s-network international sector dividend dogs index · company, avoiding concentrated risk. consumer...

© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.

S-Network International

Sector Dividend Dogs Index

Q4 2019


Index Rationale

❑ Well-Qualified Universe of Index Candidates

▪ Captures Stocks Accounting for 70% of Stock Market Capitalization in World Bank “High Income” Countries

▪ Screened for Price

▪ Screened for Liquidity

❑ Diversified by Sector

▪ Five Stocks with Highest Dividend Yields in Each of the Ten GICS Sectors Selected for Inclusion in IDOGX, Assuring Diversification Across All Sectors

❑ Pure Yield – No Qualitative Screens

▪ IDOGX Does Not Include Any Qualitative Screens, such as Dividend Growth, Dividend Consistency or Coverage Ratio

▪ Based Entirely on Dividend Yield, Making IDOGX the Only Pure Play Dividend Index Available

❑ Entirely Rules-Based

▪ Depends on a Clearly Defined Rules-Based Methodology

▪ No Discretion is Exercised in Compiling the Index

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

❑ Equal Weighting Methodology

▪ Constituents Equally Weighted as of Record Date

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

Rules-Based High Dividend Index.

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Index Construction

3

The S-Network International Sector Dividend Dogs Index Methodology Is Totally Transparent and

Includes Screens Designed to Mitigate Risk and Lower Transaction Costs.

70-73% of Market Cap in 22 Developed Markets

Eliminates Stocks Whose ADTV < $10 Million

Eliminates Stocks Whose Share Price < $1

Select 5 Highest Yielding

Stocks in Each of 10

GICS Sectors

Equally

Weighted


Index Performance and Yields


Historical Performance

5

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

Regularly Outperforming the SND1000.

Source: S-Network, as of 12/31/2019

0

1,000

2,000

3,000

4,000

5,000

6,000

Dec-99 Dec-01 Dec-03 Dec-05 Dec-07 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17 Dec-19

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

IDOGXTR SPGTDOUT DJEPCSDT SND1000T


Current Dividend Yield Comparison

6

The S-Network International Sector Dividend Dogs Index Offers a

Higher Dividend Yield than the SND1000.


4.98%

2.87%

IDOGX Index

SND1000 Index

Dividend Yield


Dividend Yield

7

Over an Extended Time Frame, the S-Network International Sector Dividend Dogs Index

Has Consistently Offered Higher Yield Than the SND1000.

Source: S-Network as of 12/31/2019

2.9

0%

2.9

8% 3

.77%

3.0

5% 3.7

1% 4.1

1%

3.6

3%

4.0

0%

7.6

5%

3.2

9%

4.9

4%

6.2

2%

5.4

8%

4.2

3%

5.2

9%

4.9

2%

5.1

3%

4.2

2%

5.9

6%

4.9

8%

1.8

3% 2.3

2% 2.8

0%

2.3

3%

2.4

4%

2.7

8%

2.8

5%

3.1

0%

5.8

6%

3.0

5%

2.9

8%

4.2

6%

3.6

2%

3.1

6% 3

.82%

3.1

6%

3.3

8%

2.5

3%

3.3

4%

2.8

7%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19

S-Network International Select Dividend Dogs Index Dividend Yield vs. S-Network Developed International 1000 Dividend Yield

(12/31/1999-12/31/2019)

S-Network International Sector Dividend Dogs S-Network Developed International 1000


Index Constituents and Fundamentals


Index Constituents

9

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

Company, Avoiding Concentrated Risk.

Consumer

Discretionary

Consumer

StaplesEnergy Financials Health Care

IndustrialsInformation

TechnologyMaterials Communication

ServicesUtilities


Ahold Delhaize NV

British American Tobacco Plc

Imperial Brands Plc

Japan Tobacco Inc

Mowi ASA

Endesa SA

Energias de Portugal SA

National Grid PLC

Naturgy Energy Group SA

Scottish & Southern Energy

Canon Inc

Fujifilm Holdings Corp

Hitachi

Kyocera Corp

Tokyo Electron

BASF SE

BHP Group Ltd

Evonik Industries

Fortescue Metals Group

Rio Tinto Ltd

BP

ENI SpA

Equinor ASA

Repsol SA

Royal Dutch Shell PLC

ACS Actividades de Construccion y Servicios SA

Bouygues

CITIC Limited

CK Hutchison Holding Ltd

Komatsu

AstraZeneca Plc

Bayer AG

GlaxoSmithKline

Sanofi-Aventis

Takeda Pharmaceutical Co Ltd

BT Group

SoftBank Corp

Telefonica SA

Telia Company AB

WPP Plc

ANZ Banking Group

Danske Bank A/S

Intesa SanPaolo

National Australia Bank Ltd

Natixis

Hennes & Mauritz AB B

Renault SA

Sands China Ltd.

