ETFX FUND COMPANY PUBLIC LIMITED COMPANY

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1 The Company and the Directors, whose names appear on page 131 of the Prospectus, are the persons responsible for the information contained in this Fund Supplement and accept responsibility accordingly. To the best of the knowledge and belief of the Company and the Directors (who have taken all reasonable care to ensure that such is the case), the information contained in this document is in accordance with the facts and does not omit anything likely to affect the import of the information. This Fund Supplement contains information relating to ETFX-BofAML IVSTOXX ETF which is a separate Fund of ETFX Fund Company plc (the Company ), an umbrella fund with segregated liability between its Funds. This Fund Supplement forms part of and should be read in the context of, and together with, the Company s Prospectus dated 07 June 2012 and any other applicable addenda. Investors should also refer to the Company s latest published annual report and audited financial statements (if any) and, if published after such report, a copy of the latest semi-annual report and unaudited financial statements. Capitalised expressions used and not defined in this Fund Supplement shall bear the meanings as set out in the Prospectus. If you are in any doubt about the action to be taken or the contents of this Fund Supplement, please consult your stockbroker, bank manager, lawyer, accountant or other independent professional adviser who, if such advice is taken in the United Kingdom, is an organisation or firm authorised or exempted pursuant to the FSMA. Investors should note that this Fund will pursue its investment policy principally through investment in FDIs. Bank of America/Merrill Lynch is the distributor of ETFX-BofAML IVSTOXX ETF. Potential investors should consider the risk factors set out in the Prospectus and in this Fund Supplement before investing in this Fund. An investment in the ETFX-BofAML IVSTOXX ETF involves certain risks and may only be suitable for persons who are able to assume the risk of losing their entire investment. The Prospectus sets forth information on investment risk, management and administration of the ETFX-BofAML IVSTOXX ETF, valuation, subscription, redemption and transfer procedures and details of fees and expenses payable by the ETFX-BofAML IVSTOXX ETF and should be read subject to the information herein. ETFX FUND COMPANY PUBLIC LIMITED COMPANY (an umbrella investment company with variable capital and segregated liability between its Funds incorporated with limited liability in Ireland under registration number ) Fund Supplement ETFX-BofAML IVSTOXX ETF MANAGER ETFX Management Company Limited The date of this Fund Supplement is 07 June 2012

2 INVESTMENT OBJECTIVE The investment objective of the ETFX-BofAML IVSTOXX ETF is to provide an exposure to the implied volatility of the EURO STOXX 50 Index. INVESTMENT POLICY In order to achieve this investment objective, the ETFX-BofAML IVSTOXX ETF will seek to gain exposure to all of the component securities of the EURO STOXX 50 Investable Volatility Index in substantially the same weighting as the EURO STOXX 50 Investable Volatility Index and consequently the ETFX-BofAML IVSTOXX ETF may have exposure to or invest directly up to 20% of its Net Asset Value in shares issued by the same body, which limit may be raised to 35% for a single issuer in exceptional market conditions. This will be done primarily through the use of OTC Swaps using one of, or a combination of, the following models: Unfunded swaps: The Investment Manager enters into an OTC Swap with a counterparty which will provide exposure to the performance of the EURO STOXX 50 Investable Volatility Index. Under the terms of the unfunded OTC Swap, cash received from the subscription of Shares is retained by the ETFX-BofAML IVSTOXX ETF. As a result, the ETFX-BofAML IVSTOXX ETF holds substantially all of its Net Asset Value in cash. For the purposes of efficient portfolio management, the Investment Manager shall seek to employ an effective cash management policy by managing such cash (and any cash collateral received from the counterparty) through investments in money market funds and/or entering into reverse repurchase agreements. Funded swaps: The Investment Manager enters into an OTC Swap with a counterparty which will provide exposure to the performance of the EURO STOXX 50 Investable Volatility Index. Under the terms of the funded OTC Swap, cash received from the subscription of Shares is transferred by the ETFX-BofAML IVSTOXX ETF to the counterparty. A counterparty to a funded OTC Swap is required to transfer collateral to the ETFX-BofAML IVSTOXX ETF to minimise credit exposure and, as a result, the ETFX-BofAML IVSTOXX ETF holds substantially all of its Net Asset Value in cash collateral and/or other collateral holdings. The Investment Manager shall seek to employ an effective cash collateral management policy by managing all cash collateral through investments in money market funds. INDEX DESCRIPTION The EURO STOXX 50 Investable Volatility Index is a volatility index which provides exposure to the forward implied volatility of the EURO STOXX 50 Index in a form which can be directly replicated. Implied volatility is derived from option prices. This kind of volatility represents the estimates and assumptions of market participants involved in a trade, on the basis of a given option price. The EURO STOXX 50 Investable Volatility Index is designed as a rolling index which targets a constant 3-month (90 days) forward, 3-month maturity volatility exposure. The EURO STOXX 50 Investable Volatility Index is calculated entirely using VSTOXX subindex levels calculated and published by STOXX. Apart from the main EURO STOXX 50 Volatility Index (VSTOXX), subindices for each time to expiry of the EURO STOXX 50 options, ranging from one month to two years, are calculated and distributed. The various VSTOXX subindices are calculated on the basis of all options available. The calculations are based on the best bid and best ask available for these options in the Eurex system. The EURO STOXX 50 Index, Europe's leading Blue-chip index for the Eurozone, provides a Bluechip representation of supersector leaders in the Eurozone. The index covers 50 stocks from 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. The EURO STOXX 50 Index is licensed to financial institutions to serve as underlying for a wide range of investment products such as Exchange Traded Funds (ETF), Futures and Options, and structured products worldwide. This is a summary of the principal features of the EURO STOXX 50 Investable Volatility Index and does not purport to be an exhaustive description. 2

