XRT: Signal To Noise - etf.com · folio (NYSE Arca: BKLN), which holds noninvestment-grade bank loans. Floating-rate bonds are often linked to highly leveraged borrowers, as they

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UPDATES

IN THIS ISSUEInvestors panicked when they saw XRT at an astonishing 626 percent short. But for State Street’s retail ETF, it’s just business as usual.Page 1

CNY and CYB diverged in performance late last year. What happened, and what does it mean for Chinese currency exposure?Page 5

Roger Nusbaum, chief investment officer of Your Source Financial, talks about how he uses KOL to gain exposure to energy—and China.Page 7

Absolute-return ETFs intimidate investors and ETF experts alike. How do these funds work, and do they make sense for your portfolio?Page 8

ETFR’s monthly data bank covers all U.S.-listed ETFs, including assets, performance data and more.Pages 13-22

News Highlights: Russell 3000 Adds Firms in 2011 Recon; Guggenheim To Change SEA Index; iShares Joins Floating-Rate ETF Party; New UBS ETNs Hone In On Contango … And much more!Pages 1-4

Issue No. 129August 2011

Russell Investments added 186 compa-nies to its broad-market Russell 3000 In-dex as part of its annual reconstitution this year. The index, which refl ects about 98 percent of the U.S. equities universe, had a total market value of $16.7 trillion as of May 31, from $13.4 trillion a year earlier, and is the underlying benchmark for many broad-based U.S.-focused ETFs.

The process of reconstituting bench-marks takes place annually and revisits the inclusion of particular companies in

various indexes through rules such as market capitalization rankings, the com-pany said in May when it announced the timing of this year’s changes.

The Russell 3000 comprises the small-cap stocks of the Russell 2000 and the large-cap stocks of the Russell 1000. All three indexes provide the underlying benchmark for such ETFs as the $16.6 billion AUM iShares Rus-sell 2000 ETF (NYSE Arca: IWM) and the Ry-dex Russell Top 50 ETF (NYSE Arca: XLG), as well as Russell’s own ETFs.

Russell also noted in its press release that the median market capitalization of the Russell 3000 would increase by 23 percent to $1.04 billion from $802 million in 2010.

The company said its lists showed a relatively even distribution of additions among sectors, and included 35 fi rms in the health care sector, 33 in fi nancial ser-vices and 31 in technology.

Russell said its research showed Exxon Mobil and Apple remain the two largest companies in the Russell 3000 In-

Russell 3000 Adds 186 Firms In 2011 Reconstitution

By Dave NadigETFs are simple tools for investors to gain exposure—both long and short. But that simplicity comes at the expense of some complexity in underlying product struc-ture and sausage-factory workings of the equities markets. Perhaps no ETF high-lights this bipolar nature better than the SPDR S&P Retail ETF (NYSE Arca: XRT).

XRT is famous in ETF-nerd circles for one simple reason—it’s often the most heavily shorted ETF in the market.

In fact, as of this writing, it’s 626 per-cent short—a seemingly mythological number. It’s easy to see how it apparent-ly fails the test of truth. How can more shares be short than exist?

It’s actually not so unusual for ETFs, where creation, redemption and set-tlement-timing mismatches can create seemingly impossible data like that. And while this number seems high, it’s actu-ally far from an outlier—it’s essentially XRT’s normal state.

Since mid-2009, between 60 million and 80 million shares of XRT more or

less have been consistently short (See Figure 1). But what does this informa-tion actually mean for investors? And is there cause for concern?

First, a caveat: Short-interest report-ing is incredibly buggy and not remotely timely. It is self-reported information pro-duced every two weeks, with a lag. So you can’t look at the end of this chart and say “Aha!” as short interest has gone up.

But even if it’s entirely true that six times more shares are actually short as currently exist, the whole scenario is not as impossible as it seems.

The Market-Maker FactorIndeed, it’s quite possible that the short interest represents shares that may in fact simply not yet have been created for delivery by authorized participants. If a market maker sells 1 million shares of XRT it doesn’t actually own, it doesn’t have to actually do the creation (or get the shares elsewhere) to make good on that delivery for fi ve days. As a side note, if he does wait his legally allowed

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dex, with market values of $411.2 bil-lion and $321.7 billion, respectively, and that Chevron would re-enter the top 10 as the fourth-largest stock in the index.

Guggenheim ToChange Index On SEA Guggenheim Funds fi led paperwork with the Securities and Exchange Com-mission to change the index on its Guggenheim Shipping ETF (NYSE Arca: SEA). The change appears to cut U.S. weighting in the fund by 80 percent. The ETF, currently based on the Delta Global Shipping Index, will be orga-nized around the Dow Jones Global Shipping Index once the change takes place, according to the fi ling. It said the change will become effective 60 days after the fi ling, dated May 27.

The proposed new Delta Global Shipping Index weighted U.S. com-panies at 36.3 percent as of March 3, while the Dow Jones Global Shipping Index had a U.S. weighting of 7.8 percent as of April 30. While the new index can have shipping companies located around the world—includ-ing in the emerging markets—it also weights certain Asian countries more than the existing index. SEA has al-most $12 million in assets, according to data compiled by IndexUniverse.

iShares JoinsFloating-Rate ETF Party iShares rolled out a new ETF in June to help investors weather fl uctuations in interest rates. The iShares Floating Rate Note Fund (NYSE Arca: FLOT) invests in dollar-denominated, investment-grade fl oating-rate bonds. By having adjust-able interest rates, the bonds fl uctu-ate less in value than fi xed-yield bonds when interest rates are changing.

FLOT’s launch follows both the Mar-ket Vectors Investment Grade Floating Rate ETF (NYSE Arca: FLTR), which also invests in high-quality notes; and the Invesco PowerShares Senior Loan Port-folio (NYSE Arca: BKLN), which holds noninvestment-grade bank loans.

Floating-rate bonds are often linked to highly leveraged borrowers, as they are issued for recapitalization needs and acquisitions, such as leveraged buyouts.

The new iShares ETF comes with an annual expense ratio of 0.20 percent, the company said on its website. By con-trast, BKLN costs 0.83 percent including acquired fund fees, while FLTR has a net expense ratio of 0.19 percent.

New UBS ETNsHone In On Contango In June, UBS added to its family of “ETRACS” ETNs with the rollout of two first-to-market securities that try to profit from contango in the crude oil and natural gas futures markets.

The ETNs, which UBS marketing ma-terials said both come with annual ex-pense ratios of 0.85 percent, are:

• ETRACS Natural Gas Futures Con-tango ETN (NYSE Arca: GASZ)

• ETRACS Oil Futures Contango ETN (NYSE Arca: OILZ)

GASZ is designed to achieve its ob-jective by going short the front-month contract, and going long an equivalent amount that’s divided into three equal investments in the 12th-, 13th- and 14th-month contracts on the futures curve. OILZ is meanwhile designed to achieve its objective by going short the front-month contract and simultane-ously establishing a long position that’s worth 150 percent of the short posi-tion. The long position is divided into three equal investments in the sixth-, seventh- and eighth-month contracts on the crude oil futures curve.

Barclays To RedeemVZZ Due To Price Drop Barclays Bank automatically redeemed its iPath Long Enhanced S&P 500 Mid-Term Futures ETN (NYSE Arca: VZZ) on July 1 because the price of the notes fell just below the $10 per share redemption barrier.

VZZ, which had $12.8 million in as-sets as of June 30, was halted by Arca, the New York Stock Exchange’s elec-tronic trading platform, after the ETN fell to $9.98 a share. That was $1.82 lower on the day.

VZZ’s 15 percent sharp slide could have been related to the looming possi-bility of the automatic redemption, as its nonleveraged counterpart, the iPath S&P 500 VIX Mid-Term Futures ETN (NYSE

4 ETFR • August 2011

Arca: VXZ), was down just about 4 percent at the time Arca halted trade in VZZ.

PowerShares ClosesTwo Active ETFs Invesco PowerShares, the fund sponsor behind the popular Nasdaq 100 ETF, plans to close two actively managed ETFs on Sept. 30 after concluding that light investor interest in the two funds no lon-ger justifi ed keeping them running.

The two funds have been on the mar-ket for about three years. The funds and their assets as of June 22 are:

• PowerShares Active Alpha Multi-Cap Fund (NYSE Arca: PQZ), $3.6 million

• PowerShares Active AlphaQ Fund (NYSE Arca: PQY), $10.1 million

The shuttering of PQZ and PQY will bring to 31 the number of ETFs PowerShares has closed since 2009, according to company offi cials. The Wheaton, Ill.-based fi rm shut 19 funds in 2009 and 10 in 2010.

The fi rm has a total of 156 U.S.-listed ETFs and ETNs with its name on them, in-cluding a number of products it markets for Deutsche Bank. It also has 19 funds in Europe and fi ve in Canada.

First Trust Rolls OutCloud Computing ETFIn July, First Trust rolled out the First Trust ISE Cloud Computing Index Fund (Nasdaq: SKYY). The ETF is based on the ISE Cloud Computing Index and includes companies actively involved in the cloud computing industry, according to a fi ling the company made with the SEC on April 20.

Cloud computing refers to computer users accessing many different servers to meet their needs, as opposed to using centralized computing resources. Compa-nies such as Amazon with immense com-puting resources that go beyond internal demands have become big players in the expanding world of cloud computing.

SKYY comes with an annual expense ratio of 0.60 percent.

MSCI: Korea AndTaiwan Still Emerging MSCI announced in June that South Ko-rea and Taiwan, two countries that are crucial to emerging markets ETFs, will retain their developing market status be-cause they still lack accessibility.

MSCI’s annual review is crucial to ETFs such as the $46 billion Vanguard MSCI Emerging Markets ETF (NYSE Arca: VWO) or its rival fund, the $37 billion iShares MSCI Emerging Markets Index Fund (NYSE Arca: EEM), that use the same benchmark. The annual review could have resulted in Korea or Taiwan being dropped from those ETFs, just as it could have meant Qatar and the UAE would have joined them. As it stands, both MSCI’s emerging and frontier mar-ket indexes will remain unchanged for now, MSCI said in a press release.

The indexing company also said it isn’t adding any new countries for poten-tial reconsideration in next year’s review. It announces changes every June.

Pimco Launches Short-Dated Corp. Junk ETF On June 17, Pimco rolled out a high-yield corporate bond index ETF focused on the short end of the yield curve. The Pimco 0-5 Year High Yield Corpo-rate Bond Index Fund (NYSE Arca: HYS) tracks the BofA Merrill Lynch 0-5 Year US High Yield Constrained Index and costs 0.55 percent after a fee waiver, the company said on its website.

Noninvestment-grade debt offers a way to obtain extra yield at a time when bench-mark short-term interest rates remain near zero. The noninvestment-grade debt in the new Pimco fund must be dollar denomi-nated and issued in the U.S. It must have fewer than fi ve years’ remaining term to fi -nal maturity, a fi xed coupon schedule and a minimum amount outstanding of $100 million, issued publicly, the company said. Also, allocations to an individual issuer will not exceed 2 percent.

Emerging GlobalRolls Out Sector ETFs Emerging Global Advisors launched a fi rst-of-its-kind suite of sector funds on June 23, canvassing the developing mar-kets that are tied to the Dow Jones Emerg-ing Market Titans Index series. The new funds are marketed as the Global Emerg-ing Market Sector ETFs or “GEMS.” The family is the fi rst to represent a complete lineup of sector ETFs drawing their com-ponents entirely from emerging markets. The ETFs, which all have net expense ra-

tios of 0.85 percent, are:• EGShares Basic Materials GEMS ETF

(NYSE Arca: LGEM)• EGShares Consumer Goods GEMS

ETF (NYSE Arca: GGEM)• EGShares Health Care GEMS ETF

(NYSE Arca: HGEM)• EGShares Industrials GEMS ETF

(NYSE Arca: IGEM)• EGShares Technology GEMS ETF

(NYSE Arca: QGEM)• EGShares Telecom GEMS ETF (NYSE

Arca: TGEM)• EGShares Utilities GEMS ETF (NYSE

Arca: UGEM)• EGShares Consumer Services GEMS

ETF (NYSE Arca: VGEM)

IndexIQ Raises The ROOF In June, IndexIQ launched a small-cap ETF focused on REITs, providing investors with what the company called an oppor-tunity to earn higher dividends than on REIT ETFs focused on bigger fi rms.

The IQ US Real Estate Small Cap In-dex ETF (NYSE Arca: ROOF) comes with a 0.69 percent annual expense ratio, and is based on the IQ US Real Estate Small Cap Index—a fl oat-adjusted, market-cap-weighted benchmark fo-cused squarely on small-capitalization U.S. real estate companies.

IndexIQ said ROOF’s dividend of about 5 percent is as much as 200 basis points high-er than those on many large-cap ETFs.

The index that ROOF is built on in-cludes the bottom 10 percent of U.S. REITs by market capitalization. IndexIQ also said that small-cap REITs have sig-nifi cantly outperformed large-cap REITs over most time frames.

HYG, JNK Redemptions Spiking In June Investors bailed out of junk bond ETFs such as the iShares iBoxx $ High Yield Fund (NYSE Arca: HYG) in June, the latest example of the “risk-off” mentality in the markets. HYG lost more than $600 million in June, with the ETF’s AUM falling more than 9 percent. More than $500 million of those outfl ows were in a two-week peri-od, according to data compiled by Index-Universe, while the SPDR Barclays Capital High Yield Bond ETF (NYSE Arca: JNK) lost almost $470 million since June 1.


By Ugo EgbunikeThe renminbi has historically been one of the hardest currencies to access. But the times, they are a-changing.

As recently as 2008, the common retail investor had two ways to access the ren-minbi (or the yuan, as some refer to the Chinese currency): through the Market Vectors Chinese Renminbi USD ETN (NYSE Arca: CNY) or the WisdomTree Dreyfus Chinese Yuan Fund (NYSE Arca: CYB).

Choice is good, but it’s crucial to under-stand the methods by which currency ETFs provide exposure, especially with one so hard to get. For the most part, since CYB’s in-ception in May 2008, CNY and CYB tracked each other quite closely. In October 2010, the renminbi started another round of steady ap-preciation relative to the dollar—and things for the ETFs changed. It became apparent that although both CYB and CNY claimed to provide exposure to the renminbi, they did so in very different ways.

Two Sides To The StoryCNY launched in March 2008, the fi rst renminbi ETP to market. It tracks the S&P Chinese Renminbi Total Return In-dex, and because it’s an ETN, its indica-tive value tracks the index near perfectly. Unfortunately, the share price of CNY has seen some rough times due to the prod-uct’s ETN structure. ETNs are backed by their issuers—CNY by Morgan Stanley—but the fi nancial crisis cast a pall over the credit standing of the major banks.

Further, because it is an index-based product, its investors are subject to how the S&P Chinese Renminbi Total Return Index is managed. The index provides renminbi exposure by investing in three-month currency forward contracts that are held until maturity, and then rolled over into new three-month currency contracts. The downside is that the forward contract mar-ket for currencies prices in expectations in the movements of the spot exchange rate, taking away returns investors might have experienced should they have been able to access the spot market directly.

CNY’s strategy of tracking an index that used a three-month renminbi for-ward contract worked fi ne when the physical renminbi currency was traded within a tiny band. From its inception date in May 2008 till April 2010, CNY did a decent job of tracking the renminbi spot price as well as its own index.

In the summer of 2010, however, the Chinese government announced that the

renminbi would move into a managed fl oating exchange rate regime based on market supply and demand with refer-ence to a preselected basket of securities. By no means did the Chinese intend to let the renminbi trade as freely as the euro, but they made an effort to show that they would allow the currency to appreciate in a manner that at least somewhat refl ect-ed the market’s opinion.

CYB, and the rest of the WisdomTree currency funds for that matter, provide a unique strategy when it comes to accessing the foreign currency market. WisdomTree’s Director of Currency & Fixed Income Rick Harper was quick to note that “[Wis-domTree] is the only one in the 40 Act.”

Instead of opting for an ETN or struc-tured note, WisdomTree designed CYB within the Open-End Fund 1940 Act

structure. Additional exemptive relief for active management allowed the fund even greater liberties than those of a pas-sive ‘40-Act fund.

CYB invests in short-term U.S. money market securities, repurchase agreements (REPOs) and Treasury bills with a maturity of 90 days or less. WisdomTree then en-ters into nondeliverable forward contracts (NDFs) on the renminbi, in the case of CYB, with a general maturity of six months or less—all of which is based on the prin-cipal currently invested in U.S. short-term securities. The key here is the nondeliver-able forward contracts. While complex, the benefi t is that only the risk of not realizing a profi t or loss from the contract on a given day is at stake. As Harper explained, “[Wis-domTree] doesn’t put any of the fund’s col-lateral in [the counterparty’s] hands.”

