As filed with the Securities and Exchange Commission on March 1, 2013
 
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)



One Penn Plaza, 36th Floor
New York, NY 10119
­­­­­­­­­­_______________________________________
(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



Date of reporting period:   December 31, 2012
 
 
 
 
 
 
 
Item 1. Schedule of Investments.
 
PureFunds ISE Diamond/Gemstone ETF
     
Schedule of Investments
     
December 31, 2012 (Unaudited)
     
 
Shares
 
Value
       
COMMON STOCKS - 99.2%
     
Australia - 7.1%
     
      Metals & Mining - 7.1%
     
      BHP Billiton Limited
3,800   $ 146,401
 
Total Metals & Mining
      146,401
   Total Australia
      146,401
         
Bermuda - 6.7%
       
     Specialty Retail - 6.7%
       
     Signet Jewelers Ltd.
2,600     138,840
 
Total Specialty Retail
    138,840
   Total Bermuda
      138,840
         
Canada - 21.8%
       
     Metals & Mining - 21.8%
       
     Archon Minerals Ltd. (a)
4,000     3,056
     Harry Winston Diamond Corporation (a)
10,200     143,356
     Lucara Diamond Corporation (a)
122,800     81,480
     Mountain Province Diamonds Inc. (a)
23,400     91,511
     Peregrine Diamonds Ltd. (a)
92,800     40,583
     Shore Gold Inc. (a)
157,200     32,398
     Stornoway Diamond Corporation (a)
86,400     59,933
 
Total Metals & Mining
    452,317
   Total Canada
      452,317
         
Guernsey - 2.4%
       
     Metals & Mining - 2.4%
       
     Paragon Diamonds Ltd. (a)
179,200     50,943
 
Total Metals & Mining
      50,943
   Total Guernsey
      50,943
         
Hong Kong - 23.3%
       
     Specialty Retail - 21.0%
       
     Chow Sang Sang Holdings International Limited
43,000     99,749
     Chow Tai Fook Jewellery Group Limited
93,200     149,584
     Emperor Watch & Jewellery Ltd
665,600     81,581
     Luk Fook Holdings (International) Limited
32,800     103,256
 
Total Specialty Retail
      434,170
     Textiles, Apparel & Luxury Goods - 2.3%
       
     Ming Fung Jewellery Group Limited (a)
1,064,600     48,074
 
Total Textiles, Apparel & Luxury Goods
      48,074
   Total Hong Kong
      482,244
         
Japan - 2.9%
       
     Specialty Retail - 2.9%
       
     Tsutsumi Jewelry Co., Ltd.
2,400     61,306
 
Total Specialty Retail
    61,306
   Total Japan
      61,306
         
Jersey - 8.6%
       
     Metals & Mining - 8.6%
       
     Petra Diamonds Limited (a)
97,200     177,634
 
Total Metals & Mining
      177,634
   Total Jersey
      177,634
         
United Kingdom - 19.6%
       
     Metals & Mining - 19.6%
       
     Anglo American PLC
5,000     153,836
     Firestone Diamonds PLC (a)
744,400     47,040
     Gem Diamonds Limited (a)
38,400     89,826
     Gemfields PLC (a)
126,000     70,615
     Namakwa Diamonds Ltd. (a)
591,600     43,967
 
Total Metals & Mining
      405,284
   Total United Kingdom
      405,284
         
United States - 6.8%
       
     Internet Catalog & Retail - 4.6%
       
     Blue Nile, Inc. (a)
2,500     96,250
 
Total Internet Catalog & Retail
      96,250
     Specialty Retail - 2.2%
       
     Zale Corporation (a)
11,000     45,210
 
Total Specialty Retail
    45,210
   Total United States
      141,460
         
TOTAL COMMON STOCKS (Cost $1,990,377)
      2,056,429
           
Total Investments (Cost $1,990,377)* - 99.2%
      2,056,429
Other Assets in Excess of Liabilities - 0.8%
      15,548
TOTAL NET ASSETS - 100.0%
    $ 2,071,977
           
Percentages are stated as a percent of net assets.
     
 
(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.