3 Further information, including a complete construction methodology for the EURO STOXX 50 Investable Volatility Index, please visit: INDICES The Directors may change the index being replicated by the ETFX-BofAML IVSTOXX ETF. Where the change meets certain conditions, it will not be deemed to be a material change and will not therefore require Shareholder approval. Shareholders will, generally, be notified in advance of any such change. Full details in relation to this are set out in the Prospectus in the section headed Indices. RISK MANAGEMENT The Investment Manager uses a risk management technique known as value-at-risk to assess the ETFX-BofAML IVSTOXX ETF s market risk to seek to ensure that the use of FDIs by the ETFX- BofAML IVSTOXX ETF is within regulatory limits. It is not expected that (i) the ETFX-BofAML IVSTOXX ETF will use any leverage and (ii) the relative value-at-risk on the portfolio of the ETFX- BofAML IVSTOXX ETF shall exceed the value-at-risk on the EURO STOXX 50 Investable Volatility Index. Where the ETFX-BofAML IVSTOXX ETF is leveraged, relevant disclosure will be made in the investment policy of the Fund. The one-tailed confidence level of the ETFX-BofAML IVSTOXX ETF shall be 99% and the holding period shall be one day. The historical observation period will not be less than one year, however, a shorter observation period may be used when appropriate, (e.g. as a result of significant recent changes in price volatility). RISK FACTORS Investors are specifically referred both to the section headed Risk Factors and to Schedule II in the Prospectus and should consider the following risk factors prior to investing in the ETFX-BofAML IVSTOXX ETF. 1. The EURO STOXX 50 Index is a volatility index and, as such, the volatility of the Net Asset Value of the ETFX-BofAML IVSTOXX ETF may be increased as a result of replicating the performance of the EURO STOXX 50 Investable Volatility Index. 2. The EURO STOXX 50 Investable Volatility Index is a volatility index which provides exposure to the forward implied volatility of the EURO STOXX 50 Index. However, as the ETFX-BofAML IVSTOXX ETF tracks the EURO STOXX 50 Investable Volatility Index through the use of swaps and has other fees and expenses, the ETFX-BofAML IVSTOXX ETF is not linked to, and its performance may differ from, the relevant listed options used to calculate the EURO STOXX 50 Investable Volatility Index. The performance of the EURO STOXX 50 Investable Volatility Index will depend on many factors, including the level of the EURO STOXX 50 Index and the prices of options on the EURO STOXX 50 Index, which may change unpredictably affecting the level of the EURO STOXX 50 Investable Volatility Index. Additional factors that may contribute to the fluctuations in the level of the EURO STOXX 50 Investable Volatility Index include prevailing forward implied volatility levels of Eurozone stock markets, prevailing market prices of futures contracts linked to other financial instruments related to the EURO STOXX 50 Index, interest rates, supply and demand in the listed and over-the-counter equity derivative markets as well as hedging activities in the equitylinked structured product markets. THE SHARES The ETFX-BofAML IVSTOXX ETF has currently one class of Shares and, at the date of this document, there are no other classes of Shares in the ETFX-BofAML IVSTOXX ETF. Additional classes of Shares may be added in the future in accordance with the requirements of the Central Bank. 3