Another benefi t to the 1940 Act ap-proach taken by WisdomTree is the ability to diversify its risk to counterparties. CNY’s share price suffered through the fi nancial crisis because investors were unsure of Morgan Stanley’s true credit standing. However, CYB’s counterparty exposure is spread among the numerous parties Wis-domTree shares NDF contracts with.

The ability to decide when to enter or buy into an NDF contract, and when to exit or sell an NDF contract is one of the biggest differences between CYB and CNY. Because CNY promises returns based on an index that simply rolls into three-month forward contracts, it has no ability to take advantage of an increase in the renminbi’s volatility.

When the renminbi’s fl oat expanded, it began to appreciate steeply while in-creasing in volatility, and the portfolio managers for CYB were able to use the benefi ts of active management to de-cide when and what to sell. The ability to move into longer-term contracts was key to CYB’s returns. Harper noted, “[Wis-domTree] moved into 180-day [contracts] during the period in which the [renminbi] was essentially fl at.” By the time the ren-minbi began to appreciate, CYB was in a great position to benefi t from the gains in

CYB Vs. CNYThe Different Paths to Accessing the Renminbi

Both CYB and CNY claim to provide exposure to the

renminbi, but doso in very

different ways.


the currency’s forward contract market.CNY, on the other hand, had to stick

with its promise to return the exposure of its index—and its three-month for-ward contracts.

Coupled with its cheaper expense ra-tio of 0.45 percent—versus CNY’s 0.55 percent—it’s understandable why CYB has a greater appeal.

Looking AheadAs the market for the renminbi continu-ally evolves, the question now is whether CYB will continue to outperform.

No one can say. There are hypothetical scenarios where the renminbi could de-preciate and CYB may fi nd itself stuck in longer-term contracts while CNY would still be tracking an index consisting of three-month contracts. However, active management has always been diffi cult to predict, and there’s no metric to deter-mine how the WisdomTree portfolio man-agers may choose their future exposure.

If the renminbi does continue to ap-preciate and WisdomTree decides to stay in longer-term contracts, returns would vary greatly between CYB and CNY.

One thing is clear: The CYB/CNY divide highlights a need for investors to directly ac-cess Chinese currency. Although unlikely in the short term, a day may come when Chi-na fi nally opens access to its currency so ETF issues can physically hold the yuan. That’s the holy grail for China currency plays.

54.5

43.5

3

22.5

1.51.505/142008

1/142009

6/14 6/141/142010

1/142011

6/14

Figure 2

Source: Bloomberg

Spot Renminbi Volatility

10

8

6

42

-2

-6

-8

-4

0

■ Spot Renminbi ■ CNY (Total Return) ■ CYB (Total Return)

5/142008

9/14 1/142009

3/14 5/14 7/14 9/14 1/142010

3/14 5/14

Figure 1

Source: Bloomberg

Performance Compared

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ETFR: What do you like about the Mar-ket Vectors Coal ETF (NYSE Arca: KOL)?Nusbaum: We try to start from a long-term perspective using a top-down approach to examine the supply and demand sce-nario for energy. I think it’s quite favorable from the standpoint of increasing demand caused by modernization and the ascend-ing middle in not only the two countries with a billion people [China and India], but several other countries with more than 100 million people. That means good things long term for oil, coal and even nuclear, de-spite what happened in Japan, and Germa-ny’s stated intention about shutting down its nuclear plants in the coming years.

From a slightly shorter-term perspec-tive, we try to assemble a combination for our exposure that might generally be more volatile than a typical benchmark. Our exposure for energy is: KOL, which is more volatile; Suncor Energy, which is an oil sands company in Canada and much more volatile; and Statoil, which is the big oil company in Norway and some-what more volatile.

If we like a sector, one way to over-weight it is not necessarily to own 20 percent if the market weight is 10 per-cent, but to own more volatile holdings.

Under KOL’s hood, we like the fact that it’s got a reasonable global footprint. A little over half of its weight is in the U.S., and 16 percent [of the fund] is in China. With China, I don’t want to own fi nancials, I don’t want to own anything that’s tied to real estate, I don’t want to own anything tied to exports, because all of those sectors rely on potentially weak buyers at the other end of the line. But there are sectors in China where even if the stock prices are volatile in both directions, I perceive the demand for the product to pret-ty steadily increase—that includes energy.

ETFR: Why choose KOL over the Pow-erShares Global Coal Portfolio (NYSE Arca: PKOL)?Nusbaum: Eight or 9 percent of PKOL is in uranium stocks. So, to me, KOL is ac-tually a purer exposure than PKOL. Fur-ther, I can see us owning either Cameco or the Global X Uranium ETF (NYSE Arca: URA) at some point.

ETFR: Why don’t you want that big holding in Cameco in your coal ETFselection? Nusbaum: When the PKOL fi rst came out, I actually called Cameco and asked, “Do you all do anything with coal?” And they said, “No, we do nothing with coal.” PowerShares said the reason for the uranium exposure was that their clas-sifi cation methodology lumps uranium mining in with coal mining.

ETFR: Does historical performance factor into your choice between these two ETFs?Nusbaum: Not necessarily. If there’s a huge dispersion, then I want to know why, but part of what I prefer to do is to look under the hood and try to make a forward-looking analysis of what I think is going on. The only thing that sticks out is the fact that PKOL had the uranium, and that’s not what I wanted in this fund.

ETFR: The underlying holdings were the key?

Nusbaum: Exactly.

ETFR: Does your selection tie into any other funds or securities being used for that exposure? Nusbaum: KOL’s small weight in China, about 16 percent, combines with our po-sition in the iShares S&P Emerging Market Infrastructure ETF, which has something like 30 percent of its portfolio in China/Hong Kong. Our entire China exposure for now comes from those two funds.

It probably nets out to approximately 1 percent, which, for us, is a small coun-try exposure. I think we’re going to be increasing that shortly. But there is some crossover between sectors in terms of building country weightings.

In my opinion, when you avoid looking at your portfolio with this sort of granular-ity, you potentially end up overweight in a lot of the wrong areas to be overweight. We heard after the fact how people didn’t realize that they had 50 percent in tech-nology 11 years ago, or that they had 40 percent in fi nancials three or four years ago. That’s kind of the idea behind our approach: making sure you don’t end up in too much of anything.

ETFR: You’ve got to know what you hold, so you’re not caught off guard.

Nusbaum: Exactly.

Why I Own: KOL Name: Roger Nusbaum Title: CIO Firm: Your Source Financial

Founded: 2000 Location: Phoenix, AZ AUM: $130 million

All ETFs? No (Stocks & ETFs)

2010 2011DNOSAJ J F M A M J J

59.02%

July 7, 2010–July 6, 2011

Market Vectors Coal ETF Equity: Global Coal

Issuer: Van Eck Global

Legal Structure: 1940 Act

Expense Ratio: 0.59%

AUM: $618.76 million

ADV (30-Day): 381,354

Avg. Spread: 0.09%

Competing Funds: PKOL

Data as of: 07/06/11

Market VectorsCoal ETF

Source: Bloomberg


By Paul BrittEven the name stirs controversy. Whether called absolute return, hedge fund style or alternative assets, this group of ETFs boldly veers off the well-trodden path of beta-one passive investing.

But how can an ETF—a structure known for transparency, low cost and liquidity—possibly hope to deliver the returns of a hedge fund, a structure synonymous with opacity, “2 and 20” fees and lockup peri-ods? The structures seem fundamentally at odds, with ETFs waving the egalitarian beta banners of Bogle and Malkiel, and hedge funds sporting the vanity plates of alpha seekers like John Paulson, Raj Raja-ratnam and their imitators.

The Holy GrailWhy would passive investors want ETFs that act like hedge funds?

One common thread runs through ab-solute-return ETF fact sheets: the promise of uncorrelated returns. Returns that are positive regardless of whether the market is up or down are the holy grail of investing. Assets with uncorrelated returns add value in a portfolio context by reducing risk at the same overall level of return, or by goos-ing returns at the same level of risk.

Such investments, of course, are rare. The ineffi ciencies and mispricings in the market often targeted by absolute-return strategies are hard to fi nd, transitory in nature and diffi cult to scale up with ad-ditional assets.

Ways And MeansAbsolute-return ETFs use a variety of differ-ent tactics to hit those hedge-fundlike goals. For example, the IQ Merger Arbitrage ETF (NYSE Arca: MNA) holds individual stocks identifi ed as takeover targets. Rather than shorting individual suitor stocks though, MNA shorts futures of S&P and EAFE in-dexes to partially offset market risk.

The Cambria Global Tactical (NYSE Arca: GTAA) uses an “ETF of ETFs” approach, and its managers use ETFs of all stripes—REITS,

emerging markets, currencies, metals and more—to execute their views. You’re pay-ing for the manager’s promised skill at se-lecting what’s hot and what’s not at the macro level, plus the convenience of hav-ing the fund execute the trade.

PowerShares’ DB G10 Currency Har-vest (NYSE Arca: DBV) uses long and short

exposure to various currency futures con-tracts to execute its carry-trade strategy. As derivatives go, exchange-traded futures like those held by DBV are fairly straight-forward. Their returns are symmetrical. And unlike over-the-counter options, they carry no counterparty risk.

Conversely, a fund like the WisdomTree Managed Futures Strategy Fund (NYSE Arca: WDTI) can use over-the-counter options like swaps to achieve its goals. The one-sided payoffs and counterparty risk associated with these options add another layer of complexity, if not risk.

The means of exposure described above directly impacts the investor’s tax liability.

Distributions from these funds are typically taxed as either dividends or or-dinary income depending on the source. ETNs don’t make distributions, so these taxes generally don’t apply.

Taxes on the sale of fund shares work differently. The best case for any prod-uct is that shares held long enough are taxed at the long-term capital-gains rate. But the prospectus of the iPath Optimized Currency Carry ETN (NYSE Arca: ICI) indicates that the sale of shares might be taxed as an ordinary gain or loss, not at the lower capi-tal gains rate. It also states that other treatments are possible, including mark to market annually or on rebalance.

DBV, ICI’s competing fund in the car-ry-trade strategy, marks to market annu-ally. Any gains are taxed at a 60 percent short-term/40 percent long-term rate re-gardless of whether the shares are sold. The basis resets, so investors aren’t taxed twice on the same gains. DBV is struc-tured as a limited partnership, so inves-tors will receive a K-1 every March.

In the end, the variety of exposure in many of these funds makes the tax lan-guage in the prospectus thorny. Prospec-tuses are a must-read.

Alongside taxes, fees are often a point of contention—though not always. GTAA and WDTI charge 0.90 percent and 0.95 percent, and have gathered $173 million and $124 million, respectively.

An upper bound might exist regard-ing investor tolerance for high fees, though. Two funds with expense ratios at or near 1.5 percent, Mars Hill Global Relative Value (NYSE Arca: GRV) and Ad-visorShares Dent Tactical ETF (NYSE Arca: DENT), have gathered less than $30 mil-lion in assets combined, despite being launched prior to GTAA and WDTI. DENT has far outperformed GRV, but investors have shunned both, suggesting cost as the key driver.

Hitting The MarkMost absolute-return ETFs crib their strat-egies from hedge funds, which means they inherit the same challenges of perfor-mance measurement and benchmarks.

With hedge funds, the simplest bench-

The Point OfAbsolute-Return ETFs

How can anETF—transparent,

low cost and liquid—ever hope to

deliver the returns of a hedge fund?


mark is some risk premium over the risk-free rate. For example, an absolute return manager states that the fund will deliver the return of Treasurys plus 4 percent. Think of this as an absolute return of 4 percent over the risk-free rate.

“That’s a diffi cult benchmark,” says Rick Ferri of Portfolio Solutions. “The risk premium over T-Bills must somehow be related to the riskiness of what the funds are doing. The question is what risks they are taking.” In other words, determining the correct compensation —the risk premium—for all the risks taken on by the strategy presents the key diffi culty with this approach. Few if any absolute return ETFs explicitly state such a goal. An investor would need to conduct a great deal of independent research to determine the appropri-ate risk premium for the particular ETF they’re interested in.

There are plenty of benchmarks de-signed for tracking absolute return strat-egies, but these indexes—comprising reported returns of actual hedge funds—

present their own set of well-document-ed shortcomings. These include:

• Survivorship Bias: Hedge funds that close are dropped from the index, along with all of their reported his-tories, leaving only the survivors

• Self-reporting Bias: Hedge Funds choose whether or not they want to report

These biases change both the return and the risk profi le of the data in the index.

The structural mismatches between hedge funds and ETFs pose drawbacks, too. Most hedge funds report quarter-ly, for example, while ETFs require daily valuations for analysis. And comparing hedge fund benchmark holdings with ETFs is all but impossible given the opaque nature of hedge fund portfo-lios. Hedge fund replication bench-marks exist, but this leaves the investor comparing an ETF to an imitation of a hedge fund based on a model—layers on top of layers.

Even the risks are hard to quantify. Commonly used risk measures for equity funds like beta and standard deviation

don’t work well; beta measures risk rela-tive to the market, but since absolute-return funds don’t track the market, beta won’t apply. Standard deviation measures risk under the assumption that returns aren’t skewed to the positive or negative and that those outlier events don’t occur too frequently. These assumptions fall apart in absolute-return products.

How about alpha? Again, one needs a viable benchmark to accurately measure it. So confi dence in any alpha fi gure—even if statistically signifi cant—depends on a well-chosen benchmark, which is in turn subject to the challenges above.

This leaves correlation. It changes over time, and low correlation between assets can turn into high correlation at exactly the wrong time, as it did for many assets in the fall of 2008. But this metric speaks to key investor goals and to the direct role of the fund in a portfolio context.

Figure 1 presents key information on these funds. Correlations are shown for funds with at least one year of per-formance history. The SPDR

Figure 1

Source: Bloomberg. Data as of 7/1/2011

ALT iShares Diversified Alternatives Relative Value 0.95 $129.5 4.4% 0.32

CPI IQ Real Return Inflation Hedge 0.48 $12.7 0.5% 0.35

CSLS Credit Suisse Long/Short Liquid ETN Long/Short 0.45 $31.9 16.5% 0.74

CSMA Credit Suisse Merger Arbitrage Liquid ETN Merger Arbitrage 0.55 $79.8 — —

CSMB 2X Monthly Leveraged CS Merger Arbitrage Merger Arbitrage 0.55 $33.2 — —

DBV PowerShares DB G10 Currency Harvest Carry Trade 0.75 $371.1 13.3% 0.74

DENT AdvisorShares Dent Tactical Global Macro 1.50 $17.6 9.7% 0.77

GRV Mars Hill Global Relative Value Relative Value 1.49 $11.9 — —

GTAA Cambria Global Tactical Global Macro 0.90 $173.2 — —

ICI iPath Optimized Currency Carry ETN Carry Trade 0.65 $23.9 2.0% 0.17

LSC ELEMENTS S&P Commodity Trends Ind. ETN Managed Futures 0.75 $45.8 5.8% 0.35

MATH AdvisorShares Meidell Tactical Advantage Relative Value 1.60 — — —

MCRO IQ Hedge Macro Tracker Global Macro 0.75 $26.6 8.0% 0.66

MNA IQ Merger Arbitrage Merger Arbitrage 0.75 $21.5 1.8% 0.25

QAI IQ Hedge Multi-Strategy Tracker Multi Strategy 0.75 $130.7 5.7% 0.60

RALS ProShares RAFI Long/Short Long/Short 0.95 $18.4 — —

WDTI WisdomTree Managed Futures Strategy Fund Managed Futures 0.95 $124.2 — —

TICKER STRATEGY EXPENSE RATIO

AUM($M)

1-YRTOTAL

RETURN

1-YRCORR. TO

SPYFUND

Absolute-Return ETFs

11


fi ve days, those million shares will show up as a “fail” on reports from the Na-tional Securities Clearing Corp., whichmarks anything older than three days as “failed to deliver.”

XRT made headlines recently because of fund fl ows, a data point we follow close-ly at ETFR. The action inside XRT has been head-scratching. Figure 2 shows the shares outstanding for XRT over the past month.

What the orange line tells us is that investors—or rather, authorized partic-ipants—doubled the size of XRT within a few days through creations, and then quickly bought shares of XRT off the sec-ondary market to redeem.

It would be easy to read too much into this chart. That little pop over $54 in the fund’s NAV on May 31 could be related to the 3.35 million shares created that day. Yet $175 million is a lot of money for an asset manager, in the grand scheme of things, it’s nowhere near enough to move the basket of 100 retail stocks APs needed to purchase on the day. More buyers than sellers help to move prices, but there’s no tail wagging the dog here.

Instead, what’s likely happening is people are making broad speculative trades and then pulling them. Or there’s a tremendous demand for shares for shorting and then they get covered.