 
 
 
 
 
 
PureFunds ISE Junior Silver (Small Cap Miners/Explorers) ETF
       
Schedule of Investments
       
December 31, 2012 (Unaudited)
       
 
Shares
 
Value
 
         
COMMON STOCKS - 100.0%
       
Metals & Mining - 100.0%
       
         
      Australia - 2.0%
       
      Perilya Limited (a)
112,200   $ 39,615  
 
Total Australia
      39,615  
           
     Bermuda - 4.5%
         
     G-Resources Group Ltd. (a)
1,896,600     89,314  
 
Total Bermuda
      89,314  
           
     Canada - 89.7%
         
     Alexco Resource Corporation (a)
18,400     65,688  
     Aurcana Corporation (a)
130,400     121,918  
     Bear Creek Mining Corporation (a)
28,200     93,839  
     Endeavour Silver Corp. (a)
17,000     134,130  
     Excellon Resources, Inc. (a)
98,200     55,285  
     Fortuna Silver Mines Inc. (a)
30,800     128,501  
     Gabriel Resources Ltd. (a)
38,200     90,632  
     Gran Colombia Gold Corp. (a)
65,600     23,742  
     Great Panther Silver Ltd. (a)
45,000     68,850  
     Hana Mining Ltd. (a)
23,600     18,981  
     International Minerals Corporation (a)
17,200     69,512  
     MAG Silver Corp (a)
14,000     143,139  
     Mandalay Resources Corp (a)
99,000     114,457  
     Minco Silver Corporation (a)
21,600     33,658  
     Mirasol Resources Ltd. (a)
17,000     41,872  
     Orko Silver Corporation (a)
43,000     101,589  
     Primero Mining Corporation (a)
10,400     66,915  
     Revett Minerals Inc. (a)
12,600     35,341  
     Sabina Gold & Silver Corporation (a)
20,400     54,348  
     Santacruz Silver Mining Ltd. (a)
11,400     24,984  
     Scorpio Mining Corporation (a)
30,600     31,686  
     Silvercorp Metals Inc. (a)
24,600     126,129  
     SilverCrest Mines Inc. (a)
14,800     37,792  
     Trevali Mining Corp. (a)
29,000     31,195  
     US Silver & Gold Inc. (a)
21,200     36,658  
     Wildcat Silver Corporation (a)
50,800     40,857  
         Total Canada
      1,791,698  
           
     United Kingdom - 0.6%
         
     Arian Silver Corporation (a)
52,800     12,849  
 
Total United Kingdom
      12,849  
           
     United States - 3.2%
         
     Golden Minerals Company (a)
14,000     64,260  
 
Total United States
      64,260  
           
   Total Metals & Mining
      1,997,736  
           
TOTAL COMMON STOCKS (Cost $1,973,001)
      1,997,736  
           
Total Investments (Cost $1,973,001)* - 100.0%
      1,997,736  
Other Assets in Excess of Liabilities - 0.0%
      550  
TOTAL NET ASSETS - 100.0%
    $ 1,998,286  
 
Percentages are stated as a percent of net assets.
 
(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.
 
 
 
 
 
 
 
PureFunds ISE Mining Service ETF
     
Schedule of Investments
     
December 31, 2012 (Unaudited)
     
 
Shares
 
Value
       
COMMON STOCKS - 96.9%
     
Australia - 51.8%
     
     Commerical Services & Supplies - 6.8%
     
     Mineral Resources Ltd.
15,000   $ 151,251
 
Total Commerical Services & Supplies
      151,251
     Construction & Engineering - 39.4%
       
     Ausdrill Limited
34,200     100,508
     Ausenco Limited (a)
20,000     66,253
     Boart Longyear Ltd
54,800     106,701
     Clough Limited
82,400     79,579
     Forge Group Ltd.
13,400     68,602
     Gr Engineering Services Pty Ltd.
25,800     21,300
     MACA Limited
26,200     61,761
     Macmahon Holdings Limited
186,400     43,553
     Mastermyne Group Ltd.
31,800     51,185
     Monadelphous Group Limited
7,000     177,513
     NRW Holdings Limited
30,800     60,131
     WDS Ltd.
89,800     44,761
 
Total Construction & Engineering
      881,847
     Machinery - 2.7%
       
     Bradken Limited
10,800     61,460
 
Total Machinery
      61,460
     Metals & Mining - 2.9%
       
     Imdex Limited
37,800     66,142
 
Total Metals & Mining
      66,142
   Total Australia
      1,160,700
         
Canada - 12.0%
       
     Diversifed Financial Services - 2.3%
       
     Sprott Resource Lending Corp. (a)
32,800     50,781
 
Total Diversifed Financial Services
      50,781
     Metals & Mining - 9.7%
       
     Energold Drilling Corp. (a)
16,000     48,256
     Foraco International SA (a)
21,000     50,880
     Major Drilling Group International Inc.
8,400     82,759
     Orbit Garant Drilling Inc. (a)
16,600     36,714
 
