INDEX INSIGHTS Contact Information S-Network Sector Dividend Dogs Total Return Index Index Performance. The S-Network Sector Dividend Dogs Total Return Index (TICKER: SDOGXTR) increased +0.41% from 5243.81 to 5265.16 in the quarter ended September 2014. This compares to an increase in the S&P 500 Total Return index (TICKER: SPXT) of +1.13%. Joseph LaCorte, CFA S-Network Global Indexes Inc. (646) 467-7927 [email protected] Information about the index, including rule book, company descriptions and historic data, can be found at: www.sectordividenddogs.com As of September 30, 2014, the dividend yield for the S-Network Sector Dividend Dogs Total Return Index was +4.04%, compared with +3.76% at the end of the previous quarter. The S&P 500 Total Return Index had a +1.96% dividend yield as of September 30, 2014, compared with +1.91% at the end of the previous quarter. The best performing stocks were Lockheed Martin (TICKER: LMT UN), which rose +13.72%; CenturyLink Inc (TICKER: CTL UN), which rose +12.96%; and Intel Corp (TICKER: INTC UQ), which rose +12.69%. The worst performing stocks were Diamond Offshore Drilling (TICKER: DO UN), which declined -30.95%; Garmin Ltd (TICKER: GRMN UQ), which declined -14.63%; and ConocoPhillips (TICKER: COP UN), which declined -10.74%. The S-Network Sector Dividend Dogs Total Return Index rose +21.04% in the past 12 months. This compares to a +19.73% rise in the S&P 500 Total Return index. Index Description. SDOGX is a portfolio of fifty stocks derived from the S&P 500 Index. The SDOGX methodology selects the five stocks in each of the ten GICS sectors that make up the S&P 500 which offer the highest dividend yields as of the last trading day of November. The stocks selected for inclusion in the portfolio are equally weighted. SDOGX divides into the following ten GICS sectors: consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, telecommunication services and utilities. Inclusion Criteria. The selection criteria for the S&P 500 include requirements for sector inclusion, primary exchange listing, minimum market S-Network Sector Dividend Dogs capitalization, minimum average daily trading volume, and other factors. All constituents of SDOGX must be constituents of the S&P 500. Individual securities to be included in SDOGX are selected based on a ranking system within each sector that selects the five stocks in each sector with the highest dividend yield as of the last trading day of November. Dividend yield is computed based on the regular cash dividends paid by the company over the previous twelve month period, divided by the share price. Index (USD): Weighting Methodology. All stocks selected for inclusion in SDOGX are equally weighted. Share weights are based on prices as of the close TICKERS: SDOGX S-Network Sector Dividend Dogs Total Return Index (USD): SDOGXTR of trading on the second Friday of the rebalancing month. If there are less than 5 eligible securities represented in any GICS sector as of the snapshot date the index will include only those securities which qualify. All constituents are equally weighted as of the record date. Rebalancings. SDOGX is rebalanced quarterly, at the close of trading on the third Friday of the last month of each calendar quarter. Index Data. Index values are disseminated in US dollars via the Chicago Mercantile Exchange on both a price only and total return basis. Values for the price only index (SDOGX) are distributed throughout the day at fifteen-second intervals. Values for the total return index (SDOGXTR) are distributed once daily. Daily values are available from December 31, 1999. Leading Movers Company Name September 2014 LOCKHEED MARTIN CENTURYLINK INC Inquire about our custom institutional benchmarking services INTEL CORP FRONTIER COMM CORP DARDEN RESTAURANTS INC Ticker Opening Closing Change LMT UN 160.73 182.707 13.72% CTL UN 36.20 40.89 12.96% INTC UQ 30.90 34.82 12.69% FTR UQ 5.84 6.51 11.47% DRI UN 46.27 51.46 11.22% Ticker Opening Closing Change Lagging Movers Company Name DO UN 49.63 34.27 -30.95% 60.90 51.99 -14.63% CONOCOPHILLIPS COP UN 85.73 76.52 -10.74% FREEPORT-MCMORAN INC FCX UN 36.50 32.65 -10.55% PITNEY BOWES INC PBI UN 27.62 24.99 -9.52% GARMIN LTD S-Net Dividend Dogs TR 1040 1020 1000 GRMN UQ DIAMOND OFFSHORE DRILLING Q3 2014 Performance 980 960 6/30/14 7/31/14 8/31/14 9/30/14 S-Network Sector Dividend Dogs Total Return IndexSM vs. Benchmarks (09/30/09 - 09/30/14) S-Net Dividend Dogs TR S&P 500 TR S&P High Yld Arist TR DJ Select Dividend 2800 2200 1600 1000 09/30/09 09/30/10 09/30/11 *Note: This chart is a normalized historical graph Data Source: Bloomberg Data as of September 30, 2014 09/30/12 