laboratories, Inc.* | 6,316 | |||||
| 106 | Integra LifeSciences Holdings Corp.* | 3,398 | |||||
| 309 | InterMune, Inc.* | 7,880 | |||||
| 157 | Invacare Corp. | 3,525 | |||||
| 479 | Isis Pharmaceuticals, Inc.* | 3,971 | |||||
| 122 | Jazz Pharmaceuticals, Inc.* | 4,753 | |||||
| 264 | Kindred Healthcare, Inc.* | 3,076 | |||||
| 264 | LifePoint Hospitals, Inc.* | 10,206 | |||||
| 156 | Magellan Health Services, Inc.* | 8,029 | |||||
| 277 | Masimo Corp. | 5,728 | |||||
| 277 | MedAssets, Inc.* | 2,953 | |||||
| 322 | Medicis Pharmaceutical Corp., Class A | 12,329 | |||||
| 208 | Meridian Bioscience, Inc. | 3,790 | |||||
| 154 | Molina Healthcare, Inc.* | 3,262 | |||||
| 64 | MWI Veterinary Supply, Inc.* | 4,832 | |||||
| 435 | Myriad Genetics, Inc.* | 9,257 | |||||
| 118 | Neogen Corp.* | 4,561 | |||||
| 202 | NuVasive, Inc.* | 2,994 | |||||
| 323 | Onyx Pharmaceuticals, Inc.* | 13,220 | |||||
| 324 | Owens & Minor, Inc. | 9,694 | |||||
| 184 | Par Pharmaceutical Cos., Inc.* | 5,630 | |||||
| 299 | PAREXEL International Corp.* | 6,587 | |||||
| 271 | PSS World Medical, Inc.* | 6,030 | |||||
| 186 | Quality Systems, Inc. | 7,237 | |||||
| 296 | Questcor Pharmaceuticals, Inc.* | 12,021 | |||||
| 270 | Salix Pharmaceuticals Ltd.* | 9,249 | |||||
| 286 | Select Medical Holdings Corp.* | 2,488 | |||||
| 274 | STERIS Corp. | 8,489 | |||||
| 146 | Team Health Holdings, Inc.* | 2,967 | |||||
| 176 | Techne Corp. | 12,109 | |||||
| 207 | Teleflex, Inc. | 12,391 | |||||
| 303 | Thoratec Corp.* | 11,063 | |||||
| 184 | Universal American Corp. | 2,116 | |||||
| 437 | VCA Antech, Inc.* | 8,880 | |||||
| 386 | Viropharma, Inc.* | 7,813 | |||||
| 267 | Volcano Corp.* | 6,656 | |||||
| 217 | WellCare Health Plans, Inc.* | 10,635 | |||||
| 171 | West Pharmaceutical Services, Inc. | 6,647 | |||||
| 112 | Zoll Medical Corp.* | 4,235 | |||||
| 470,122 | |||||||
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Small Cap Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| Industrials - 16.6% | |||||||
| 215 | 3D Systems Corp.* | $ | 3,498 | ||||
| 201 | AAR Corp. | 4,006 | |||||
| 225 | ABM Industries, Inc. | 4,550 | |||||
| 349 | Actuant Corp., Class A | 7,853 | |||||
| 219 | Acuity Brands, Inc. | 10,140 | |||||
| 199 | Aegion Corp.* | 2,943 | |||||
| 251 | Aircastle Ltd. | 3,045 | |||||
| 183 | Alaska Air Group, Inc.* | 12,175 | |||||
| 210 | Alexander & Baldwin, Inc. | 8,717 | |||||
| 168 | Alliant Techsystems, Inc. | 9,757 | |||||
| 30 | Amerco, Inc.* | 2,271 | |||||
| 1,689 | AMR Corp.* | 4,442 | |||||
| 198 | AO Smith Corp. | 7,358 | |||||
| 197 | Applied Industrial Technologies, Inc. | 6,623 | |||||
| 110 | Armstrong World Industries, Inc. | 4,685 | |||||
| 133 | Atlas Air Worldwide Holdings, Inc.* | 5,123 | |||||
| 533 | Avis Budget Group, Inc.* | 7,515 | |||||
| 246 | Barnes Group, Inc. | 5,724 | |||||
| 234 | Beacon Roofing Supply, Inc.* | 4,313 | |||||
| 241 | Belden, Inc. | 7,780 | |||||
| 250 | Brady Corp., Class A | 7,680 | |||||
| 254 | Briggs & Stratton Corp. | 3,708 | |||||
| 238 | Brink's Co./The | 6,614 | |||||
| 310 | Carlisle Cos., Inc. | 12,933 | |||||
| 120 | Ceradyne, Inc.* | 4,015 | |||||
| 149 | Chart Industries, Inc.* | 8,420 | |||||
| 256 | CLARCOR, Inc. | 12,411 | |||||
| 236 | Clean Harbors, Inc.* | 13,752 | |||||
| 127 | Colfax Corp.* | 3,208 | |||||
| 280 | Con-way, Inc. | 8,252 | |||||
| 176 | Corporate Executive Board Co./The | 6,440 | |||||
| 129 | CoStar Group, Inc.* | 7,937 | |||||
| 611 | Covanta Holding Corp. | 8,957 | |||||
| 258 | Crane Co. | 11,380 | |||||
| 81 | Cubic Corp. | 3,817 | |||||
| 237 | Curtiss-Wright Corp. | 7,769 | |||||
| 261 | Deluxe Corp. | 6,165 | |||||
| 181 | DigitalGlobe, Inc.* | 3,692 | |||||
| 135 | Dollar Thrifty Automotive Group, Inc.* | 8,240 | |||||
| 337 | EMCOR Group, Inc. | 8,449 | |||||
| 255 | EnerSys* | 5,745 | |||||
| 134 | ESCO Technologies, Inc. | 4,096 | |||||
| 154 | Esterline Technologies Corp.* | 8,609 | |||||
| 149 | Forward Air Corp. | 4,880 | |||||
| 99 | Franklin Electric Co., Inc. | 4,546 | |||||
| 211 | FTI Consulting, Inc.* | 8,316 | |||||
| 237 | GATX Corp. | 9,001 | |||||
| 141 | Generac Holdings, Inc.* | 3,223 | |||||
| 264 | General Cable Corp.* | 7,403 | |||||
| 204 | Genesee & Wyoming, Inc., Class A* | 12,079 | |||||
| 327 | Geo Group, Inc./The* | 5,961 | |||||
| 665 | GrafTech International Ltd.* | 10,447 | |||||
| 174 | Granite Construction, Inc. | 3,915 | |||||
| 408 | Harsco Corp. | 9,404 | |||||
| 318 | Healthcare Services Group, Inc. | 5,517 | |||||
| 281 | Heartland Express, Inc. | 3,768 | |||||
| 64 | HEICO Corp. | 3,649 | |||||
| 117 | HEICO Corp., Class A | 4,599 | |||||
| 295 | Herman Miller, Inc. | 6,092 | |||||
| 500 | Hexcel Corp.* | 12,355 | |||||
| 189 | HNI Corp. | 4,545 | |||||
| 189 | HUB Group, Inc., Class A* | 5,908 | |||||
| 268 | II-VI, Inc.* | 5,095 | |||||
| 296 | Interface, Inc., Class A | 3,860 | |||||
| 1,263 | JetBlue Airways Corp.* | 5,658 | |||||
| 159 | KAR Auction Services, Inc.* | 2,186 | |||||
| 164 | Kaydon Corp. | 5,159 | |||||
| 288 | Knight Transportation, Inc. | 4,378 | |||||
| 239 | Korn/Ferry International* | 3,817 | |||||
| 243 | Landstar System, Inc. | 10,845 | |||||
| 256 | Lennox International, Inc. | 8,241 | |||||
| 667 | Manitowoc Co., Inc./The | 7,390 | |||||
| 323 | MasTec, Inc.* | 6,983 | |||||
| 478 | Meritor, Inc.* | 4,551 | |||||
| 95 | Middleby Corp.* | 8,007 | |||||
| 163 | Mine Safety Appliances Co. | 5,469 | |||||
| 213 | Moog, Inc., Class A* | 8,249 | |||||
| 192 | Mueller Industries, Inc. | 7,766 | |||||
| 28 | NACCO Industries, Inc., Class A | 2,299 | |||||
| 277 | Old Dominion Freight Line, Inc.* | 10,130 | |||||
| 297 | Orbital Sciences Corp.* | 4,592 | |||||
| 205 | Polypore International, Inc.* | 10,752 | |||||
| 92 | Raven Industries, Inc. | 5,521 | |||||
| 196 | Regal-Beloit Corp. | 10,414 | |||||
| 194 | Robbins & Myers, Inc. | 8,670 | |||||
| 320 | RSC Holdings, Inc.* | 3,123 | |||||
| 260 | Ryder System, Inc. | 13,244 | |||||
| 56 | Sauer-Danfoss, Inc.* | 2,168 | |||||
| 2 | Seaboard Corp. | 4,396 | |||||
| 204 | Simpson Manufacturing Co., Inc. | 6,255 | |||||
| 264 | Skywest, Inc. | 3,540 | |||||
| 440 | Steelcase, Inc., Class A | 3,260 | |||||
| 214 | SYKES Enterprises, Inc.* | 3,409 | |||||
| 116 | TAL International Group, Inc. | 3,228 | |||||
| 186 | Teledyne Technologies, Inc.* | 10,131 | |||||
| 316 | Tetra Tech, Inc.* | 6,898 | |||||
| 93 | Textainer Group Holdings Ltd. | 2,553 | |||||
| 213 | Titan International, Inc. | 4,793 | |||||
| 157 | Toro Co./The | 8,484 | |||||
| 404 | Trinity Industries, Inc. | 11,017 | |||||
| 197 | Triumph Group, Inc. | 11,446 | |||||
| 165 | Tutor Perini Corp.* | 2,397 | |||||
| 76 | Unifirst Corp. | 3,979 | |||||
| 317 | United Rentals, Inc.* | 7,421 | |||||
| 226 | United Stationers, Inc. | 7,189 | |||||
| 817 | US Airways Group, Inc.* | 4,714 | |||||
| 337 | USG Corp.* | 3,121 | |||||
| 516 | UTi Worldwide, Inc. | 7,539 | |||||
| 115 | Valmont Industries, Inc. | 9,861 | |||||
| 128 | Watsco, Inc. | 7,893 | |||||
| 154 | Watts Water Technologies, Inc., Class A | 4,850 | |||||
| 262 | Werner Enterprises, Inc. | 6,209 | |||||
| 219 | WESCO International, Inc.* | 10,613 | |||||
| 295 | Woodward, Inc. | 9,995 | |||||
| 754,173 | |||||||
| Information Technology - 18.3% | |||||||
| 169 | ACI Worldwide, Inc.* | 5,183 | |||||
| 414 | Acxiom Corp.* | 5,461 | |||||
| 328 | ADTRAN, Inc. | 11,021 | |||||
| 167 | Advent Software, Inc.* | 4,576 | |||||
| 553 | Amkor Technology, Inc.* | 2,677 | |||||
| 152 | Ancestry.com, Inc.* | 3,461 | |||||
| 155 | Anixter International, Inc.* | 9,097 | |||||
| 539 | AOL, Inc.* | 7,611 | |||||
| 495 | Ariba, Inc.* | 15,682 | |||||
| 606 | Arris Group, Inc.* | 6,521 | |||||
| 478 | Aspen Technology, Inc.* | 8,289 | |||||
| 303 | Benchmark Electronics, Inc.* | 4,163 | |||||
| 227 | Blackbaud, Inc. | 6,363 | |||||
| 220 | Blue Coat Systems, Inc.* | 3,542 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Small Cap Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 119 | Cabot Microelectronics Corp.* | $ | 4,584 | ||||
| 154 | CACI International, Inc., Class A* | 8,453 | |||||
| 1,373 | Cadence Design Systems, Inc.* | 15,199 | |||||
| 246 | Cavium, Inc.* | 8,042 | |||||
| 204 | Checkpoint Systems, Inc.* | 2,703 | |||||
| 486 | Ciena Corp.* | 6,405 | |||||
| 331 | Cirrus Logic, Inc.* | 5,508 | |||||
| 195 | Cognex Corp. | 6,609 | |||||
| 129 | Coherent, Inc.* | 6,575 | |||||
| 212 | CommVault Systems, Inc.* | 9,027 | |||||
| 1,111 | Compuware Corp.* | 9,388 | |||||
| 533 | Convergys Corp.* | 5,703 | |||||
| 540 | CoreLogic, Inc.* | 6,572 | |||||
| 144 | Cymer, Inc.* | 6,257 | |||||
| 210 | DealerTrack Holdings, Inc.* | 4,555 | |||||
| 263 | Dice Holdings, Inc.* | 2,677 | |||||
| 326 | Diebold, Inc. | 10,523 | |||||
| 201 | Digital River, Inc.* | 3,684 | |||||
| 177 | Diodes, Inc.* | 3,959 | |||||
| 187 | DST Systems, Inc. | 9,386 | |||||
| 548 | Earthlink, Inc. | 3,841 | |||||
| 445 | Emulex Corp.* | 3,729 | |||||
| 682 | Entegris, Inc.* | 6,111 | |||||
| 247 | Euronet Worldwide, Inc.* | 4,784 | |||||
| 196 | Fair Isaac Corp. | 5,361 | |||||
| 648 | Fairchild Semiconductor International, Inc.* | 9,701 | |||||
| 199 | FEI Co.* | 7,912 | |||||
| 455 | Finisar Corp.* | 9,323 | |||||
| 73 | Forrester Research, Inc. | 2,614 | |||||
| 643 | GT Advanced Technologies, Inc.* | 5,273 | |||||
