Legg Mason US Diversified Core ETF seeks to track the investment results of an index composed of publicly traded U.S. equity securities. The QS DBI US Diversified Index (the Index ) seeks to provide exposure to equities of U.S. companies and is based on a proprietary methodology created and sponsored by QS Investors, LLC ( QS ). The Index is composed of U.S. companies that are included in the MSCI USA IMI Index. The proprietary rules-based process initially groups this universe of securities into multiple investment categories based on industries. Within each of these investment categories, securities are weighted by market capitalization. The process then combines those investment categories with more highly correlated historical performance into a smaller number of clusters. A cluster is a group of investment categories based on industry that have demonstrated a tendency to behave similarly (high correlation). Thereafter, each of these clusters is equally weighted in the Index to produce a highly diversified portfolio. QS anticipates that the number of component securities in the Index will range from 2,200 to 2,500. The Index may include large, medium and small capitalization companies. The components of the Index, and the degree to which these components represent certain industries, may change over time. The Index s components are reconstituted annually and rebalanced quarterly.