If you’re an AP in XRT, how do you handle this? If you’ve sold that 1 mil-lion shares, do you really feel like you need to go roll up that position early, given that it’s highly likely there’ll be a redemption tomorrow that balances your book? Sure, you’ll make the off-setting trade to hedge your position— buying up all the actual retail stocks so you’re not actually short the retail sector as naked exposure. But will you bother to go to State Street and do the create and pay the transaction costs, knowing there’s a good chance you’ll just be back tomorrow to do the opposite trade?

Maybe yes, maybe no; it only costs the AP $250 to make or redeem a basket of XRT. That’s not a tremendous barrier, so if he’s a bit heavy in XRT shares, he might as well unload them back to SSgA. That cre-ates spikes and dips (see Figure 2).

For investors, all these intramarket shenanigans are actually meaningless.

4%

3%

2%

1%

0

-2%

-3%

-1%

7/82008

9/8 1/82009

3/8 5/8 7/8 9/8 1/82010

3/8 5/8

Figure 3

XRT Premium

Source: IndexUniverse

120

100

80

60

20

0

40

12

14

16

10

8

6

2

0

4

6/302008

10/30 3/22009

7/2 11/2 1/22010

5/2 9/2 1/22011

5/11

Shar

es S

hort

(M

illio

ns)

Short Interest Ratio

■ Short Interest ■ Short Interest Ratio

Figure 1

XRT Short Interest


$56

$58

$54

$52

$50

$46

$48

1012

8

101214

8

64

02

6/82011

6/12 6/16 6/20 6/24 6/28 7/2 7/6 7/8

NAV

Shares Outstanding (M

illion)

■ NAV ■ Shares Outstanding

Figure 2

Shares Outstanding


XRT: Signal To Noise from page 1


As Kevin Quigg, global head of the ETF Capital Markets Group at SSgA, puts it, “It’s noise in the primary market that’s silent to the secondary market.”

As an investor (not a market maker), all I care about is whether XRT delivers on its core promise to investors in the secondary market, and that it does so in spades. Figure 3 shows fund hasn’t trad-ed to a signifi cant premium or discount to its NAV in years.

In fact, all of this back-and-forth in creation and redemption is the reason it’s traded at ever-narrower and narrower premiums and discounts.

It is, in fact, the whole point of cre-ation and redemption activity.

“I think actually the tracking of the product itself sort of is proof positive that institutional investor, sophisticated hedge fund traders and retail investors can all co-exist,” said Quigg. “I think this fund itself is exaggerated in that it’s a more targeted, focused exposure, which would explain why different investors are moving in and out of it at different times.“

Calm Inside ChaosSo how then to interpret the large short positions? Is it a sign that the institu-tional community is overwhelmingly and persistently maudlin about the prospects for retailers?

Maybe not. One ETF market maker (who understandably chose to remain anonymous) thinks all this concern about bearish sentiment is misguided. “A lot of the users of the ETF are people that are using it as a hedging tool, who are long,

who are actually bullish on the sector—shorting the XRT to hedge their overall risk by trying to isolate their company’s specifi c exposure.”

The theory goes like this: Retail com-panies have great news fl ow—same store sales, quarterly reports, competitive anal-ysis within specifi c retailing sectors like

big box or Internet retailers. Imagine you’re a hedge fund manager who thinks (or perhaps, knows) that Joe’s Amaz-ing Shoe Co. is going to report a great quarter. But you’re worried that they’re going to be an outlier—the economy is soft, and that retailers in general have a chance of getting crushed.

XRT is your magic answer. You go long $1 million of Joe’s, and short $1 million of XRT. Now, if retailers as a whole go up or down, you can expect to be even—every dollar you lose on Joe’s, you’ll make on your XRT short. But if you’re right about

Joe’s quarter, you’ll make money on a broadening gap between Joe’s value and the value of the XRT short. It’s a version of the classic pairs trading strategy.

While it’s easy to assume the high short positions in XRT represent over-whelming bearishness on ETFs, market makers disagree. “I could argue the op-posite,” said our man on the street. “It could be a bullish signal that a lot of people are shorting the sector because they’re getting long individual names in the sector and they’re just hedging with a short of the ETF.

Individual investors might notice an-other head scratcher here. With XRT “over short,” shouldn’t it be hard to short? On the contrary. “It’s always very easy to short on account of the fact that it is an ETF,” explained our market maker. “It has unlimited supply. That makes a very effective and effi cient way to hedge your risk when you want to make a long bet on a particular name or names.”

If an institution wants to place that short trade, particularly if they want to place it at a level over the creation unit size (about $2.5 million), any au-thorized participant will be happy to create those shares and lend them in exchange for collecting the fees on the loaned short position. Those fees don’t amount to much, but then again, for the AP, it’s riskless profi t.

And for the rest of us investors? We never notice. It’s just the noise of the sau-sage factory working quietly away while the fund delivers on its core promise for investors.

S&P 500 ETF (NYSE Arca: SPY) and the iShares Barclays Aggregate Bond Fund (NYSE Arca: AGG) are used as prox-ies for equity and bond markets. Data in the table are based on NAV rather than last price.

The Credit Suisse Long/Short Liquid ETN (NYSE Arca: CSLS) and DBV deliv-ered the highest returns over the past year. But the two funds also show high correlation with equities for the same period. It’s tough to make the case for all-weather returns when correlations to equity are 0.74.

The iPath Optimized Currency Carry ETN (NYSE Arca: ICI) shows the lowest correlation with equity of all funds at 0.17. Interestingly, ICI and DBV follow the same carry-trade strategy yet pro-duce these radically different results.

DENT shows the highest correlation to equities for all funds at 0.77, but un-derperformed CSLS and DBV.

Unfortunately many funds in the space are too new to have returns data during down markets. Bear market cor-relations would help us get a better handle on how funds perform when the chips are down.

Necessary Risks?The question remains: What do ETF inves-tors get from absolute return products?

Rick Ferri is unconvinced. “When you step into these products, you’re step-ping far, far to the left of passive invest-ing,” he said. “These absolute-return funds are not asset classes. They are trading strategies.”

Other investors, however, clearly see a need for these alternate spins on ETF strategy. And as correlations between equities—sector to sector, developed to emerging—continue to climb, their ap-peal may increase further.

Absolute-Return ETFs from page 9

[XRT’s short interest is] noise in theprimary market

that’s silent to the secondary market.

12 ETFR • August 201112 ETFR • August 2011

August 2011 Issue No. 129U.S.-Listed ETFs Sorted by Asset Class and Year-to-Date Return

Data as of 06/30/2011. Source: Morningstar. Exp Ratio is annual expense ratio. Assets are net assets in $US millions. 3-Mo is 3-month total return. YTD is year-to-date. 3- and 5-year returns are annualized. Mkt Cap is geometric average market capitalization. P/E is price-to-earnings ratio. Std Dev is 3-year standard deviation. Yield is 12-month. Includes all U.S.-listed ETFs and ETNs with assets over $100 million.

Fund Name Ticker Exp Ratio Assets 3-Mo YTD 2010 2009 3-Yr 5-Yr Std DevP/EMkt Cap Yield

U.S. Equity: Total MarketWisdomTree Dividend Ex-Financials DTN 0.38 473.1 3.32 8.76 21.44 25.57 9.07 3.92 22,591 15.9 23.59 3.19PowerShares Dynamic Market PWC 0.60 177.0 0.77 7.68 17.33 18.47 2.18 1.35 12,692 15.5 20.25 1.28WisdomTree Total Dividend DTD 0.28 173.0 1.62 7.59 16.32 19.57 5.02 2.27 39,901 15.0 21.76 2.76Schwab U.S. Broad Market SCHB 0.06 771.9 -0.01 6.37 17.10 - - - 29,666 15.6 - 1.62Vanguard Total Stock Market VTI 0.07 19,604.4 -0.02 6.24 17.45 28.87 4.37 3.65 27,382 16.5 21.95 1.77iShares Dow Jones U.S. IYY 0.20 611.5 -0.04 6.22 16.50 28.25 3.90 3.35 32,166 15.5 21.72 1.65iShares S&P 1500 ISI 0.20 337.7 -0.05 6.20 16.24 26.59 3.74 3.11 34,035 15.5 21.66 1.66iShares Russell 3000 IWV 0.21 3,378.2 0.04 6.18 16.82 28.29 3.92 3.26 27,116 15.5 22.20 1.56SPDR Dow Jones Total Market TMW 0.20 193.5 -0.29 5.69 17.34 27.89 3.79 3.38 30,658 15.5 22.35 1.59

U.S. Equity: Total Market GrowthiShares Russell 3000 Growth IWZ 0.25 347.3 0.52 6.80 17.42 36.83 5.09 5.14 27,867 18.4 21.66 1.13Fidelity Nasdaq Composite Tracking Stock ONEQ 0.30 163.8 -0.26 4.48 17.79 45.16 7.43 5.72 14,960 18.5 24.40 0.75

U.S. Equity: Total Market ValueiShares Russell 3000 Value IWW 0.26 327.3 -0.73 5.64 15.76 19.66 2.58 1.07 26,387 13.4 22.90 1.95

U.S. Equity: Extended CapVanguard Extended Market VXF 0.16 1,323.9 -1.02 7.47 27.62 37.90 7.68 5.58 2,329 19.3 26.47 0.93PowerShares FTSE RAFI US 1500 Small-Mid PRFZ 0.39 389.6 -1.81 5.41 28.30 58.64 13.81 - 1,026 16.4 31.63 0.81

U.S. Equity: Large CapPowerShares S&P 500 High Quality PIV 0.50 120.4 3.17 8.23 20.50 12.59 -4.66 -1.37 23,459 16.6 21.34 1.41SPDR Dow Jones Industrial Average Trust DIA 0.18 9,644.3 1.10 8.15 13.97 22.72 5.86 4.70 110,112 14.0 18.89 2.45WisdomTree LargeCap Dividend DLN 0.28 801.5 2.18 7.76 14.98 17.31 4.17 1.99 62,980 14.6 20.95 2.53Rydex S&P Equal Weight RSP 0.40 3,264.3 0.63 7.76 21.39 44.59 8.36 4.90 13,773 16.4 26.18 1.37First Trust NASDAQ-100 Equal Weighted QQEW 0.60 103.1 1.28 7.69 20.78 58.82 9.99 6.94 15,680 18.6 26.67 0.54First Trust Large Core AlphaDEX FEX 0.70 268.1 -0.18 7.35 20.67 36.83 6.45 - 14,780 14.8 23.88 0.88ProShares Credit Suisse 130/30 CSM 0.95 118.4 -0.85 7.10 14.17 - - - 29,883 14.4 - 0.63RevenueShares Large Cap RWL 0.49 201.3 -0.10 6.23 16.81 29.86 4.32 - 40,528 13.8 24.23 1.45iShares Russell 1000 IWB 0.15 6,915.9 0.03 6.18 16.02 28.39 3.65 3.19 36,487 15.4 21.68 1.64Vanguard Large-Cap VV 0.12 3,105.7 0.14 6.05 15.93 27.36 3.67 3.43 41,311 16.3 21.45 1.78Schwab U.S. Large-Cap SCHX 0.08 623.7 0.04 6.01 15.92 - - - 40,993 15.4 - 1.70iShares S&P 500 IVV 0.09 27,610.4 0.02 5.85 15.11 26.61 3.31 2.84 49,181 15.2 21.14 1.85Vanguard S&P 500 VOO 0.06 1,313.8 0.01 5.77 - - - - 50,103 16.1 - -Vanguard Mega Cap 300 MGC 0.13 326.0 0.23 5.73 13.77 25.24 3.07 - 62,916 15.9 20.79 1.88iShares MSCI USA ESG Select Social KLD 0.50 170.3 0.76 5.70 13.89 30.38 4.24 3.09 28,380 16.3 21.39 1.43iShares Russell Top 200 IWL 0.15 121.2 -0.07 5.69 11.24 - - - 75,908 14.6 - 1.90PowerShares FTSE RAFI US 1000 PRF 0.39 1,218.9 -0.56 5.45 19.69 41.74 8.32 4.31 33,175 14.4 26.08 1.75SPDR S&P 500 SPY 0.09 92,092.6 -0.48 5.36 15.02 26.31 3.09 2.73 49,200 15.2 21.13 1.84iShares Morningstar Large Core JKD 0.20 310.0 0.16 5.11 12.68 21.09 3.43 3.78 63,734 15.4 20.89 1.84iShares MSCI KLD 400 Social DSI 0.50 154.2 1.24 4.96 11.42 30.73 4.23 - 33,879 16.2 21.59 1.36iShares S&P 100 OEF 0.20 2,936.0 -0.53 4.62 12.48 22.12 2.73 2.49 103,667 14.3 19.96 1.94Rydex Russell Top 50 XLG 0.20 392.6 -0.76 4.17 9.32 20.30 2.03 1.93 140,937 14.0 19.03 1.92

U.S. Equity: Large Cap GrowthRydex S&P 500 Pure Growth RPG 0.35 283.0 2.50 10.21 26.90 49.33 11.45 8.28 14,882 19.3 24.94 0.38First Trust Large Growth AlphaDEX FTC 0.70 139.4 -0.36 6.71 23.62 28.83 3.40 - 14,345 19.6 22.79 0.60iShares Russell 1000 Growth IWF 0.20 13,537.7 0.68 6.65 16.48 36.73 4.81 5.05 37,260 18.2 21.39 1.24PowerShares Dynamic Large Cap Growth PWB 0.61 191.2 1.54 6.60 13.74 34.61 1.42 2.77 45,286 18.6 21.67 0.74iShares S&P 500 Growth IVW 0.18 6,505.6 1.49 6.59 14.94 31.13 4.46 5.00 48,174 17.1 20.14 1.42SPDR 500 Growth SPYG 0.20 192.6 1.34 6.54 16.25 36.95 4.66 5.14 48,180 17.1 21.97 1.09Vanguard Growth VUG 0.12 5,748.5 0.92 5.94 17.23 36.08 4.39 5.31 36,511 19.0 21.46 1.19Schwab U.S. Large-Cap Growth SCHG 0.13 326.2 0.14 5.92 16.85 - - - 30,651 18.4 - 0.74iShares Russell Top 200 Growth IWY 0.20 345.3 0.45 5.80 11.98 - - - 77,730 16.9 - 1.29Vanguard Mega Cap 300 Growth MGK 0.13 490.7 0.96 5.24 14.53 35.01 4.09 - 54,014 18.3 20.81 1.29PowerShares QQQ QQQ 0.20 22,838.7 -0.45 5.13 19.89 54.67 8.75 8.56 55,619 17.0 23.91 0.73iShares Morningstar Large Growth JKE 0.25 374.9 0.21 4.40 12.57 43.94 2.12 3.68 58,248 18.7 22.29 0.76

U.S. Equity: Large Cap ValueRydex S&P 500 Pure Value RPV 0.35 121.8 1.28 10.00 22.53 53.44 12.19 2.86 10,079 13.4 35.92 1.14PowerShares Dynamic Large Cap Value PWV 0.63 423.8 2.31 8.81 13.29 18.60 6.36 5.52 65,387 12.4 19.22 2.23First Trust Large Cap Value AlphaDEX FTA 0.70 181.8 0.23 8.19 18.69 40.43 8.70 - 14,900 12.1 27.25 1.10iShares Morningstar Large Value JKF 0.25 239.0 -0.77 6.89 14.57 11.02 1.44 -0.05 75,389 11.6 19.79 2.51Vanguard Value VTV 0.12 5,158.9 -0.62 6.29 14.57 19.88 3.08 1.45 46,646 14.3 22.04 2.35Schwab U.S. Large-Cap Value SCHV 0.13 240.0 -0.03 6.27 14.86 - - - 54,278 13.2 - 2.41Vanguard Mega Cap 300 Value MGV 0.13 393.6 -0.61 6.14 13.16 15.73 2.11 - 72,946 14.1 21.78 2.35iShares Russell 1000 Value IWD 0.20 11,641.4 -0.57 5.73 15.44 19.23 2.20 0.99 35,743 13.4 22.53 1.94iShares Russell Top 200 Value IWX 0.20 205.1 -0.85 5.35 10.59 - - - 74,180 12.9 - 1.91iShares S&P 500 Value IVE 0.18 4,469.7 -1.58 5.03 14.97 20.90 1.95 0.50 50,266 13.5 23.25 2.11SPDR S&P 500 Value Index SPYV 0.20 171.7 -1.78 5.02 15.53 17.03 2.04 1.11 50,404 13.5 21.09 2.25

CLIENT: SSGA JOB#: 04054 PUBLICATION: ETF Report AD: tr AE: psSTUDIO#: tmc MACHINE: Timothy Cozzi PREV OP: PREV MACHINE: Timothy Cozzi BLEED: 8.75 x 11.25TRIM: 8.5 x 11 SAFETY: 8 x 10.5 DATE: 5/26/11 - 2:55 PM CREATED: 9/11/09 - 11:40AM FILE NAME: 04054_SSGA_8p5x11_m1a.inddFONTS: Univers 65 Bold, Univers 45 Light, Univers 65 Bold Oblique, Univers 47 Light Condensed, Univers 85 Extra BlackGUTTER: -IMAGES: SSGA_DOG_DOOR_4c133ls_v2.tif, SPDR_R_TagSM_CMYK_50pctK.eps, SSGA_SPDR_QRlogo_v4.eps, SSGA_ShipLogo_50gry_v2.eps, NYSE_ListedArca_logo_Gry.epsCOLORS: grey background, Black, Grey text, PaperDOC PATH: Not FoundLINE SCREEN: 133 SCALE: 100%

YOU CAN’T FORCE A ROUND INVESTMENT INTO A SQUARE STRATEGY.

