UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 



Investment Company Act file number:   811-22310



FactorShares Trust
_______________________________________
(Exact name of registrant as specified in charter)



25 Deforest Ave., Suite 203
Summitt, NJ  07901
­­­­­­­­­­_______________________________________
(Address of principal executive offices) (Zip code)



U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
_______________________________________
(Name and address of agent for service)



(877) 756-7873
_________________________________________________
Registrant's telephone number, including area code



Date of fiscal year end: September 30, 2013
 

Date of reporting period:   June 30, 2013
 
 
 
 
 
 
 
Item 1. Schedule of Investments.
 
PureFunds ISE Diamond/Gemstone ETF
Schedule of Investments      
June 30, 2013 (Unaudited)      
Shares
     
Value
 
           
   
COMMON STOCKS - 91.8%
     
   
Canada - 17.0%
     
   
    Metals & Mining - 17.0%
     
900  
Archon Minerals Ltd. (a)
  $ 556  
3,000  
Dominion Diamond Corporation (a)
    42,417  
56,000  
Lucara Diamond Corporation (a)
    42,598  
8,700  
Mountain Province Diamonds, Inc. (a)
    43,430  
18,300  
Peregrine Diamonds Ltd. (a)
    7,134  
31,600  
Shore Gold, Inc. (a)
    5,258  
22,300  
Stornoway Diamond Corporation (a)
    10,814  
   
Total Metals & Mining
    152,207  
   
Total Canada
    152,207  
             
   
Hong Kong - 23.5%
       
   
    Specialty Retail - 21.8%
       
21,100  
Chow Sang Sang Holdings International Ltd.
    42,820  
65,200  
Chow Tai Fook Jewellery Group Ltd.
    68,091  
452,000  
Emperor Watch & Jewellery Ltd.
    37,297  
20,000  
Luk Fook Holdings (International) Ltd.
    46,519  
   
Total Specialty Retail
    194,727  
   
    Textiles, Apparel & Luxury Goods - 1.7%
       
464,900  
Ming Fung Jewellery Group Ltd. (a)
    15,285  
   
Total Textiles, Apparel & Luxury Goods
    15,285  
   
Total Hong Kong
    210,012  
             
   
Israel - 5.0%
       
   
    Machinery - 5.0%
       
36,600  
Sarin Technologies Ltd.
    44,757  
   
Total Machinery
    44,757  
   
Total Israel
    44,757  
             
   
Japan - 6.3%
       
   
    Distributors - 2.7%
       
119,000  
Sakha Diamond Corporation
    23,997  
   
Total Distributors
    23,997  
   
    Specialty Retail - 3.6%
       
1,400  
Tsutsumi Jewelry Company Ltd.
    32,170  
   
Total Specialty Retail
    32,170  
   
Total Japan
    56,167  
             
   
United Kingdom - 27.0%
       
   
    Metals & Mining - 27.0%
       
3,300  
Anglo American PLC
    63,542  
199,900  
Firestone Diamonds PLC (a)
    8,361  
24,200  
Gem Diamonds Ltd. (a)
    49,966  
104,200  
Gemfields PLC (a)
    36,847  
141,100  
Paragon Diamonds Ltd. (a)
    13,145  
39,600  
Petra Diamonds Ltd. (a)
    69,084  
   
Total Metals & Mining
    240,945  
   
Total United Kingdom
    240,945  
             
   
United States - 13.0%
       
   
    Internet Catalog & Retail - 4.9%
       
1,150  
Blue Nile, Inc. (a)
    43,447  
   
Total Internet Catalog & Retail
    43,447  
   
    Specialty Retail - 8.1%
       
600  
Signet Jewelers Ltd.
    40,458  
3,500  
Zale Corporation (a)
    31,850  
   
Total Specialty Retail
    72,308  
   
Total United States
    115,755  
             
   
TOTAL COMMON STOCKS (Cost $907,233)
    819,843  
             
   
Total Investments (Cost $907,233) - 91.8%
    819,843  
   
Other Assets in Excess of Liabilities - 8.2%
    73,174  
   
TOTAL NET ASSETS - 100.0%
  $ 893,017  
 
(a)
  Non-income producing security.
 
   
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS® is a service mark of MSCI, Inc. and S&P and has been licensed for use by the Fund's Administrator, U.S. Bancorp Fund Services, LLC.
     
*  
Since the Fund does not have a full fiscal year, the tax cost of investments is the same as noted in the Schedule of Investments.
 
Summary of Fair Value Disclosure at June 30, 2013 (Unaudited)
 
The Fund utilizes various methods to measure the fair value of its investments on a recurring basis. Generally accepted accounting principals in the United States of America ("U.S. GAAP") establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
 
 
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
 
 
Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
 
 
Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
 
 
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
 
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
 
 
The following is a summary of the inputs used to value the Fund's net assets as of June 30, 2013:
             
                         
Assets^
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Common Stocks
  $ 819,843     $ -     $ -     $ 819,843  
Total Investments in Securities
  $ 819,843     $ -     $ -     $ 819,843  
                                   
^ See Schedule of Investments for breakout of investments by industry classification.
                         
