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AIM WITH PRECISION Managing Risk and Return

PORTFOLIO CONSTRUCTION: THE 3-STEP PROCESS

Breaking Down Complexity

How do you take a complex idea and create a plan that makes sense to you? Your HD Vest Advisor can work with you to alleviate some of the mystery and help you develop an understanding of some of the core principles of investing. Following a 3-Step Process will help you develop an investment plan that focuses on your long-term goals, accounts for your risk tolerance and creates a formula to avoid market timing and volatility, which helps you avoid chasing investment returns with little reward.

A Disciplined Approach to Long-Term Investing

Building and protecting what you have worked so hard to earn is critical to the pursuit of your goals, but it is nearly impossible to time the market and pursue returns successfully on your own. With the help of your HD Vest Advisor, you can apply the principles of a 3-Step Process that works to position your investments to capture more of what the markets have to offer. This process is always centered on your core goals, time horizon, risk tolerance, and planned outcomes.

1

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The 3-Step Process: A Solid Foundation

This 3-Step Process, which implements the concepts of asset allocation, diversification1 and active rebalancing, is essential to the management of your wealth. Each concept is individually important, but by combining these three concepts, managing the overall risk and return of your investment portfolio is a constant priority.

Allocate

Asset allocation seeks to balance risk and reward by spreading assets across the three main asset classes—stocks, bonds and cash—to pursue the optimal returns for the risk level you are willing to undertake. Each asset class offers different levels of risk and return, and each is expected to behave differently over time. Asset allocation is one of the most important decisions that investors make.

Diversify

Diversification applies to the implementation of investments within each asset class. The rationale behind this concept is to limit the impact of an individual security by owning multiple securities within each asset class. This approach seeks to smooth out risk in a portfolio so that the positive performance of some securities will neutralize the negative performance of others.

Rebalance

Rebalancing realigns the weightings of your portfolio of assets, which can change due to market performance, distributions or contributions to your portfolio. Rebalancing involves periodically buying underweighted assets or selling overweighted assets in your portfolio to maintain your original desired asset allocation. This approach ensures your plan remains consistent with your risk tolerance and portfolio investment objectives.

1Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses.

Step 1 – Allocating Your Assets

Developing an investment strategy personalized to your needs and goals begins with asset allocation, the most fundamental and foundational component of portfolio management. Asset allocation means dividing assets among the various asset classes, such as stocks, bonds and cash or money market investments. Each asset class has associated risks as well as potential rewards that vary based on the anticipated level of exposure over time to market volatility, which is the degree to which returns vary within a given time period.

While there is no single investment product or asset class that eliminates all potential risks—even cash carries the potential risk of failing to outpace inflation over time—how assets are allocated within an investment portfolio has a profound impact on potentially reducing investment risk and pursuing more consistent returns. That’s because different asset classes tend to perform at different times. When one is up, the other may be down. The combination of asset classes may reduce portfolio volatility because of this differing behavior.

When considering your asset allocation, you and your HD Vest Advisor will discuss a more goal-oriented, balanced plan that focuses on your longer-term objectives rather than attempting to reap immediate short-term rewards. Your goals, time horizon and risk tolerance will all play an important role in determining your asset allocation approach.

While asset allocation enables portfolios to participate in a variety of market asset classes with the objective of minimizing volatility, asset allocation alone cannot ensure a profit or protect against loss.

2Source: Gary P. Brinson, L. Randolph Hood, and Gilbert Beebower, “Determinants of Portfolio Performance,” Financial Analysts Journal, January/February 1995.

3

6.4% of performance is driven by security

selection and timing of investments

93.6% of performance is driven

by asset allocation strategy

Asset allocation is considered the major determinant of portfolio risk and return over time.2

4

Asset Allocation through Modern Portfolio Theory

A Disciplined Strategy

Asset allocation is a disciplined approach to portfolio management based on the concept of Modern Portfolio Theory. The developers of this theory, Harry Markowitz and William Sharpe, were awarded the Nobel Prize in Economic Science in 1990 for their contributions. Modern Portfolio Theory is a revolutionary view of portfolio investment that illustrates how investment risk may be reduced by spreading investments in specific proportions among different asset classes. This strategic approach to investment management is designed to help you invest while attempting to minimize risk associated with routine market fluctuations.

As the graph above illustrates, the combination of investments may have a more efficient risk and return profile than individual investments.