ETFs trade like stocks, fl uctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns. The SPDR S&P 500® ETF Trust, SPDR S&P MidCap 400® ETF Trust and the SPDR Dow Jones Industrial Average ETF Trust are all unit investment trusts and issue shares intended to track performance of their respective benchmark indices.“SPDR,” S&P, S&P 500 and S&P MidCap 400 are registered trademarks of Standard & Poor’s Financial Services, LLC (“S&P”) and have been licensed for use by State Street Corporation. No fi nancial product offered by State Street or its affi liates is sponsored, endorsed, sold or promoted by S&P.Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affi liates. Certain State Street affi liates provide services and receive fees from the SPDR ETFs. ALPS Distributors, Inc., a registered broker-dealer, is distributor for SPDR S&P 500 ETF Trust, SPDR S&P MidCap 400 ETF Trust and SPDR Dow Jones Industrial Average ETF Trust, all unit investment trusts and the Select Sector SPDRs Trust.IBG-3345

Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus, which contains this and other information, call 1.866.787.2257 or visit www.spdrs.com. Read it carefully.

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U.S. Equity: Mid CapFirst Trust Mid Cap Core AlphaDEX FNX 0.70 302.6 -0.68 9.83 26.64 46.78 11.30 - 2,950 16.4 26.25 0.38WisdomTree MidCap Earnings EZM 0.38 132.1 0.19 9.13 25.60 50.22 12.99 - 2,762 13.5 26.96 1.20WisdomTree MidCap Dividend DON 0.38 274.6 1.47 8.75 21.65 31.91 9.57 4.57 3,896 18.9 27.30 2.59iShares S&P 400 MidCap IJH 0.22 11,482.2 -0.78 8.24 26.73 37.81 7.70 6.46 3,547 19.2 24.80 1.05iShares Morningstar Mid Core JKG 0.25 173.4 -0.45 8.15 26.49 38.64 7.03 5.52 5,978 18.9 26.44 1.36Vanguard Mid-Cap VO 0.12 3,835.8 -0.16 8.02 25.68 40.47 6.39 5.09 6,421 18.6 25.50 1.10SPDR S&P MidCap 400 MDY 0.25 11,095.0 -1.18 8.01 26.26 37.52 7.33 6.24 3,623 19.0 24.80 0.93iShares Russell Midcap IWR 0.20 7,075.3 0.32 7.81 25.31 40.70 6.32 5.12 7,063 17.8 25.60 1.45RevenueShares Mid Cap RWK 0.54 144.2 -1.98 7.52 23.21 51.87 10.93 - 3,177 15.6 28.16 0.54

U.S. Equity: Mid Cap GrowthRydex S&P MidCap 400 Pure Growth RFG 0.35 678.2 2.70 13.24 34.84 60.81 17.13 12.79 3,846 22.9 27.12 0.09iShares Morningstar Mid Growth JKH 0.30 209.0 1.92 11.54 27.84 42.17 4.46 6.30 6,745 26.3 24.89 0.41iShares S&P Mid Cap 400 Growth IJK 0.25 3,273.3 0.67 10.42 30.44 41.11 8.54 8.36 4,050 21.8 25.09 0.56iShares Russell Mid Cap Growth IWP 0.25 3,418.1 1.51 9.41 26.03 46.47 6.37 6.06 7,415 22.1 25.43 0.80Vanguard Mid-Cap Growth VOT 0.12 1,272.5 0.44 9.19 29.14 43.91 4.42 - 7,046 23.5 25.87 0.48PowerShares Fundamental Pure Mid Growth PXMG 0.39 114.6 -0.91 5.77 29.58 23.61 1.79 4.96 7,116 23.9 23.67 0.26

U.S. Equity: Mid Cap ValueVanguard Mid-Cap Value VOE 0.12 884.4 -0.73 6.76 21.77 38.28 7.94 - 5,813 15.2 25.97 1.78iShares Russell Midcap Value IWS 0.25 3,149.6 -0.85 6.53 24.43 33.31 6.22 3.85 6,728 14.8 26.64 1.94iShares S&P MidCap 400 Value IJJ 0.28 2,292.4 -2.20 6.44 22.58 34.35 6.60 4.50 3,096 17.0 25.28 1.54iShares Morningstar Mid Value JKI 0.30 115.6 -0.98 6.28 20.46 35.42 8.50 3.19 6,195 13.7 26.98 2.60

U.S. Equity: Small CapiShares Morningstar Small Core JKJ 0.25 196.5 -1.46 7.93 27.68 39.78 9.07 4.97 1,791 18.4 28.88 1.05Schwab U.S. Small-Cap SCHA 0.13 519.1 -0.89 7.61 28.62 - - - 1,561 17.6 - 1.06iShares S&P SmallCap 600 IJR 0.20 7,282.1 -0.13 7.48 26.61 25.88 8.09 4.50 1,124 18.7 26.56 1.02Vanguard Small-Cap VB 0.17 4,449.0 -1.19 7.47 28.12 36.61 9.27 5.68 1,589 18.6 27.93 1.08First Trust Small Cap Core AlphaDEX FYX 0.70 124.6 -0.79 6.30 27.35 36.82 10.56 - 844 16.8 29.19 0.29iShares Russell 2000 IWM 0.28 16,215.3 -1.63 6.04 26.90 28.53 7.73 4.16 1,024 17.3 26.84 1.07RevenueShares Small Cap RWJ 0.54 131.0 -1.10 6.02 25.96 46.53 14.09 - 1,009 16.4 32.44 0.40WisdomTree SmallCap Earnings EES 0.38 141.6 -0.64 5.55 26.97 48.71 15.36 - 681 13.4 30.19 1.16WisdomTree SmallCap Dividend DES 0.38 240.3 -1.17 2.06 27.05 22.15 9.51 2.26 840 16.0 29.86 3.48

U.S. Equity: Small Cap GrowthSPDR S&P SmallCap 600 Growth SLYG 0.25 187.4 2.14 11.22 30.21 47.12 10.61 7.70 1,246 19.8 29.08 0.47iShares S&P SmallCap 600 Growth IJT 0.25 1,966.3 1.86 11.02 28.24 28.78 8.81 6.18 1,247 19.8 25.98 0.77Vanguard Small-Cap Growth VBK 0.12 2,224.5 -0.46 10.08 30.95 42.79 9.45 7.52 1,674 21.9 27.87 0.43iShares Morningstar Small Growth JKK 0.30 143.3 0.21 9.59 31.18 32.73 8.69 5.95 1,733 21.7 26.64 0.31iShares Russell 2000 Growth IWO 0.25 4,167.8 -0.51 8.59 29.38 34.61 8.38 5.89 1,187 21.7 26.81 0.56

U.S. Equity: Small Cap ValueVanguard Small-Cap Value VBR 0.23 1,993.9 -1.92 4.83 25.12 30.97 8.86 3.62 1,503 16.2 28.14 1.82iShares Morningstar Small Value JKL 0.30 193.2 -1.89 4.56 25.80 40.06 12.99 5.20 1,671 14.5 29.28 1.95iShares S&P SmallCap 600 Value IJS 0.25 1,827.9 -2.31 3.80 24.70 22.36 6.96 2.88 1,015 17.8 27.96 1.19SPDR S&P SmallCap 600 Value Index SLYV 0.25 124.8 -2.25 3.71 24.62 36.93 9.55 4.32 1,014 17.8 28.24 1.55iShares Russell 2000 Value IWN 0.41 4,501.0 -2.61 3.60 24.68 20.59 7.02 2.16 882 14.4 27.78 1.68

U.S. Equity: Micro CapFirst Trust Dow Jones Select Micro Cap FDM 0.60 132.7 -3.60 3.40 25.58 20.02 5.85 1.54 471 17.1 28.52 0.48iShares Russell Microcap IWC 0.71 497.9 -3.61 2.35 29.55 23.72 5.76 -0.16 266 13.6 28.62 0.80

U.S. Equity: Basic MaterialsFirst Trust Materials AlphaDEX FXZ 0.70 605.0 -0.88 6.17 28.28 59.45 5.70 - 5,857 14.7 36.75 1.49Vanguard Materials VAW 0.24 668.0 -1.48 4.20 24.46 51.44 0.90 8.17 12,404 20.4 30.85 2.10Materials Select SPDR XLB 0.20 2,666.2 -1.10 3.36 20.56 48.11 0.83 6.86 21,142 16.7 29.54 3.30iShares Dow Jones U.S. Basic Materials IYM 0.47 977.8 -2.78 2.83 31.02 64.37 -0.36 9.07 14,835 15.1 34.76 1.34SPDR S&P Metals and Mining XME 0.35 1,086.1 -6.49 1.08 34.15 88.12 -8.88 7.93 3,162 21.4 44.58 0.61

U.S. Equity: Consumer CyclicalsFirst Trust Consumer Discretionary AlphaDEX FXD 0.70 598.6 3.99 10.93 32.01 57.11 16.16 - 7,643 17.0 32.43 0.39SPDR S&P Retail XRT 0.35 569.6 5.27 10.74 37.39 77.29 23.99 8.46 3,142 17.5 31.32 0.87PowerShares Dynamic Media PBS 0.63 158.9 0.02 9.08 20.18 61.92 8.36 2.38 8,071 17.4 30.37 0.66iShares Dow Jones U.S. Consumer Services IYC 0.48 247.9 3.56 8.31 23.26 32.63 11.41 4.85 23,249 18.0 22.71 1.03Consumer Discretionary Select SPDR XLY 0.20 2,753.3 3.32 8.19 27.49 40.52 14.08 5.33 27,481 17.9 26.17 1.45Vanguard Consumer Discretionary VCR 0.24 354.5 3.60 8.17 30.57 46.42 14.94 5.44 15,698 18.1 27.71 0.92SPDR S&P Homebuilders XHB 0.35 776.2 -0.62 4.25 17.40 27.60 4.89 -10.55 2,924 18.9 38.51 1.90Retail HOLDRS RTH - 166.3 2.80 2.75 15.55 26.78 8.56 4.07 45,856 16.7 20.58 -iShares Dow Jones U.S. Home Construction ITB 0.47 485.0 -4.00 -3.33 10.43 23.24 -2.83 -19.33 2,669 22.7 41.24 0.61

ETFR • August 2011 15 ETFR • August 2011 15




U.S. Equity: Consumer Non-CyclicalsFirst Trust Consumer Staples AlphaDEX FXG 0.70 155.0 7.76 18.80 19.75 27.47 14.67 - 11,019 12.5 18.01 0.73PowerShares Dynamic Food & Beverage PBJ 0.63 261.6 5.09 10.57 29.97 10.95 11.49 7.42 7,692 18.1 16.04 0.86Vanguard Consumer Staples VDC 0.24 737.7 5.72 8.89 14.62 16.55 9.66 8.51 42,023 15.7 14.57 2.39iShares Dow Jones U.S. Consumer Goods IYK 0.48 365.8 4.68 7.94 18.99 23.32 10.36 7.61 35,776 15.8 17.51 2.03Consumer Staples Select SPDR XLP 0.20 4,070.2 5.11 7.88 13.81 14.22 8.31 7.93 53,273 15.9 14.56 2.67

U.S. Equity: EnergyPowerShares S&P SmallCap Energy PSCE 0.29 104.5 -7.73 15.35 - - - - 1,585 19.0 - 1.08PowerShares Dynamic Energy PXI 0.65 169.4 -3.11 13.82 39.56 42.19 -1.46 - 6,264 16.3 31.53 0.76iShares Dow Jones U.S. Oil Equipment & Services IEZ 0.47 607.0 -5.66 13.59 31.77 63.64 -6.42 6.36 13,978 23.6 39.68 0.38SPDR S&P Oil & Gas Equipment & Services XES 0.35 489.5 -5.64 13.09 30.12 67.80 -6.03 6.66 3,510 22.4 39.54 0.72PowerShares Dynamic Oil & Gas Services PXJ 0.63 243.5 -6.90 12.51 29.18 52.86 -9.50 3.69 5,639 21.4 40.49 0.32SPDR S&P Oil & Gas Exploration & Production XOP 0.35 908.0 -8.70 12.06 28.58 40.16 -5.07 9.15 4,012 20.5 34.04 0.81iShares Dow Jones U.S. Energy IYE 0.48 1,040.6 -4.91 11.22 19.00 19.28 -3.75 7.40 64,655 15.0 25.51 1.23Energy Select SPDR XLE 0.20 9,011.4 -5.18 11.15 21.81 21.81 -3.52 7.45 60,114 15.5 26.64 1.41Vanguard Energy VDE 0.24 1,951.2 -5.29 10.92 21.05 25.54 -3.66 7.53 50,302 17.0 27.24 1.13First Trust Energy AlphaDEX FXN 0.70 153.2 -5.67 10.64 27.63 46.57 -7.29 - 11,433 16.8 38.03 0.45First Trust ISE-Revere Natural Gas FCG 0.60 568.9 -7.53 9.71 12.23 50.06 -11.33 - 12,080 18.5 37.18 0.25iShares DJ US Oil & Gas Expl/Prod IEO 0.48 513.0 -6.82 8.93 18.65 41.06 -6.51 7.16 16,175 22.9 33.11 0.43Oil Services HOLDRS OIH - 2,916.4 -7.29 8.66 20.42 62.71 -10.82 1.46 26,914 24.4 38.53 -JPMorgan Alerian MLP ETN AMJ 0.85 2,694.1 -0.88 4.78 34.53 - - - - - - 4.93UBS E-TRACS Alerian MLP Infrastructure ETN MLPI 0.85 167.7 -0.87 4.56 - - - - - - - 5.24Credit Suisse Cushing 30 MLP MLPN 0.85 171.0 -2.15 4.44 - - - - - - - 3.72Guggenheim Canadian Energy Income ENY 0.70 202.2 -9.29 3.14 22.60 60.41 -9.51 - 6,152 24.1 39.55 2.46Alerian MLP AMLP 0.85 1,197.3 -0.42 2.89 - - - - 7,059 18.6 - -PowerShares WilderHill Clean Energy PBW 0.70 434.7 -16.43 -13.38 -5.55 27.61 -22.79 -13.85 1,265 10.8 38.81 -

U.S. Equity: FinancialsFirst Trust Financials AlphaDEX FXO 0.70 110.7 -3.39 1.71 19.25 33.55 8.73 - 6,911 11.8 29.50 2.22iShares Dow Jones U.S. Financial IYF 0.48 487.4 -4.43 -1.45 12.20 16.86 -4.17 -9.64 24,508 13.0 32.53 1.25Vanguard Financials VFH 0.27 617.0 -4.81 -1.78 14.83 14.32 -3.47 -9.01 22,132 14.3 32.68 1.50SPDR KBW Insurance KIE 0.35 233.7 -5.24 -2.56 26.08 27.92 2.46 -2.35 12,426 11.4 38.15 1.72SPDR KBW Regional Banking KRE 0.35 558.7 -4.06 -3.13 20.65 -21.93 0.93 -9.36 1,279 19.1 31.16 1.44Financial Select SPDR XLF 0.20 7,309.9 -6.02 -3.18 11.91 17.50 -6.95 -11.79 42,246 12.1 35.58 1.20iShares Dow Jones U.S. Financial Services IYG 0.48 215.5 -6.69 -4.90 7.71 16.11 -6.18 -12.74 38,944 12.5 34.48 0.65iShares Dow Jones U.S. Regional Banks IAT 0.48 128.8 -4.71 -5.63 20.25 -10.92 -2.32 -11.35 9,026 14.4 31.50 1.37SPDR KBW Bank KBE 0.35 1,669.1 -6.75 -6.91 23.07 -1.82 -4.18 -12.43 23,370 12.0 39.18 0.83Regional Bank HOLDRS RKH - 105.0 -8.51 -7.11 12.62 3.29 -2.55 -9.84 58,953 11.5 35.80 -