Total Metals & Mining
      218,609
   Total Canada
      269,390
         
China - 6.6%
       
     Oil & Gas & Consumable Fuels - 6.6%
       
     China Coal Energy Company - Class H
136,400     148,176
 
Total Oil & Gas & Consumable Fuels
      148,176
   Total China
      148,176
         
Indonesia - 2.1%
       
     Oil & Gas & Consumable Fuels - 2.1%
       
     Delta Dunia Makmur Tbk PT (a)
2,930,800     46,528
 
Total Oil & Gas & Consumable Fuels
      46,528
   Total Indonesia
      46,528
         
Jersey - 2.5%
       
     Energy Equipment & Services - 2.5%
       
     Capital Drilling Ltd. (a)
131,200     55,413
 
Total Energy Equipment & Services
      55,413
   Total Jersey
      55,413
         
South Africa - 2.1%
       
     Metals & Mining - 2.1%
       
     Sentula Mining Ltd. (a)
226,200     46,694
 
Total Metals & Mining
      46,694
   Total South Africa
      46,694
         
Sweden - 6.9%
       
     Machinery - 6.9%
       
     Atlas Copco AB
5,600     153,538
 
Total Machinery
      153,538
   Total Sweden
      153,538
         
United States - 12.9%
       
     Construction & Engineering - 2.1%
       
     Layne Christensen Company (a)
2,000     48,540
 
Total Construction & Engineering
      48,540
     Machinery - 10.8%
       
     Joy Global Inc.
2,200     140,316
     Terex Corporation (a)
3,600     101,196
 
Total Machinery
      241,512
Total United States
      290,052
         
TOTAL COMMON STOCKS (Cost $1,946,546)
      2,170,491
           
Total Investments (Cost $1,946,546)* - 96.9%
      2,170,491
Other Assets in Excess of Liabilities - 3.1%
      68,751
TOTAL NET ASSETS - 100.0%
    $ 2,239,242
           
Percentages are stated as a percent of net assets.
     
 
(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 December 31, 2012 (Unaudited)
 
The Funds utilize various methods to measure the fair value of the investments on a recurring basis.  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 Funds have 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 Funds' 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 Funds' net assets as of December 31, 2012:
 
 
PureFunds ISE Diamond/Gemstone ETF
                       
Assets^
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Common Stocks
  $ 2,053,373     $ 3,056     $ -     $ 2,056,429  
Total Investments in Securities
  $ 2,053,373     $ 3,056     $ -     $ 2,056,429  
                                   
^ See the Schedule of Investments for further disaggregation of investment categories.
 
For the period ended December 31, 2012, there were no transfers into or out of levels.
Transfers between levels are recognized at the end of the reporting period.
 
 
PureFunds ISE Junior Silver (Small Cap Miners/Explorers) ETF
                   
Assets^
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Common Stocks
  $ 1,997,736     $ -     $ -     $ 1,997,736  
Total Investments in Securities
  $ 1,997,736     $ -     $ -     $ 1,997,736  
                                   
^ See the Schedule of Investments for further disaggregation of investment categories.
 
For the period ended December 31, 2012, there were no transfers into or out of levels.
Transfers between levels are recognized at the end of the reporting period.
 
 
PureFunds ISE Mining Service ETF
                       
Assets^
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Common Stocks
  $ 2,104,430     $ 66,061     $ -     $ 2,170,491  
Total Investments in Securities
  $ 2,104,430     $ 66,061     $ -     $ 2,170,491  
                                   
^ See the Schedule of Investments for further disaggregation of investment categories.
 
For the period ended December 31, 2012, there were no transfers into or out of levels.
Transfers between levels are recognized at the end of the reporting period.
 
 
 
 
 
 
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             2/28/13                                                                                       



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             2/28/13                                                                                       

 
By (Signature and Title)* /s/ Mary Byra                                                 
   Mary Byra, Principal Financial Officer

Date             2/28/13                                                                                       
 

* Print the name and title of each signing officer under his or her signature.