| 583 | Harmonic, Inc.* | 3,206 | |||||
| 143 | Hittite Microwave Corp.* | 7,522 | |||||
| 161 | iGate Corp. | 2,170 | |||||
| 743 | Integrated Device Technology, Inc.* | 4,517 | |||||
| 231 | InterDigital, Inc. | 10,037 | |||||
| 352 | International Rectifier Corp.* | 8,550 | |||||
| 638 | Intersil Corp., Class A | 7,637 | |||||
| 185 | IntraLinks Holdings, Inc.* | 1,608 | |||||
| 206 | Itron, Inc.* | 7,579 | |||||
| 254 | Ixia* | 2,878 | |||||
| 235 | j2 Global Communications, Inc. | 7,233 | |||||
| 438 | Jack Henry & Associates, Inc. | 14,196 | |||||
| 215 | JDA Software Group, Inc.* | 6,852 | |||||
| 429 | Lender Processing Services, Inc. | 7,529 | |||||
| 403 | Lexmark International, Inc., Class A* | 12,775 | |||||
| 117 | Littelfuse, Inc. | 5,728 | |||||
| 113 | LogMeIn, Inc.* | 4,596 | |||||
| 62 | Loral Space & Communications, Inc.* | 3,751 | |||||
| 119 | Mantech International Corp., Class A | 4,180 | |||||
| 174 | MAXIMUS, Inc. | 7,019 | |||||
| 1,170 | MEMC Electronic Materials, Inc.* | 7,008 | |||||
| 480 | Mentor Graphics Corp.* | 5,453 | |||||
| 439 | Microsemi Corp.* | 8,104 | |||||
| 42 | MicroStrategy, Inc., Class A* | 5,534 | |||||
| 266 | MKS Instruments, Inc. | 7,086 | |||||
| 659 | Monster Worldwide, Inc.* | 6,083 | |||||
| 190 | Netgear, Inc.* | 6,737 | |||||
| 350 | Netlogic Microsystems, Inc.* | 17,220 | |||||
| 180 | Netscout Systems, Inc.* | 2,950 | |||||
| 150 | NetSuite, Inc.* | 5,706 | |||||
| 373 | NeuStar, Inc., Class A* | 11,858 | |||||
| 303 | Omnivision Technologies, Inc.* | 4,942 | |||||
| 120 | OpenTable, Inc.* | 5,263 | |||||
| 82 | Pegasystems, Inc. | 3,099 | |||||
| 237 | Plantronics, Inc. | 7,918 | |||||
| 180 | Plexus Corp.* | 4,626 | |||||
| 1,185 | PMC - Sierra, Inc.* | 7,513 | |||||
| 146 | Power Integrations, Inc. | 5,202 | |||||
| 279 | Power-One, Inc.* | 1,381 | |||||
| 341 | Progress Software Corp.* | 7,181 | |||||
| 384 | QLIK Technologies, Inc.* | 10,971 | |||||
| 528 | QLogic Corp.* | 7,376 | |||||
| 303 | Quest Software, Inc.* | 5,330 | |||||
| 529 | Rambus, Inc.* | 9,379 | |||||
| 162 | RealPage, Inc.* | 4,269 | |||||
| 1,404 | RF Micro Devices, Inc.* | 10,305 | |||||
| 131 | RightNow Technologies, Inc.* | 5,634 | |||||
| 144 | Rofin-Sinar Technologies, Inc.* | 3,744 | |||||
| 407 | Sanmina-SCI Corp.* | 3,586 | |||||
| 553 | Sapient Corp. | 6,835 | |||||
| 137 | Scansource, Inc.* | 4,762 | |||||
| 332 | Semtech Corp.* | 8,107 | |||||
| 226 | Silicon Laboratories, Inc.* | 9,662 | |||||
| 292 | SolarWinds, Inc.* | 8,427 | |||||
| 1,059 | Sonus Networks, Inc.* | 2,806 | |||||
| 173 | SS&C Technologies Holdings, Inc.* | 2,744 | |||||
| 212 | STEC, Inc.* | 2,400 | |||||
| 107 | Stratasys, Inc.* | 3,000 | |||||
| 424 | SuccessFactors, Inc.* | 11,321 | |||||
| 133 | SunPower Corp., Class A* | 1,333 | |||||
| 85 | SunPower Corp., Class B* | 803 | |||||
| 174 | Synaptics, Inc.* | 5,879 | |||||
| 153 | Synchronoss Technologies, Inc.* | 4,599 | |||||
| 124 | SYNNEX Corp.* | 3,580 | |||||
| 78 | Syntel, Inc. | 3,814 | |||||
| 441 | Take-Two Interactive Software, Inc.* | 6,959 | |||||
| 210 | Taleo Corp., Class A* | 6,804 | |||||
| 237 | Tech Data Corp.* | 11,656 | |||||
| 145 | TeleTech Holdings, Inc.* | 2,535 | |||||
| 1,687 | Tellabs, Inc. | 7,305 | |||||
| 942 | Teradyne, Inc.* | 13,489 | |||||
| 260 | Tessera Technologies, Inc.* | 3,580 | |||||
| 613 | TiVo, Inc.* | 6,639 | |||||
| 37 | Travelzoo, Inc.* | 1,179 | |||||
| 837 | TriQuint Semiconductor, Inc.* | 4,453 | |||||
| 271 | TTM Technologies, Inc.* | 3,027 | |||||
| 131 | Ultimate Software Group, Inc.* | 7,884 | |||||
| 199 | Unisys Corp.* | 5,172 | |||||
| 204 | Universal Display Corp.* | 9,553 | |||||
| 402 | ValueClick, Inc.* | 7,075 | |||||
| 209 | Veeco Instruments, Inc.* | 5,578 | |||||
| 113 | Verint Systems, Inc.* | 3,367 | |||||
| 214 | Viasat, Inc.* | 9,114 | |||||
| 203 | VistaPrint N.V.* | 7,089 | |||||
| 203 | Websense, Inc.* | 3,622 | |||||
| 196 | Wright Express Corp.* | 9,188 | |||||
| 274 | Zebra Technologies Corp., Class A* | 9,793 | |||||
| 834,259 | |||||||
| Materials - 5.5% | |||||||
| 555 | AK Steel Holding Corp. | 4,623 | |||||
| 136 | AMCOL International Corp. | 4,106 | |||||
| 147 | Balchem Corp. | 5,420 | |||||
| 204 | Buckeye Technologies, Inc. | 6,169 | |||||
| 305 | Cabot Corp. | 9,205 | |||||
| 284 | Calgon Carbon Corp.* | 4,530 | |||||
| 224 | Carpenter Technology Corp. | 12,705 | |||||
| 329 | Century Aluminum Co.* | 3,672 | |||||
| 117 | Clearwater Paper Corp.* | 3,876 | |||||
| 455 | Coeur d'Alene Mines Corp.* | 11,634 | |||||
| 587 | Commercial Metals Co. | 7,297 | |||||
| 252 | Cytec Industries, Inc. | 11,257 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Small Cap Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 228 | Eagle Materials, Inc. | $ | 4,692 | ||||
| 437 | Ferro Corp.* | 2,828 | |||||
| 172 | Georgia Gulf Corp.* | 3,113 | |||||
| 267 | Globe Specialty Metals, Inc. | 4,451 | |||||
| 251 | H.B. Fuller Co. | 5,394 | |||||
| 1,418 | Hecla Mining Co.* | 8,891 | |||||
| 111 | Innophos Holdings, Inc. | 4,883 | |||||
| 266 | Intrepid Potash, Inc.* | 7,403 | |||||
| 85 | Kaiser Aluminum Corp. | 3,949 | |||||
| 162 | Kraton Performance Polymers, Inc.* | 3,188 | |||||
| 670 | Louisiana-Pacific Corp.* | 4,456 | |||||
| 92 | Minerals Technologies, Inc. | 5,045 | |||||
| 49 | NewMarket Corp. | 9,513 | |||||
| 112 | Noranda Aluminum Holding Corp.* | 1,037 | |||||
| 362 | Olin Corp. | 6,827 | |||||
| 164 | OM Group, Inc.* | 4,741 | |||||
| 470 | PolyOne Corp. | 5,259 | |||||
| 362 | Rock-Tenn Co., Class A | 21,427 | |||||
| 152 | RTI International Metals, Inc.* | 4,011 | |||||
| 124 | Schnitzer Steel Industries, Inc., Class A | 5,803 | |||||
| 82 | Schweitzer-Mauduit International, Inc. | 5,766 | |||||
| 254 | Sensient Technologies Corp. | 9,388 | |||||
| 523 | Stillwater Mining Co.* | 5,941 | |||||
| 546 | Temple-Inland, Inc. | 17,368 | |||||
| 120 | Texas Industries, Inc. | 3,600 | |||||
| 299 | Worthington Industries, Inc. | 5,167 | |||||
| 248,635 | |||||||
| Telecommunication Services - 0.2% | |||||||
| 118 | AboveNet, Inc. | 7,003 | |||||
| 732 | Vonage Holdings Corp.* | 2,452 | |||||
| 9,455 | |||||||
| Utilities - 4.7% | |||||||
| 165 | Allete, Inc. | 6,519 | |||||
| 295 | Avista Corp. | 7,508 | |||||
| 200 | Black Hills Corp. | 6,742 | |||||
| 310 | Cleco Corp. | 11,430 | |||||
| 212 | El Paso Electric Co. | 6,790 | |||||
| 213 | Empire District Electric Co./The | 4,254 | |||||
| 3,919 | GenOn Energy, Inc.* | 11,953 | |||||
| 487 | Hawaiian Electric Industries, Inc. | 12,336 | |||||
| 252 | IDACORP, Inc. | 10,176 | |||||
| 106 | Laclede Group, Inc./The | 4,253 | |||||
| 117 | MGE Energy, Inc. | 5,106 | |||||
| 211 | New Jersey Resources Corp. | 9,921 | |||||
| 231 | Nicor, Inc. | 12,994 | |||||
| 135 | Northwest Natural Gas Co. | 6,307 | |||||
| 182 | NorthWestern Corp. | 6,270 | |||||
| 91 | Ormat Technologies, Inc. | 1,728 | |||||
| 165 | Otter Tail Corp. | 3,203 | |||||
| 364 | Piedmont Natural Gas Co., Inc. | 11,899 | |||||
| 399 | PNM Resources, Inc. | 7,174 | |||||
| 382 | Portland General Electric Co. | 9,374 | |||||
| 151 | South Jersey Industries, Inc. | 8,503 | |||||
| 233 | Southwest Gas Corp. | 9,199 | |||||
| 256 | UIL Holdings Corp. | 8,724 | |||||
| 186 | Unisource Energy Corp. | 6,934 | |||||
| 411 | Vectren Corp. | 11,664 | |||||
| 261 | WGL Holdings, Inc. | 11,173 | |||||
| 212,134 | |||||||
| Total Common Stocks | |||||||
| (Cost $4,971,795) | 4,546,050 | ||||||
| Money Market Fund - 0.0%† | |||||||
| 870 | JPMorgan U.S. Government Money Market Premier, 0.01% (Cost $870) | 870 | |||||
| Total Investment Securities | |||||||
| (Cost $4,972,665) — 100.0% | 4,546,920 | ||||||
| Other assets less liabilities — 0.0%† | 219 | ||||||
| Net Assets — 100.0% | $ | 4,547,139 | |||||
| * | Non-income producing security. |
| ^ | Security fair valued in accordance with procedures adopted by Board of Trustees. At October 31, 2011, the value of these securities amounted to $— or 0.00% of net assets. |
| † | Amount represents less than 0.05%. |
| REIT | Real Estate Investment Trust |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| Aggregate gross unrealized appreciation | $ | 218,376 | ||
| Aggregate gross unrealized depreciation | (657,127 | ) | ||
| Net unrealized depreciation | $ | (438,751 | ) | |
| Federal income tax cost of investments | $ | 4,985,671 | ||
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Consumer Cyclical Index ETF
Schedule of Portfolio Investments
October 31, 2011
| Shares | Value | ||||||
| Common Stocks - 100.0% | |||||||
Advertising - 1.5% | |||||||
| 98 | Arbitron, Inc. | $ | 3,894 | ||||
| 147 | Clear Channel Outdoor Holdings, Inc., Class A* | 1,617 | |||||
| 1,715 | Interpublic Group of Cos., Inc./The | 16,258 | |||||
| 209 | Lamar Advertising Co., Class A* | 4,700 | |||||
| 198 | National CineMedia, Inc. | 2,396 | |||||
| 1,007 | Omnicom Group, Inc. | 44,791 | |||||
| 73,656 | |||||||
Apparel Retail - 6.1% | |||||||
| 316 | Abercrombie & Fitch Co., Class A | 23,510 | |||||
| 289 | Aeropostale, Inc.* | 3,948 | |||||
| 700 | American Eagle Outfitters, Inc. | 9,191 | |||||
| 186 | Ann, Inc.* | 4,955 | |||||
| 229 | Ascena Retail Group, Inc.* | 6,618 | |||||
| 98 | Buckle, Inc./The | 4,367 | |||||
| 631 | Chico's FAS, Inc. | 7,799 | |||||
| 93 | Childrens Place Retail Stores, Inc./The* | 4,366 | |||||
| 221 | Collective Brands, Inc.* | 3,229 | |||||