U.S. Energy: Health CareiShares Dow Jones U.S. Healthcare Providers IHF 0.47 354.9 5.30 21.02 11.47 35.44 13.36 5.78 10,130 13.1 25.61 0.19Biotech HOLDRS BBH - 247.1 11.31 18.75 2.15 11.49 11.90 6.43 30,375 15.2 21.07 -PowerShares S&P SmallCap Health Care PSCH 0.29 158.7 5.63 18.18 - - - - 1,379 20.6 - 0.22First Trust Health Care AlphaDEX FXH 0.70 340.7 4.88 16.51 19.01 51.22 18.89 - 9,549 15.6 20.75 0.20SPDR S&P Biotech XBI 0.35 642.6 9.50 15.90 17.60 0.36 8.38 10.16 2,720 - 26.20 -iShares Dow Jones U.S. Pharmaceuticals IHE 0.47 223.8 10.92 15.31 12.72 30.06 16.70 10.09 14,465 17.7 18.87 1.24iShares Nasdaq Biotechnology IBB 0.48 1,674.3 6.49 14.17 14.84 15.17 11.77 8.17 5,958 19.8 22.59 0.48Vanguard Health Care VHT 0.24 810.3 6.85 14.04 5.60 21.81 8.70 5.94 24,648 16.7 18.34 1.53Health Care Select SPDR XLV 0.20 4,235.5 7.82 13.83 3.32 19.49 7.24 5.19 45,438 16.9 17.72 1.78iShares Dow Jones U.S. Medical Devices IHI 0.47 462.2 4.29 13.75 11.35 38.49 5.86 7.97 8,211 20.3 24.90 0.10PowerShares Dynamic Pharmaceuticals PJP 0.63 128.8 10.35 13.67 27.51 17.43 17.89 11.69 11,605 16.1 17.98 0.57iShares Dow Jones U.S. Healthcare IYH 0.48 693.4 7.09 13.64 4.13 20.96 7.91 5.61 34,070 17.1 18.11 1.42First Trust NYSE Arca Biotechnology FBT 0.60 550.2 6.41 12.09 36.94 45.05 24.84 16.34 5,445 20.8 29.54 -Pharmaceutical HOLDRS PPH - 487.0 7.66 11.61 1.67 20.47 8.02 4.77 89,527 18.4 17.07 -SPDR S&P Pharmaceuticals XPH 0.35 244.3 9.04 11.00 22.47 27.60 19.30 11.06 6,350 17.6 19.93 0.80PowerShares Dynamic Biotech & Genome PBE 0.63 214.2 2.94 2.42 31.47 21.91 9.42 6.77 3,556 19.7 24.58 -

U.S. Equity: IndustrialsiShares Dow Jones U.S. Aerospace & Defense ITA 0.47 144.3 2.46 12.06 16.60 25.32 7.86 7.81 8,868 15.3 26.60 0.96PowerShares Aerospace & Defense PPA 0.66 110.0 0.53 9.46 10.59 23.04 4.16 5.14 11,400 14.1 24.51 1.00iShares Dow Jones U.S. Industrial IYJ 0.47 477.1 -0.95 7.93 25.49 25.81 4.82 4.19 20,095 17.4 28.01 1.55Industrial Select SPDR XLI 0.20 4,006.2 -0.66 7.76 27.85 22.00 5.53 4.15 33,880 17.3 27.88 1.78Vanguard Industrials VIS 0.24 520.4 -1.39 7.05 27.32 22.05 4.33 3.70 19,751 19.0 28.81 1.23iShares Dow Jones Transportation Average IYT 0.47 612.4 2.52 6.76 26.74 18.93 5.08 3.35 10,478 23.5 27.33 1.12

U.S. Equity: TechnologyInternet HOLDRS HHH - 128.4 5.93 11.62 24.35 82.50 17.32 8.93 44,978 31.5 29.31 -iShares S&P North American Technology-Software IGV 0.48 611.4 2.18 8.44 24.64 47.53 10.30 10.94 12,551 24.7 24.04 -PowerShares Dynamic Networking PXQ 0.63 157.0 0.73 6.88 46.46 63.13 22.72 12.97 5,696 28.7 28.35 0.38PowerShares S&P SmCap InfoTech PSCT 0.29 111.9 -3.05 5.68 - - - - 1,007 18.8 - 0.19





U.S. Equity: Technology (Continued)First Trust Dow Jones Internet FDN 0.60 724.6 -0.30 5.63 36.72 79.07 17.52 11.36 9,142 30.6 27.20 0.14Semiconductor HOLDRS SMH - 542.8 -1.17 5.46 18.52 61.55 6.60 2.06 22,047 12.7 29.03 -First Trust Technology AlphaDEX FXL 0.70 203.4 -3.59 4.19 26.64 66.79 9.13 - 7,609 15.2 29.26 0.03Rydex S&P Equal Weight Technology RYT 0.50 130.6 -2.90 3.77 17.89 69.07 7.36 - 13,292 16.2 27.75 0.47Vanguard Information Technology VGT 0.24 1,812.8 -1.37 2.97 12.78 61.89 7.01 7.05 41,260 16.7 24.68 0.57iShares S&P North American Technology IGM 0.48 415.8 -1.31 2.92 11.98 62.42 6.40 7.11 42,509 15.9 24.82 0.48SPDR S&P Semiconductor XSD 0.35 114.8 -4.32 2.75 15.71 98.99 11.32 4.34 2,885 15.5 32.60 0.59Technology Select SPDR XLK 0.20 7,504.3 -1.01 2.75 11.41 51.25 5.52 6.16 74,483 15.0 22.43 1.37iShares Dow Jones U.S. Technology IYW 0.47 1,430.7 -2.12 1.27 12.42 63.79 6.84 6.95 56,829 15.3 24.46 0.49First Trust NASDAQ-100-Technology QTEC 0.60 556.1 -4.26 0.62 21.71 79.71 10.01 8.04 19,583 17.3 28.20 0.61iShares PHLX SOX Semiconductor SOXX 0.48 200.0 -5.89 -0.01 14.32 74.92 3.78 -0.08 12,300 12.1 32.16 0.93SPDR Morgan Stanley Technology MTK 0.50 206.1 -2.94 -0.50 15.31 70.44 6.22 6.30 37,992 16.3 26.98 0.60iShares S&P NA Multimedia Netwk IGN 0.48 234.9 -9.61 -4.00 24.30 60.57 4.31 1.55 8,409 18.5 33.45 0.09

U.S. Equity: TelecommunicationsVanguard Telecommunication Services VOX 0.24 415.1 3.92 8.58 19.52 29.45 7.68 5.43 20,820 17.3 20.31 2.67iShares Dow Jones Telecommunications IYZ 0.48 821.6 4.95 7.70 20.72 26.22 4.77 3.13 12,995 15.0 22.79 2.47Telecom HOLDRS TTH - 127.8 2.15 7.35 16.38 7.05 3.75 3.31 96,719 12.8 17.63 -

U.S. Equity: UtilitiesVanguard Utilities VPU 0.24 759.8 5.17 9.27 7.05 11.27 -1.15 4.84 9,732 13.9 16.44 3.67iShares Dow Jones U.S. Utilities IDU 0.48 541.5 5.12 9.20 7.21 12.31 -2.17 4.30 11,203 14.6 16.72 3.62Utilities Select SPDR XLU 0.20 4,699.3 6.11 8.92 5.35 11.69 -2.26 4.52 15,030 14.2 16.76 3.96

U.S. Equity: Real StateiShares Cohen & Steers Realty Majors ICF 0.35 2,652.6 4.11 11.87 29.14 25.54 3.34 1.27 10,126 40.3 40.94 2.71iShares FTSE NAREIT Residential Plus Capped REZ 0.48 135.2 3.42 10.85 30.81 20.73 8.52 - 5,408 41.3 32.06 3.03SPDR Dow Jones REIT RWR 0.25 1,557.1 3.90 10.68 28.03 28.24 4.78 1.65 7,216 40.5 39.85 2.89Vanguard REIT VNQ 0.12 9,313.8 3.64 10.22 28.43 30.07 6.07 2.95 6,237 44.8 39.11 3.28iShares Dow Jones U.S. Real Estate IYR 0.47 3,717.1 2.42 9.63 26.60 30.46 4.81 1.30 7,376 24.3 37.41 3.47Schwab U. S. REIT SCHH 0.13 133.7 3.92 - - - - - 7,206 40.5 - -

U.S. Equity: ThemePowerShares Water Resources PHO 0.64 1,161.0 -4.45 2.34 13.27 18.01 -1.58 3.70 2,334 18.9 28.55 0.78iShares FTSE NAREIT Mortgage Plus Capped REM 0.48 173.7 -0.57 -0.98 16.49 11.31 0.32 - 3,110 7.1 17.68 9.75

U.S. Equity: Alpha SeekingPowerShares DWA Technical Leaders PDP 0.70 458.6 1.72 10.93 26.59 28.03 0.72 - 8,999 17.0 25.79 0.14Guggenheim Insider Sentiment NFO 0.60 176.7 4.34 10.57 26.79 48.69 13.28 - 4,156 14.5 28.84 0.56

U.S. Equity: High Dividend YieldGuggenheim Multi-Asset Income CVY 0.60 500.1 2.48 9.83 17.83 50.31 8.12 - 12,640 12.8 27.21 4.69WisdomTree Equity Income DHS 0.38 217.7 3.18 8.41 17.63 17.03 5.89 -0.02 38,497 15.0 26.02 3.50First Trust Value Line Dividend FVD 0.70 285.8 2.23 8.19 16.08 19.16 8.11 6.61 16,366 14.9 18.71 2.53Vanguard High Dividend Yield VYM 0.18 1,399.1 2.24 8.11 14.25 17.17 4.99 - 54,004 14.9 21.41 2.74iShares Dow Jones Select Dividend DVY 0.40 6,425.2 2.42 8.05 17.79 11.15 6.70 0.44 10,799 14.6 21.42 3.40First Trust Morningstar Dividend Leaders FDL 0.45 171.7 2.23 7.75 16.20 13.38 9.64 0.16 41,905 14.1 24.02 3.60PowerShares Dividend Achievers PFM 0.60 213.1 1.98 7.69 14.81 10.70 3.57 1.65 57,795 14.8 19.92 2.36Vanguard Dividend Appreciation VIG 0.18 6,579.3 1.37 7.45 14.76 19.56 6.21 4.72 42,457 16.1 17.83 2.01SPDR S&P Dividend SDY 0.35 5,976.8 0.61 5.55 16.42 19.04 11.00 3.52 13,743 16.0 21.42 3.22PowerShares HiYld Eqty Div Achievers PEY 0.60 205.5 0.03 1.33 20.92 3.64 5.14 -5.38 5,023 15.5 29.37 4.03

Global EquityiShares S&P Global 100 IOO 0.40 1,041.5 1.27 6.27 5.91 24.02 0.99 2.49 108,412 12.2 23.31 2.51Vanguard Total World Stock VT 0.25 971.9 0.62 4.96 13.07 32.66 1.79 - 34,245 15.0 25.13 1.84iShares MSCI ACWI ACWI 0.35 1,908.3 0.97 4.31 12.82 32.31 0.92 - 38,272 14.1 25.21 2.10SPDR DJ Global Titans DGT 0.50 148.8 -1.31 3.64 4.99 23.04 -0.73 0.33 59,271 13.4 21.17 2.37

Global Equity Ex-U.S.SPDR S&P World ex-US GWL 0.34 142.9 1.09 5.14 11.29 28.63 -0.56 - 24,441 13.3 26.92 2.58Vanguard FTSE All-World ex-US VEU 0.22 7,296.4 0.99 4.36 11.80 37.61 0.07 - 27,244 14.2 28.49 2.06SPDR MSCI ACWI ex-US CWI 0.34 461.1 0.28 3.83 11.60 37.14 0.66 - 32,430 11.9 28.18 2.57iShares MSCI ACWI ex US ACWX 0.35 983.2 0.55 3.77 10.44 36.28 -1.37 - 29,993 13.1 28.65 2.52Vanguard FTSE All-World ex-US Small Cap VSS 0.33 1,048.3 0.78 3.12 25.59 - - - 1,481 14.5 - 2.13Vanguard Total International Stock VXUS 0.20 192.8 -4.16 - - - - - 19,579 14.2 - -

International Equity: Blended DevelopmentiShares S&P Asia 50 AIA 0.52 231.9 -1.40 0.48 19.56 60.79 6.14 - 49,803 12.6 28.72 1.83iShares MSCI All Country Asia ex-Japan AAXJ 0.69 1,879.0 -0.46 -1.58 16.22 68.40 - - 19,272 14.2 - 2.06





International Equity: DevelopediShares MSCI Spain EWP 0.54 220.5 1.34 17.00 -18.61 32.89 -2.68 4.30 36,491 9.5 37.40 4.55iShares MSCI Germany EWG 0.53 3,802.5 6.33 15.25 8.31 20.31 -0.53 6.30 42,662 12.5 34.11 2.51iShares MSCI France EWQ 0.54 545.7 4.54 15.14 -2.38 27.12 -1.75 1.62 39,929 12.7 32.60 2.43SPDR Euro STOXX 50 FEZ 0.29 172.2 2.43 13.43 -7.75 25.23 -3.98 1.09 64,417 11.9 33.97 3.67iShares MSCI EMU EZU 0.54 982.8 2.55 12.64 -3.00 26.41 -4.23 1.13 35,424 12.1 33.81 2.95iShares MSCI New Zealand Investable Market ENZL 0.55 122.6 10.68 12.30 - - - - 1,744 18.0 - -WisdomTree Intl Div ex-Financials DOO 0.58 168.7 2.74 10.09 5.70 33.13 -0.23 3.05 26,494 11.6 30.23 3.99iShares MSCI Italy EWI 0.54 139.8 -3.00 10.03 -14.20 21.97 -10.37 -5.97 26,144 11.5 36.29 2.79iShares S&P Europe 350 IEV 0.60 1,415.9 2.88 9.54 3.74 28.90 -1.70 1.72 47,480 12.0 29.40 2.75Vanguard European VGK 0.14 3,556.8 3.04 9.04 6.05 31.33 -1.52 2.10 41,955 13.3 29.71 4.33WisdomTree DEFA DWM 0.48 458.6 2.97 8.49 5.19 27.12 -1.01 2.59 29,728 11.9 27.16 3.53iShares MSCI Switzerland EWL 0.53 591.9 7.37 8.27 14.48 22.05 5.77 6.50 67,151 10.4 24.70 2.01WisdomTree International LargeCap Dividend DOL 0.48 145.3 2.65 8.08 1.87 24.99 -1.67 1.89 57,986 11.5 27.41 3.81WisdomTree International MidCap Dividend DIM 0.58 147.0 2.35 6.83 11.31 33.99 2.07 4.13 5,644 13.4 28.49 3.26iShares MSCI South Korea EWY 0.61 4,923.3 1.54 6.78 29.58 71.72 9.44 8.74 19,147 12.0 41.54 0.77iShares MSCI Kokusai TOK 0.25 629.9 -2.15 5.75 11.45 31.45 1.18 - 42,203 14.2 23.83 2.19iShares MSCI EAFE Value EFV 0.40 1,439.3 1.16 5.62 4.59 28.28 -1.59 0.19 35,904 10.7 28.99 3.66Schwab International Equity SCHF 0.13 706.7 1.48 5.58 9.31 - - - 29,813 12.1 - 1.64PowerShares F/R Dev Mkt ex-US SmMid PXF 0.75 282.6 0.88 5.41 6.81 36.02 0.71 - 30,012 12.0 31.18 2.56Vanguard MSCI EAFE VEA 0.12 7,084.0 2.06 5.37 8.33 27.52 -1.26 - 31,792 13.8 27.46 2.37iShares MSCI EAFE EFA 0.35 39,403.4 2.08 5.34 8.25 26.88 -1.46 1.42 33,110 12.8 27.24 2.81iShares MSCI Sweden EWD 0.53 587.8 0.29 5.30 36.11 55.00 10.53 8.49 19,633 12.9 35.06 3.27iShares MSCI EAFE Small Cap SCZ 0.40 1,564.2 2.02 4.75 21.51 42.78 2.31 - 1,590 14.6 29.61 3.41iShares MSCI EAFE Growth EFG 0.40 1,428.3 2.66 4.61 13.11 24.15 -1.54 2.41 30,316 15.8 26.10 1.95iShares MSCI United Kingdom EWU 0.53 1,332.5 1.20 4.35 10.28 36.12 -1.61 0.56 54,582 12.7 26.96 2.68iShares MSCI Netherlands Investable Market EWN 0.53 156.9 -4.58 4.28 4.95 40.67 -1.87 2.49 19,109 12.0 32.61 2.19iShares MSCI Australia EWA 0.53 3,235.9 -0.42 4.20 15.35 67.90 4.40 9.68 32,126 15.2 34.18 4.10Schwab International Small-Cap Equity SCHC 0.35 178.1 0.30 4.15 - - - - 1,834 14.5 - 2.20iShares MSCI Austria Investable Market EWO 0.54 165.6 -1.03 3.72 15.81 57.66 -9.92 -2.84 6,005 - 43.86 2.04SPDR S&P International Small Cap GWX 0.59 962.2 0.97 3.43 24.96 38.30 3.36 - 1,188 14.3 28.80 2.00WisdomTree International SmallCap Dividend DLS 0.58 455.2 0.53 3.26 19.43 37.09 2.25 3.30 1,101 12.7 28.44 3.54

