NOTICE OF INDEX CHANGE
On June 23, 2015, the Board of Trustees of Exchange Traded Concepts Trust approved changes to the Forensic Accounting Fund (the “Fund”), which will take effect at the close of business on August 7, 2015. The Fund’s current underlying index, the Del Vecchio Earnings Quality Index (the “Del Vecchio Index”), will be replaced with the WeatherStorm Forensic Accounting Long-Short Index™ (the “Long-Short Index”). After this change takes effect, the Fund will continue to follow its non-fundamental policy to invest at least 80% of its total assets in securities that comprise its underlying index. The new index, the Long-Short Index, seeks to enhance U.S. large cap exposure by offering a long/short portfolio comprised of the 500 largest U.S. stocks by market capitalization, while providing additional return potential through the careful and systematic selection and shorting of stocks based on forensic accounting analysis. Forensic accounting critically dissects companies’ financial statements with the goal of identifying the “red flags” of aggressive accounting and revenue recognition practices. The index construction process aims to identify and allocate capital to higher quality stocks with more sustainable revenues, cash flows and earnings, while at attractive valuations. It also attempts to detect and short lower quality stocks where aggressive accounting practices may have been employed and revenues, cash flows and earnings may be less persistent in the future. The index is constructed with a 100% net equity exposure (130% long, 30% short).