Wesfarmers Ltd

Wynn Macau


Sector Distribution

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Consumer Discretionary

10.15% Consumer Staples10.10%

Financials10.09%

Energy10.08%

Health Care10.08%Materials

10.01%

Utilities9.95%

Information Technology

9.93%

Industrials9.88% Communication

Services9.72%

S-Network International Sector Dividend Dogs Index:

Sector Distribution

Financials19.95%

Industrials14.41%

Health Care10.95%Information

Technology10.81%

Consumer Discretionary

10.32%

Consumer Staples10.08%

Materials6.93%

Communication Services

5.68%

Energy5.65%

Utilities3.45%

Real Estate1.77%

S-Network Developed International 1000: Sector Distribution


Country Distribution

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United Kingdom18.15%

Japan17.72%

Australia12.05%

Spain9.71% France

7.98%

Germany6.03% Macao

4.16%

Norway4.13%

Italy4.04%

Netherlands3.99%

Hong Kong3.98%Others

8.07%

S-Network International Sector Dividend Dogs Index: Country Distribution


Index Fundamentals

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Solid Fundamentals and a Large Capitalization Bias Help Mitigate Risks in the S-Network

International Sector Dividend Dogs Index.

Number of Constituents 50

Total Market Capitalization 2.47 Trillion USD

Largest Market Capitalization 232.54 Billion USD

Smallest Market Capitalization 12.59 Billion USD

Average Market Capitalization 49.42 Billion USD

Median Market Capitalization 36.33 Billion USD

Market Capitalization Profile


IDOGX SND1000

Price/Earnings 14.25 18.28

Price/Book Value 1.47 1.73

Dividend Yield 4.98% 2.87%

Index Fundamentals


Statistical Profiles


S-Net International Sector Div Dogs TR S-Network Developed International 1000 TR Out/Underperformance

12/31/2000 -3.85% -14.00% 10.14%

12/31/2001 -12.95% -21.86% 8.91%

12/31/2002 -10.08% -14.31% 4.24%

12/31/2003 44.62% 40.23% 4.39%

12/31/2004 24.95% 20.62% 4.33%

12/31/2005 10.80% 15.29% -4.50%

12/31/2006 33.58% 24.96% 8.62%

12/31/2007 13.67% 12.90% 0.77%

12/31/2008 -37.13% -42.06% 4.93%

12/31/2009 54.09% 35.10% 19.00%

12/31/2010 11.73% 9.54% 2.19%

12/31/2011 -5.16% -11.10% 5.93%

12/31/2012 15.42% 18.75% -3.33%

12/31/2013 20.75% 21.55% -0.80%

12/31/2014 -4.77% -3.72% -1.05%

12/31/2015 -5.41% -2.32% -3.09%

12/31/2016 5.15% 3.47% 1.68%

12/31/2017 27.23% 26.17% 1.05%

12/31/2018 -12.21% -13.95% 1.73%

12/31/2019 22.21% 23.60% -1.39%

Year-On-Year Price Appreciation

Statistical Profile

14

The S-Network International Sector Dividend Dogs TR Index has Outperformed the SND1000 TR

Index in 14 of the Last 20 Years.Source: S-Network as of 12/31/2019

© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016. 15

Statistical Profile I

S-Net Intl Sector Div Dogs TR S&P Intl Div Opps TR DJ EPAC Sel Div TR S-Net Dev Intl 1000T

Since Inception* 323.20% 420.19% 370.59% 127.67%

10 Year 90.91% 42.26% 77.41% 83.58%

5 Year 35.75% 27.87% 27.29% 35.64%

3 Year 36.49% 31.57% 32.32% 34.20%

1 Year 22.21% 21.46% 23.08% 23.60%


Since Inception* 7.48% 8.59% 8.05% 4.20%

10 Year 6.68% 3.59% 5.90% 6.26%

5 Year 6.30% 5.04% 4.94% 6.29%

3 Year 10.93% 9.58% 9.78% 10.30%

1 Year 22.21% 21.46% 23.08% 23.60%

Total Return Appreciation

Compound Annual Growth Rate

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


Statistical Profile II


Since Inception* 0.4195 0.4420 0.4308 0.2328

10 Year 0.4792 0.2642 0.4066 0.4552

5 Year 0.4741 0.3605 0.3571 0.4722

3 Year 0.8440 0.8976 0.7298 0.7863

1 Year 1.5009 2.0791 1.4993 1.6765


Since Inception* 16.50% 19.11% 17.98% 16.23%

10 Year 14.48% 15.93% 15.72% 14.36%

5 Year 12.16% 12.89% 12.72% 12.19%

3 Year 11.04% 8.77% 11.40% 11.16%

1 Year 12.54% 8.57% 13.08% 11.87%

Standard Deviation (Monthly)

Sharpe Ratio (Monthly)