EPP 0.50 3,967.3 0.16 3.00 17.77 63.22 5.44 10.23 25,510 14.3 31.72 3.66iShares MSCI Canada EWC 0.53 5,714.7 -5.14 2.85 19.80 53.07 0.34 7.70 23,637 18.0 31.32 1.65SPDR Russell/Nomura Small Cap Japan JSC 0.55 123.7 3.46 2.37 17.96 3.91 3.04 - 978 15.5 21.58 1.54iShares MSCI Singapore EWS 0.53 1,867.2 1.87 0.54 24.51 67.83 7.52 13.57 14,706 11.5 33.32 3.60WisdomTree Japan SmallCap Dividend DFJ 0.58 241.6 2.80 0.20 17.40 0.94 1.76 -1.82 855 14.5 20.50 2.25iShares MSCI Hong Kong EWH 0.53 2,121.6 -0.88 -0.82 24.16 54.94 6.56 9.79 18,665 12.8 27.12 2.22

VPL 0.14 1,628.4 1.27 -0.88 15.50 20.35 -0.51 0.59 18,691 14.8 24.10 3.98iShares MSCI Japan EWJ 0.54 7,175.8 2.00 -3.56 13.61 3.14 -4.35 -3.93 15,642 14.8 22.14 1.56WisdomTree Japan Hedged Equity Fund DXJ 0.48 545.9 -0.63 -4.01 -1.77 1.19 -7.88 -6.02 11,353 13.2 21.24 2.08iShares S&P/TOPIX 150 ITF 0.50 107.1 1.19 -4.54 14.05 3.36 -5.20 -4.25 21,603 11.3 22.37 1.86iShares MSCI Israel Capped Investable Market EIS 0.61 108.5 -5.93 -8.18 15.39 81.19 2.94 - 6,362 11.6 25.42 3.18

International Equity: EmergingiShares MSCI Indonesia Investable Market EIDO 0.61 201.5 7.84 10.62 - - - - 9,256 18.4 - 0.78iShares MSCI Poland Investable Market EPOL 0.61 308.8 3.44 10.24 - - - - 6,129 13.2 - 1.19Market Vectors Indonesia IDX 0.60 591.0 6.81 9.88 41.77 - - - 9,955 16.0 - 0.87iShares MSCI Russia Capped ERUS 0.65 128.0 -5.88 9.14 - - - - 45,965 8.0 - -iShares MSCI Malaysia EWM 0.53 1,004.0 4.38 7.35 38.97 49.34 16.96 19.67 9,176 18.0 21.06 2.58SPDR S&P Emerging Europe GUR 0.59 238.1 -5.10 5.31 15.70 78.98 -6.10 - 17,251 11.7 40.83 1.31SPDR S&P China GXC 0.59 741.6 -1.23 4.09 7.58 60.45 6.95 - 32,231 12.6 30.58 1.68SPDR S&P BRIC 40 BIK 0.50 537.3 -4.31 2.91 11.37 78.35 0.16 - 85,701 9.7 32.75 1.88iShares MSCI Mexico Investable Market EWW 0.53 1,600.1 0.24 1.75 27.95 53.82 4.76 12.84 17,386 9.7 33.70 1.18Market Vectors Russia RSX 0.62 3,098.1 -7.42 1.66 22.14 139.25 -9.46 - 31,251 11.3 49.22 0.48iShares FTSE/Xinhua China 25 FXI 0.72 7,028.3 -2.81 1.30 3.51 47.28 1.24 12.90 80,965 10.8 30.51 2.01First Trust ISE Chindia FNI 0.60 150.6 -4.49 1.24 18.17 82.55 9.25 - 17,740 17.4 35.30 0.60Vanguard MSCI Emerging Markets VWO 0.22 49,339.2 -0.67 0.98 19.45 76.26 3.98 11.16 20,434 14.4 31.62 1.69iShares MSCI Emerging Markets EEM 0.69 38,407.4 -1.22 0.91 16.54 68.82 3.57 10.78 20,182 13.1 31.93 1.79

GMF 0.59 714.2 -0.14 0.36 19.47 70.33 9.26 - 15,460 13.6 32.46 1.49PowerShares FTSE RAFI Emerging Markets PXH 0.85 538.9 -1.93 0.01 13.26 67.02 4.54 - 24,107 11.9 32.24 1.21iShares MSCI Thailand Investable Market THD 0.62 583.8 -3.32 -0.03 56.76 81.30 16.79 - 6,421 - 36.30 2.43Global X/InterBolsa FTSE Colombia 20 GXG 0.78 199.3 4.40 -0.56 51.44 - - - 5,234 26.0 - 0.62SPDR S&P Emerging Markets GMM 0.59 205.2 -1.83 -0.60 18.76 72.29 4.22 - 18,048 12.0 31.96 1.56PowerShares Golden Dragon Halter USX China PGJ 0.70 370.6 -5.11 -0.87 11.31 63.14 2.90 11.32 10,870 12.4 31.90 1.05Guggenheim BRIC EEB 0.60 665.6 -3.63 -0.95 10.70 86.11 -0.12 - 46,191 8.8 33.11 1.89Schwab Emerging Markets Equity SCHE 0.25 447.6 -2.09 -1.31 - - - - 21,371 11.9 - 0.82iShares MSCI BRIC BKF 0.69 1,051.7 -3.89 -1.58 9.21 85.39 -1.04 - 34,395 11.8 35.27 2.08Market Vectors Brazil Small-Cap BRF 0.62 965.8 0.05 -1.63 24.12 - - - 1,999 14.6 - 1.34WisdomTree Emrg Mkts SmallCap Div DGS 0.63 921.5 -0.47 -2.13 30.19 83.15 14.34 - 1,256 11.6 31.86 2.93PowerShares BLDRS Emerging Markets 50 ADR ADRE 0.30 575.4 -3.06 -2.28 10.98 65.54 -0.91 10.61 59,849 10.4 30.27 2.08iShares S&P Latin America 40 ILF 0.50 2,307.1 -2.59 -2.72 15.53 91.00 0.52 16.36 38,697 8.4 34.02 2.21iShares MSCI Taiwan EWT 0.71 3,452.5 2.14 -2.82 22.70 73.62 6.31 6.80 10,857 15.9 34.19 1.92SPDR S&P Emerging Latin America GML 0.59 198.8 -1.87 -3.06 15.39 103.84 1.91 - 26,176 8.3 36.67 1.77





International Equity: Emerging (Continued)iShares MSCI South Africa EZA 0.61 599.6 -1.33 -3.65 36.91 51.23 11.41 11.40 13,720 15.2 35.26 3.41iShares MSCI Brazil EWZ 0.61 12,690.9 -3.94 -3.80 7.69 121.50 -2.07 17.46 27,303 9.4 38.30 4.96iShares MSCI Chile Investable Market ECH 0.61 860.4 6.26 -4.09 46.57 86.02 19.67 - 9,245 17.9 25.84 1.31SPDR S&P Emerging Markets Small Cap EWX 0.65 798.8 1.23 -4.36 23.51 94.66 8.39 - 1,088 13.8 34.82 0.61SPDR S&P Emerging Middle East & Africa GAF 0.59 141.1 -0.01 -5.57 30.55 49.96 8.20 - 8,318 15.3 28.25 2.08Guggenheim China Small Cap HAO 0.75 289.5 -3.25 -6.05 15.85 96.55 11.28 - 1,952 11.7 37.40 1.58iShares S&P India Nifty 50 INDY 0.89 229.5 -2.58 -6.81 24.45 - - - 21,144 19.4 - 0.37PowerShares India PIN 0.78 512.6 -2.17 -7.71 16.29 79.68 7.44 - 20,750 18.2 38.60 1.01Market Vectors Africa AFK 0.78 110.1 -3.47 -8.30 25.27 35.00 - - 7,683 17.1 - 1.19iShares MSCI Turkey Investable Market TUR 0.61 579.4 -5.03 -8.43 25.64 102.82 12.29 - 4,574 12.3 45.53 2.24WisdomTree India Earnings EPI 0.88 1,331.4 -3.20 -9.03 20.28 95.08 10.31 - 12,863 14.7 40.42 0.59iPath MSCI India ETN INP 0.89 723.2 -3.63 -9.75 21.23 102.47 10.28 - 16,117 7.9 41.87 -iShares MSCI All Peru Capped EPU 0.62 449.8 -16.26 -24.00 57.69 - - - 4,298 13.7 - 2.68

International Equity: FrontierGuggenheim Frontier Markets FRN 0.70 190.1 6.26 -4.09 33.88 54.34 -0.28 - 7,729 - 29.04 0.54Market Vectors Vietnam VNM 0.76 281.4 -12.09 -20.32 4.10 - - - 1,672 10.7 - 1.65

Global Equity: SectoriShares S&P Global Healthcare IXJ 0.48 554.1 8.96 13.88 1.87 17.54 6.43 4.00 53,578 16.7 19.13 2.06Market Vectors Gaming BJK 0.65 140.0 7.82 10.31 37.88 36.20 5.36 - 6,513 18.1 35.54 2.35iShares S&P Global Infrastructure IGF 0.48 546.1 2.82 8.30 6.97 18.14 -1.97 - 13,811 14.0 25.40 3.69iShares S&P Global Consumer Staples KXI 0.48 367.8 6.43 8.14 13.16 21.72 8.93 - 55,554 13.8 16.63 2.28iShares S&P Global Energy IXC 0.48 1,309.8 -4.96 8.08 11.79 24.71 -4.23 5.75 79,395 13.2 25.96 1.89SPDR Dow Jones Global Real Estate RWO 0.50 321.4 3.96 7.69 24.01 32.04 2.15 - 6,801 16.3 33.00 6.80PowerShares Cleantech PZD 0.67 151.7 -3.58 7.64 7.61 35.58 -4.99 - 3,937 19.4 33.93 0.13Market Vectors Rare Earth/Strategic Metals REMX 0.57 464.6 -1.90 7.50 - - - - 1,635 - - -iShares S&P Global Consumer Discretionary RXI 0.48 147.4 4.80 7.36 23.29 37.45 9.75 - 27,131 16.9 25.96 1.38iShares S&P Global Telecommunications IXP 0.48 413.3 1.01 7.04 11.63 11.28 2.99 7.21 69,464 11.8 19.75 4.50iShares S&P Global Industrials EXI 0.48 252.4 -0.34 6.94 23.28 25.93 3.18 - 27,319 15.4 28.28 1.84iShares S&P North American Natural Resources IGE 0.48 2,191.1 -6.56 5.15 23.34 37.10 -3.89 6.84 33,688 16.5 29.86 1.32Guggenheim S&P Global Water CGW 0.65 250.6 2.60 4.67 15.02 31.54 1.18 - 4,731 18.0 25.60 1.92PowerShares Listed Private Equity PSP 0.60 448.3 -3.02 4.56 25.90 30.22 -8.54 - 2,452 9.2 41.28 9.46iShares S&P Global Utilities JXI 0.48 254.2 2.95 4.49 -1.79 6.22 -6.65 - 20,487 11.3 19.57 4.00Market Vectors RVE Hard Assets Producers HAP 0.59 247.4 -4.92 3.62 16.52 42.51 - - 32,006 13.8 - 0.78PowerShares Global Agriculture PAGG 0.75 146.8 -0.48 2.53 20.96 49.22 - - 13,870 15.5 - 1.02Guggenheim Timber CUT 0.70 187.6 -9.17 2.28 18.19 50.20 5.53 - 3,548 11.8 38.59 2.83PowerShares Global Water PIO 0.75 367.7 -0.27 1.82 11.24 39.02 -0.62 - 2,619 17.9 30.76 1.19SPDR Global Natural Resources GNR 0.40 169.3 -4.18 1.67 - - - - 47,114 11.8 - -iShares S&P Global Materials MXI 0.48 774.5 -0.62 1.21 19.92 60.38 -2.38 - 30,150 14.4 34.22 1.95iShares S&P Global Financials IXG 0.48 247.8 -3.24 1.21 3.90 31.74 -5.82 -7.49 41,817 11.1 36.74 2.51Market Vectors Agribusiness MOO 0.56 5,538.8 -4.01 0.47 23.04 58.74 -3.77 - 14,643 14.6 33.89 0.61Market Vectors Coal KOL 0.59 608.7 -6.45 0.44 31.34 144.65 -5.88 - 9,595 20.5 52.00 0.41iShares S&P Global Technology IXN 0.48 566.8 -2.04 -0.18 10.44 52.44 3.01 4.30 58,449 15.2 25.44 0.77PowerShares Global Clean Energy PBD 0.75 186.7 -12.78 -1.78 -16.09 31.84 -20.49 - 2,153 15.6 40.12 0.22iShares S&P Global Timber & Forestry WOOD 0.48 230.5 -13.14 -1.80 16.19 37.71 -0.27 - 4,716 12.5 35.45 3.39Guggenheim Solar TAN 0.65 163.7 -19.20 -2.60 -28.50 16.88 -34.81 - 2,236 9.1 56.15 0.40First Trust ISE Global Copper CU 0.70 209.0 -2.42 -2.69 - - - - 9,532 11.6 - 1.36Market Vectors Steel SLX 0.55 221.0 -7.02 -4.79 19.65 112.78 -11.10 - 22,693 11.5 47.83 1.48Market Vectors Global Alternative Energy GEX 0.60 133.7 -17.64 -6.65 -19.20 7.12 -28.18 - 3,541 14.6 41.93 1.02Market Vectors Gold Miners GDX 0.53 6,837.0 -9.17 -11.19 33.90 36.72 4.27 7.72 13,134 19.8 47.81 0.73Global X Silver Miners SIL 0.65 416.5 -15.97 -12.62 - - - - 3,391 24.6 - 1.02Global X Lithium LIT 0.75 151.4 -8.36 -13.26 - - - - 1,484 - - -Market Vectors Junior Gold Miners GDXJ 0.54 2,034.7 -12.09 -13.56 66.53 - - - 1,325 - - 8.57Market Vectors Uranium + Nuclear Energy NLR 0.57 153.0 -6.48 -15.11 16.59 17.33 -12.60 - 4,616 23.7 33.92 4.94Global X Uranium URA 0.69 227.4 -18.92 -41.11 - - - - 1,194 - - -

Global Ex-U.S. Equity: SectorSPDR Dow Jones International Real Estate RWX 0.59 2,276.2 4.55 5.32 21.83 36.34 0.97 - 6,360 9.6 30.05 8.86WisdomTree Global Ex-U.S. Real Estate DRW 0.58 128.3 3.04 5.00 17.68 43.07 0.76 - 6,985 9.7 31.80 11.03Vanguard Global ex-U.S. Real Estate VNQI 0.35 179.3 2.69 2.67 - - - - 5,370 10.3 - -

International Equity: Developed SectoriShares FTSE E/N Dev Real Estate ex-US IFGL 0.48 408.1 2.48 4.24 14.57 42.86 0.56 - 6,887 9.8 29.97 6.42iShares S&P Developed Ex-US. Property WPS 0.48 151.5 3.04 3.42 18.13 37.27 1.07 - 6,024 10.3 31.21 5.51

International Equity: Emerging SectorEGShares DJ EM Consumer Titans ECON 0.85 222.2 6.57 4.42 - - - - 17,295 20.2 - -iShares S&P Emerging Markets Infrastructure EMIF 0.75 144.8 -0.63 4.17 18.66 - - - 9,382 14.6 - 2.57Global X China Consumer CHIQ 0.65 206.9 6.25 1.47 10.79 - - - 5,602 18.1 - 1.04PowerShares Emerging Markets Infrastructure PXR 0.75 234.6 -1.16 -0.62 26.20 86.98 - - 6,742 15.5 - 1.12





Global Equity: High Dividend YieldFirst Trust Dow Jones Global Select Dividend FGD 0.60 104.3 2.21 7.80 12.60 59.96 5.40 - 11,204 13.1 32.80 4.17

