S-Network Sector Dividend Dogs Index · Seagate Technology Caterpillar Inc Cummins Inc Eaton Corp plc Emerson Electric Co Pitney Bowes Inc ... The S-Network Sector Dividend Dogs Index

© 2019 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.

S-Network Sector

Dividend Dogs IndexQ2 2019


Index Rationale

Well-Established Universe of Index Candidates S&P 500 Serves as Universe for SDOGX

Comprises 50 Constituents

Stocks Must Meet All Screens Needed to Qualify for the Leading Large-Cap US Equity Benchmark Index

Diversified by Sector Five Stocks with Highest Dividend Yields in Each of the Ten Sectors from the S&P 500 Selected for Inclusion

in SDOGX, Ensuring Diversification Across Sectors

Pure Yield – No Qualitative Screens SDOGX Does Not Include Any Qualitative Screens, such as Dividend Growth, Dividend Consistency or

Coverage Ratio

Based Entirely on Dividend Yield, Making SDOGX the Only US Pure Play Dividend Index Available

Entirely Rules-Based Depends on a Clearly Defined Rules-Based Methodology

No Discretion is Exercised in Compiling the Index

Pre-Defined Screening Protocol Assures a Consistent, Transparent and Arms-Length Compilation Process

2

The S-Network Sector Dividend Dogs Index Offers the First Pure Play,

Rules-Based High Dividend Index.


Index Performance and Yields


Historical Performance

4

The S-Network Sector Dividend Dogs Index Offers Consistent Performance Over Time, Regularly

Outperforming the S&P 500 As Well As Other High Dividend Indexes.

Source: Bloomberg, as of 6/30/2019*To ensure fair comparisons, all of the starting index values are normalized to 1,000 as of December 31, 1999.

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Dec-99 Dec-01 Dec-03 Dec-05 Dec-07 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17

S-Network Sector Dividend Dogs TR Index vs. Benchmarks* (12/31/1999–6/30/2019)

SDOGXTR SPHYDATR DJDVY SPXT


Current Dividend Yield Comparison

5

Sources: Bloomberg, State Street, Dow Jones Indexes, as of 6/30/2019

The S-Network Sector Dividend Dogs Index Offers Higher Dividend Yields

than Other High Dividend Indexes.

4.38%

3.91%

2.74%

1.91%

S-Network Dividend Dogs

Dow Jones US Select Dividends

S&P High Yield DividendAristocrats

S&P 500

Dividend Yields


Historical Dividend Yields

6

Over an Extended Time Frame, SDOGX Has Consistently Offered Higher Yield.

4.00%

3.19%

4.13%

3.21% 3.28%3.46%

3.28%

3.63%

6.15%

3.79%

4.11%

4.40%4.67%

3.82% 3.80%

4.08%

3.69% 3.72%

4.80%

1.23%1.37%

1.83%1.56% 1.60%

1.78% 1.75%1.89%

3.14%

2.01%1.81%

2.10% 2.19%

1.89% 1.92%2.12% 2.04%

1.83%

2.14%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18

SDOGX vs. SPX(12/31/1999–12/31/2018)