 
 
 
 
 
 
 
PureFunds ISE Junior Silver (Small Cap Miners/Explorers) ETF
Schedule of Investments      
June 30, 2013 (Unaudited)      
Shares
     
Market Value
 
           
   
COMMON STOCKS - 106.9%
     
   
Metals & Mining - 106.9%
     
   
  Australia - 1.4%
     
194,800  
    Perilya Ltd. (a)
  $ 21,379  
   
  Total Australia
    21,379  
   
  Canada - 99.5%
       
34,200  
    Alexco Resource Corporation (a)
    38,304  
29,700  
    Aurcana Corporation (a)
    39,536  
45,100  
    Bear Creek Mining Corporation (a)
    72,901  
45,300  
    Endeavour Silver Corporation (a)
    155,379  
30,700  
    Excellon Resources, Inc. (a)
    51,376  
57,300  
    Fortuna Silver Mines, Inc. (a)
    190,691  
72,200  
    Great Panther Silver Ltd. (a)
    54,511  
46,400  
    Impact Silver Corporation (a)
    30,883  
6,900  
    International Minerals Corporation (a)
    13,187  
18,500  
    Kootenay Silver, Inc. (a)
    13,193  
27,300  
    MAG Silver Corporation (a)
    159,642  
99,400  
    Mandalay Resources Corporation (a)
    64,269  
39,700  
    Minco Silver Corporation (a)
    27,556  
23,900  
    Mirasol Resources Ltd. (a)
    27,725  
26,600  
    Revett Minerals, Inc. (a)
    17,705  
48,300  
    Santacruz Silver Mining Ltd. (a)
    45,467  
113,300  
    Scorpio Mining Corporation (a)
    36,628  
37,400  
    Sierra Metals, Inc. (a)
    82,858  
77,000  
    Silvercorp Metals, Inc. (a)
    215,984  
48,300  
    SilverCrest Mines, Inc. (a)
    66,133  
117,500  
    Trevali Mining Corporation (a)
    62,565  
39,400  
    US Silver & Gold, Inc. (a)
    22,478  
   
  Total Canada
    1,488,971  
   
  United Kingdom - 1.2%
       
270,900  
    Arian Silver Corporation (a)
    17,727  
   
  Total United Kingdom
    17,727  
   
  United States - 4.8%
       
25,400  
    Golden Minerals Company (a)
    34,544  
94,300  
    Silver Bull Resources, Inc. (a)
    36,305  
   
  Total United States
    70,849  
   
Total Metals & Mining
    1,598,926  
             
   
TOTAL COMMON STOCKS (Cost $2,655,238)
    1,598,926  
             
   
Total Investments (Cost $2,655,238) - 106.9%
    1,598,926  
   
Liabilities in Excess of Other Assets - (6.9)%
    (102,849 )
   
TOTAL NET ASSETS - 100.0%
  $ 1,496,077  
             
 
(a)
  Non-income producing security.
     
   
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS® is a service mark of MSCI, Inc. and S&P and has been licensed for use by the Fund's Administrator, U.S. Bancorp Fund Services, LLC.
     
*  
Since the Fund does not have a full fiscal year, the tax cost of investments is the same as noted in the Schedule of Investments.
     
 
Summary of Fair Value Disclosure at June 30, 2013 (Unaudited)
 
The Fund utilizes various methods to measure the fair value of its investments on a recurring basis. Generally accepted accounting principals in the United States of America ("U.S. GAAP") establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
 
 
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
 
 
Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
 
 
Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
 
 
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
 
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
 
 
The following is a summary of the inputs used to value the Fund's net assets as of June 30, 2013:
       
             
Assets^
Level 1
   
Total
 
Common Stocks
  $ 1,598,926     $ 1,598,926  
Total Investments in Securities
  $ 1,598,926     $ 1,598,926  
                   
^See Schedule of Investments for breakout of investments by industry classification.
               

 
 
 
 
 
 
PureFunds ISE Mining Service ETF
 
Schedule of Investments      
June 30, 2013 (Unaudited)  
Shares
     
Value
 
           
   
COMMON STOCKS - 104.7%
     
   
Australia - 50.2%
     
   
    Commerical Services & Supplies - 7.4%
     
7,000  
Mineral Resources Ltd.
  $ 52,816  
   
Total Commercial Services & Supplies
    52,816  
   
    Construction & Engineering - 37.7%
       
22,200  
Ausdrill Ltd.
    17,461  
10,800  
Ausenco Ltd.
    19,754  
37,100  
Boart Longyear Ltd.
    22,903  
35,400  
Clough Ltd.
    34,641  
6,100  
Forge Group Ltd.
    23,431  
25,300  
GR Engineering Services Ltd.
    10,644  
13,000  
MACA Ltd.
    21,044  
137,000  
MacMahon Holdings Ltd.
    16,288  
28,300  
Mastermyne Group Ltd.
    18,117  
3,500  
Monadelphous Group Ltd.
    51,663  
19,800  
NRW Holdings Ltd.
    16,478  
51,200  
WDS Ltd.
    16,389  
   
