com January 31, 2008 Ticker:


FocusShares ISE-CCM Homeland Security Index Fund
The Fund’s investment objective is to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the ISE-CCM Homeland Security Index Fund. The Fund will normally invest at least 90% of its total assets in stocks of companies primarily engaged in the business of contractual work with the Department of Homeland Security or law enforcement agencies, or providing products or services for the following efforts: intelligence and warning; border and transportation security; domestic counterterrorism; protection of critical infrastructure; defense against catastrophic threats; and emergency preparedness and response. This 90% investment policy is non-fundamental and requires 60 days’ prior written notice to shareholders before it can be changed.

ETF Details
Listing Dividend Currency Index Provider Inception Date NYSE Paid Annually USD International Securities Exchange (ISE) November 30, 2007 Bloomberg Symbol CUSIP Investment Manager Custodian Net Expense Ratio * MYP US 34416W304 FocusShares LLC JPMorgan Chase 0.60%

ETF Performance (from inception 11.30.2007)
Returns (%) Market Price  NAV  Dec 07 ‐ 1.93  ‐ 1.91  Jan 08 ‐5.73  ‐5.64  Feb 08     Mar 08     Apr 08     May 08     Jun 08     Jul 08     Aug 08     Sep 08     Oct 08     Nov 08     Since Inception ‐7.56  ‐7.44 

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. For the Fund’s most recent month end performance please visit Returns showing less than one year are cumulative. * Per the prospectus, the Fund’s estimated total annual gross operating expense ratio is 0.74% and the net expense ratio is 0.60%. The Fund’s investment Adviser has contractually agreed to waive fees and/or pay fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding certain expenses described in the prospectus) from exceeding 0.60% of the average net assets, at least until January 31, 2009. Without this expense cap, actual returns would have been lower.

Index Performance
Index Description The ISE-CCM Homeland Security Index (HSX) is a “float-adjusted” capitalization index which includes stocks of companies primarily engaged in the business of contractual work with the Department of Homeland Security or law enforcement agencies, or providing products or services for the following efforts: intelligence and warning: border and transportation security; domestic counterterrorism; preparedness and response. The ISE-CCM Homeland Security Index has been designed to include 30 securities at all times. The index was jointly developed by ISE and Cronus Capital Markets, Inc., an independent and privately owned capital market research and consulting firm. The Index was created on December 31, 1999.
40% 30% % 20%

Homeland Security Index (HSX) vs S&P 500 (3 Year % Growth)

G 10% r o 0% w t ‐10% h ‐20% ‐30% Jan‐05 Jan‐06 Jan‐07 Jan‐08

HSX S&P 500

HSX vs S&P 500 (%)
HSX S&P500 (SPX)

One Month
-8.54 -6.11

-8.54 -6.11

1 year
12.58 -4.14

5 Years (cumulative)
112.2 61.10

Past performance is not an indicator of future results. HSX returns are not reflective of the Fund's performance nor reflect fees and expenses applicable to the Fund. Data in the graph is for the 3 year period ended 12/31/07; data in Source: ISE & Bloomberg the table is for the period ended 01/31/08.

FocusShares ISE-CCM Homeland Security Index Fund
Index Breakdown
Top 10 Holdings  Symantec Corp.  Thermo Fisher Scientific  L3 Communications  Harris Corp.  Flir Systems Inc.  Check Point Software  SRA International Inc.  Cepheid   SAIC Inc.  DRS Technologies Inc.  Weight in Index  11.34%  9.44% 
13.8% 18.2% 8.6% 5.3% 4.6% 0.6% 5.4%


7.32%  4.39%  4.19%  3.98%  3.97%  3.95%  3.94% 
Medical Appliances & Biotechnology Business Software & Services Computer Peripherals Internet Software & Services Security & Protection Aerospace/Defense Products & Services Cash Information & Communication Technology Scientific & Technical Instruments Security Software & Technical Services 17.8% 9.4%

210 Summit Ave. Suite C-11 Montvale, NJ 07645 To request information:
An investment in the Fund is subject to investment risk, including the possible loss of principal amount invested. The Fund’s returns may not match the return of the Index, known as non-correlation risk, due to operating expenses incurred by the Fund. The Fund may invest in small or medium sized companies which involves greater risk than is customarily associated with investing in larger, more established companies. The Fund is non-diversified and as a result may be more volatile than a diversified fund because it may invest its assets in a smaller number of issuers or may invest larger proportions in a single company within the industries that comprise the Fund. The Fund’s performance figures include the reinvestment of dividends and capital gains. The companies whose stocks are held by the FocusShares ISE-CCM Homeland Security Index Fund, such as companies in the defense and weapons industries, may be adversely affected by changes in economic and political conditions, as well as legislative initiatives, all of which may negatively affect the profitability of companies in those industries. The Fund is newly organized, has no trading history, and there can be no assurance that active trading markets for the Fund will develop or be maintained. The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index. Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund’s website at Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.

2008 FocusShares® LLC    ETFFS2008 ‐ Vol. 1