Past performance is no guarantee of future results. Risk and return are measured by standard deviation and arithmetic mean, respectively. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. ©Morningstar, Inc. All Rights Reserved. 3/1/2010

1. Determine the Investment Objectives and Time Horizons

Investing with HDVAS provides active management tailored to your specific investment goals and objectives. As the investment

process begins, your H.D. Vest Advisory Consultant will need to know and understand a great deal about you. Your H.D. Vest

Advisory Consultant will guide you through a questionnaire and interview process to determine your specific goals and outline a

long-term plan. Then they will help you determine your income needs and time horizon for each account as specified by the goal

you have established. They will also work with you to determine the level of market risk you are willing to accept and define your

priorities, including financial requirements and liquidity concerns. Once your personal goals and objectives are understood your

H.D. Vest Advisory Consultant has the necessary foundation to begin the process of developing a portfolio that is right for you.

2. Develop the Investment Strategy

Disciplined StrategyThe experts at HDVAS have designed a disciplined approach to portfolio management. Modern Portfolio Theory and asset

allocation form the foundation of our advice. We believe this is the most appropriate long-term investment strategy and we are

ready to put it to work for you.

Modern Portfolio TheoryModern Portfolio Theory is a revolutionary view of the stock market that illustrates how investment risk may be reduced by

spreading investments in specific proportions among different categories. This is called asset allocation. This strategic approach to

investment management is designed to help you invest while helping to minimize the potential risk associated with routine market

fluctuations.

The developers of Modern Portfolio Theory, Harry Markowitz and William Sharpe, were awarded the Nobel Prize in Economic

Science in 1990 for their contributions.

Past performance is no guarantee of future results. Risk and return are measured by standard deviation and arithmetic mean, respectively. This is for illustrative purposes only and not indica-tive of any investment. An Investment cannot be made directly in an index. © 2010 Morningstar, All Rights Reserved. 3/1/2010

12%Return

11

10

9

10% 11 12 13 14 15 16 17 18 19

Stocks and Bonds: Risk vs. Return1970 - 2009

Maximum risk portfolio:100% Stocks

Minimum risk portfolio:25% Stocks, 75% Bonds

80% Stocks, 20% Bonds60% Stocks, 40% Bonds

50% Stocks, 50% Bonds

100% Bonds

Risk

Return12%

Risk

11%

10%

9%

10% 11% 12% 13% 14% 15% 16% 17% 18% 19%

5

Step 2 – Diversifying To Mitigate Market Volatility

Because it is impossible to predict which markets will perform the best or when a market will change direction, asset allocation and diversification are important safeguards for your assets. By determining the appropriate asset allocation for you, you and your HD Vest Advisor establish desired characteristics for the investments that ultimately fill your portfolio. Applying diversification prevents the portfolio from becoming too concentrated in any one position, and investments with different investment objectives allow you to reap the benefits of different investment styles and market sectors.

Diversification seeks to moderate the volatility of market ups and downs. Diversification can be structured within asset classes—for instance, spreading your equity holdings among growth, value, small-, mid-, large-cap, and international equities—or it can occur across different asset classes, such as stocks and bonds. Specialty holdings such as real estate investment trusts (REITs) and commodities may also be considered in this mix.

In the chart on the right, you can see how individual asset class performance rises and falls over time, displaying variable levels of volatility. Note that the sample Diversified Portfolio3 (green line) consistently performed near the middle of the asset class returns for this 15-year period, while returns of individual asset classes such as international stocks (red line) and large-cap domestic stocks (blue line) differed greatly from year to year. This illustrates how a diversified portfolio can reduce the volatility of individual asset classes while still generating reasonable returns. Importantly, smoothing this annual volatility helps you weather the emotional rollercoaster associated with investing and stay focused on your long-term plan instead of short-term market movements. A diversified portfolio means you are always in the right place at the right time.

3Sample Diversified Portfolio is constructed using the weightings of our VestAdvisor Select® Global Conservative Growth with Alternatives model. Using the same index histories as the asset classes above, we blended the annual returns into the model weightings to create the Diversified Portfolio.

A diversified portfolio is designed to help you invest while minimizing the potential risk associated with routine market fluctuations. This involves spreading your equity holdings among several asset classes including small-, mid-, large-cap and international stocks, balancing your fixed-income holdings among different types of bonds, and adding specialty holdings such as real estate investment trusts (REITs), commodities and alternatives.