Global Ex-U.S. Equity: High Dividend YieldSPDR S&P International Dividend DWX 0.45 579.2 2.33 8.90 7.87 62.12 3.30 - 9,632 9.1 35.12 4.90

International Equity: High Dividend YieldWisdomTree DEFA Equity Income DTH 0.58 140.0 2.69 10.74 -0.99 33.11 -1.43 1.48 34,814 11.2 29.54 4.15iShares DJ Intl Select Div IDV 0.50 584.0 1.62 8.90 11.84 60.56 4.58 - 17,842 11.8 32.55 4.39PowerShares International Dividend Achievers PID 0.57 536.0 0.90 6.50 13.47 37.96 0.64 3.26 27,149 13.4 27.81 3.61WisdomTree Emerging Markets Equity Income DEM 0.63 1,716.1 1.34 4.05 24.67 58.07 10.84 - 9,855 11.9 27.76 3.50

International Equity: Alpha-SeekingPowerShares DWA Emg Mkts Tech Ldrs PIE 0.90 275.4 2.14 2.56 25.11 57.65 -4.13 - 6,078 15.2 36.90 0.46PowerShares DWA Dev Mkts Tech Ldrs PIZ 0.80 134.0 1.03 1.94 21.07 37.76 -1.45 - 11,079 15.2 30.53 0.47

U.S. Fixed Income: Broad Market - Broad MaturitiesSPDR Barclays Capital Aggregate Bond LAG 0.17 259.3 2.46 2.67 6.25 3.57 6.56 - - - 4.16 2.78Vanguard Total Bond Market BND 0.11 10,255.0 2.27 2.52 6.20 3.67 6.29 - - - 4.94 3.31iShares Barclays Government/Credit Bond GBF 0.20 108.7 2.19 2.44 5.71 3.25 5.76 - - - 6.01 3.13iShares Barclays Aggregate Bond AGG 0.22 11,850.3 2.37 2.36 6.37 3.01 6.16 6.31 - - 5.40 3.39

U.S. Fixed Income: Broad Market - Short-TermVanguard Short-Term Bond BSV 0.11 6,518.9 1.60 1.64 3.89 1.55 4.46 - - - 3.73 2.08

U.S. Fixed Income: Broad Market - IntermediateVanguard Intermediate-Term Bond BIV 0.11 2,150.9 3.43 3.83 9.14 3.93 7.92 - - - 7.74 3.89iShares Barclays Intermdt Gov/Cred Bond GVI 0.20 588.0 2.06 2.37 5.46 1.99 5.46 - - - 5.10 2.78

U.S. Fixed Income: Broad Market - Long-TermVanguard Long-Term Bond BLV 0.11 378.3 3.50 3.21 10.01 0.11 8.00 - - - 13.18 4.89

U.S. Fixed Income: GovernmentVanguard Short-Term Government Bond VGSH 0.15 140.0 0.77 0.84 2.29 - - - - - - 0.65

U.S. Fixed Income: Treasury - Broad MaturityPowerShares 1-30 Laddered Treasury PLW 0.25 288.0 3.18 2.23 8.80 -11.09 5.75 - - - 11.16 3.15

U.S. Fixed Income: Treasury - Short Term iShares Barclays 1-3 Year Treasury Bond SHY 0.15 8,464.7 0.90 0.77 2.28 0.36 2.64 4.02 - - 1.40 0.95Schwab Short-Term U. S. Treasury SCHO 0.12 155.9 0.86 0.77 - - - - - - - -PIMCO 1-3 Year U.S. Treasury TUZ 0.09 107.2 0.75 0.50 2.43 - - - - - - 0.78iShares Barclays Short Treasury Bond SHV 0.15 4,332.1 0.06 0.07 0.12 0.16 0.56 - - - 0.32 0.10SPDR Barclays Capital 1-3 Month T-Bill BIL 0.13 1,008.8 0.02 0.02 -0.04 0.27 0.25 - - - 0.38 -

U.S. Fixed Income: Treasury - Intermediate iShares Barclays 7-10 Year Treasury Bond IEF 0.15 3,433.7 3.87 3.48 9.36 -6.56 6.64 7.70 - - 8.39 3.01iShares Barclays 3-7 Year Treasury Bond IEI 0.15 1,663.1 3.08 2.99 6.31 -1.69 5.84 - - - 4.49 1.95SPDR Barclays Cap Intermdt Term Treasury ITE 0.13 213.9 2.37 2.48 4.93 -1.55 4.89 - - - 3.70 1.97

U.S. Fixed Income: Treasury - Long-Term iShares Barclays 10-20 Year Treasury Bond TLH 0.15 252.3 3.39 3.15 9.69 -9.08 6.80 - - - 12.34 3.44iShares Barclays 20+ Year Treasury Bond TLT 0.15 2,880.5 3.39 1.91 9.04 -21.75 4.81 6.79 - - 17.93 4.34Vanguard Extended Duration Treasury EDV 0.13 138.1 4.32 0.39 9.79 -35.63 3.31 - - - 28.94 4.46

U.S. Fixed Income: AgenciesiShares Barclays MBS Bond MBB 0.31 2,827.5 2.17 2.58 5.58 4.69 6.44 - - - 3.46 3.33iShares Barclays Agency Bond AGZ 0.20 364.5 1.71 1.86 3.74 1.50 - - - - - 1.79

U.S. Fixed Income: TIPSPIMCO 15+ Year U.S. TIPS LTPZ 0.20 258.9 4.51 5.61 8.66 - - - - - - 3.88SPDR Barclays Capital TIPS IPE 0.18 438.1 3.56 5.50 6.25 10.23 4.98 - - - 8.30 3.48Schwab U.S. TIPS SCHP 0.14 199.8 3.58 5.47 - - - - - - - -iShares Barclays TIPS Bond TIP 0.20 20,586.5 3.42 5.43 6.13 8.95 4.99 6.83 - - 8.68 3.61iShares Barclays 0-5 Year TIPS Bond STIP 0.20 173.9 1.56 3.85 - - - - - - - -PIMCO 1-5 Year U.S. TIPS STPZ 0.20 1,184.4 1.03 3.21 3.51 - - - - - - 2.65

U.S. Fixed Income: Municipal - Broad MarketiShares S&P California AMT-Free Municipal Bond CMF 0.25 190.9 5.18 8.26 -2.62 8.19 4.74 - - - 7.90 3.81SPDR Barclays Capital Municipal Bond TFI 0.23 873.5 3.90 6.19 -0.51 9.99 5.50 - - - 6.51 3.44iShares S&P National AMT-Free Municipal Bond MUB 0.25 2,159.1 5.03 5.97 0.10 7.09 5.10 - - - 6.23 3.59PowerShares Insured National Municipal Bond PZA 0.28 506.9 5.59 5.46 -0.48 17.58 4.13 - - - 7.85 4.74





U.S. Fixed Income: Municipal - Short TermMarket Vectors Short Municipal SMB 0.20 100.6 2.75 3.11 1.21 7.89 4.98 - - - 3.49 2.02iShares S&P Sht Trm Nat AMT-Free Muni Bond SUB 0.25 434.2 1.45 2.44 0.36 4.24 - - - - - 1.27SPDR Nuveen Barclays Cap Sht Trm Muni Bond SHM 0.20 1,299.6 2.10 2.44 1.02 4.24 3.98 - - - 2.88 1.49

U.S. Fixed Income: Municipal - IntermediateMarket Vectors Intermediate Municipal ITM 0.24 237.9 3.83 5.15 1.63 10.67 5.86 - - - 6.72 3.44

U.S. Fixed Income: Municipal - High YieldMarket Vectors High-Yield Municipal HYD 0.35 253.9 4.35 5.20 0.34 - - - - - - 6.02

U.S. Fixed Income: Municipal - VRDOPowerShares VRDO Tax-Free Weekly PVI 0.25 431.3 0.12 0.24 0.29 1.00 1.14 - - - 0.52 0.42

U.S. Fixed Income: Municipal - Build America BondsPowerShares Build America Bond BAB 0.29 658.6 4.67 6.70 9.38 - - - - - - 5.61

U.S. Fixed Income: Corporate - Investment Grade - Broad MaturitiesiShares iBoxx $ Inv Gd Corp Bond LQD 0.15 13,703.1 2.98 3.58 9.33 8.58 8.37 6.88 - - 12.18 4.71iShares Barclays Credit Bond CFT 0.20 842.3 2.15 3.14 8.42 11.19 7.43 - - - 8.79 4.40

U.S. Fixed Income: Corporate - Investment Grade - Short-TermVanguard Short-Term Corporate Bond VCSH 0.15 1,681.9 1.76 2.38 5.27 - - - - - - 2.14SPDR Barclays Capital Short Term Corporate Bond SCPB 0.12 337.9 1.12 1.70 2.80 - - - - - - 1.86iShares Barclays 1-3 Year Credit Bond CSJ 0.20 8,288.8 0.99 1.51 2.88 7.17 4.36 - - - 4.13 2.17

U.S. Fixed Income: Corporate - Investment Grade - IntermediateVanguard Intermediate-Term Corporate Bond VCIT 0.15 561.8 2.63 4.00 9.97 - - - - - - 3.77SPDR Barclays U.S. Intermdt Tm Corp Bond ITR 0.15 191.6 2.47 3.50 7.16 - - - - - - 3.45iShares Barclays Intermediate Credit Bond CIU 0.20 3,449.2 2.24 3.04 6.83 12.79 7.20 - - - 7.00 3.99

U.S. Fixed Income: Corporate - Investment Grade - Long-Term Vanguard Long-Term Corporate Bond VCLT 0.15 164.1 3.30 3.54 10.62 - - - - - - 4.91

U.S. Fixed Income: Corporate - High Yield - Broad MaturitiesPowerShares Fundamental HiYld Corp Bond PHB 0.50 505.9 1.49 5.02 9.07 23.69 2.04 - - - 20.51 6.79SPDR Barclays Capital High Yield Bond JNK 0.40 6,860.3 1.17 4.50 14.20 37.65 9.17 - - - 21.48 8.25iShares iBoxx $ High Yield Corporate Bond HYG 0.50 8,331.8 1.16 4.36 11.96 28.86 8.85 - - - 19.08 7.84

U.S. Fixed Income: Corporate - ConvertiblesSPDR Barclays Capital Convertible Bond CWB 0.40 926.6 -0.72 2.26 14.01 - - - - - - 3.92

U.S. Fixed Income: Corporate - LoansPowerShares Senior Loan BKLN 0.83 180.3 -0.25 - - - - - - - - -

U.S. Fixed Income: Corporate - Preferred StockPowerShares Financial Preferred PGF 0.65 1,788.5 1.02 5.83 16.00 38.50 8.09 - 28,891 - 39.04 6.97SPDR Wells Fargo Preferred Stock PSK 0.45 118.6 1.86 5.69 13.98 - - - - - - 6.68iShares S&P U.S. Preferred Stock PFF 0.48 7,998.4 1.63 5.05 13.83 38.70 8.42 - - - 32.26 7.18PowerShares Preferred PGX 0.50 1,447.7 1.58 4.96 11.56 19.69 1.79 - - - 28.69 6.67

International Fixed Income: Blended DevelopmentWIP 0.50 1,360.9 3.27 7.47 6.56 17.14 3.10 - - - 16.39 2.43

PIMCO Enhanced Short Maturity Strategy MINT 0.35 1,226.7 0.34 0.79 1.64 - - - - - - 0.89WisdomTree Asia Local Debt ALD 0.55 478.7 2.76 - - - - - - - - -

International Fixed Income: DevelopedSPDR Barclays Sh-Tm Intl Treas Bond BWZ 0.35 251.1 2.28 6.49 1.59 - - - - - - -SPDR Barclays Intl Treasury Bond BWX 0.50 1,583.1 3.45 5.89 3.82 5.44 5.22 - - - 12.38 0.79iShares S&P/Citi 103 Yr Intl Treas Bond ISHG 0.35 217.2 2.30 5.53 1.09 - - - - - - 1.27iShares S&P/Citi Intl Treas Bond IGOV 0.35 233.1 2.62 5.27 1.59 - - - - - - 2.36

International Fixed Income: EmergingMarket Vectors EM Loc Currency Bond EMLC 0.49 421.3 3.55 5.36 - - - - - - - -WisdomTree Emerging Markets Local Debt ELD 0.55 900.4 4.32 5.15 - - - - - - - -PowerShares Emrg Mkts Sov Debt PCY 0.50 1,140.8 3.99 4.56 10.84 35.70 9.85 - - - 21.78 5.63iShares JPMorgan USD Emerging Markets Bond EMB 0.60 2,925.4 3.83 4.28 10.86 15.50 9.38 - - - 19.39 4.97





Commodities: Broad MarketPowerShares DB Commodity Tracking DBC 0.85 6,029.5 -5.08 5.12 11.90 16.19 -13.07 4.09 - - 26.08 -GreenHaven Continuous Commodity GCC 0.85 733.9 -4.91 1.67 25.19 20.07 -3.15 - - - 20.97 -iPath S&P GSCI Total Return ETN GSP 0.75 117.6 -9.50 1.29 8.36 15.25 -22.80 -7.14 - - 31.51 -UBS E-TRACS CMCI Total Return ETN UCI 0.65 142.3 -5.54 1.02 18.61 40.58 -6.87 - - - 26.30 -iShares S&P GSCI Commodity GSG 0.75 1,523.1 -8.67 0.03 7.17 11.22 -23.07 - - - 30.80 -ELEMENTS RICI - Total Return ETN RJI 0.75 941.5 -9.10 -0.54 17.86 26.45 -12.76 - - - 27.30 -United States Commodity USCI 1.24 468.5 -9.73 -1.22 - - - - - - - -iPath DJ-UBS Commodity ETN DJP 0.75 3,043.0 -8.02 -3.85 16.23 20.09 -12.91 -1.08 - - 23.72 -

Commodities: AgricultureiPath Dow Jones-UBS Coffee Total Return ETN JO 0.75 106.1 -3.14 7.07 65.37 14.76 9.74 - - - 30.55 -Teucrium Corn CORN 1.42 122.7 -8.47 3.82 - - - - - - - -PowerShares DB Agriculture DBA 0.75 3,104.2 -7.27 -1.89 22.35 0.99 -7.40 - - - 21.54 -ELEMENTS RICI Agriculture ETN RJA 0.75 579.2 -13.33 -8.40 35.01 6.29 -6.85 - - - 26.48 -iPath DJ-UBS Agriculture ETN JJA 0.75 210.3 -13.04 -9.53 38.40 13.17 -5.18 - - - 27.59 -iPath Dow Jones UBS Grains Total Return ETN JJG 0.75 266.8 -15.39 -12.96 29.85 -1.86 -13.79 - - - 32.25 -

Commodities: EnergyUnited States Gasoline UGA 0.90 140.2 -1.03 18.37 15.11 87.97 -8.78 - - - 42.88 -PowerShares DB Energy DBE 0.75 209.0 -5.47 10.60 2.63 30.36 -17.69 - - - 32.31 -PowerShares DB Oil DBO 0.75 595.3 -10.88 1.88 2.36 42.92 -18.21 - - - 34.72 -United States 12 Month Oil USL 0.96 214.6 -9.98 1.09 6.52 35.36 -19.63 - - - 33.14 -iPath S&P GSCI Crude Oil Total Return ETN OIL 0.75 563.8 -13.23 -4.45 -1.04 11.22 -33.75 - - - 41.14 -United States Oil USO 0.80 1,463.6 -12.58 -4.51 -0.71 18.67 -31.06 -11.80 - - 38.63 -iPath DJ-UBS Natural Gas ETN GAZ 0.75 110.1 -13.64 -7.20 -43.63 -51.15 -55.06 - - - 36.40 -United States Natural Gas UNG 1.11 1,861.6 -4.17 -8.04 -40.56 -56.50 -55.60 - - - 35.52 -

Commodities: Industrial MetalsPowerShares DB Base Metals DBB 0.75 583.9 -2.21 -2.25 8.58 88.92 -0.73 - - - 30.01 -iPath Dow Jones-UBS Copper Total Return ETN JJC 0.75 215.1 -1.44 -5.11 29.04 133.55 0.74 - - - 36.48 -