SDOGX SPXSource: S-Network, as of 6/30/2018


Yearly Price Appreciation

7

S-Network Sector Dividend Dogs Index S&P 500 Index

12/31/1999 $1,000,000.00 $1,000,000.00

12/31/2000 $1,035,689.75 $898,608.13

12/31/2001 $1,184,348.63 $781,407.56

12/31/2002 $967,830.39 $598,821.93

12/31/2003 $1,294,078.61 $756,791.37

12/31/2004 $1,466,815.16 $824,853.70

12/30/2005 $1,493,255.61 $849,612.37

12/31/2006 $1,739,199.11 $965,322.77

12/31/2007 $1,735,230.30 $999,390.96

12/31/2008 $1,107,605.38 $614,772.79

12/31/2009 $1,562,264.31 $758,960.48

12/31/2010 $1,795,905.91 $855,971.41

12/31/2011 $1,927,347.78 $855,950.18

12/31/2012 $2,043,866.12 $970,691.15

12/31/2013 $2,645,941.76 $1,258,027.24

12/31/2014 $2,939,439.34 $1,401,328.83

12/31/2015 $2,745,765.31 $1,391,143.01

12/31/2016 $3,247,088.86 $1,523,788.79

12/31/2017 $3,533,168.86 $1,819,711.09

12/31/2018 $3,017,471.79 $1,706,208.73

Source: S-Network, as of 6/30/2019

Even Without Any Reinvestment of Dividends, SDOGX Significantly

Outperforms the S&P 500.

Portfolio Growth from $1 Million (Price Only)


Yearly Dividend Income

8

S-Network Sector Dividend Dogs Index S&P 500 Index

12/31/1999 $0 $0

12/31/2000 $41,455.64 $11,074.36

12/31/2001 $37,780.08 $10,719.76

12/31/2002 $40,004.63 $10,965.11

12/31/2003 $41,516.88 $11,831.86

12/31/2004 $48,068.96 $13,232.78

12/30/2005 $51,667.32 $15,121.00

12/31/2006 $56,969.38 $16,936.59

12/31/2007 $62,915.59 $18,874.57

12/31/2008 $68,163.87 $19,320.48

12/31/2009 $59,214.13 $15,249.17

12/31/2010 $73,803.17 $15,469.39

12/31/2011 $84,845.15 $17,986.27

12/31/2012 $95,522.87 $21,263.64

12/31/2013 $100,986.47 $23,815.33

12/31/2014 $111,619.91 $26,845.97

12/31/2015 $111,983.55 $29,531.39

12/31/2016 $119,680.31 $31,105.70

12/31/2017 $131,553.53 $33,304.45

12/31/2018 $144,716.21 $36,583.07


In Terms of Dividend Income, SDOGX Consistently Outperforms the S&P 500.

Dividend Income from Starting Portfolio Value of $1 Million

Year by Year Dividend Growth Since 12/31/1999

Data used to produce this report has been sourced from Standard & Poor’s. Past performance is no guarantee of future results. This report compares indexes, which do not

account for management fees and other expenses that might be applicable to investment. S-Network makes no representation as to the accuracy of this report, which should

not be construed as a solicitation to invest.

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

S-Network Sector Dividend Dogs Index vs. S&P 500 Index: Dividend Growth2000–2018

SDOGX dividend S&P 500 dividend


Date Range Price Index Value Index Dividend Points Dividend Yield*Index Dividend

Growth

12/31/1999 1,000.00 -- -- --

12/29/2000 1,035.69 41.46 4.00% --

12/31/2001 1,184.35 37.78 3.19% -8.87%

12/31/2002 967.83 40.00 4.13% 5.89%

12/31/2003 1,294.08 41.52 3.21% 3.78%

12/31/2004 1,466.82 48.07 3.28% 15.78%

12/30/2005 1,493.26 51.67 3.46% 7.49%

12/29/2006 1,739.20 56.97 3.28% 10.26%

12/31/2007 1,735.23 62.92 3.63% 10.44%

12/31/2008 1,107.61 68.16 6.15% 8.34%

12/31/2009 1,562.26 59.21 3.79% -13.13%

12/31/2010 1,795.91 73.80 4.11% 24.64%

12/30/2011 1,927.35 84.85 4.40% 14.96%

12/31/2012 2,043.87 95.52 4.67% 12.58%

12/31/2013 2,645.94 100.99 3.82% 5.72%

12/31/2014 2,939.44 111.62 3.80% 10.53%

12/31/2015 2,745.77 111.98 4.08% 0.33%

12/31/2016 3,247.09 119.68 3.69% 6.87%

12/31/2017 3,533.17 131.55 3.72% 9.92%

12/31/2018 3,017.47 144.72 4.80% 10.01%

Dividend Growth

10

Dividend Growth

Source: S-Network, as of 6/30/2019*Does Not Include Special Dividends


Index Constituents and Fundamentals


AT&T Inc

CenturyLink Inc

Frontier Communications

Corp

Verizon Communications

Inc

Dow Chemical

Intl Paper Co

LyondellBasell Industries

N.V.