The chart below shows the year-by-year returns of several broad-based asset classes since 2000. Using the same index histories, we blended the returns into the model weightings of our Global Conservative Growth with Alternatives model to create the Diversified Portfolio. This portfolio consists of globally diversified stock and bond asset classes, as well as some alternatives which are non-traditional strategies that generally have low correlation to stocks and bonds. Notice how the Diversified Portfolio (green box) was never in the top or bottom three but was a more consistent performer than any of the individual asset classes.

2001 2002 2003 2004 2005 2006 2007 2008

Global Alternative 18.38%

Commodities 25.91%

Emerging Market Stocks 54.01%

REITs 33.16%


REITs 35.97%


Global Bonds 10.89%

REITs 12.35%

Global Bonds 19.49%

Small Cap Stocks 47.25%


Commodities 21.36%



Investment Grade Bonds 5.24%

Short Term Bonds 8.77%


International Stocks 38.59%


REITs 13.82%


Commodities 16.23%



Investment Grade Bonds

10.26%

REITs 36.18%




Hedge Alternative 12.56%

Global Alternative -4.62%

High Yield Bonds 5.28%


Large Cap Stocks 29.89%

Diversified Portfolio 11.55%




Hedge Alternative -19.07%


REITs 3.58%





Global Bonds 10.95%

Diversified Portfolio -20.67%



Commodities 23.93%





High Yield Bonds -26.16%




Global Bonds 10.35%




Small Cap Stocks -33.79%

Global Bonds -0.99%







Commodities -35.65%


Emerging Market Stocks -6.06%


Commodities 9.15%


Global Bonds 6.12%


Large Cap Stocks -37.60%


International Stocks

-15.94%

Global Bonds 14.91%





REITs -39.20%

Commodities -19.51%








-43.38%


-21.44%




Global Bonds -6.88%

Commodities 2.07%

REITs -17.56%

Emerging Market Stocks

-52.89%

2009 2010 2011 2012 2013 2014 2015Emerging Market

Stocks 82.56%

REITs 28.07%

REITs 9.37%



REITs 32.00%

REITs 4.48%











REITs 17.12%


Investment Grade Bond 5.97%


REITs 28.46%

Commodities 16.83%

Global Bonds 6.35%

























International Stocks -0.81%

Commodities 18.91%




REITs 1.22%


Diversified Portfolio

-1.7%







Global Bonds -3.57%





Investment Grade Bonds -2.02%






-12.14%

Global Bonds 1.65%


Global Bonds -0.48%



Global Bonds 5.17%

Commodities -13.32%


Global Bonds -4.00%



-15.22%

Global Bonds 2.55%



-18.96%

Commodities -1.06%

Commodities -9.52%

Commodities -17.01%

Commodities -24.66%

MARKET SEGMENT

Large Cap Stocks5

International Stocks7

Global Bonds4

Diversified PortfolioInvestment Grade Bonds2

Short Term Bonds1

High Yield Bonds3

Hedge Alternative11

Small Cap Stocks6

Global Alternative12

REITs9

Emerging Market Stocks8

Commodities10

DIVERSIFICATION CAN HELP YOU REDUCE MARKET VOLATILITY OVER TIME.

PAGE 2 PAGE 3

AVERAGEReturn Std Dev

REITS12.74% 23.1%

Global Alternative9.83% 5.49%

Emerging MarketStocks

7.85% 22.91%

High Yield Bonds7.48% 10.02%

Small Cap Stocks7.38% 20.42%

Hedge Alternative6.34% 5.67%

Diversified Portfolio6.23% 8.99%


5.70% 3.49%

Global Bonds4.95% 6.96%

Large Cap Stocks4.62% 15.49%

Short Term Bonds3.75% 1.45%

Commodities2.73% 16.9%

International Stocks2.55% 17.43%

The last column shows the 15 year average return and standard deviation which is used to measure risk.

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Green LineThe Diversified Portfolio return tends to land near the middle of the asset class returns, providing smoother returns over time than individual asset classes.

Blue and Red LinesBy contrast, individual asset classes such as Large Cap Stocks and International Stocks are more volatile, with returns frequently alternating between the top third and bottom third of asset class returns.

Large Cap Stocks5


Global Bonds4


Short Term Bonds1

High Yield Bonds3

Hedge Alternative11

Small Cap Stocks6


REITs9


Commodities10

MARKET SEGMENT

Please see Page 9 for asset class definitions and other important disclosures.