| 89 | DSW, Inc., Class A | 4,658 | |||||
| 203 | Express, Inc. | 4,586 | |||||
| 189 | Finish Line, Inc./The, Class A | 3,799 | |||||
| 555 | Foot Locker, Inc. | 12,132 | |||||
| 986 | Gap, Inc./The | 18,636 | |||||
| 85 | Genesco, Inc.* | 5,010 | |||||
| 230 | Guess?, Inc. | 7,588 | |||||
| 98 | JoS. A. Bank Clothiers, Inc.* | 5,237 | |||||
| 940 | Ltd. Brands, Inc. | 40,147 | |||||
| 184 | Men's Wearhouse, Inc./The | 5,682 | |||||
| 421 | Ross Stores, Inc. | 36,934 | |||||
| 1,384 | TJX Cos., Inc. | 81,559 | |||||
| 452 | Urban Outfitters, Inc.* | 12,317 | |||||
| 76 | Zumiez, Inc.* | 1,729 | |||||
| 307,997 | |||||||
Apparel, Accessories & Luxury Goods - 4.6% | |||||||
| 181 | Carter's, Inc.* | 6,894 | |||||
| 1,035 | Coach, Inc. | 67,347 | |||||
| 53 | Columbia Sportswear Co. | 2,848 | |||||
| 192 | Fossil, Inc.* | 19,903 | |||||
| 345 | Hanesbrands, Inc.* | 9,098 | |||||
| 262 | Iconix Brand Group, Inc.* | 4,703 | |||||
| 308 | Jones Group, Inc./The | 3,440 | |||||
| 221 | PVH Corp. | 16,445 | |||||
| 221 | Ralph Lauren Corp. | 35,093 | |||||
| 141 | Under Armour, Inc., Class A* | 11,902 | |||||
| 84 | Vera Bradley, Inc.* | 3,805 | |||||
| 310 | VF Corp. | 42,848 | |||||
| 154 | Warnaco Group, Inc./The* | 7,561 | |||||
| 231,887 | |||||||
Auto Parts & Equipment - 3.3% | |||||||
| 392 | BorgWarner, Inc.* | 29,984 | |||||
| 89 | Federal-Mogul Corp.* | 1,500 | |||||
| 511 | Gentex Corp. | 15,391 | |||||
| 2,436 | Johnson Controls, Inc. | 80,218 | |||||
| 372 | Lear Corp. | 17,451 | |||||
| 217 | Tenneco, Inc.* | 7,100 | |||||
| 372 | TRW Automotive Holdings Corp.* | 15,661 | |||||
| 167,305 | |||||||
Automobile Manufacturers - 4.2% | |||||||
| 13,352 | Ford Motor Co.* | 155,951 | |||||
| 2,070 | General Motors Co.* | 53,510 | |||||
| 170 | Thor Industries, Inc. | 4,495 | |||||
| 213,956 | |||||||
Automotive Retail - 2.5% | |||||||
| 264 | Advance Auto Parts, Inc. | 17,178 | |||||
| 162 | AutoNation, Inc.* | 6,308 | |||||
| 89 | AutoZone, Inc.* | 28,800 | |||||
| 809 | CarMax, Inc.* | 24,319 | |||||
| 85 | Group 1 Automotive, Inc. | 3,873 | |||||
| 109 | Monro Muffler Brake, Inc. | 4,043 | |||||
| 487 | O'Reilly Automotive, Inc.* | 37,036 | |||||
| 161 | Penske Automotive Group, Inc. | 3,283 | |||||
| 124,840 | |||||||
Broadcasting - 2.4% | |||||||
| 2,239 | CBS Corp., Class B | 57,789 | |||||
| 504 | Discovery Communications, Inc., Class A* | 21,904 | |||||
| 453 | Discovery Communications, Inc., Class C* | 17,925 | |||||
| 176 | Liberty Media Corp. - Liberty Starz* | 12,021 | |||||
| 315 | Scripps Networks Interactive, Inc., Class A | 13,381 | |||||
| 123,020 | |||||||
Building Products - 0.2% | |||||||
| 1,288 | Masco Corp. | 12,365 | |||||
Cable & Satellite - 0.5% | |||||||
| 14,064 | Sirius XM Radio, Inc.* | 25,175 | |||||
Casinos & Gaming - 3.3% | |||||||
| 117 | Ameristar Casinos, Inc. | 2,164 | |||||
| 190 | Bally Technologies, Inc.* | 6,891 | |||||
| 1,074 | International Game Technology | 18,892 | |||||
| 1,411 | Las Vegas Sands Corp.* | 66,246 | |||||
| 1,156 | MGM Resorts International* | 13,317 | |||||
| 243 | Penn National Gaming, Inc.* | 8,748 | |||||
| 222 | Pinnacle Entertainment, Inc.* | 2,513 | |||||
| 205 | WMS Industries, Inc.* | 4,492 | |||||
| 318 | Wynn Resorts Ltd. | 42,230 | |||||
| 165,493 | |||||||
Catalog Retail - 0.7% | |||||||
| 2,052 | Liberty Interactive Corp., Class A* | 33,714 | |||||
Computer & Electronics Retail - 0.9% | |||||||
| 1,092 | Best Buy Co., Inc. | 28,643 | |||||
| 504 | GameStop Corp., Class A* | 12,887 | |||||
| 357 | RadioShack Corp. | 4,252 | |||||
| 45,782 | |||||||
Construction & Farm Machinery & Heavy Trucks - 0.4% | |||||||
| 337 | Meritor, Inc.* | 3,208 | |||||
| 150 | Titan International, Inc. | 3,375 | |||||
| 242 | WABCO Holdings, Inc.* | 12,151 | |||||
| 18,734 | |||||||
Consumer Finance - 0.1% | |||||||
| 157 | Ezcorp, Inc., Class A* | 4,361 | |||||
Data Processing & Outsourced Services - 0.8% | |||||||
| 2,250 | Western Union Co./The | 39,308 | |||||
Department Stores - 3.4% | |||||||
| 133 | Dillard's, Inc., Class A | 6,853 | |||||
| 535 | J.C. Penney Co., Inc. | 17,163 | |||||
| 949 | Kohl's Corp. | 50,307 | |||||
| 1,526 | Macy's, Inc. | 46,589 | |||||
| 609 | Nordstrom, Inc. | 30,870 | |||||
| 439 | Saks, Inc.* | 4,640 | |||||
| 165 | Sears Holdings Corp.* | 12,900 | |||||
| 169,322 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Consumer Cyclical Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
Distillers & Vintners - 0.5% | |||||||
| 550 | Beam, Inc. | $ | 27,187 | ||||
Distributors - 0.1% | |||||||
| 174 | Pool Corp. | 5,084 | |||||
Diversified Support Services - 0.1% | |||||||
| 112 | KAR Auction Services, Inc.* | 1,540 | |||||
| 53 | Unifirst Corp. | 2,774 | |||||
| 4,314 | |||||||
Electronic Components - 0.1% | |||||||
| 190 | Dolby Laboratories, Inc., Class A* | 5,556 | |||||
Footwear - 3.3% | |||||||
| 320 | Crocs, Inc.* | 5,654 | |||||
| 138 | Deckers Outdoor Corp.* | 15,903 | |||||
| 1,351 | NIKE, Inc., Class B | 130,169 | |||||
| 138 | Skechers U.S.A., Inc., Class A* | 1,968 | |||||
| 140 | Steven Madden Ltd.* | 5,166 | |||||
| 177 | Wolverine World Wide, Inc. | 6,714 | |||||
| 165,574 | |||||||
Health Care Supplies - 0.1% | |||||||
| 121 | West Pharmaceutical Services, Inc. | 4,703 | |||||
Home Furnishings - 0.8% | |||||||
| 512 | Leggett & Platt, Inc. | 11,213 | |||||
| 198 | Mohawk Industries, Inc.* | 10,425 | |||||
| 240 | Tempur-Pedic International, Inc.* | 16,334 | |||||
| 37,972 | |||||||
Home Improvement Retail - 6.0% | |||||||
| 5,725 | Home Depot, Inc. | 204,955 | |||||
| 4,664 | Lowe's Cos., Inc. | 98,037 | |||||
| 302,992 | |||||||
Homebuilding - 1.0% | |||||||
| 994 | D.R. Horton, Inc. | 11,063 | |||||
| 239 | KB Home | 1,666 | |||||
| 557 | Lennar Corp., Class A | 9,213 | |||||
| 131 | MDC Holdings, Inc. | 2,934 | |||||
| 19 | NVR, Inc.* | 12,212 | |||||
| 1,209 | Pulte Group, Inc.* | 6,263 | |||||
| 537 | Toll Brothers, Inc.* | 9,365 | |||||
| 52,716 | |||||||
Homefurnishing Retail - 1.5% | |||||||
| 896 | Bed Bath & Beyond, Inc.* | 55,409 | |||||
| 420 | Pier 1 Imports, Inc.* | 5,254 | |||||
| 338 | Williams-Sonoma, Inc. | 12,688 | |||||
| 73,351 | |||||||
Hotels, Resorts & Cruise Lines - 3.5% | |||||||
| 1,477 | Carnival Corp. | 52,005 | |||||
| 116 | Choice Hotels International, Inc. | 4,152 | |||||
| 151 | Gaylord Entertainment Co.* | 3,532 | |||||
| 142 | Hyatt Hotels Corp., Class A* | 5,281 | |||||
| 145 | Interval Leisure Group, Inc.* | 2,002 | |||||
| 1,104 | Marriott International, Inc., Class A | 34,776 | |||||
| 338 | Orient-Express Hotels Ltd., Class A* | 2,883 | |||||
| 490 | Royal Caribbean Cruises Ltd. | 14,563 | |||||
| 699 | Starwood Hotels & Resorts Worldwide, Inc. | 35,027 | |||||
| 588 | Wyndham Worldwide Corp. | 19,798 | |||||
| 174,019 | |||||||
Household Appliances - 0.3% | |||||||
| 103 | Helen of Troy Ltd.* | 2,980 | |||||
| 272 | Whirlpool Corp. | 13,820 | |||||
| 16,800 | |||||||
Housewares & Specialties - 0.2% | |||||||
| 136 | American Greetings Corp., Class A | 2,177 | |||||
| 330 | Jarden Corp. | 10,570 | |||||
| 12,747 | |||||||
Industrial Conglomerates - 0.2% | |||||||
| 219 | Carlisle Cos., Inc. | 9,137 | |||||
Industrial Machinery - 0.2% | |||||||
| 181 | CLARCOR, Inc. | 8,775 | |||||
Internet Retail - 7.8% | |||||||
| 1,263 | Amazon.com, Inc.* | 269,663 | |||||
| 718 | Expedia, Inc. | 18,855 | |||||
| 187 | Netflix, Inc.* | 15,349 | |||||
| 178 | priceline.com, Inc.* | 90,374 | |||||
| 394,241 | |||||||
Internet Software & Services - 2.7% | |||||||
| 3,969 | eBay, Inc.* | 126,333 | |||||
| 26 | Travelzoo, Inc.* | 828 | |||||
| 284 | ValueClick, Inc.* | 4,999 | |||||
| 143 | VistaPrint N.V.* | 4,994 | |||||
| 137,154 | |||||||
Leisure Facilities - 0.4% | |||||||
| 98 | International Speedway Corp., Class A | 2,338 | |||||
| 144 | Life Time Fitness, Inc.* | 6,211 | |||||
| 196 | Six Flags Entertainment Corp. | 7,036 | |||||
| 130 | Vail Resorts, Inc. | 5,793 | |||||
| 21,378 | |||||||
Leisure Products - 1.4% | |||||||
| 317 | Brunswick Corp. | 5,598 | |||||
| 432 | Hasbro, Inc. | 16,442 | |||||
| 1,229 | Mattel, Inc. | 34,707 | |||||
| 228 | Polaris Industries, Inc. | 14,442 | |||||
| 71,189 | |||||||
Metal & Glass Containers - 1.4% | |||||||
| 222 | Aptargroup, Inc. | 10,649 | |||||
| 586 | Ball Corp. | 20,258 | |||||
| 541 | Crown Holdings, Inc.* | 18,281 | |||||
| 88 | Greif, Inc., Class A | 3,941 | |||||
| 591 | Owens-Illinois, Inc.* | 11,867 | |||||
| 167 | Silgan Holdings, Inc. | 6,269 | |||||
| 71,265 | |||||||
Motorcycle Manufacturers - 0.7% | |||||||
| 847 | Harley-Davidson, Inc. | 32,948 | |||||
Movies & Entertainment - 12.2% | |||||||
| 315 | Cinemark Holdings, Inc. | 6,511 | |||||
| 245 | DreamWorks Animation SKG, Inc., Class A* | 4,545 | |||||
| 247 | Liberty Media Corp. - Liberty Capital* | 18,975 | |||||
| 221 | Madison Square Garden Co./The, Class A* | 5,841 | |||||
| 6,501 | News Corp., Class A | 113,898 | |||||
| 1,559 | News Corp., Class B | 27,828 | |||||
| 283 | Regal Entertainment Group, Class A | 4,086 | |||||
| 3,744 | Time Warner, Inc. | 131,003 | |||||
| 37 | Viacom, Inc., Class A | 1,977 | |||||
| 1,875 | Viacom, Inc., Class B | 82,219 | |||||
| 6,175 | Walt Disney Co./The | 215,384 | |||||
| 100 | World Wrestling Entertainment, Inc., Class A | 1,051 | |||||
| 613,318 | |||||||
Office Services & Supplies - 0.1% | |||||||