Total Construction & Engineering
    268,813  
   
    Machinery - 2.9%
       
5,200  
Bradken Ltd.
    20,497  
   
Total Machinery
    20,497  
   
    Metals & Mining - 2.2%
       
27,400  
Imdex Ltd.
    15,536  
   
Total Metals & Mining
    15,536  
   
Total Australia
    357,662  
             
   
Canada - 11.9%
       
   
    Diversifed Financial Services - 2.6%
       
14,900  
Sprott Resource Lending Corporation (a)
    18,418  
   
Total Diversified Financial Services
    18,418  
   
    Metals & Mining - 9.3%
       
9,300  
Energold Drilling Corporation (a)
    14,944  
16,000  
Foraco International SA (a)
    13,236  
4,400  
Major Drilling Group International Inc.
    29,955  
7,300  
Orbit Garant Drilling Inc. (a)
    8,052  
   
Total Metals & Mining
    66,187  
   
Total Canada
    84,605  
             
   
Chile - 7.9%
       
   
    Chemicals - 7.9%
       
4,400  
Enaex S.A.
    56,294  
   
Total Chemicals
    56,294  
   
Total Chile
    56,294  
             
   
China - 4.5%
       
   
    Oil & Gas & Consumable Fuels - 4.5%
       
61,000  
China Coal Energy Company - Class H
    31,931  
   
Total Oil & Gas & Consumable Fuels
    31,931  
   
Total China
    31,931  
             
   
Indonesia - 2.4%
       
   
    Oil & Gas & Consumable Fuels - 2.4%
       
1,255,600  
Delta Dunia Makmur Tbk PT (a)
    16,952  
   
Total Oil & Gas & Consumable Fuels
    16,952  
   
Total Indonesia
    16,952  
             
   
Singapore - 2.1%
       
   
    Energy Equipment & Services - 2.1%
       
55,500  
Capital Drilling Ltd. (a)
    15,405  
   
Total Energy Equitment & Services
    15,405  
   
Total Singapore
    15,405  
             
   
South Africa - 1.5%
       
   
    Metals & Mining - 1.5%
       
107,100  
Sentula Mining Ltd. (a)
    10,510  
   
Total Metals & Mining
    10,510  
   
Total South Africa
    10,510  
             
   
Sweden - 9.5%
       
   
    Machinery - 9.5%
       
2,800  
Atlas Copco AB
    67,640  
   
Total Machinery
    67,640  
   
Total Sweden
    67,640  
             
   
United States - 14.7%
       
   
    Construction & Engineering - 2.8%
       
1,000  
Layne Christensen Company (a)
    19,510  
   
Total Construction & Engineering
    19,510  
   
    Machinery - 11.9%
       
1,100  
Joy Global, Inc.
    53,383  
1,200  
Terex Corporation (a)
    31,560  
   
Total Machinery
    84,943  
   
Total United States
    104,453  
             
   
TOTAL COMMON STOCKS (Cost $1,048,027)
    745,452  
             
   
Total Investments (Cost $1,048,027) - 104.7%
    745,452  
   
Liabilities in Excess of Other Assets - (4.7)%
    (33,636 )
   
TOTAL NET ASSETS - 100.0%
  $ 711,816  
             
 
(a)
 
Non-income producing security.
     
   
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P").  GICS® is a service mark of MSCI, Inc. and S&P and has been licensed for use by the Fund's Administrator, U.S. Bancorp Fund  Services, LLC.
     
*  
Since the Fund does not have a full fiscal year, the tax cost of investments is the same as noted in the Schedule of Investments.
 
 
Summary of Fair Value Disclosure at June 30, 2013 (Unaudited)
 
The Fund utilizes various methods to measure the fair value of its investments on a recurring basis. Generally accepted accounting principals in the United States of America ("U.S. GAAP") establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
 
 
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
 
 
Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
 
 
Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
 
 
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
 
 
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
 
 
The following is a summary of the inputs used to value the Fund's net assets as of June 30, 2013:
 
Assets^
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Common Stocks
  $ 745,452     $ -     $ -     $ 745,452  
Total Investments in Securities
  $ 745,452     $ -     $ -     $ 745,452  
                                   
^ See Schedule of Investments for breakout of investments by industry classification.
                               

 
 
 
 
 
Item 2. Controls and Procedures.
 
(a)  
The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)) .

(b)  
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (17 CFR 270.30a-3(d)) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)).   Filed herewith.
 
 
 
 
 
 
 
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.


(Registrant) FactorShares Trust                                                                                                                                       

By (Signature and Title)* /s/ Samuel Masucci, III                              
  Samuel Masucci, III, President

Date   08/29/2013                                                                                                                                                                                 



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 (Signature and Title)* /s/ Samuel Masucci, III                              
  Samuel Masucci, III, President

Date  08/29/2013                                                                                        
 
By (Signature and Title)* /s/ Mary Byra                                              
  Mary Byra, Principal Financial Officer

Date  08/29/2013                                                                                        
 
* Print the name and title of each signing officer under his or her signature.