Statistical Profile III

S-Net Intl Sector Div Dogs TR S&P Intl Div Opps TR DJ EPAC Sel Div TR

Since Inception* 0.27% 0.36% 0.32%

10 Year 0.05% -0.21% -0.04%

5 Year 0.02% -0.06% -0.10%

3 Year 0.10% 0.12% -0.01%

1 Year -0.14% 0.36% -0.11%

S-Net Intl Sector Div Dogs TR S&P Intl Div Opps TR DJ EPAC Sel Div TR

Since Inception* 0.6542 0.6102 0.5615

10 Year 0.1062 -0.3825 -0.0342

5 Year 0.0018 -0.1750 -0.3203

3 Year 0.1423 -0.2042 -0.1210

1 Year -0.3705 -0.4372 -0.0738

Information Ratio (vs S-Net Dev Intl 1000 TR, Monthly)

Alpha (vs S-Net Dev Intl 1000 TR, Monthly)



Statistical Profile IV

S-Net Intl Sector Div Dogs TR S&P Intl Div Opps TR DJ EPAC Sel Div TR S-Net Dev Intl 1000 TR

S-Net Intl Sector Div Dogs TR 1.0000 0.8784 0.9574 0.9538

S&P Intl Div Opps TR** 0.8784 1.0000 0.8892 0.8733

DJ EPAC Sel Div TR 0.9574 0.8892 1.0000 0.9543

S-Net Dev Intl 1000 TR 0.9538 0.8733 0.9543 1.0000

Correlation 5Yr





DJ EPAC Sel Div TR 0.9154 0.9014 1.0000 0.9151

S-Net Dev Intl 1000 TR 0.9511 0.9232 0.9952 1.0000

Beta 5Yr


Statistical Profile V

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DJ EPAC Sel Div TR 0.9166 0.7907 1.0000 0.9107

S-Net Dev Intl 1000 TR 0.9097 0.7626 0.9107 1.0000

R-Squared 5Yr



Index Construction and Distribution


Index Construction – Methodology

❑ Universe Consists of Stocks Representing the Top 70-73% of Market

Capitalization in 22 “High Income Countries” Identified by the World Bank

❑ Criteria for Admission to Universe Includes Requirements for Sector Inclusion,

Primary Exchange Listing, Minimum Market Capitalization, Minimum Average

Daily Trading Volume, Minimum Share Price and Other Factors

❑ Individual Securities Included in IDOGX Selected Based on Ranking System

Within Each Sector

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

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

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

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

Transparent Construction Methodology.


Index Construction – Weighting and Deletions

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

Rebalancing Month

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

Calendar Quarter

❑ Index Is Rebalanced Quarterly Back to Equal Weights

❑ Stocks Deleted From the Universe Are Deleted from IDOGX Effective Upon

Deletion From the Universe

❑ Stocks That Have Failed to Pay a Quarterly Dividend Are Deleted from IDOGX as

of Next Quarterly Rebalancing

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

Snapshot Date Only Those Securities Which Qualify are Included

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


Index Details & Data Distribution

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

❑ Total Return Index Calculated Daily in USD and EUR

❑ Index Values Distributed via Consolidated Tape

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

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

▪ Quarterly Portfolio Snapshots (Historic Constituents and Weights)

❑ Extensive Analytic support

▪ Quarterly Reports (“Index Insights”)

▪ Industry Overviews

▪ Extensive Statistical Data

❑ Comprehensive website: www.sectordividenddogs.com

❑ Broad data distribution via third party vendors

▪ S&P/Bloomberg/Yahoo, etc.

▪ S-Network contribution page on Bloomberg: SNET

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http://www.sectordividenddogs.com


Company History

❑ S-Network Global Indexes

S-Network Global Indexes, Inc. is a publisher and developer of proprietary and custom indexes. S-Network began

publishing indexes in 2006 and currently publishes over 300 indexes, which serve as the underlying portfolios for

financial products with approximately USD 7 billion in assets under management. S-Network indexes, which are

supported by a state-of-the-art technology platform, are known for their transparency and efficiency.

S-Network is a leader in socially responsible investment, publishing best-practice benchmark indexes in

collaboration with Thomson Reuters. S-Network published the first global alternative energy and water indexes,

which today serve as the recognized benchmarks for those sectors worldwide. In addition to publishing socially

responsible indexes, S-Network produces proprietary environmental, social and governance ratings on nearly

8,500 public companies worldwide.

S-Network publishes a comprehensive suite of benchmark indexes covering US, European, Pacific Basin and

emerging markets companies and mirroring the performance characteristics of the most popular indexes. The

benchmark series offers detailed historical data, including daily constituent level data, from December 31, 1999 to

the present. S-Network benchmarks serve as starting universes for smart beta indexes, as institutional-quality

performance benchmarks, and as bases for Separately Managed Accounts.

S-Network is a prominent provider of smart beta indexes that incorporate standard market statistics as well as

unique and highly specialized proprietary data sets derived from non-traditional sources. Smart beta indexes

developed by S-Network embrace powerful single-factor models as well as complex multi-factor models that

incorporate over 200 discrete factors. All indexes developed by S-Network address and resolve issues such as

liquidity, investability and index turnover characteristics.

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s-network international sector dividend dogs index · company, avoiding concentrated risk. consumer...

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