Mosaic Co

Nucor Corp

CA Inc

HP Inc

Intl Business Machines

Corp

QUALCOMM Inc

Seagate Technology

Caterpillar Inc

Cummins Inc

Eaton Corp plc

Emerson Electric Co

Pitney Bowes Inc

AbbVie Inc.

Baxter Intl Inc

Johnson & Johnson

Merck & Co Inc

Pfizer Inc

Cincinnati Financial Corp

Invesco Ltd

Metlife Inc

Navient Corp

People's United Financial

Inc

ConocoPhillips

Ensco PLC - CL A

Kinder Morgan Inc

ONEOK Inc

Spectra Energy Corp

Altria Group Inc

Coca-Cola Co

Philip Morris International

Procter & Gamble

Wal-Mart Stores

Coach Inc

Ford Motor Co

Garmin Ltd

Mattel Inc

Wynn Resorts Ltd

Index Constituents

12

The S-Network Sector Dividend Dogs Index Offers Diversification by Sector and Company,

Avoiding Concentrated Risk.


Consumer

Discretionary

Consumer

StaplesEnergy Financials Health Care

IndustrialsInformation

TechnologyMaterials Utilities

Consumer

Discretionary Consumer Staples Energy

Industrials

Health CareFinancials

UtilitiesCommunication

ServicesMaterialsInformation

Technology

Ford Motor Co

General Motors Company

Leggett & Platt

Macy's Inc

Newell Brands Inc

Altria Group Inc

Campbell Soup Co

General Mills Inc

Philip Morris International

The Kraft Heinz Company

Helmerich & Payne Inc

ONEOK Inc

Occidental Petroleum

Schlumberger Ltd

The Williams Companies

Inc

Invesco Ltd

Metlife Inc

People's United

Financial Inc

Principal Financial

Group

Prudential Financial Inc

AbbVie Inc.

Bristol-Myers Squibb

Cardinal Health Inc

Gilead Sciences Inc

Pfizer Inc

Cummins Inc

Eaton Corp plc

Johnson Controls

International plc

Nielsen Holdings plc

United Parcel Service Inc B

Intl Business Machines

Corp

QUALCOMM Inc

Seagate Technology

Western Digital Corp

Western Union Co

CF Industries Holdings

Intl Paper Co

LyondellBasell Industries

N.V.

Packaging Corp of

America

WestRock Co

AT&T Inc

CenturyLink Inc

Interpublic Group Cos

Omnicom Group

Verizon Communications

Inc

Dominion Energy Inc

Edison Intl

Entergy Corp

PPL Corp

Southern Co


Sector Yield Comparison

13

The S-Network Sector Dividend Dogs Index Offers Higher Dividend Yield on a Sector by Sector

Basis and Avoids Concentration in Those Sectors Offering the Highest Dividend Yield.


4.26%

5.38% 5.34%

3.63%

6.19%

4.25% 4.19%4.01% 3.98%

5.29%

1.42%

3.46%

1.25%

1.91%

1.39%

3.21%

2.04% 2.11%

1.69%

2.87%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

InformationTechnology

Energy ConsumerDiscretionary

Industrials CommunicationServices

Utilities Financials Materials Health Care Consumer Staples

SDOGX Sector Yield S&P 500 Sector Yield


Sector Weight Comparison

14

The S-Network Sector Dividend Dogs Index Offers Higher Dividend Yield on a Sector by Sector

Basis and Avoids Concentration in Those Sectors Offering the Highest Dividend Yield.