Commodities: Precious MetalsETFS Physical Silver SIVR 0.30 623.2 -7.97 12.33 82.16 - - - - - - -iShares Silver SLV 0.50 10,733.6 -7.97 12.13 82.48 47.67 25.15 24.89 - - 42.03 -PowerShares DB Silver DBS 0.75 158.5 -8.10 11.52 81.16 47.07 24.14 - - - 42.19 -ETFS Physical Precious Metal Basket Shares GLTR 0.60 232.1 -1.68 6.62 - - - - - - - -iPath Dow Jones-UBS Precious Metals TR ETN JJP 0.75 121.8 0.62 6.33 41.91 28.42 18.54 - - - - -PowerShares DB Precious Metals DBP 0.75 551.1 1.10 6.04 37.56 26.58 17.44 - - - 24.51 -iShares Gold Trust IAU 0.25 6,983.2 4.42 5.32 29.46 23.90 17.08 19.05 - - 20.95 -ETFS Physical Swiss Gold SGOL 0.39 1,382.8 4.43 5.32 29.23 - - - - - - -SPDR Gold GLD 0.40 58,460.2 4.39 5.25 29.27 24.03 16.90 18.98 - - 21.03 -PowerShares DB Gold DGL 0.75 263.3 4.10 4.74 27.89 22.03 15.49 - - - 21.04 -ETFS Physical Platinum PPLT 0.60 725.4 -2.63 -2.83 - - - - - - - -ETFS Physical Palladium PALL 0.60 761.8 -0.70 -5.46 - - - - - - - -

Currency: Blended DevelopmentPowerShares DB US Dollar Index Bearish UDN 0.75 155.5 2.20 6.13 -1.60 5.19 -0.60 - - - 11.59 -

Currency: DevelopedCurrencyShares Swiss Franc FXF 0.40 881.5 9.13 10.80 10.54 2.21 6.48 8.14 - - 14.98 -CurrencyShares Euro FXE 0.40 455.1 2.41 8.62 -6.87 2.53 -2.21 4.14 - - 15.40 0.07CurrencyShares Australian Dollar FXA 0.40 880.7 4.70 6.91 17.87 29.29 7.48 12.35 - - 19.68 3.48CurrencyShares Swedish Krona FXS 0.40 126.3 -0.06 6.25 6.96 9.01 -1.05 4.07 - - 17.56 0.54CurrencyShares Canadian Dollar FXC 0.40 978.9 0.54 3.65 4.96 15.24 2.05 4.40 - - 13.10 0.08CurrencyShares British Pound Sterling FXB 0.40 127.6 -0.09 2.32 -3.33 10.62 -6.63 -0.79 - - 12.49 -CurrencyShares Japanese Yen FXY 0.40 152.7 3.17 0.64 14.20 -3.16 9.28 - - - 11.29 -

Currency: EmergingWisdomTree Dreyfus Brazilian Real BZF 0.45 448.2 5.95 10.09 12.46 34.01 9.07 - - - 18.85 -WisdomTree Dreyfus Emerging Currency CEW 0.55 583.2 1.79 3.24 6.40 - - - - - - -WisdomTree Dreyfus Chinese Yuan CYB 0.45 723.3 0.24 0.20 1.21 1.20 0.67 - - - 2.74 -

Asset AllocationPowerShares CEF Income Composite PCEF 1.62 243.6 3.22 6.65 - - - - 42,776 15.3 - 8.33iShares S&P Growth Allocation AOR 0.32 110.7 0.85 4.51 11.14 18.99 - - 19,389 15.5 - 2.08





Alternatives: Absolute ReturnPowerShares DB G10 Currency Harvest DBV 0.75 370.1 1.72 4.38 0.85 21.22 -2.37 - - - 14.92 -

ALT 0.95 129.3 2.18 2.75 1.62 - - - - - - -Cambria Global Tactical GTAA 0.99 178.9 -1.03 1.53 - - - - 8,891 14.9 - -IQ Hedge Multi-Strategy Tracker QAI 1.13 134.8 0.81 0.48 2.59 - - - 7,751 14.2 - 1.51WisdomTree Managed Futures Strategy Fund WDTI 0.95 192.0 -2.78 - - - - - - - - -

Alternatives: Tactical ToolsPowerShares S&P 500 BuyWrite PBP 0.75 113.1 0.34 1.62 4.89 24.00 -0.17 - 50,195 15.4 16.26 1.33iPath S&P 500 VIX Mid-Term Futures ETN VXZ 0.89 526.1 -8.50 -23.40 -14.43 - - - - - - -iPath S&P 500 VIX Short-Term Futures ETN VXX 0.89 1,136.7 -28.02 -43.79 -72.40 - - - - - - -

LeveragedDirexion Daily Real Estate Bull 3x DRN 1.03 115.5 8.68 27.17 63.51 - - - - - - 0.08Direxion Daily Energy Bull 3x ERX 1.03 408.8 -18.12 25.77 48.96 14.71 - - - - - -ProShares Ultra Oil & Gas DIG 0.95 343.5 -10.94 20.45 33.69 20.59 -22.57 - - - 52.12 0.29ProShares Ultra Real Estate URE 0.95 504.5 4.45 18.56 48.36 12.10 -22.90 - - - 71.10 0.57ProShares Ultra Dow30 DDM 0.95 331.4 1.91 15.89 25.37 39.71 2.52 0.68 - - 38.94 0.42Direxion Daily Large Cap Bull 3x BGU 1.18 264.2 -1.62 15.37 39.81 65.15 - - - - - 0.12ProShares Ultra MidCap 400 MVV 0.95 126.5 -2.48 15.01 52.88 68.15 2.12 1.52 - - 50.30 0.02ProShares UltraPro S&P 500 UPRO 0.95 290.5 -1.68 14.74 36.37 - - - - - - 0.06Direxion Daily Small Cap Bull 3x TNA 1.03 765.6 -7.28 12.83 69.81 42.94 - - - - - -ProShares UltraPro QQQ TQQQ 0.95 144.0 -3.38 11.21 - - - - - - - -ProShares Ultra Russell 2000 UWM 0.95 226.6 -4.16 10.54 50.63 42.89 0.19 - - - 53.80 0.01ProShares Ultra S&P 500 SSO 0.92 1,683.3 -0.63 10.43 26.86 47.27 -4.04 -3.92 - - 43.39 0.56ProShares Ultra QQQ QLD 0.95 782.5 -1.71 8.60 36.90 121.20 6.43 6.52 - - 48.86 -ProShares Ultra Gold UGL 0.95 282.8 7.94 8.57 58.28 41.39 - - - - - -PowerShares DB Gold Double Long ETN DGP 0.75 576.9 7.97 8.29 62.37 46.16 26.82 - - - 42.50 -ProShares Ultra Silver AGQ 0.95 882.2 -26.73 4.00 182.44 78.25 - - - - - -ProShares Ultra Basic Materials UYM 0.95 345.0 -6.51 3.18 57.39 126.82 -19.08 - - - 69.51 0.02ProShares Ultra Technology ROM 0.95 115.0 -4.86 0.76 19.91 146.38 3.46 - - - 49.58 -Direxion Daily Technology Bull 3x TYH 2.25 213.2 -7.43 -3.56 21.28 240.15 - - - - - -ProShares Ultra Financials UYG 0.95 1,104.6 -9.53 -4.64 18.04 -5.50 -31.48 - - - 63.74 0.08Direxion Daily Financial Bull 3x FAS 1.02 1,682.2 -15.32 -7.92 13.02 -41.44 - - - - - -Direxion Daily Emerging Markets Bull 3x EDC 1.01 433.4 -8.18 -8.09 24.29 206.32 - - - - - 0.37Direxion Daily Semiconductor Bull 3X SOXL 1.03 117.1 -20.26 -8.38 - - - - 13,731 12.6 - 0.02PowerShares DB Agriculture Double Long ETN DAG 0.75 123.1 -19.04 -13.86 30.88 5.70 -23.42 - - - 52.89 -ProShares Ultra DJ-UBS Crude Oil UCO 0.95 426.4 -25.99 -15.61 -1.46 -7.38 - - - - - -VelocityShares Daily 2X VIX Short Term ETN TVIX 1.65 113.7 -51.17 -72.62 - - - - - - - -

InverseVelocityShares Daily Inverse VIX Short Term ETN XIV 1.35 280.3 30.76 53.00 - - - - - - - -iPath U.S. Treasury Flattener ETN FLAT 0.75 131.2 2.80 2.97 - - - - - - - -ProShares Short Financials SEF 0.95 112.1 3.73 -0.52 -17.43 -41.60 -21.43 - - - 32.10 -ProShares UltraShort Financials SKF 0.95 330.8 7.17 -1.75 -35.33 -76.48 -53.82 - - - 60.06 -PowerShares DB Crude Oil Double Short ETN DTO 0.75 257.1 22.60 -1.76 -20.26 -54.19 31.50 - - - 77.67 -ProShares UltraShort Yen YCS 0.95 363.2 -7.01 -3.45 -26.43 -2.52 - - - - - -ProShares Short MSCI Emerging Markets EUM 0.95 226.4 -0.10 -3.46 -20.92 -50.67 -24.62 - - - 25.53 -ProShares Short 20+ Year Treasury TBF 0.95 1,071.9 -3.99 -3.83 -12.39 - - - - - - -ProShares UltraShort DJ-UBS Crude Oil SCO 0.95 160.3 18.16 -4.03 -25.49 -56.89 - - - - - -Direxion Daily Financial Bear 3x FAZ 1.15 669.4 11.29 -5.27 -51.36 -94.56 - - - - - -ProShares Short QQQ PSQ 0.95 323.3 -0.43 -6.55 -20.61 -40.20 -16.51 -11.80 - - 22.06 -PowerShares DB US Dollar Index Bullish UUP 0.75 1,085.7 -2.62 -6.56 -1.60 -6.52 -1.69 - - - 12.04 -ProShares Short S&P 500 SH 0.92 1,776.7 -0.63 -6.68 -16.59 -27.02 -11.36 -5.73 - - 19.84 -ProShares UltraShort 20+ Year Treasury TBT 0.95 6,245.8 -7.83 -6.83 -25.74 32.20 -20.39 - - - 33.38 -ProShares Short MSCI EAFE EFZ 0.95 118.4 -3.21 -7.31 -14.24 -30.36 -11.75 - - - 25.19 -ProShares UltraShort MSCI Emerging Markets EEV 0.95 117.0 -0.82 -8.10 -41.82 -79.25 -56.89 - - - 47.23 -ProShares UltraShort 7-10 Year Treasury PST 0.95 504.5 -8.10 -8.15 -21.51 2.43 -17.94 - - - 16.16 -ProShares Short Russell 2000 RWM 0.95 449.7 0.34 -8.17 -27.39 -32.86 -19.72 - - - 25.64 -ProShares Short Dow30 DOG 0.95 236.2 -1.94 -8.89 -15.29 -23.66 -12.57 -6.70 - - 18.11 -ProShares UltraShort FTSE/Xinhua China 25 FXP 0.95 190.9 1.43 -10.61 -28.30 -76.27 -60.03 - - - 50.70 -Direxion Daily 30-Year Treasury Bear 3x TMV 1.14 520.7 -12.15 -11.11 -36.69 - - - - - - -ProShares UltraShort Basic Materials SMN 0.95 133.3 1.87 -12.06 -54.68 -78.16 -41.97 - - - 61.33 -ProShares UltraShort S&P 500 SDS 0.90 2,022.2 -1.34 -13.14 -32.21 -50.59 -27.62 - - - 37.23 -ProShares UltraShort QQQ QID 0.95 683.6 -1.06 -13.31 -38.90 -66.80 -35.96 - - - 41.66 -ProShares UltraShort Russell 2000 TWM 0.95 448.3 -0.02 -16.88 -50.14 -60.27 -43.26 - - - 48.65 -ProShares UltraShort Dow 30 DXD 0.95 340.7 -3.98 -17.20 -29.76 -44.98 -28.56 - - - 33.85 -ProShares UltraShort Euro EUO 0.95 622.3 -6.11 -17.49 8.61 -12.04 - - - - - -ProShares UltraPro Short S&P 500 SPXU 0.95 290.0 -2.51 -19.94 -46.51 - - - - - - -Direxion Daily Large Cap Bear 3x BGZ 1.02 183.9 -2.92 -21.19 -48.74 -70.71 - - - - - -ProShares UltraShort Real Estate SRS 0.95 181.7 -7.63 -21.28 -51.63 -85.21 -69.11 - - - 68.50 -Direxion Daily Small Cap Bear 3x TZA 1.15 611.5 -1.14 -25.94 -68.34 -79.41 - - - - - -ProShares UltraShort Silver ZSL 0.95 657.0 -18.60 -51.65 -79.50 -72.65 - - - - - -

Every client’s portfolio could use some Vanguarding.®

The Vanguard S&P 500 ETF is one of nine Vanguard S&P ETFs® available to your clients. With an expense ratio of only 0.06%, it can be a great building block for any portfolio. Give your clients a low-cost way to gain diversified exposure in a wide range of sectors with the Vanguard S&P lineup.

Take a closer look at advisors.vanguard.com/VOO 800-257-4333

All investments are subject to risk. Vanguard funds are not insured or guaranteed. Diversification does not ensure a profit or protect against a loss in a declining market.

Vanguard ETFs are not redeemable with an Applicant Fund other than in Creation Unit aggregations. Instead, investors must buy or sell Vanguard ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor will incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

For more information about Vanguard ETF Shares, visit advisors.vanguard.com/VOO, call 800-257-4333, or contact your broker to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

Standard & Poor’s® S&P 500®, are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and have been licensed for use by The Vanguard Group, Inc. The Vanguard ETFs are not sponsored, endorsed, sold or promoted by S&P or its Affiliates, and S&P and its Affiliates make no representation, warranty, or condition regarding the advisability of buying, selling, or holding units/shares in the ETFs.

*Source: Morningstar as of 05/01/2011. Based on 2011 ETF industry average expense ratio of 0.09% for S&P 500 Index Objective Fund ETFs and Vanguard S&P 500 ETF expense ratio of 0.06%.

© 2011 The Vanguard Group, Inc. All rights reserved. U.S. Pat. No. 6,879,964 B2; 7,337,138. Vanguard Marketing Corporation, Distributor

VOOVanguard S&P 500 ETFFor an expense ratio 33% lower than the industry average*

t: 617.670. 700

f: 617.670. 711

Date: 06.24.11

Job#: RYDP1101

CD:

AE:

AD:

TM:

CW:

PR:

File: RYDP1101 _ETF_EWSectors_common3_v2_f.indd

Live: 8x10.25” Trim: 8.5x10.75” Bleed: x11.125”

Artwork Resolution: _____ Hi ___x__ Low Artwork location: _____ MMB __x___Vendor _____ Client

Publication:

For more complete information regarding RydexShares,® call 800.820.0888 or visit www.rydex-sgi.com for a prospectus and a summary prospectus(if available). Investors should carefully consider the investment objectives, risks, charges and expenses of a fund before investing. The fund’s prospectus and its summary prospectus (if available) contain this and other information about the fund. Please read the prospectus and summary prospectus (if available) carefully before you invest or send money.

Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.

Rydex Equal Weight ETFs may not be suitable for all investors. • Investment returns and principal value will fluctuate so that when shares are redeemed, theymay be worth more or less than original cost. Most investors will also incur customary brokerage commissions when buying or selling shares of an ETF. • Investmentsin securities are subject to market risks that may cause their prices to fluctuate over time. • ETF Shares may trade below their net asset value (“NAV”). The NAVof shares will fluctuate with changes in the market value of an ETF’s holdings. In addition, there can be no assurance that an active trading market for shares will develop or be maintained. Sector funds may not be suitable for all investors. Investing in sector funds is more volatile than investing in broadly diversified funds, as there isa greater risk due to the concentration of the fund’s holdings in issuers of the same or similar offerings. • Please review a prospectus carefully for more information of the risks associated with each ETF.

“Standard & Poor’s®,” “S&P®” and “S&P 500®,” are trademarks of Standard and Poor’s Financial Services, LLC and have been licensed for use by Rydex Investments and its affiliates. Rydex S&P ETFs are not sponsored, endorsed, sold nor promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in Rydex S&P ETFs.

Rydex|SGI funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors® and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

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Rydex Equal Weight Sector ETFs. Invest in an entire sector, equally.

Rydex Equal Weight Sector ETFs (unlike traditional cap-weighted funds) give investors exposure to every stock in a sector

index. This takes risk and spreads it across all stocks in the index. Investing in energy? Get all the energy stocks. Not

just the big ones. Same for tech. Health Care. Financials. All nine of RydexShares’

Equal Weight Sector ETFs. Find out why equal weight might be a more intelligent

way to invest in sectors. Call 800.820.0888 or go to rydex-sgi.com

RYES&P 500®

Energy

RYFS&P 500®

Financials

RYHS&P 500®

Health Care

RGIS&P 500®

Industrials

RTMS&P 500®

Materials

RYTS&P 500®

Technology

RYUS&P 500®

Utilities

RHSS&P 500®

ConsumerStaples

RCDS&P 500®

Consumer

Discretionary

The intelligent pursuit of wealth.

Documents

XRT: Signal To Noise - etf.com · folio (NYSE Arca: BKLN), which holds noninvestment-grade bank loans. Floating-rate bonds are often linked to highly leveraged borrowers, as they