4 The ISIN for the Shares of the ETFX-BofAML IVSTOXX ETF is IE00B3T1VR88. Shares are freely transferable subject to and in accordance with the provisions of the Articles and as set out in the Prospectus. Shares will be issued in registered form and no temporary documents of title will be issued. Shares will be issued without share certificates and the Company will not issue fractions of Shares. DEALING PROCEDURES The procedures for subscribing for and redeeming of Shares are outlined in the Prospectus. Investors should note that subscriptions and redemptions in the ETFX-BofAML IVSTOXX ETF may only be in cash and may not be made on an in specie basis (unless otherwise agreed with the Manager or its delegate). Shares may be subscribed for in the manner set out in the Prospectus under the heading Subscriptions, beginning on page 69. Shares in the ETFX-BofAML IVSTOXX ETF may be redeemed as described in the Prospectus under the heading Redemptions beginning on page 73. DEALING INFORMATION Base Currency Business Day Dealing Day Dealing Deadline Dividend Policy Minimum Subscription Amount Minimum Redemption Amount Settlement Time Valuation Point Fees Euro. A day on which banks and markets and exchanges are open for business in the United Kingdom. An Index Publication Day and a day on which no Significant Markets are closed for business. Such time as shall be set out on in respect of a Dealing Day, which information shall be kept up to date and which time shall in any event occur prior to the Valuation Point for the relevant Dealing Day. This Fund will declare an Annual Dividend in the manner set out under the heading Dividend Policy in the Prospectus. 1,000,000. 1,000,000. Settlement of subscriptions and redemptions must generally occur within three Business Days after the relevant Dealing Day (unless otherwise agreed with the Manager or its delegate). The time at which the value of the EURO STOXX 50 Investable Volatility Index is determined. The ETFX-BofAML IVSTOXX ETF will pay out of its assets the following fees and expenses: 1. a TER of 0.80% per annum of the Net Asset Value of this Fund; 2. brokerage or other expenses of acquiring and disposing of Investments including any periodic fee payable to a 4

5 counterparty to an OTC Swap under the terms of such OTC Swap; and 3. extraordinary expenses (i.e. those unforeseen expenses falling outside of the general expenses payable by the Manager out of its fees). Investors are also referred to the section of the Prospectus entitled Fees and Expenses. A Subscription Fee of up to 5% of the Net Asset Value of the amount of Shares subscribed for and a Redemption Fee of up to 3% of the Net Asset Value per Share may be charged (subject to the discretion of the Manager to waive such fees in whole or in part). Duties and Charges (if any) in respect of a subscription or a redemption may also be charged. Fees and expenses relating to establishment of the ETFX-BofAML IVSTOXX ETF will be borne by the Manager. TAXATION A description of the taxation applicable to the Company and its Shareholders is outlined under the heading Taxation in the Prospectus. 5

6 INDEX DISCLAIMER STOXX Limited ( STOXX ) and its licensors (the Licensors ) have no relationship to the Company, other than the licensing of the EURO STOXX 50 Investable Volatility Index and the related trademarks for use in connection with the ETFX-BofAML IVSTOXX ETF. STOXX and its Licensors do not: sponsor, endorse, sell or promote the Fund; recommend that any person invest in the Fund or any other securities; have any responsibility or liability for or make any decisions about the timing, amount or pricing of Fund; have any responsibility or liability for the administration, management or marketing of the Fund; consider the needs of the Fund or the owners of the Fund in determining, composing or calculating the EURO STOXX 50 Investable Volatility Index or have any obligation to do so. STOXX and its Licensors will not have any liability in connection with the Fund. Specifically, STOXX and its Licensors do not make any warranty, express or implied and disclaim any and all warranty about: the results to be obtained by the Fund, the owner of the Fund or any other person in connection with the use of the EURO STOXX 50 Investable Volatility Index and the data included in the EURO STOXX 50 Investable Volatility Index; the accuracy or completeness of the ETFX-BofAML IVSTOXX ETF and its data; the merchantability and the fitness for a particular purpose or use of the EURO STOXX 50 Investable Volatility Index and its data; STOXX and its Licensors will have no liability for any errors, omissions or interruptions in the EURO STOXX 50 Investable Volatility Index or its data; under no circumstances will STOXX or its Licensors be liable for any lost profits or indirect, punitive, special or consequential damages or losses, even if STOXX or its Licensors knows that they might occur. The licensing agreement between the Company and STOXX is solely for their benefit and not for the benefit of the owners of the Fund or any other third parties. A list of all Funds of the Company currently authorised by the Central Bank is contained in the Fund Schedule Supplement. 6