Source: S-Network, as of 6/30/2019*SDOGX does not include Real Estate constituents

10.69% 10.28% 10.11%10.01% 9.99% 9.99% 9.91% 9.79% 9.69% 9.55%

0.00%

21.48%

5.05%

10.19%

9.38%

10.19%

3.31%

13.07%

2.80%

14.20%

7.27%

3.05%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

InformationTechnology

Energy ConsumerDiscretionary

Industrials CommunicationServices

Utilities Financials Materials Health Care Consumer Staples Real Estate

SDOGX Sector Weight S&P 500 Sector Weight


Index Fundamentals

15

Number of Constituents 50

Total Market Capitalization 2.44 Trillion USD

Largest Market Capitalization 244.56 Billion USD

Smallest Market Capitalization 5.04 Billion USD

Average Market Capitalization 48.73 Billion USD

Median Market Capitalization 30.01 Billion USD

Solid Fundamental and a Large Capitalization Bias Help Mitigate Risks

in the S-Network Sector Dividend Dogs Index.


SDOGX S&P 500

Price/Earnings 12.17 19.32

Price/Book Value 2.02 3.43

Dividend Yield 4.38% 1.91%

Index Fundamentals

SDOGX Market Capitalization Profile

Index Fundamentals


Statistical Profiles


Statistical Profile I

17

S-Network Sector Dividend Dogs TR S&P 500 TR Out/Underperformance

12/31/2000 8.11% -9.10% 17.21%

12/31/2001 18.20% -11.89% 30.08%

12/31/2002 -15.13% -22.10% 6.97%

12/31/2003 39.08% 28.68% 10.39%

12/31/2004 17.52% 10.88% 6.63%

12/30/2005 5.45% 4.91% 0.54%

12/31/2006 20.73% 15.79% 4.94%

12/31/2007 3.34% 5.49% -2.16%

12/31/2008 -33.01% -37.00% 3.99%

12/31/2009 48.37% 26.46% 21.91%

12/31/2010 20.33% 15.06% 5.27%

12/31/2011 12.34% 2.11% 10.23%

12/31/2012 11.24% 16.00% -4.77%

12/31/2013 34.99% 32.39% 2.61%

12/31/2014 15.60% 13.69% 1.92%

12/31/2015 -2.83% 1.38% -4.21%

12/31/2016 23.05% 11.96% 11.09%

12/31/2017 13.18% 21.83% -8.65%

12/31/2018 -10.93% -4.38% -6.55%

YTD 6/30/2019 13.39% 18.54% -5.15%


The S-Network Sector Dividend Dogs Total Return Index has Outperformed the

S&P 500 Total Return Index in 14 of the Last 19 Years.

Calendar Year Ending Total Return Appreciation


Statistical Profile II

18

SDOGXTR S&P High Yield Div Aristocrats TR DJ US Select Dividend TR S&P 500 TR

Since Inception* 643.31% 590.30% 511.67% 192.29%

10 Year 363.28% 306.98% 312.85% 294.16%

5 Year 41.75% 66.93% 55.44% 66.33%

3 Year 22.84% 35.42% 30.25% 48.89%

1 Year 1.82% 12.14% 5.80% 10.42%


Since Inception* 10.83% 10.41% 9.73% 5.65%

10 Year 16.57% 15.07% 15.23% 14.70%

5 Year 7.23% 10.79% 9.22% 10.71%

3 Year 7.10% 10.64% 9.21% 14.19%

1 Year 1.82% 12.14% 5.80% 10.42%

*From 12/31/1999 Source: S-Network, as of 6/30/2019

Total Return Appreciation

Compound Annual Growth Rate


Statistical Profile III

19

*From 12/31/1999


Since Inception* 0.6080 0.6682 0.5968 0.3359

10 Year 1.1428 1.2365 1.3053 1.1080

5 Year 0.5208 0.8955 0.8086 0.8332

3 Year 0.4604 0.8406 0.7452 1.0363

1 Year 0.0717 0.6335 0.2769 0.4909



Since Inception* 16.45% 13.81% 14.64% 14.65%

10 Year 13.90% 11.55% 11.01% 12.73%

5 Year 13.39% 11.16% 10.50% 12.03%

3 Year 13.87% 11.08% 10.69% 12.19%

1 Year 20.62% 16.54% 16.79% 18.99%

Annualized Standard Deviation (Monthly)