| 209 | Interface, Inc., Class A | 2,725 | |||||
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Consumer Cyclical Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
Paper Packaging - 0.6% | |||||||
| 370 | Bemis Co., Inc. | $ | 10,401 | ||||
| 367 | Packaging Corp. of America | 9,571 | |||||
| 687 | Sealed Air Corp. | 12,229 | |||||
| 32,201 | |||||||
Publishing - 1.5% | |||||||
| 861 | Gannett Co., Inc. | 10,065 | |||||
| 183 | John Wiley & Sons, Inc., Class A | 8,703 | |||||
| 1,079 | McGraw-Hill Cos., Inc./The | 45,858 | |||||
| 131 | Meredith Corp. | 3,515 | |||||
| 461 | New York Times Co./The, Class A* | 3,513 | |||||
| 169 | Valassis Communications, Inc.* | 3,301 | |||||
| 74,955 | |||||||
Restaurants - 13.4% | |||||||
| 84 | BJ's Restaurants, Inc.* | 4,446 | |||||
| 109 | Bob Evans Farms, Inc. | 3,586 | |||||
| 304 | Brinker International, Inc. | 6,962 | |||||
| 66 | Buffalo Wild Wings, Inc.* | 4,370 | |||||
| 193 | Cheesecake Factory, Inc./The* | 5,402 | |||||
| 111 | Chipotle Mexican Grill, Inc.* | 37,309 | |||||
| 82 | Cracker Barrel Old Country Store, Inc. | 3,476 | |||||
| 482 | Darden Restaurants, Inc. | 23,078 | |||||
| 58 | DineEquity, Inc.* | 2,724 | |||||
| 207 | Domino's Pizza, Inc.* | 6,630 | |||||
| 78 | Dunkin' Brands Group, Inc.* | 2,271 | |||||
| 178 | Jack in the Box, Inc.* | 3,663 | |||||
| 3,697 | McDonald's Corp. | 343,266 | |||||
| 104 | Panera Bread Co., Class A* | 13,904 | |||||
| 80 | PF Chang's China Bistro, Inc. | 2,488 | |||||
| 2,664 | Starbucks Corp. | 112,794 | |||||
| 228 | Texas Roadhouse, Inc. | 3,267 | |||||
| 1,115 | Wendy's Co./The | 5,642 | |||||
| 1,675 | Yum! Brands, Inc. | 89,730 | |||||
| 675,008 | |||||||
Specialized Consumer Services - 1.0% | |||||||
| 1,093 | H&R Block, Inc. | 16,712 | |||||
| 105 | Matthews International Corp., Class A | 3,690 | |||||
| 207 | Regis Corp. | 3,386 | |||||
| 855 | Service Corp. International | 8,550 | |||||
| 241 | Sotheby's | 8,488 | |||||
| 108 | Weight Watchers International, Inc. | 8,059 | |||||
| 48,885 | |||||||
Specialty Chemicals - 0.5% | |||||||
| 320 | Sherwin-Williams Co./The | 26,467 | |||||
Specialty Stores - 3.2% | |||||||
| 176 | Cabela's, Inc.* | 4,386 | |||||
| 342 | Dick's Sporting Goods, Inc.* | 13,369 | |||||
| 98 | Hibbett Sports, Inc.* | 4,037 | |||||
| 994 | Office Depot, Inc.* | 2,276 | |||||
| 308 | OfficeMax, Inc.* | 1,577 | |||||
| 406 | PetSmart, Inc. | 19,062 | |||||
| 345 | Sally Beauty Holdings, Inc.* | 6,620 | |||||
| 2,556 | Staples, Inc. | 38,238 | |||||
| 458 | Tiffany & Co. | 36,516 | |||||
| 256 | Tractor Supply Co. | 18,161 | |||||
| 177 | Ulta Salon Cosmetics & Fragrance, Inc.* | 11,910 | |||||
| 99 | Vitamin Shoppe, Inc.* | 3,733 | |||||
| 159,885 | |||||||
Tires & Rubber - 0.3% | |||||||
| 223 | Cooper Tire & Rubber Co. | 3,196 | |||||
| 875 | Goodyear Tire & Rubber Co./The* | 12,565 | |||||
| 15,761 | |||||||
| Total Common Stocks | |||||||
| (Cost $4,994,388) | 5,035,222 | ||||||
| Money Market Fund - 0.0%† | |||||||
| 1,783 | JPMorgan U.S. Government Money Market Premier, 0.01% (Cost $1,783) | 1,783 | |||||
| Total Investment Securities | |||||||
| (Cost $4,996,171) — 100.0% | 5,037,005 | ||||||
| Liabilities in excess of other assets — 0.0%† | (188 | ) | |||||
| Net Assets — 100.0% | $ | 5,036,817 | |||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| Aggregate gross unrealized appreciation | $ | 411,896 | ||
| Aggregate gross unrealized depreciation | (374,648 | ) | ||
| Net unrealized appreciation | $ | 37,248 | ||
| Federal income tax cost of investments | $ | 4,999,757 | ||
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Financial Services Index ETF
Schedule of Portfolio Investments
October 31, 2011
| Shares | Value | ||||||
| Common Stocks - 100.0% | |||||||
Asset Management & Custody Banks - 8.8% | |||||||
| 135 | Affiliated Managers Group, Inc.* | $ | 12,502 | ||||
| 610 | Ameriprise Financial, Inc. | 28,475 | |||||
| 82 | Artio Global Investors, Inc. | 600 | |||||
| 3,208 | Bank of New York Mellon Corp./The | 68,266 | |||||
| 255 | BlackRock, Inc. | 40,236 | |||||
| 54 | Cohen & Steers, Inc. | 1,467 | |||||
| 305 | Eaton Vance Corp. | 8,018 | |||||
| 270 | Federated Investors, Inc., Class B | 5,276 | |||||
| 106 | Financial Engines, Inc.* | 2,407 | |||||
| 386 | Franklin Resources, Inc. | 41,159 | |||||
| 1,166 | Invesco Ltd. | 23,402 | |||||
| 481 | Janus Capital Group, Inc. | 3,156 | |||||
| 354 | Legg Mason, Inc. | 9,735 | |||||
| 562 | Northern Trust Corp. | 22,744 | |||||
| 385 | SEI Investments Co. | 6,233 | |||||
| 1,298 | State Street Corp. | 52,426 | |||||
| 663 | T. Rowe Price Group, Inc. | 35,033 | |||||
| 223 | Waddell & Reed Financial, Inc., Class A | 6,184 | |||||
| 367,319 | |||||||
Consumer Finance - 6.2% | |||||||
| 2,753 | American Express Co. | 139,357 | |||||
| 1,180 | Capital One Financial Corp. | 53,879 | |||||
| 76 | Cash America International, Inc. | 4,161 | |||||
| 17 | Credit Acceptance Corp.* | 1,172 | |||||
| 1,406 | Discover Financial Services | 33,125 | |||||
| 73 | First Cash Financial Services, Inc.* | 3,030 | |||||
| 72 | Nelnet, Inc., Class A | 1,547 | |||||
| 1,330 | SLM Corp. | 18,181 | |||||
| 39 | World Acceptance Corp.* | 2,638 | |||||
| 257,090 | |||||||
Data Processing & Outsourced Services - 5.4% | |||||||
| 275 | CoreLogic, Inc.* | 3,347 | |||||
| 274 | Mastercard, Inc., Class A | 95,144 | |||||
| 1,353 | Visa, Inc., Class A | 126,181 | |||||
| 224,672 | |||||||
Diversified Banks - 11.4% | |||||||
| 519 | Comerica, Inc. | 13,260 | |||||
| 4,944 | U.S. Bancorp | 126,517 | |||||
| 12,886 | Wells Fargo & Co. | 333,876 | |||||
| 473,653 | |||||||
Insurance Brokers - 2.4% | |||||||
| 845 | Aon Corp. | 39,394 | |||||
| 290 | Arthur J. Gallagher & Co. | 8,961 | |||||
| 301 | Brown & Brown, Inc. | 6,646 | |||||
| 1,401 | Marsh & McLennan Cos., Inc. | 42,899 | |||||
| 97,900 | |||||||
Investment Banking & Brokerage - 6.7% | |||||||
| 2,663 | Charles Schwab Corp./The | 32,702 | |||||
| 672 | E*Trade Financial Corp.* | 7,291 | |||||
| 1,103 | Goldman Sachs Group, Inc./The | 120,834 | |||||
| 75 | Greenhill & Co., Inc. | 2,834 | |||||
| 376 | Jefferies Group, Inc. | 4,986 | |||||
| 80 | KBW, Inc. | 1,133 | |||||
| 256 | Knight Capital Group, Inc., Class A* | 3,197 | |||||
| 104 | LPL Investment Holdings, Inc.* | 3,017 | |||||
| 426 | MF Global Holdings Ltd.*^ | – | |||||
| 4,547 | Morgan Stanley | 80,209 | |||||
| 263 | Raymond James Financial, Inc. | 7,987 | |||||
| 139 | Stifel Financial Corp.* | 4,430 | |||||
| 588 | TD Ameritrade Holding Corp. | 9,867 | |||||
| 278,487 | |||||||
Life & Health Insurance - 6.8% | |||||||
| 1,219 | Aflac, Inc. | 54,965 | |||||
| 584 | CNO Financial Group, Inc.* | 3,650 | |||||
| 127 | Delphi Financial Group, Inc., Class A | 3,363 | |||||
| 35 | FBL Financial Group, Inc., Class A | 1,143 | |||||
| 797 | Lincoln National Corp. | 15,183 | |||||
| 2,128 | MetLife, Inc. | 74,820 | |||||
| 105 | Primerica, Inc. | 2,376 | |||||
| 763 | Principal Financial Group, Inc. | 19,670 | |||||
| 219 | Protective Life Corp. | 4,073 | |||||
| 1,250 | Prudential Financial, Inc. | 67,750 | |||||
| 115 | StanCorp Financial Group, Inc. | 3,903 | |||||
| 202 | Symetra Financial Corp. | 1,873 | |||||
| 272 | Torchmark Corp. | 11,133 | |||||
| 785 | Unum Group | 18,714 | |||||
| 282,616 | |||||||
Mortgage REITs - 0.3% | |||||||
| 218 | Capstead Mortgage Corp. | 2,642 | |||||
| 298 | Invesco Mortgage Capital, Inc. | 4,702 | |||||
| 921 | MFA Financial, Inc. | 6,217 | |||||
| 13,561 | |||||||
Multi-line Insurance - 3.0% | |||||||
| 229 | American Financial Group, Inc./OH | 8,205 | |||||
| 1,124 | American International Group, Inc.* | 27,752 | |||||
| 37 | American National Insurance Co. | 2,644 | |||||
| 244 | Assurant, Inc. | 9,404 | |||||
| 1,263 | Genworth Financial, Inc., Class A* | 8,058 | |||||
| 1,148 | Hartford Financial Services Group, Inc. | 22,099 | |||||
| 284 | HCC Insurance Holdings, Inc. | 7,557 | |||||
| 114 | Kemper Corp. | 3,065 | |||||
| 909 | Loews Corp. | 36,087 | |||||
| 124,871 | |||||||
Other Diversified Financial Services - 18.4% | |||||||
| 26,079 | Bank of America Corp. | 178,120 | |||||
| 7,494 | Citigroup, Inc. | 236,735 | |||||
| 10,083 | JPMorgan Chase & Co. | 350,485 | |||||
| 765,340 | |||||||
Property & Casualty Insurance - 13.8% | |||||||
| 876 | ACE Ltd. | 63,203 | |||||
| 21 | Alleghany Corp.* | 6,664 | |||||
| 1,257 | Allstate Corp./The | 33,109 | |||||
| 62 | Amtrust Financial Services, Inc. | 1,574 | |||||
| 80 | Argo Group International Holdings Ltd. | 2,415 | |||||
| 183 | Aspen Insurance Holdings Ltd. | 4,848 | |||||
| 436 | Assured Guaranty Ltd. | 5,555 | |||||
| 335 | Axis Capital Holdings Ltd. | 10,502 | |||||
| 2,489 | Berkshire Hathaway, Inc., Class B* | 193,793 | |||||
| 739 | Chubb Corp./The | 49,550 | |||||
| 393 | Cincinnati Financial Corp. | 11,373 | |||||
| 76 | CNA Financial Corp. | 2,022 | |||||
| 71 | Erie Indemnity Co., Class A | 5,605 | |||||
| 577 | Fidelity National Financial, Inc., Class A | 8,909 | |||||
| 272 | First American Financial Corp. | 3,264 | |||||
| 117 | Hanover Insurance Group, Inc./The | 4,465 | |||||
| 31 | Harleysville Group, Inc. | 1,822 | |||||
| 25 | Markel Corp.* | 9,663 | |||||
| 396 | MBIA, Inc.* | 3,485 | |||||
| 68 | Mercury General Corp. | 2,944 | |||||
| 31 | Navigators Group, Inc./The* | 1,414 | |||||
| 630 | Old Republic International Corp. | 5,569 | |||||