2001 2002 2003 2004 2005 2006 2007 2008


Commodities 25.91%


REITs 33.16%


REITs 35.97%


Global Bonds 10.89%

REITs 12.35%

Global Bonds 19.49%



Commodities 21.36%








REITs 13.82%


Commodities 16.23%




10.26%

REITs 36.18%















REITs 3.58%





Global Bonds 10.95%




Commodities 23.93%









Global Bonds 10.35%





Global Bonds -0.99%







Commodities -35.65%




Commodities 9.15%


Global Bonds 6.12%





-15.94%

Global Bonds 14.91%





REITs -39.20%

Commodities -19.51%








-43.38%


-21.44%




Global Bonds -6.88%

Commodities 2.07%

REITs -17.56%


-52.89%

2009 2010 2011 2012 2013 2014 2015Emerging Market

Stocks 82.56%

REITs 28.07%

REITs 9.37%



REITs 32.00%

REITs 4.48%











REITs 17.12%




REITs 28.46%

Commodities 16.83%

Global Bonds 6.35%


























Commodities 18.91%




REITs 1.22%



-1.7%







Global Bonds -3.57%











-12.14%

Global Bonds 1.65%


Global Bonds -0.48%



Global Bonds 5.17%

Commodities -13.32%


Global Bonds -4.00%



-15.22%

Global Bonds 2.55%



-18.96%

Commodities -1.06%

Commodities -9.52%

Commodities -17.01%

Commodities -24.66%

MARKET SEGMENT

Large Cap Stocks5


Global Bonds4


Short Term Bonds1

High Yield Bonds3

Hedge Alternative11

Small Cap Stocks6


REITs9


Commodities10


PAGE 2 PAGE 3


REITS12.74% 23.1%



7.85% 22.91%






5.70% 3.49%









2001 2002 2003 2004 2005 2006 2007 2008


Commodities 25.91%


REITs 33.16%


REITs 35.97%


Global Bonds 10.89%

REITs 12.35%

Global Bonds 19.49%



Commodities 21.36%








REITs 13.82%


Commodities 16.23%




10.26%

REITs 36.18%















REITs 3.58%





Global Bonds 10.95%




Commodities 23.93%









Global Bonds 10.35%





Global Bonds -0.99%







Commodities -35.65%




Commodities 9.15%


Global Bonds 6.12%





-15.94%

Global Bonds 14.91%





REITs -39.20%

Commodities -19.51%








-43.38%


-21.44%




Global Bonds -6.88%

Commodities 2.07%

REITs -17.56%


-52.89%

2009 2010 2011 2012 2013 2014 2015Emerging Market

Stocks 82.56%

REITs 28.07%

REITs 9.37%



REITs 32.00%

REITs 4.48%











REITs 17.12%




REITs 28.46%

Commodities 16.83%

Global Bonds 6.35%


























Commodities 18.91%




REITs 1.22%



-1.7%







Global Bonds -3.57%











-12.14%

Global Bonds 1.65%


Global Bonds -0.48%



Global Bonds 5.17%

Commodities -13.32%


Global Bonds -4.00%



-15.22%

Global Bonds 2.55%



-18.96%

Commodities -1.06%

Commodities -9.52%

Commodities -17.01%

Commodities -24.66%

MARKET SEGMENT

Large Cap Stocks5


Global Bonds4


Short Term Bonds1

High Yield Bonds3

Hedge Alternative11

Small Cap Stocks6


REITs9


Commodities10


PAGE 2 PAGE 3


REITS12.74% 23.1%



7.85% 22.91%






5.70% 3.49%







Step 3 – Rebalancing to Remain on Course

As the markets rise and fall, your asset allocation may shift with this movement, making your portfolio more conservative or more aggressive than what you initially intended. To keep your investments on track, a periodic review should be conducted in order to determine if rebalancing your portfolio needs to be completed to keep you on course with your stated objectives. If your investments have drifted too far from their targeted weightings, there may be a need to rebalance your portfolio by selling funds that have grown in value and buying more of those that have fallen in value. There is an added benefit of reducing the influence of emotion on investment decisions, as rebalancing seeks to manage the “balance” of your portfolios through the implementation of a disciplined strategy of buying low and selling high.

In the examples below, the actual market values of portfolios have changed as a result of market activity. One component of the portfolio has grown overweighted relative to the other component, leaving the portfolio out of balance.