Annualized Sharpe Ratio (Monthly)


Statistical Profile IV

20


SDOGXTR S&P High Yield Div Aristocrats TR DJ US Select Dividend TR

Since Inception* 0.43% 0.46% 0.41%

10 Year 0.17% 0.20% 0.30%

5 Year -0.27% 0.13% 0.08%

3 Year -0.60% -0.11% -0.21%

1 Year -0.70% 0.22% -0.28%


Since Inception* 0.6266 0.4667 0.3884

10 Year 0.2974 0.0363 0.0445

5 Year -0.5591 -0.0058 -0.2561

3 Year -1.3673 -0.7106 -1.1461

1 Year -1.5575 0.2142 -0.9968

Annualized Information Ratio (vs S&P 500 TR, Monthly)

Jensen’s Alpha (vs S&P 500 TR, Monthly)


Statistical Profile V

21



Since Inception* 81.08% 58.69% 63.95%

10 Year 87.72% 74.52% 64.14%

5 Year 101.87% 79.28% 71.61%

3 Year 119.62% 87.45% 84.94%

1 Year 109.58% 82.44% 86.84%


Since Inception* 107.03% 88.42% 89.63%

10 Year 100.81% 89.63% 85.47%

5 Year 86.06% 89.38% 78.68%

3 Year 81.61% 81.03% 74.43%

1 Year 82.18% 91.88% 77.22%

Upside Capture Ratio (vs S&P 500 TR, Monthly)

Downside Capture Ratio (vs S&P 500 TR, Monthly)


Statistical Profile VI

22



Since Inception* 0.7575 0.6257 0.6004

10 Year 0.8148 0.8532 0.7835

5 Year 0.8337 0.8280 0.7519

3 Year 0.8959 0.8533 0.8930

1 Year 0.9428 0.9282 0.9470


Since Inception* 0.8703 0.7910 0.7749

10 Year 0.9027 0.9237 0.8851

5 Year 0.9131 0.9100 0.8671

3 Year 0.9465 0.9237 0.9450

1 Year 0.9710 0.9634 0.9731

Correlation (vs S&P 500 TR, Monthly)

R-Squared (vs S&P 500 TR, Monthly)


Statistical Profile VII

23


Since Inception* 0.9770 0.7458 0.7744

10 Year 0.9856 0.8381 0.7654

5 Year 1.0159 0.8442 0.7567

3 Year 1.0765 0.8394 0.8285

1 Year 1.0541 0.8389 0.8605

*From 12/31/1999


Beta (vs S&P 500 TR, Monthly)


Index Construction


Index Construction – Methodology

All Constituents of SDOGX Must Be Constituents of the S&P 500

Selection Criteria for S&P 500 Include Requirements for:

Sector Inclusion

Primary Exchange Listing

Minimum Market Capitalization

Minimum Average Daily Trading Volume

Other Factors

Individual Securities Included in SDOGX Selected Based on Ranking system

Within Each Sector

Selects the Five Stocks in Each Sector with Highest Dividend Yield as of Last Trading Day of November

Dividend Yield is Computed Based on Regular Cash Dividends Paid by the Company Over Previous Twelve

Month Period, Divided by Share Price (Special Dividends Not Included)

25

The S-Network Sector Dividend Dogs Index Uses A Stable and

Transparent Construction Methodology.