| 60 | OneBeacon Insurance Group Ltd., Class A | 913 | |||||
| 75 | ProAssurance Corp. | 5,741 | |||||
| 1,554 | Progressive Corp./The | 29,542 | |||||
| 45 | RLI Corp. | 3,165 | |||||
| 140 | Selective Insurance Group, Inc. | 2,244 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Financial Services Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 96 | Tower Group, Inc. | $ | 2,278 | ||||
| 1,083 | Travelers Cos., Inc./The | 63,193 | |||||
| 317 | W.R. Berkley Corp. | 11,035 | |||||
| 17 | White Mountains Insurance Group Ltd. | 7,140 | |||||
| 770 | XL Group plc | 16,740 | |||||
| 573,739 | |||||||
Regional Banks - 10.4% | |||||||
| 447 | Associated Banc-Corp. | 4,984 | |||||
| 202 | BancorpSouth, Inc. | 1,974 | |||||
| 122 | Bank of Hawaii Corp. | 5,152 | |||||
| 1,788 | BB&T Corp. | 41,732 | |||||
| 69 | BOK Financial Corp. | 3,603 | |||||
| 830 | CapitalSource, Inc. | 5,279 | |||||
| 203 | Cathay General Bancorp | 2,840 | |||||
| 517 | CIT Group, Inc.* | 18,017 | |||||
| 127 | City National Corp./CA | 5,387 | |||||
| 201 | Commerce Bancshares, Inc./MO | 7,799 | |||||
| 96 | Community Bank System, Inc. | 2,454 | |||||
| 150 | Cullen/Frost Bankers, Inc. | 7,356 | |||||
| 244 | CVB Financial Corp. | 2,369 | |||||
| 383 | East West Bancorp, Inc. | 7,457 | |||||
| 2,371 | Fifth Third Bancorp | 28,476 | |||||
| 14 | First Citizens BancShares Inc./NC, Class A | 2,283 | |||||
| 150 | First Financial Bancorp. | 2,460 | |||||
| 81 | First Financial Bankshares, Inc. | 2,573 | |||||
| 676 | First Horizon National Corp. | 4,725 | |||||
| 191 | First Midwest Bancorp, Inc./IL | 1,721 | |||||
| 282 | FirstMerit Corp. | 3,951 | |||||
| 328 | FNB Corp./PA | 3,310 | |||||
| 517 | Fulton Financial Corp. | 4,880 | |||||
| 186 | Glacier Bancorp, Inc. | 2,111 | |||||
| 201 | Hancock Holding Co. | 6,090 | |||||
| 2,227 | Huntington Bancshares, Inc./OH | 11,536 | |||||
| 78 | Iberiabank Corp. | 4,034 | |||||
| 148 | International Bancshares Corp. | 2,682 | |||||
| 120 | Investors Bancorp, Inc.* | 1,666 | |||||
| 2,459 | KeyCorp | 17,360 | |||||
| 325 | M&T Bank Corp. | 24,736 | |||||
| 141 | MB Financial, Inc. | 2,336 | |||||
| 329 | National Penn Bancshares, Inc. | 2,566 | |||||
| 245 | Old National Bancorp/IN | 2,835 | |||||
| 14 | Pacific Capital Bancorp* | 363 | |||||
| 34 | Park National Corp. | 2,030 | |||||
| 1,360 | PNC Financial Services Group, Inc. | 73,046 | |||||
| 168 | PrivateBancorp, Inc. | 1,831 | |||||
| 121 | Prosperity Bancshares, Inc. | 4,657 | |||||
| 3,248 | Regions Financial Corp. | 12,765 | |||||
| 107 | Signature Bank/NY* | 5,965 | |||||
| 72 | Sterling Financial Corp.* | 1,081 | |||||
| 1,385 | SunTrust Banks, Inc. | 27,326 | |||||
| 404 | Susquehanna Bancshares, Inc. | 2,933 | |||||
| 112 | SVB Financial Group* | 5,145 | |||||
| 1,888 | Synovus Financial Corp. | 2,832 | |||||
| 390 | TCF Financial Corp. | 4,150 | |||||
| 96 | Texas Capital Bancshares, Inc.* | 2,688 | |||||
| 147 | Trustmark Corp. | 3,255 | |||||
| 90 | UMB Financial Corp. | 3,318 | |||||
| 296 | Umpqua Holdings Corp. | 3,389 | |||||
| 130 | United Bankshares, Inc. | 3,086 | |||||
| 440 | Valley National Bancorp | 5,280 | |||||
| 191 | Webster Financial Corp. | 3,751 | |||||
| 74 | Westamerica Bancorp. | 3,317 | |||||
| 92 | Wintrust Financial Corp. | 2,657 | |||||
| 473 | Zions Bancorp. | 8,211 | |||||
| 431,810 | |||||||
Reinsurance - 1.8% | |||||||
| 343 | Arch Capital Group Ltd.* | 12,338 | |||||
| 105 | Endurance Specialty Holdings Ltd. | 3,906 | |||||
| 26 | Enstar Group Ltd.* | 2,391 | |||||
| 117 | Everest Re Group Ltd. | 10,521 | |||||
| 78 | Greenlight Capital Re Ltd., Class A* | 1,757 | |||||
| 159 | Montpelier Re Holdings Ltd. | 2,783 | |||||
| 175 | PartnerRe Ltd. | 10,889 | |||||
| 96 | Platinum Underwriters Holdings Ltd. | 3,324 | |||||
| 191 | Reinsurance Group of America, Inc. | 9,976 | |||||
| 134 | RenaissanceRe Holdings Ltd. | 9,128 | |||||
| 162 | Transatlantic Holdings, Inc. | 8,430 | |||||
| 75,443 | |||||||
Specialized Finance - 3.0% | |||||||
| 233 | CBOE Holdings, Inc. | 6,089 | |||||
| 165 | CME Group, Inc. | 45,467 | |||||
| 190 | IntercontinentalExchange, Inc.* | 24,677 | |||||
| 510 | Moody's Corp. | 18,100 | |||||
| 360 | NASDAQ OMX Group, Inc./The* | 9,018 | |||||
| 678 | NYSE Euronext | 18,015 | |||||
| 145 | PHH Corp.* | 2,675 | |||||
| 124,041 | |||||||
Thrifts & Mortgage Finance - 1.6% | |||||||
| 232 | Astoria Financial Corp. | 1,926 | |||||
| 434 | Capitol Federal Financial, Inc. | 4,813 | |||||
| 763 | First Niagara Financial Group, Inc. | 7,012 | |||||
| 1,261 | Hudson City Bancorp, Inc. | 7,881 | |||||
| 482 | MGIC Investment Corp.* | 1,282 | |||||
| 1,126 | New York Community Bancorp, Inc. | 14,987 | |||||
| 267 | Northwest Bancshares, Inc. | 3,329 | |||||
| 191 | Ocwen Financial Corp.* | 2,769 | |||||
| 974 | People's United Financial, Inc. | 12,419 | |||||
| 146 | Provident Financial Services, Inc. | 1,891 | |||||
| 240 | TFS Financial Corp.* | 2,210 | |||||
| 285 | Washington Federal, Inc. | 3,890 | |||||
| 64,409 | |||||||
| Total Common Stocks | |||||||
| (Cost $4,981,402) | 4,154,951 | ||||||
| Money Market Fund - 0.0%† | |||||||
| 10 | JPMorgan U.S. Government Money Market Premier, 0.01% (Cost $10) | 10 | |||||
| Total Investment Securities | |||||||
| (Cost $4,981,412) — 100.0% | 4,154,961 | ||||||
| Other assets less liabilities — 0.0%† | 955 | ||||||
| Net Assets — 100.0% | $ | 4,155,916 | |||||
| * | Non-income producing security. |
| ^ | Security fair valued in accordance with procedures adopted by Board of Trustees. At October 31, 2011, the value of these securities amounted to $— or 0.00% of net assets. |
| † | Amount represents less than 0.05%. |
| REIT | Real Estate Investment Trust |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Financial Services Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| Aggregate gross unrealized appreciation | $ | 99,809 | ||
| Aggregate gross unrealized depreciation | (937,186 | ) | ||
| Net unrealized depreciation | $ | (837,377 | ) | |
| Federal income tax cost of investments | $ | 4,992,338 | ||
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Industrials Index ETF
Schedule of Portfolio Investments
October 31, 2011
| Shares | Value | ||||||
| Common Stocks - 100.0% | |||||||
Advertising - 0.0%† | |||||||
| 66 | DG FastChannel, Inc.* | $ | 1,230 | ||||
Aerospace & Defense - 17.8% | |||||||
| 105 | AAR Corp. | 2,093 | |||||
| 88 | Alliant Techsystems, Inc. | 5,111 | |||||
| 256 | BE Aerospace, Inc.* | 9,659 | |||||
| 1,763 | Boeing Co./The | 115,988 | |||||
| 63 | Ceradyne, Inc.* | 2,108 | |||||
| 43 | Cubic Corp. | 2,026 | |||||
| 124 | Curtiss-Wright Corp. | 4,065 | |||||
| 81 | Esterline Technologies Corp.* | 4,528 | |||||
| 805 | General Dynamics Corp. | 51,673 | |||||
| 332 | Goodrich Corp. | 40,713 | |||||
| 34 | HEICO Corp. | 1,939 | |||||
| 61 | HEICO Corp., Class A | 2,398 | |||||
| 262 | Hexcel Corp.* | 6,474 | |||||
| 1,901 | Honeywell International, Inc. | 99,612 | |||||
| 283 | L-3 Communications Holdings, Inc. | 19,182 | |||||
| 712 | Lockheed Martin Corp. | 54,041 | |||||
| 112 | Moog, Inc., Class A* | 4,338 | |||||
| 690 | Northrop Grumman Corp. | 39,847 | |||||
| 156 | Orbital Sciences Corp.* | 2,412 | |||||
| 383 | Precision Castparts Corp. | 62,486 | |||||
| 942 | Raytheon Co. | 41,627 | |||||
| 413 | Rockwell Collins, Inc. | 23,058 | |||||
| 313 | Spirit AeroSystems Holdings, Inc., Class A* | 5,343 | |||||
| 98 | Teledyne Technologies, Inc.* | 5,338 | |||||
| 736 | Textron, Inc. | 14,293 | |||||
| 121 | TransDigm Group, Inc.* | 11,364 | |||||
| 103 | Triumph Group, Inc. | 5,984 | |||||
| 2,106 | United Technologies Corp. | 164,226 | |||||
| 801,926 | |||||||
Air Freight & Logistics - 6.0% | |||||||
| 70 | Atlas Air Worldwide Holdings, Inc.* | 2,696 | |||||
| 442 | CH Robinson Worldwide, Inc. | 30,688 | |||||
| 568 | Expeditors International of Washington, Inc. | 25,901 | |||||
| 783 | FedEx Corp. | 64,073 | |||||
| 78 | Forward Air Corp. | 2,554 | |||||
| 99 | HUB Group, Inc., Class A* | 3,095 | |||||
| 1,962 | United Parcel Service, Inc., Class B | 137,811 | |||||
| 271 | UTi Worldwide, Inc. | 3,959 | |||||
| 270,777 | |||||||
Airlines - 1.6% | |||||||
| 96 | Alaska Air Group, Inc.* | 6,387 | |||||
| 886 | AMR Corp.* | 2,330 | |||||
| 2,251 | Delta Air Lines, Inc.* | 19,178 | |||||
| 663 | JetBlue Airways Corp.* | 2,970 | |||||
| 138 | Skywest, Inc. | 1,851 | |||||
| 2,141 | Southwest Airlines Co. | 18,306 | |||||
| 880 | United Continental Holdings, Inc.* | 17,002 | |||||
| 429 | US Airways Group, Inc.* | 2,475 | |||||
| 70,499 | |||||||
Application Software - 0.3% | |||||||
| 112 | Factset Research Systems, Inc. | 11,135 | |||||
| 103 | Fair Isaac Corp. | 2,817 | |||||
| 13,952 | |||||||
Building Products - 0.2% | |||||||
| 104 | AO Smith Corp. | 3,865 | |||||
| 107 | Simpson Manufacturing Co., Inc. | 3,280 | |||||
| 7,145 | |||||||
Commercial Printing - 0.3% | |||||||
| 137 | Deluxe Corp. | 3,236 | |||||
| 500 | R.R. Donnelley & Sons Co. | 8,150 | |||||
| 11,386 | |||||||
Computer & Electronics Retail - 0.1% | |||||||
| 164 | Rent-A-Center, Inc. | 5,601 | |||||
Computer Hardware - 0.1% | |||||||
| 171 | Diebold, Inc. | 5,520 | |||||
Construction & Engineering - 2.1% | |||||||
| 275 | AECOM Technology Corp.* | 5,753 | |||||
| 104 | Aegion Corp.* | 1,538 | |||||
| 177 | EMCOR Group, Inc. | 4,437 | |||||