To rebalance the portfolio, some of the assets in the overweighted asset class should be sold, and additional assets in the underweighted asset class should be purchased. This brings the portfolio back into balance.

7

+ =

Original Allocation Market Activity Unbalanced Portfolio Why Rebalance?

Stocks significantly outperform bonds.

The portfolio may be too risky.

Without rebalancing, this hypothetical

portfolio is at risk for stock market

volatility.

Original Allocation Market Activity Unbalanced Portfolio Why Rebalance?

Bonds significantly outperform stocks.

The portfolio may be too

conservative.

Without rebalancing, this hypothetical

portfolio could miss out if the stock

market performs well.

50% Bonds 70%

Stocks

70% Bonds

30% Bonds

30% Stocks50%

Bonds

50% Stocks

50% Stocks

=

=

+

+

*Hypothetical examples are for illustrative purposes only and are not intended to represent future performance of any specific products.

3-Step Process – Three Examples

When you allocate, diversify and rebalance, you are adhering to a proven process based on a long-term investment strategy tailored to your goals, time horizon and risk tolerance.

Below are three sample investment approaches representing the potential upside of following a 3-Step Process. Each hypothetical* investor funded a portfolio investing $2,500 each year over a 20-year period ($50,000 total from 1996 to 2015). Each one also follows a different investment strategy.

As you can see from the example below, the portfolio that followed the 3-Step Process of allocating, diversifying and rebalancing reaped the highest returns.

8

Portfolio 1

Every year, this portfolio was invested in the prior year’s worst-performing market segment.

Portfolio 2

Every year, this portfolio was invested in the prior year’s best-performing market segment.

Portfolio 3

This portfolio was invested using the principles of allocation, diversification and rebalancing.

Hoped for Rebound

Chased Performance

Followed 3-Step Process

$95,035

$103,032

$106,326

For purposes of this comparison, we used the S&P 500 index to represent equities and the Barclays U.S. Aggregate index to represent bonds. Portfolio 1 represents a $2,500 investment into the prior year’s worst performing asset class; the portfolio is never rebalanced. Portfolio 2 represents a $2,500 investment into the prior year’s best performing asset class; the portfolio is never rebalanced. Portfolio 3 represents a 60% investment into equities (S&P 500 index) and 40% investment into bonds (Barclays U.S. Aggregate index); every year, $1,500 is added to equities and $1,000 is added to bonds. At the same time, the existing portfolio is rebalanced to 60% equities and 40% bonds. The Barclays U.S. Aggregate Bond index measures the performance of investment grade bonds in the U.S. fixed-income universe. It includes U.S Treasury issues, agency issues, corporate bond issues and mortgage-backed issues. It is unmanaged, includes reinvestment of dividends, does not reflect the impact of transaction, manager or performance fees and is unavailable for investment. The Standard and Poor’s 500 is a capitalization weighted index of 500 leading companies in leading industries of the U.S. economy. It covers approximately 75% of the total capitalization of U.S. equities.Index Performance sourced from Morningstar – © 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Seek Experienced Advice and Get Started

Your HD Vest Advisor understands the full scope of your goals and overall financial picture, which equips him or her to work closely with you to determine the most appropriate approach to your long-term planning. Your HD Vest Advisor will start with a Risk Profile Questionnaire to help you both gain a deeper understanding of your objectives and then create a customized approach following the investment principles of the 3-Step Process.

About HD Vest

Since its inception in 1983, HD Vest Financial Services® has supported an independent network of tax and non-tax professionals who provide comprehensive financial services including securities, insurance, money management services, and banking solutions. Ranked as one of the top 20 independent broker-dealer firms4, with 4,600 independent contractors managing over $37 billion in assets for individuals, families and small businesses in all 50 states.5

4Think Advisor 2015 Broker-Dealer Reference Guide, which measured/ranked the top 25 independent broker-dealers by annual revenue.