09/30/13 400 09/30/14 This chart is for illustrative purposes only. Historical information is not indicative of future results; current data may differ from data quoted. Investors cannot invest directly in index. Index returns do not reflect any management fees or brokerage expenses. This material has been prepared and/or issued by S-Network Global Indexes Inc. and/or one of its consultants or affiliates. This document is for information purposes only and it should not be regarded as an offer to sell or as a solicitation of an offer to buy the securities or other instruments mentioned in it. The information, including any third party information, may not be accurate or complete in its entirety, and it should not be relied upon as such. S-Network Global Indexes Inc. and/or its affiliates are not acting in a fiduciary capacity. The products mentioned herein may not be eligible for sale in some states or countries and may not be suitable for all investors. The potential yield created by these products may be adversely affected by exchange rates, interest rates, or other economic and political factors. An investor’s return may be less than the principle invested. S-Network Global Indexes Inc. and/or its affiliates may now, in the past, or in the future make markets, or deal as principle in the securities or derivatives thereof, mentioned in the document. In addition, S-Network Global Indexes Inc., its shareholders, directors, officers, and/or employees and consultants, may from time to time hold a long or short position in these securities. This document may not be reproduced in any manner without the prior written authorization of S-Network Global Indexes Inc. Opinions expressed within reflect the opinions of S-Network Global Indexes Inc. and the author/analyst and are subject to change without notice. ©2014 S-Network Global Indexes Inc., 267 Fifth Avenue, New York, NY 10016. “S-Network Sector Dividend Dogs Index” is a service mark of S-Network Global Indexes, Inc. INDEX INSIGHTS Index Statistical Profile Capitalization Profile Top Ten Constituents Number of Constituents 50 TOTAL MARKET CAPITALIZATION Company 2.78 Trillion USD LARGEST MARKET CAPITALIZATION 270.78 Billion USD Ticker Country Weight EI DU PONT DE NEMOURS AND CO DD UN UNITED STATES 2.23% DARDEN RESTAURANTS INC DRI UN UNITED STATES 2.18% ALTRIA GROUP INC MO UN UNITED STATES 2.14% SMALLEST MARKET CAPITALIZATION 4.06 Billion USD AVERAGE MARKET CAPITALIZATION 55.70 Billion USD PAYCHEX INC PAYX UQ UNITED STATES 2.12% 24.83 Billion USD LOCKHEED MARTIN LMT UN UNITED STATES 2.11% EXELON CORP EXC UN UNITED STATES 2.09% CENTURYLINK INC CTL UN UNITED STATES 2.08% VERIZON COMMUNICATIONS INC VZ UN UNITED STATES 2.08% REYNOLDS AMERICAN INC RAI UN UNITED STATES 2.07% ENTERGY CORP ETR UN UNITED STATES 2.06% MEDIAN MARKET CAPITALIZATION Simple Price Appreciation SDOGXTR 5 Year 146.91% S&P 500 TR 107.30% S&P High Yld Arist TR DJ Select Dividend 104.71% 117.44% 3 Year 90.52% 86.05% 72.64% 71.42% 1 Year 21.04% 19.73% 13.65% 15.34% Compound Annual Growth Rate (CAGR) Beta Matrix** (5 Year/Monthly) SDOGXTR S&P 500 TR S&P High Yld Arist TR DJ Select Dividend SDOGXTR 1.0000 0.9739 0.8733 0.8510 S&P 500 TR 0.8803 1.0000 0.8221 0.7561 1.0152 1.0572 1.0000 0.9266 1.0720 1.0538 1.0042 1.0000 SDOGXTR S&P 500 TR S&P High Yld Arist TR DJ Select Dividend 5 Year 19.81% 15.70% 15.41% 16.81% S&P High Yld Arist TR 3 Year 23.97% 22.99% 19.96% 19.68% DJ Select Dividend 1 Year 21.04% 19.73% 13.65% Correlation Matrix (5 Year/Monthly) 15.34% SDOGXTR Annualized Standard Deviation (Monthly) SDOGXTR S&P 500 TR S&P High Yld Arist TR DJ Select Dividend 5 Year 12.55% 13.20% 11.64% 11.19% 3 Year 10.22% 10.57% 9.92% 9.64% 1 Year 9.21% 8.87% 9.48% 10.32% Sharpe Ratio SDOGXTR S&P 500 TR S&P High Yld Arist TR DJ Select Dividend 5 Year 1.4858 1.1507 1.2664 1.4234 3 Year 2.1441 2.0010 1.8704 1.8969 1 Year 2.1132 2.0668 1.3823 1.4215 1.0000 S&P 500 TR 0.9260 1.0000 S&P High Yld Arist TR 0.9416 0.9322 1.0000 0.9551 0.8926 0.9646 DJ Select Dividend SDOGXTR Sector Distribution S&P 500 TR S&P High Yld Arist TR SDOGXTR 1.0000 S&P 500 TR 0.8574 1.0000 S&P High Yld Arist TR 0.8866 0.8691 1.0000 DJ Select Dividend 0.9122 0.7968 0.9304 Index Composition Telecommunication Services 10.22% Consumer Staples 10.22% Financials 9.84% Utilities 10.12% Industrials 9.91% Consumer Discretionary 10.02% Materials 9.99% DJ Select Dividend 1.0000 R-Square Matrix (5 Year/Monthly) **Dependent variable shown in Column Headers, Independent shown in Row Headers Health Care 9.97% S&P High Yld Arist TR SDOGXTR *All data as of September 30, 2014 Energy 9.71% S&P 500 TR Information Technology 10.00% DJ Select Dividend 1.0000