| 463 | Fluor Corp. | 26,322 | |||||
| 91 | Granite Construction, Inc. | 2,048 | |||||
| 340 | Jacobs Engineering Group, Inc.* | 13,192 | |||||
| 402 | KBR, Inc. | 11,220 | |||||
| 169 | MasTec, Inc.* | 3,654 | |||||
| 553 | Quanta Services, Inc.* | 11,552 | |||||
| 192 | Shaw Group, Inc./The* | 4,466 | |||||
| 86 | Tutor Perini Corp.* | 1,250 | |||||
| 212 | URS Corp.* | 7,568 | |||||
| 93,000 | |||||||
Construction & Farm Machinery & Heavy Trucks - 8.8% | |||||||
| 257 | AGCO Corp.* | 11,264 | |||||
| 1,558 | Caterpillar, Inc. | 147,169 | |||||
| 464 | Cummins, Inc. | 46,136 | |||||
| 1,122 | Deere & Co. | 85,160 | |||||
| 279 | Joy Global, Inc. | 24,329 | |||||
| 350 | Manitowoc Co., Inc./The | 3,878 | |||||
| 15 | NACCO Industries, Inc., Class A | 1,231 | |||||
| 194 | Navistar International Corp.* | 8,162 | |||||
| 241 | Oshkosh Corp.* | 5,027 | |||||
| 966 | PACCAR, Inc. | 41,770 | |||||
| 29 | Sauer-Danfoss, Inc.* | 1,123 | |||||
| 292 | Terex Corp.* | 4,859 | |||||
| 82 | Toro Co./The | 4,431 | |||||
| 212 | Trinity Industries, Inc. | 5,781 | |||||
| 128 | Wabtec Corp. | 8,599 | |||||
| 398,919 | |||||||
Consumer Finance - 0.0%† | |||||||
| 54 | Green Dot Corp., Class A* | 1,764 | |||||
| 88 | Netspend Holdings, Inc.* | 506 | |||||
| 2,270 | |||||||
Data Processing & Outsourced Services - 4.8% | |||||||
| 136 | Alliance Data Systems Corp.* | 13,932 | |||||
| 1,311 | Automatic Data Processing, Inc. | 68,605 | |||||
| 329 | Broadridge Financial Solutions, Inc. | 7,320 | |||||
| 98 | DST Systems, Inc. | 4,918 | |||||
| 130 | Euronet Worldwide, Inc.* | 2,518 | |||||
| 694 | Fidelity National Information Services, Inc. | 18,169 | |||||
| 377 | Fiserv, Inc.* | 22,194 | |||||
| 281 | Genpact Ltd.* | 4,538 | |||||
| 212 | Global Payments, Inc. | 9,735 | |||||
| 230 | Jack Henry & Associates, Inc. | 7,454 | |||||
| 225 | Lender Processing Services, Inc. | 3,949 | |||||
| 863 | Paychex, Inc. | 25,148 | |||||
| 76 | TeleTech Holdings, Inc.* | 1,328 | |||||
| 518 | Total System Services, Inc. | 10,303 | |||||
| 276 | VeriFone Systems, Inc.* | 11,650 | |||||
| 103 | Wright Express Corp.* | 4,829 | |||||
| 216,590 | |||||||
Distributors - 0.8% | |||||||
| 420 | Genuine Parts Co. | 24,121 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Industrials Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 389 | LKQ Corp.* | $ | 11,351 | ||||
| 35,472 | |||||||
Diversified Chemicals - 2.6% | |||||||
| 2,483 | E.I. du Pont de Nemours & Co. | 119,358 | |||||
Diversified Support Services - 0.8% | |||||||
| 302 | Cintas Corp. | 9,027 | |||||
| 164 | Copart, Inc.* | 7,142 | |||||
| 167 | Healthcare Services Group, Inc. | 2,898 | |||||
| 494 | Iron Mountain, Inc. | 15,279 | |||||
| 34,346 | |||||||
Electrical Components & Equipment - 4.6% | |||||||
| 428 | AMETEK, Inc. | 16,915 | |||||
| 126 | Belden, Inc. | 4,067 | |||||
| 131 | Brady Corp., Class A | 4,024 | |||||
| 440 | Cooper Industries plc | 23,082 | |||||
| 1,984 | Emerson Electric Co. | 95,470 | |||||
| 134 | EnerSys* | 3,019 | |||||
| 52 | Franklin Electric Co., Inc. | 2,388 | |||||
| 138 | General Cable Corp.* | 3,869 | |||||
| 349 | GrafTech International Ltd.* | 5,483 | |||||
| 108 | Polypore International, Inc.* | 5,665 | |||||
| 103 | Regal-Beloit Corp. | 5,472 | |||||
| 381 | Rockwell Automation, Inc. | 25,775 | |||||
| 140 | Thomas & Betts Corp.* | 6,957 | |||||
| 155 | Woodward, Inc. | 5,251 | |||||
| 207,437 | |||||||
Electronic Components - 0.1% | |||||||
| 61 | Littelfuse, Inc. | 2,987 | |||||
Electronic Equipment & Instruments - 0.3% | |||||||
| 107 | Checkpoint Systems, Inc.* | 1,418 | |||||
| 425 | FLIR Systems, Inc. | 11,177 | |||||
| 12,595 | |||||||
Environmental & Facilities Services - 2.4% | |||||||
| 118 | ABM Industries, Inc. | 2,386 | |||||
| 124 | Clean Harbors, Inc.* | 7,225 | |||||
| 823 | Republic Services, Inc. | 23,422 | |||||
| 200 | Rollins, Inc. | 4,356 | |||||
| 229 | Stericycle, Inc.* | 19,140 | |||||
| 166 | Tetra Tech, Inc.* | 3,624 | |||||
| 303 | Waste Connections, Inc. | 10,317 | |||||
| 1,094 | Waste Management, Inc. | 36,025 | |||||
| 106,495 | |||||||
Health Care Services - 0.2% | |||||||
| 226 | HMS Holdings Corp.* | 5,523 | |||||
| 77 | Team Health Holdings, Inc.* | 1,565 | |||||
| 7,088 | |||||||
Health Care Technology - 0.0%† | |||||||
| 121 | Emdeon, Inc., Class A* | 2,295 | |||||
Heavy Electrical Equipment - 0.1% | |||||||
| 311 | Babcock & Wilcox Co./The* | 6,839 | |||||
Homefurnishing Retail - 0.1% | |||||||
| 189 | Aaron's, Inc. | 5,058 | |||||
Household Products - 0.0%† | |||||||
| 67 | Spectrum Brands Holdings, Inc.* | 1,700 | |||||
Human Resource & Employment Services - 0.7% | |||||||
| 125 | Korn/Ferry International* | 1,996 | |||||
| 218 | Manpower, Inc. | 9,405 | |||||
| 386 | Robert Half International, Inc. | 10,202 | |||||
| 145 | Towers Watson & Co., Class A | 9,526 | |||||
| 31,129 | |||||||
Industrial Conglomerates - 16.4% | |||||||
| 1,739 | 3M Co. | 137,416 | |||||
| 1,515 | Danaher Corp. | 73,250 | |||||
| 28,423 | General Electric Co. | 474,948 | |||||
| 1,249 | Tyco International Ltd. | 56,892 | |||||
| 742,506 | |||||||
Industrial Gases - 2.1% | |||||||
| 174 | Airgas, Inc. | 11,997 | |||||
| 809 | Praxair, Inc. | 82,251 | |||||
| 94,248 | |||||||
Industrial Machinery - 9.0% | |||||||
| 183 | Actuant Corp., Class A | 4,117 | |||||
| 129 | Barnes Group, Inc. | 3,002 | |||||
| 133 | Briggs & Stratton Corp. | 1,943 | |||||
| 78 | Chart Industries, Inc.* | 4,408 | |||||
| 66 | Colfax Corp.* | 1,667 | |||||
| 135 | Crane Co. | 5,955 | |||||
| 190 | Donaldson Co., Inc. | 12,170 | |||||
| 495 | Dover Corp. | 27,487 | |||||
| 908 | Eaton Corp. | 40,697 | |||||
| 149 | Flowserve Corp. | 13,811 | |||||
| 139 | Gardner Denver, Inc. | 10,749 | |||||
| 162 | Graco, Inc. | 6,956 | |||||
| 221 | IDEX Corp. | 7,834 | |||||
| 1,124 | Illinois Tool Works, Inc. | 54,660 | |||||
| 882 | Ingersoll-Rand plc | 27,457 | |||||
| 494 | ITT Corp.* | 22,526 | |||||
| 86 | Kaydon Corp. | 2,706 | |||||
| 218 | Kennametal, Inc. | 8,478 | |||||
| 225 | Lincoln Electric Holdings, Inc. | 8,190 | |||||
| 50 | Middleby Corp.* | 4,214 | |||||
| 101 | Mueller Industries, Inc. | 4,085 | |||||
| 165 | Nordson Corp. | 7,651 | |||||
| 308 | Pall Corp. | 15,760 | |||||
| 429 | Parker Hannifin Corp. | 34,985 | |||||
| 262 | Pentair, Inc. | 9,419 | |||||
| 102 | Robbins & Myers, Inc. | 4,558 | |||||
| 155 | Snap-on, Inc. | 8,319 | |||||
| 136 | SPX Corp. | 7,427 | |||||
| 446 | Stanley Black & Decker, Inc. | 28,477 | |||||
| 210 | Timken Co. | 8,845 | |||||
| 60 | Valmont Industries, Inc. | 5,145 | |||||
| 81 | Watts Water Technologies, Inc., Class A | 2,551 | |||||
| 406,249 | |||||||
Internet Software & Services - 0.2% | |||||||
| 138 | Dice Holdings, Inc.* | 1,405 | |||||
| 346 | Monster Worldwide, Inc.* | 3,194 | |||||
| 63 | OpenTable, Inc.* | 2,763 | |||||
| 7,362 | |||||||
IT Consulting & Other Services - 2.8% | |||||||
| 1,706 | Accenture plc, Class A | 102,803 | |||||
| 38 | Forrester Research, Inc. | 1,361 | |||||
| 237 | Gartner, Inc.* | 9,129 | |||||
| 91 | MAXIMUS, Inc. | 3,671 | |||||
| 941 | SAIC, Inc.* | 11,697 | |||||
| 128,661 | |||||||
Marine - 0.3% | |||||||
| 110 | Alexander & Baldwin, Inc. | 4,566 | |||||
| 148 | Kirby Corp.* | 9,108 | |||||
| 13,674 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Industrials Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
Office Electronics - 0.7% | |||||||
| 3,739 | Xerox Corp. | $ | 30,585 | ||||
Office Services & Supplies - 0.5% | |||||||
| 155 | Herman Miller, Inc. | 3,201 | |||||
| 99 | HNI Corp. | 2,381 | |||||
| 498 | Pitney Bowes, Inc. | 10,149 | |||||
| 231 | Steelcase, Inc., Class A | 1,712 | |||||
| 118 | United Stationers, Inc. | 3,753 | |||||
| 21,196 | |||||||
Oil & Gas Equipment & Services - 0.3% | |||||||
| 622 | McDermott International, Inc.* | 6,830 | |||||
| 137 | Tidewater, Inc. | 6,744 | |||||
| 13,574 | |||||||
Oil & Gas Storage & Transportation - 0.1% | |||||||
| 72 | Overseas Shipholding Group, Inc. | 899 | |||||
| 114 | Ship Finance International Ltd. | 1,631 | |||||
| 113 | Teekay Corp. | 2,911 | |||||
| 5,441 | |||||||
Publishing - 0.1% | |||||||
| 68 | Morningstar, Inc. | 4,010 | |||||
Railroads - 6.4% | |||||||
| 2,918 | CSX Corp. | 64,809 | |||||
| 107 | Genesee & Wyoming, Inc., Class A* | 6,335 | |||||
| 292 | Kansas City Southern* | 18,446 | |||||
| 926 | Norfolk Southern Corp. | 68,515 | |||||
| 1,307 | Union Pacific Corp. | 130,138 | |||||
| 288,243 | |||||||
Research & Consulting Services - 0.9% | |||||||
| 92 | Corporate Executive Board Co./The | 3,366 | |||||
| 131 | Dun & Bradstreet Corp./The | 8,759 | |||||
| 329 | Equifax, Inc. | 11,564 | |||||
| 111 | FTI Consulting, Inc.* | 4,375 | |||||
| 336 | Verisk Analytics, Inc., Class A* | 11,810 | |||||
| 39,874 | |||||||
Security & Alarm Services - 0.1% | |||||||
| 125 | Brink's Co./The | 3,474 | |||||
| 172 | Geo Group, Inc./The* | 3,135 | |||||
| 6,609 | |||||||
Semiconductor Equipment - 0.1% | |||||||
| 140 | MKS Instruments, Inc. | 3,730 | |||||
Specialized Consumer Services - 0.2% | |||||||
| 82 | Coinstar, Inc.* | 3,915 | |||||
| 167 | Hillenbrand, Inc. | 3,525 | |||||
| 7,440 | |||||||
Specialized Finance - 0.3% | |||||||
| 320 | MSCI, Inc., Class A* | 10,685 | |||||
| 45 | Portfolio Recovery Associates, Inc.* | 3,156 | |||||
| 13,841 | |||||||
Specialty Chemicals - 1.0% | |||||||