5As of January 1, 2016

89

INDEX DEFINITIONS:1THE BARCAP U.S. 1-3 YEAR AGGREGATE is a subset of the BarCap U.S. Aggregate index, representing securities with 1 to 3 years remaining until maturity.2THE BARCAP U.S. AGGREGATE BOND INDEX measures the performance of investment grade bonds in the U.S. fixed-income universe. It includes U.S Treasury issues, agency issues, corporate bond issues and mortgage-backed issues. It is unmanaged, includes reinvestment of dividends, does not reflect the impact of transaction, manager or performance fees and is unavailable for investment.3THE BARCAP U.S. CORPORATE HIGH YIELD TOTAL RETURN INDEX measures the performance of corporate bonds rates below investment grade in the U.S. 4THE CITI WORLD GOVERNMENT BOND INDEX (WGBI) measures the performance of 23 government bonds markets including Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Malaysia, Mexico, the Netherlands, Norway, Poland, Portugal, Singapore, Spain, Switzerland, Sweden, the United Kingdom and the U.S. 5THE RUSSELL 1000 INDEX measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the U.S. market.6THE RUSSELL 2000 INDEX measures the performance of small-cap value segment of the U.S. equity universe.7THE MSCI EAFE INDEX is an unmanaged market capitalization-weighted index of equity securities of companies domiciled in various countries. The Index is designed to represent the performance

of developed stock markets outside the United States and Canada and excludes certain market segments unavailable to U.S. based investors. USD indicates performance calculated assuming foreign holdings values are converted from currency of domicile to US Dollar.8THE FTSE EMERGING TR INDEX measures the performance of approximately 1600 large, mid and small-cap securities listed in emerging market countries. 9THE DOW JONES SELECT REIT INDEX represents equity Real Estate Investment Trusts (REITs) and REIT-like securities traded in the U.S. 10THE BLOOMBERG COMMODITY INDEX is comprised of future contracts on physical commodities which trade here in the U.S. and certain foreign markets. It measures the performance of investment in a broad basket of commodity futures contracts. The index is composed of futures contracts on 19 physical commodities. No related group of commodities (e.g., energy, precious metals, livestock and grains) may constitute more than 33% of the index as of the annual re-weightings of the components. No single commodity may constitute less than 2% of the index. 11THE DOW JONES CREDIT SUISSE HEDGE FUND INDEX is an asset-weighted benchmark that measures hedge fund performance and seeks to provide the most accurate representation of the hedge fund universe.12THE DOW JONES CREDIT SUISSE GLOBAL MACRO INDEX measures the aggregate performance of dedicated short bias funds. Global macro funds typically focus on identifying extreme price valuations and leverage is often applied on the anticipated price movements in equity, currency, interest rate and commodity markets. Managers typically employ a top-down global approach to concentrate on forecasting how political trends and global macroeconomic events affect the valuation

of financial instruments. Profits can be made by correctly anticipating price movements in global markets and having the flexibility to use a broad investment mandate, with the ability to hold positions in practically any market with any instrument. These approaches may be systematic trend following models or discretionary.

All performance data throughout report – © 2015 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar not its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Exchange-traded funds (ETFs), as the name implies, are funds that trade like stocks. A single ETF often attempts to mirror an entire index such as the S&P 500, Dow Jones Industrial Average, or Nasdaq Composite Index; an entire sector of the equities market such as large caps, small caps, growth stocks or value stocks; or whole industries such as technology, energy or biotechnology. In addition, specialized ETFs can cover market niches such as gold, precious metals or REITs, and they can even cover other asset classes like fixed income. Investments that are concentrated in a specific region, sector or industry may be subject to a higher degree of market risk than investments that are more diversified. ETFs are traded like stocks or bonds and offer liquidity throughout the day as opposed to the end-of-day pricing system for mutual funds.

Investments are subject to market risks including the potential loss of principal invested.

HD Vest Financial Services® is the holding company for the group of companies providing financial services under the HD Vest name. HD Vest provides services related to securities investments primarily through two of its subsidiaries: HD Vest Investment ServicesSM and HD Vest Advisory ServicesSM. HD Vest Investment Services is a broker/dealer registered with the Securities and Exchange Commission and a member of the Financial Regulatory Authority (FINRA), and generally provides brokerage and investment transaction-related services. HD Vest Advisory Services is registered with the Securities and Exchange Commission to provide investment advisory services. Your HD Vest Advisor may be affiliated with both companies for the purpose of offering you a broader range of financial services. HD Vest uses the term “Advisor” to refer to the representative assigned to your account, whether he or she is providing brokerage services, investment advisory services, or both. Not all Advisors are licensed to provide investment advisory or financial planning services.

HD Vest Financial Services® is the holding company for the group of companies providing financial services under the HD Vest name. Securities offered through HD Vest Investment ServicesSM, Member SIPC Advisory services offered through HD Vest Advisory ServicesSM 6333 N. State Highway 161, Fourth Floor, Irving, TX 75038 972-870-6000 1456685 030116

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