Index Construction – Weighting and Deletions

Share Weights Based on Prices as of Close of Trading on Second Friday of

Rebalancing Month

Index Is Rebalanced Quarterly on the Third Friday of the Last Month of Each

Calendar Quarter

Index Is Rebalanced Quarterly Back to Equal Weights

Stocks That Are Deleted From of S&P 500 Are Deleted from SDOGX Effective

Upon Deletion from S&P 500

Stocks That Have Failed to Pay a Quarterly Dividend Are Deleted from SDOGX

as of Next Quarterly Rebalancing

If Less Than Five Eligible Securities are Represented in any GICS Sector as of

Snapshot Date Only Those Securities Which Qualify are Included

26

A Detailed Methodology and Rules Is Available at www.sectordividenddogs.com


Index Details & Data Distribution

Index Values Distributed in Real Time (15 second snapshots) in USD and EUR

Total Return Index Calculated Daily in USD and EUR

Index Values Distributed via Consolidated Tape

Comprehensive Historic Data (including simulated back-tests from 12/31/1999)

Daily Prices for Price-Only + TR Indexes in USD + EURO

Quarterly Portfolio Snapshots (Historic Constituents and Weights)

Extensive Analytic support

Quarterly Reports (“Index Insights”)

Industry Overviews

Extensive Statistical Data

Comprehensive website: www.sectordividenddogs.com

Broad data distribution via third party vendors

S&P/Bloomberg/Yahoo, etc.

S-Network contribution page on Bloomberg: SNET

27

http://www.sectordividenddogs.com


Company History

Standard & Poor’s Custom Index GroupS&P Indices recognizes that no single index meets the needs of all investors. A custom index calculated by S&P Indices enables our clients either to refine existing S&P indices to reflect tailored measurements of market performance, or to create a unique index as the basis for a new derivative investment product. Drawing on this expertise and a global database of over 17,000 individual stocks, the S&P Custom Index Group provides an independent, flexible and accurate service enabling clients to purposefully design a Custom Index to meet their specific requirements.

S-Network Global IndexesS-Network Global Indexes, Inc. is a publisher and developer of proprietary and custom indexes. S-Network began publishing indexes in 2006 and currently publishes over 300 indexes, which serve as the underlying portfolios for financial products with approximately USD 7 billion in assets under management. S-Network indexes, which are supported by a state-of-the-art technology platform, are known for their transparency and efficiency.

S-Network is a leader in socially responsible investment, publishing best-practice benchmark indexes in collaboration with Thomson Reuters. S-Network published the first global alternative energy and water indexes, which today serve as the recognized benchmarks for those sectors worldwide. In addition to publishing socially responsible indexes, S-Network produces proprietary environmental, social and governance ratings on nearly 5,000 public companies worldwide.

S-Network publishes a comprehensive suite of benchmark indexes covering US, European, Pacific Basin and emerging markets companies and mirroring the performance characteristics of the most popular indexes. The benchmark series offers detailed historical data, including daily constituent level data, from December 31, 1999 to the present. S-Network benchmarks serve as starting universes for smart beta indexes, as institutional-quality performance benchmarks, and as bases for Separately Managed Accounts.

S-Network is a prominent provider of smart beta indexes that incorporate both standard market statistics, as well as unique and highly specialized proprietary data sets derived from non-traditional sources. Smart beta indexes developed by S-Network embrace powerful single-factor models as well as complex multi-factor models that incorporate over 200 discrete factors. All indexes developed by S-Network address and resolve issues such as liquidity, investability and index turnover characteristics.

For more information please visit http://snetworkglobalindexes.com/

28

http://snetworkglobalindexes.com/

Documents

S-Network Sector Dividend Dogs Index · Seagate Technology Caterpillar Inc Cummins Inc Eaton Corp plc Emerson Electric Co Pitney Bowes Inc ... The S-Network Sector Dividend Dogs Index