| 622 | Ecolab, Inc. | 33,488 | |||||
| 367 | Nalco Holding Co. | 13,840 | |||||
| 47,328 | |||||||
Steel - 0.5% | |||||||
| 283 | Allegheny Technologies, Inc. | 13,131 | |||||
| 382 | United States Steel Corp. | 9,688 | |||||
| 22,819 | |||||||
Technology Distributors - 0.0%† | |||||||
| 65 | SYNNEX Corp.* | 1,877 | |||||
Trading Companies & Distributors - 1.9% | |||||||
| 132 | Aircastle Ltd. | 1,601 | |||||
| 103 | Applied Industrial Technologies, Inc. | 3,463 | |||||
| 785 | Fastenal Co. | 29,901 | |||||
| 124 | GATX Corp. | 4,709 | |||||
| 127 | MSC Industrial Direct Co., Class A | 8,637 | |||||
| 168 | RSC Holdings, Inc.* | 1,640 | |||||
| 61 | TAL International Group, Inc. | 1,698 | |||||
| 49 | Textainer Group Holdings Ltd. | 1,345 | |||||
| 166 | United Rentals, Inc.* | 3,886 | |||||
| 157 | W.W. Grainger, Inc. | 26,896 | |||||
| 83,776 | |||||||
Trucking - 1.3% | |||||||
| 16 | Amerco, Inc.* | 1,211 | |||||
| 280 | Avis Budget Group, Inc.* | 3,948 | |||||
| 147 | Con-way, Inc. | 4,332 | |||||
| 71 | Dollar Thrifty Automotive Group, Inc.* | 4,334 | |||||
| 148 | Heartland Express, Inc. | 1,985 | |||||
| 630 | Hertz Global Holdings, Inc.* | 7,308 | |||||
| 268 | J.B. Hunt Transport Services, Inc. | 11,339 | |||||
| 151 | Knight Transportation, Inc. | 2,295 | |||||
| 128 | Landstar System, Inc. | 5,713 | |||||
| 145 | Old Dominion Freight Line, Inc.* | 5,303 | |||||
| 136 | Ryder System, Inc. | 6,928 | |||||
| 138 | Werner Enterprises, Inc. | 3,270 | |||||
| 57,966 | |||||||
| Total Common Stocks | |||||||
| (Cost $4,983,762) | 4,512,623 | ||||||
| Total Investment Securities | |||||||
| (Cost $4,983,762) — 100.0% | 4,512,623 | ||||||
| Other assets less liabilities — 0.0%† | 681 | ||||||
| Net Assets — 100.0% | $ | 4,513,304 | |||||
| † | Amount represents less than 0.05%. |
| * | Non-income producing security. |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| Aggregate gross unrealized appreciation | $ | 94,128 | ||
| Aggregate gross unrealized depreciation | (571,778 | ) | ||
| Net unrealized depreciation | $ | (477,650 | ) | |
| Federal income tax cost of investments | $ | 4,990,273 | ||
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Technology Index ETF
Schedule of Portfolio Investments
October 31, 2011
| Shares | Value | ||||||
| Common Stocks - 100.0% | |||||||
Aerospace & Defense - 0.0%† | |||||||
| 78 | DigitalGlobe, Inc.* | $ | 1,591 | ||||
Application Software - 5.6% | |||||||
| 72 | ACI Worldwide, Inc.* | 2,208 | |||||
| 1,075 | Adobe Systems, Inc.* | 31,616 | |||||
| 72 | Advent Software, Inc.* | 1,973 | |||||
| 200 | ANSYS, Inc.* | 10,872 | |||||
| 205 | Aspen Technology, Inc.* | 3,555 | |||||
| 499 | Autodesk, Inc.* | 17,265 | |||||
| 97 | Blackbaud, Inc. | 2,719 | |||||
| 588 | Cadence Design Systems, Inc.* | 6,509 | |||||
| 409 | Citrix Systems, Inc.* | 29,787 | |||||
| 476 | Compuware Corp.* | 4,022 | |||||
| 102 | Concur Technologies, Inc.* | 4,745 | |||||
| 230 | Informatica Corp.* | 10,465 | |||||
| 604 | Intuit, Inc. | 32,417 | |||||
| 92 | JDA Software Group, Inc.* | 2,932 | |||||
| 206 | Mentor Graphics Corp.* | 2,340 | |||||
| 18 | MicroStrategy, Inc., Class A* | 2,372 | |||||
| 77 | Netscout Systems, Inc.* | 1,262 | |||||
| 501 | Nuance Communications, Inc.* | 13,267 | |||||
| 257 | Parametric Technology Corp.* | 5,353 | |||||
| 35 | Pegasystems, Inc. | 1,323 | |||||
| 164 | QLIK Technologies, Inc.* | 4,686 | |||||
| 130 | Quest Software, Inc.* | 2,287 | |||||
| 69 | RealPage, Inc.* | 1,818 | |||||
| 263 | Salesforce.com, Inc.* | 35,024 | |||||
| 125 | SolarWinds, Inc.* | 3,608 | |||||
| 153 | Solera Holdings, Inc. | 8,358 | |||||
| 74 | SS&C Technologies Holdings, Inc.* | 1,174 | |||||
| 182 | SuccessFactors, Inc.* | 4,859 | |||||
| 66 | Synchronoss Technologies, Inc.* | 1,984 | |||||
| 319 | Synopsys, Inc.* | 8,552 | |||||
| 90 | Taleo Corp., Class A* | 2,916 | |||||
| 363 | TIBCO Software, Inc.* | 10,487 | |||||
| 56 | Ultimate Software Group, Inc.* | 3,370 | |||||
| 48 | Verint Systems, Inc.* | 1,430 | |||||
| 277,555 | |||||||
Casinos & Gaming - 0.0%† | |||||||
| 133 | Scientific Games Corp., Class A* | 1,156 | |||||
Communications Equipment - 11.6% | |||||||
| 119 | Acme Packet, Inc.* | 4,309 | |||||
| 141 | ADTRAN, Inc. | 4,738 | |||||
| 260 | Arris Group, Inc.* | 2,798 | |||||
| 195 | Aruba Networks, Inc.* | 4,619 | |||||
| 94 | Blue Coat Systems, Inc.* | 1,513 | |||||
| 991 | Brocade Communications Systems, Inc.* | 4,341 | |||||
| 208 | Ciena Corp.* | 2,741 | |||||
| 12,066 | Cisco Systems, Inc. | 223,583 | |||||
| 84 | EchoStar Corp., Class A* | 2,214 | |||||
| 191 | Emulex Corp.* | 1,601 | |||||
| 175 | F5 Networks, Inc.* | 18,191 | |||||
| 195 | Finisar Corp.* | 3,996 | |||||
| 250 | Harmonic, Inc.* | 1,375 | |||||
| 277 | Harris Corp. | 10,457 | |||||
| 109 | Ixia* | 1,235 | |||||
| 485 | JDS Uniphase Corp.* | 5,820 | |||||
| 1,149 | Juniper Networks, Inc.* | 28,116 | |||||
| 27 | Loral Space & Communications, Inc.* | 1,633 | |||||
| 657 | Motorola Solutions, Inc. | 30,820 | |||||
| 82 | Netgear, Inc.* | 2,908 | |||||
| 102 | Plantronics, Inc. | 3,408 | |||||
| 384 | Polycom, Inc.* | 6,347 | |||||
| 3,657 | QUALCOMM, Inc. | 188,701 | |||||
| 338 | Riverbed Technology, Inc.* | 9,322 | |||||
| 454 | Sonus Networks, Inc.* | 1,203 | |||||
| 723 | Tellabs, Inc. | 3,131 | |||||
| 92 | Viasat, Inc.* | 3,918 | |||||
| 573,038 | |||||||
Computer Hardware - 19.7% | |||||||
| 1,957 | Apple, Inc.* | 792,154 | |||||
| 3,620 | Dell, Inc.* | 57,232 | |||||
| 4,515 | Hewlett-Packard Co. | 120,144 | |||||
| 342 | NCR Corp.* | 6,512 | |||||
| 46 | Stratasys, Inc.* | 1,290 | |||||
| 977,332 | |||||||
Computer Storage & Peripherals - 4.2% | |||||||
| 4,490 | EMC Corp.* | 110,050 | |||||
| 173 | Lexmark International, Inc., Class A* | 5,484 | |||||
| 811 | NetApp, Inc.* | 33,219 | |||||
| 226 | QLogic Corp.* | 3,157 | |||||
| 519 | SanDisk Corp.* | 26,298 | |||||
| 913 | Seagate Technology plc | 14,745 | |||||
| 91 | STEC, Inc.* | 1,030 | |||||
| 75 | Synaptics, Inc.* | 2,534 | |||||
| 506 | Western Digital Corp.* | 13,480 | |||||
| 209,997 | |||||||
Consumer Electronics - 0.3% | |||||||
| 250 | Garmin Ltd. | 8,598 | |||||
| 151 | Harman International Industries, Inc. | 6,517 | |||||
| 15,115 | |||||||
Data Processing & Outsourced Services - 0.3% | |||||||
| 334 | Computer Sciences Corp. | 10,508 | |||||
| 228 | Convergys Corp.* | 2,439 | |||||
| 33 | Syntel, Inc. | 1,614 | |||||
| 14,561 | |||||||
Electrical Components & Equipment - 0.6% | |||||||
| 94 | Acuity Brands, Inc. | 4,352 | |||||
| 60 | Generac Holdings, Inc.* | 1,372 | |||||
| 115 | Hubbell, Inc., Class B | 6,876 | |||||
| 115 | II-VI, Inc.* | 2,186 | |||||
| 209 | Roper Industries, Inc. | 16,950 | |||||
| 31,736 | |||||||
Electronic Components - 1.5% | |||||||
| 370 | Amphenol Corp., Class A | 17,571 | |||||
| 112 | AVX Corp. | 1,502 | |||||
| 3,405 | Corning, Inc. | 48,657 | |||||
| 120 | Power-One, Inc.* | 594 | |||||
| 87 | Universal Display Corp.* | 4,074 | |||||
| 313 | Vishay Intertechnology, Inc.* | 3,365 | |||||
| 75,763 | |||||||
Electronic Equipment & Instruments - 0.4% | |||||||
| 84 | Cognex Corp. | 2,847 | |||||
| 55 | Coherent, Inc.* | 2,803 | |||||
| 85 | FEI Co.* | 3,380 | |||||
| 88 | Itron, Inc.* | 3,237 | |||||
| 203 | National Instruments Corp. | 5,422 | |||||
| 62 | Rofin-Sinar Technologies, Inc.* | 1,612 | |||||
| 19,301 | |||||||
Electronic Manufacturing Services - 1.4% | |||||||
| 130 | Benchmark Electronics, Inc.* | 1,786 | |||||
| 58 | IPG Photonics Corp.* | 3,066 | |||||
| 437 | Jabil Circuit, Inc. | 8,985 | |||||
| 140 | Molex, Inc. | 3,456 | |||||
| 174 | Molex, Inc., Class A | 3,550 | |||||
| 77 | Plexus Corp.* | 1,979 | |||||
| 174 | Sanmina-SCI Corp.* | 1,533 |
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Technology Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 943 | TE Connectivity Ltd. | $ | 33,524 | ||||
| 267 | Trimble Navigation Ltd.* | 10,789 | |||||
| 116 | TTM Technologies, Inc.* | 1,296 | |||||
| 69,964 | |||||||
Health Care Services - 0.1% | |||||||
| 86 | Accretive Health, Inc.* | 2,048 | |||||
Health Care Technology - 0.7% | |||||||
| 406 | Allscripts Healthcare Solutions, Inc.* | 7,775 | |||||
| 76 | athenahealth, Inc.* | 4,021 | |||||
| 311 | Cerner Corp.* | 19,727 | |||||
| 119 | MedAssets, Inc.* | 1,268 | |||||
| 80 | Quality Systems, Inc. | 3,113 | |||||
| 35,904 | |||||||
Home Entertainment Software - 0.7% | |||||||
| 922 | Activision Blizzard, Inc. | 12,346 | |||||
| 728 | Electronic Arts, Inc.* | 16,999 | |||||
| 189 | Take-Two Interactive Software, Inc.* | 2,982 | |||||
| 32,327 | |||||||
Industrial Conglomerates - 0.1% | |||||||
| 39 | Raven Industries, Inc. | 2,340 | |||||
Industrial Machinery - 0.1% | |||||||
| 92 | 3D Systems Corp.* | 1,497 | |||||
| 58 | ESCO Technologies, Inc. | 1,773 | |||||
| 3,270 | |||||||
Internet Retail - 0.0%† | |||||||
| 17 | HomeAway, Inc.* | 562 | |||||
Internet Software & Services - 8.4% | |||||||
| 401 | Akamai Technologies, Inc.* | 10,803 | |||||
| 65 | Ancestry.com, Inc.* | 1,480 | |||||
| 231 | AOL, Inc.* | 3,262 | |||||
| 90 | DealerTrack Holdings, Inc.* | 1,952 | |||||
| 86 | Digital River, Inc.* | 1,576 | |||||
| 537 | Google, Inc., Class A* | 318,248 | |||||
| 160 | IAC/InterActiveCorp* | 6,533 | |||||
| 79 | IntraLinks Holdings, Inc.* | 686 | |||||
| 101 | j2 Global Communications, Inc. | 3,109 | |||||
| 48 | LogMeIn, Inc.* | 1,952 | |||||
| 235 | Rackspace Hosting, Inc.* | 9,727 | |||||
| 56 | RightNow Technologies, Inc.* | 2,408 | |||||
| 362 | VeriSign, Inc. | 11,617 | |||||
| 129 | WebMD Health Corp.* | 4,637 | |||||
| 2,578 | Yahoo!, Inc.* | 40,320 | |||||
| 418,310 | |||||||
IT Consulting & Other Services - 11.3% | |||||||
| 177 | Acxiom Corp.* | 2,335 | |||||
| 420 | Amdocs Ltd.* | 12,608 | |||||
| 66 | CACI International, Inc., Class A* | 3,623 | |||||
| 661 | Cognizant Technology Solutions Corp., Class A* | 48,088 | |||||
| 69 | iGate Corp. | 930 | |||||
| 2,521 | International Business Machines Corp. | 465,452 | |||||
| 51 | Mantech International Corp., Class A | 1,792 | |||||
| 237 | Sapient Corp. | 2,929 | |||||
| 367 | Teradata Corp.* | 21,895 | |||||
| 85 | Unisys Corp.* | 2,209 | |||||
| 561,861 | |||||||
| Life Sciences Tools & Services – 0.9% | |||||||
| 751 | Agilent Technologies, Inc.* | �� | 27,840 | ||||
| 42 | Bio-Rad Laboratories, Inc., Class A* | 4,181 | |||||
| 202 | Bruker Corp.* | 2,915 | |||||
| 69 | Mettler-Toledo International, Inc.* | 10,598 | |||||
| 45,534 | |||||||
Office Electronics - 0.1% | |||||||
| 117 | Zebra Technologies Corp., Class A* | 4,182 | |||||
Office Services & Supplies - 0.0%† | |||||||
| 92 | SYKES Enterprises, Inc.* | 1,466 | |||||
Oil & Gas Equipment & Services - 0.0%† | |||||||
| 258 | ION Geophysical Corp.* | 1,966 | |||||
Research & Consulting Services - 0.2% | |||||||
| 102 | IHS, Inc., Class A* | 8,567 | |||||
Semiconductor Equipment - 2.1% | |||||||
| 237 | Amkor Technology, Inc.* | 1,147 | |||||
| 2,876 | Applied Materials, Inc. | 35,432 | |||||
| 51 | Cabot Microelectronics Corp.* | 1,965 | |||||
| 62 | Cymer, Inc.* | 2,694 | |||||
| 292 | Entegris, Inc.* | 2,616 | |||||
| 276 | GT Advanced Technologies, Inc.* | 2,263 | |||||
| 365 | KLA-Tencor Corp. | 17,188 | |||||
| 271 | Lam Research Corp.* | 11,650 | |||||
| 501 | MEMC Electronic Materials, Inc.* | 3,001 | |||||
| 152 | Novellus Systems, Inc.* | 5,252 | |||||
| 404 | Teradyne, Inc.* | 5,785 | |||||
| 112 | Tessera Technologies, Inc.* | 1,542 | |||||
| 162 | Varian Semiconductor Equipment Associates, Inc.* | 10,169 | |||||
| 89 | Veeco Instruments, Inc.* | 2,376 | |||||
| 103,080 | |||||||
Semiconductors - 12.7% | |||||||
| 1,248 | Advanced Micro Devices, Inc.* | 7,276 | |||||
| 705 | Altera Corp. | 26,734 | |||||
| 648 | Analog Devices, Inc. | 23,697 | |||||
| 942 | Atmel Corp.* | 9,947 | |||||
| 1,055 | Broadcom Corp., Class A* | 38,075 | |||||
| 105 | Cavium, Inc.* | 3,432 | |||||
| 142 | Cirrus Logic, Inc.* | 2,363 | |||||
| 238 | Cree, Inc.* | 6,340 | |||||
| 374 | Cypress Semiconductor Corp.* | 7,147 | |||||
| 76 | Diodes, Inc.* | 1,700 | |||||
| 278 | Fairchild Semiconductor International, Inc.* | 4,162 | |||||
| 122 | First Solar, Inc.* | 6,072 | |||||
| 61 | Hittite Microwave Corp.* | 3,209 | |||||
| 318 | Integrated Device Technology, Inc.* | 1,933 | |||||
| 9,471 | Intel Corp. | 232,418 | |||||
| 151 | International Rectifier Corp.* | 3,668 | |||||
| 273 | Intersil Corp., Class A | 3,268 | |||||
| 460 | Linear Technology Corp. | 14,863 | |||||
| 1,247 | LSI Corp.* | 7,794 | |||||
| 1,118 | Marvell Technology Group Ltd.* | 15,641 | |||||
| 642 | Maxim Integrated Products, Inc. | 16,795 | |||||
| 415 | Microchip Technology, Inc. | 15,006 | |||||
| 1,883 | Micron Technology, Inc.* | 10,526 | |||||
| 188 | Microsemi Corp.* | 3,470 | |||||
| 150 | Netlogic Microsystems, Inc.* | 7,380 | |||||
| 1,295 | NVIDIA Corp.* | 19,166 | |||||
| 130 | Omnivision Technologies, Inc.* | 2,120 | |||||
| 967 | ON Semiconductor Corp.* | 7,320 | |||||
| 508 | PMC - Sierra, Inc.* | 3,221 | |||||
| 63 | Power Integrations, Inc. | 2,245 | |||||
| 227 | Rambus, Inc.* | 4,025 | |||||
| 602 | RF Micro Devices, Inc.* | 4,419 | |||||
| 142 | Semtech Corp.* | 3,468 | |||||
| 97 | Silicon Laboratories, Inc.* | 4,147 | |||||
See accompanying notes to the financial statements.
FocusShares Trust
Focus Morningstar Technology Index ETF
Schedule of Portfolio Investments (continued)
October 31, 2011
| Shares | Value | ||||||
| Common Stocks (continued) | |||||||
| 404 | Skyworks Solutions, Inc.* | $ | 8,003 | ||||
| 57 | SunPower Corp., Class A* | 571 | |||||
| 37 | SunPower Corp., Class B* | 350 | |||||
| 2,515 | Texas Instruments, Inc. | 77,286 | |||||
| 359 | TriQuint Semiconductor, Inc.* | 1,910 | |||||
| 577 | Xilinx, Inc. | 19,306 | |||||
| 630,473 | |||||||
Systems Software - 16.1% | |||||||
| 212 | Ariba, Inc.* | 6,716 | |||||
| 382 | BMC Software, Inc.* | 13,279 | |||||
| 878 | CA, Inc. | 19,017 | |||||
| 91 | CommVault Systems, Inc.* | 3,875 | |||||
| 261 | Fortinet, Inc.* | 6,019 | |||||
| 175 | MICROS Systems, Inc.* | 8,613 | |||||
| 15,776 | Microsoft Corp. | 420,115 | |||||
| 64 | NetSuite, Inc.* | 2,434 | |||||
| 7,104 | Oracle Corp. | 232,798 | |||||
| 146 | Progress Software Corp.* | 3,075 | |||||
| 420 | Red Hat, Inc.* | 20,853 | |||||
| 242 | Rovi Corp.* | 11,989 | |||||
| 1,632 | Symantec Corp.* | 27,760 | |||||
| 183 | VMware, Inc., Class A* | 17,888 | |||||
| 87 | Websense, Inc.* | 1,552 | |||||
| 795,983 | |||||||
Technology Distributors - 0.7% | |||||||
| 66 | Anixter International, Inc.* | 3,873 | |||||
| 253 | Arrow Electronics, Inc.* | 9,121 | |||||
| 333 | Avnet, Inc.* | 10,093 | |||||
| 341 | Ingram Micro, Inc., Class A* | 6,097 | |||||
| 59 | Scansource, Inc.* | 2,051 | |||||
| 101 | Tech Data Corp.* | 4,967 | |||||
| 36,202 | |||||||
Trading Companies & Distributors - 0.2% | |||||||
| 55 | Watsco, Inc. | 3,391 | |||||
| 94 | WESCO International, Inc.* | 4,555 | |||||
| 7,946 | |||||||
| Total Common Stocks | |||||||
| (Cost $4,999,918) | 4,959,130 | ||||||
| Money Market Fund - 0.0%† | |||||||
| 900 | JPMorgan U.S. Government Money Market Premier, 0.01% (Cost $900) | 900 | |||||
| Total Investment Securities | |||||||
| (Cost $5,000,818) — 100.0% | 4,960,030 | ||||||
| Liabilities in excess of other assets — 0.0%† | (805 | ) | |||||
| Net Assets — 100.0% | $ | 4,959,225 | |||||
| * | Non-income producing security. |
| † | Amount represents less than 0.05%. |
As of October 31, 2011, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
| Aggregate gross unrealized appreciation | $ | 308,421 | ||
| Aggregate gross unrealized depreciation | (353,680 | ) | ||
| Net unrealized depreciation | $ | (45,259 | ) | |
| Federal income tax cost of investments | $ | 5,005,289 | ||
See accompanying notes to the financial statements.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON DETAILED SCHEDULES OF INVESTMENTS
The Shareholders and Board of Trustees of
FocusShares Trust:
We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the financial statements of FocusShares Trust (the "Trust") as of October 31, 2011, and for the period from March 28, 2011 (commencement of operations) through October 31, 2011 and have issued our report thereon dated December 23, 2011 which report and financial statements are included in Item 1 of this Certified Shareholder Report on Form N-CSR. Our audit also included the schedules of portfolio investments (the "Schedules") of Focus Morningstar U.S. Market Index ETF, Focus Morningstar Large Cap Index ETF, Focus Morningstar Mid Cap Index ETF, Focus Morningstar Small Cap Index ETF, Focus Morningstar Consumer Cyclical Index ETF, Focus Morningstar Financial Services Index ETF, Focus Morningstar Industrials Index ETF and Focus Morningstar Technology Index ETF as of October 31, 2011 appearing in Item 6 of this Form N-CSR. These Schedules are the responsibility of the Trust's management. Our responsibility is to express an opinion based on our audit. In our opinion, the Schedules referred to above, when considered in relation to the basic financial statements taken as a whole of each of the funds constituting the Trust referred to above, present fairly, in all material respects, the information set forth therein.
/s/ Deloitte & Touche LLP
Kansas City, Missouri
December 23, 2011
(b) Securities Divested of in accordance with Section 13(c) of the Investment Company Act of 1940.
[Not Applicable].
Item 7. Disclosure Of Proxy Voting Policies And Procedures For Closed-End Management Investment Companies.
Not Applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not Applicable.
Item 9. Purchase Of Equity Securities By Closed-End Management Investment Company And Affiliated Purchasers.
Not Applicable.
Item 10. Submission Of Matters To A Vote Of Security Holders.
[Not Applicable.]
Item 11. Controls And Procedures.
| (a) | The Registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the Registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. |
| (b) | There were no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s second fiscal half year covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Exhibits.
| (a)(1) | The code of ethics that is the subject of the disclosure required by Item 2 is attached hereto. |
| (b)(1) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
| (b)(2) | Certification required by Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FocusShares Trust
| By: | /s/ Erik Liik | |
| Erik Liik | ||
| President | ||
| January 4, 2012 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Erik Liik | |
| Erik Liik | ||
| President | ||
| January 4, 2012 | ||
| By: | /s/ Brent Arvidson | |
| Brent Arvidson | ||
| Chief Financial Officer and Treasurer | ||
| January 4, 2012 |