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Morningstar U.S. Style Overview Jan. 1-Dec. 31, 2012 Trailing Returns % 3-Month YTD 1-Yr 3-Yr 5-Yr 10-Yr Morningstar Indexes US Market 2.61 16.17 16.17 10.91 2.07 7.91 Large Cap 1.69 15.93 15.93 10.15 1.30 6.84 Mid Cap 5.33 16.98 16.98 12.75 3.65 10.46 Small Cap 4.92 16.39 16.39 12.85 4.97 10.92 Morningstar Market Barometer YTD Return % US Market 16.17 Value 14.11 Core 17.53 Growth 17.17 US Value 4.19 14.11 14.11 9.98 0.26 7.32 US Core 3.62 17.53 17.53 11.68 3.35 8.67 US Growth 0.25 17.17 17.17 11.06 2.40 7.47 Large Cap 15.93 12.81 17.48 17.87 Large Value 3.04 12.81 12.81 9.45 –1.31 6.15 Large Core 2.94 17.48 17.48 10.72 2.54 7.81 Large Growth –0.68 17.87 17.87 10.23 2.40 6.18 Mid Cap 16.98 17.47 17.86 15.72 Mid Value 7.51 17.47 17.47 10.89 3.75 9.83 Mid Core 5.61 17.86 17.86 14.60 5.27 10.74 Mid Growth 3.04 15.72 15.72 12.68 1.85 10.54 Small Cap 16.39 18.19 16.60 14.41 Small Value 6.95 18.19 18.19 12.97 6.92 11.68 Small Core 5.27 16.60 16.60 11.88 4.73 10.57 Small Growth 2.58 14.41 14.41 13.69 3.30 10.32 –8.00 –4.00 0.00 +4.00 +8.00 Sector Index YTD Return % Communication 32.39 Financial Services 29.05 Industry Leaders & Laggards YTD Return % Residential Construction 85.84 Oil & Gas Refining & 80.48 Biggest Influence on Style Index Performance Best Performing Index YTD Return % Small Value 18.19 Constituent Weight % Consumer Cyclical 24.56 Healthcare 19.32 Real Estate 18.61 Basic Materials 16.46 Industrials 15.28 Technology 13.30 Consumer 10.08 Energy 4.32 Utilities 2.19 1-Year Consumer Electronics 77.16 Building Materials 58.57 Real Estate - General 51.75 Broadcasting - Radio 51.68 –9.02 Business Equipment –14.12 Gold –17.53 Electronic Gaming & Multimedia –21.54 Industrial Metals & Minerals –26.67 Coal –38.23 Education & Training Services 3-Year Terex Corp 108.07 0.49 US Airways Group 166.27 0.27 Tenet Healthcare 58.24 0.73 First American Financial Corp 93.66 0.44 Community Health Systems 77.65 0.52 Worst Performing Index Large Value 12.81 Bank of America Corp 109.83 1.70 JP Morgan Chase & Co 36.18 3.82 General Electric Co 21.25 5.72 Citigroup Inc 50.55 2.31 Pfizer Inc 20.41 5.03 5-Year Value Core Growth Value Core Growth Value Core Growth Large Cap 12.81 17.48 17.87 Large Cap 9.45 10.72 10.23 Large Cap –1.31 2.54 2.40 Mid Cap 17.47 17.86 15.72 Mid Cap 10.89 14.60 12.68 Mid Cap 3.75 5.27 1.85 Small Cap 18.19 16.60 14.41 Small Cap 12.97 11.88 13.69 Small Cap 6.92 4.73 3.30 –20 –10 0 +10 +20 –20 –10 0 +10 +20 –20 –10 0 +10 +20 Source: Morningstar. Data as of Dec. 31, 2012 Source: Morningstar. Data as of Feb. 29, 2012. Notes and Disclaimer: ©2013 Morningstar, Inc. All Rights Reserved. Unless otherwise noted, all data is as of most recent month end. Multi-year returns are annualized. NA: Not Available. Biggest Influence on Index Performance lists are calculated by multiplying stock returns for the period by their respective weights in the index as of the start of the period. Sector and Industry Indexes are based on Morningstar's proprietary sector classifications. The information ? contained herein 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. 60 March / April 2013
Exchange-Traded Dow Jones U.S. Industry Funds Review Corner 1-Year Performance Cumulative Performance Comparison Period Ending December 31, 2012 Comparison Period: December 31, 1991 to December 31, 2012 130 1600 125 1400 120 1200 115 110 105 100 95 90 12/11 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities Dow Jones U.S. Index 1000 800 600 400 200 0 12/91 7/92 2/93 9/93 4/94 11/94 6/95 1/96 8/96 3/97 10/97 5/98 12/98 7/99 2/00 9/00 4/01 11/01 6/02 1/03 8/03 3/04 10/04 5/05 12/05 7/06 2/07 9/07 4/08 11/08 6/09 1/10 8/10 3/11 10/11 5/12 12/12 Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities Dow Jones U.S. Index Short-Term Performance Statistics Long-Term Performance Statistics Comparison Period Ending December 31, 2012 Comparison Period Ending December 31, 2012 Avail. Hist. 1-Month 3-Month 6-Month 1-Year YTD 3-Year 5-Year 7-Year 10-Year (12/31/91) Dow Jones U.S. Basic Materials Index 4.03% 3.14% 8.61% 10.49% 10.49% Dow Jones U.S. Basic Materials Index 7.47% 0.21% 6.74% 9.78% 7.46% Dow Jones U.S. Consumer Goods Index -0.98% 1.63% 6.14% 12.80% 12.80% Dow Jones U.S. Consumer Goods Index 13.62% 6.18% 7.89% 9.33% 8.90% Dow Jones U.S. Consumer Services Index 0.16% 1.18% 8.15% 24.17% 24.17% Dow Jones U.S. Consumer Services Index 18.07% 8.76% 7.09% 8.77% 8.51% Dow Jones U.S. Financials Index 3.95% 5.10% 11.45% 26.85% 26.85% Dow Jones U.S. Financials Index 7.61% -6.26% -4.74% 1.29% 8.03% Dow Jones U.S. Health Care Index -0.27% -0.67% 6.27% 19.26% 19.26% Dow Jones U.S. Health Care Index 11.68% 5.53% 6.12% 7.44% 8.85% Dow Jones U.S. Industrials Index 2.64% 4.58% 9.12% 17.87% 17.87% Dow Jones U.S. Industrials Index 13.80% 2.35% 5.48% 9.05% 8.09% Dow Jones U.S. Oil & Gas Index 0.91% -2.67% 7.39% 4.71% 4.71% Dow Jones U.S. Oil & Gas Index 9.27% -0.35% 7.20% 13.77% 11.52% Dow Jones U.S. Technology Index 0.16% -6.41% -0.25% 12.08% 12.08% Dow Jones U.S. Technology Index 8.12% 3.50% 6.09% 9.16% 10.61% Dow Jones U.S. Telecommunications Index -0.48% -5.53% 2.22% 18.79% 18.79% Dow Jones U.S. Telecommunications Index 13.29% 1.39% 7.07% 7.03% 5.49% Dow Jones U.S. Utilities Index 0.05% -2.56% -2.27% 1.76% 1.76% Dow Jones U.S. Utilities Index 9.33% 0.52% 5.61% 10.11% 7.26% Dow Jones U.S. Index 1.12% 0.14% 6.37% 16.32% 16.32% Dow Jones U.S. Index 11.20% 2.16% 4.53% 7.82% 8.29% Annualized Risk Risk / Return Comparison Period Ending December 31, 2012 Comparison Period: December 31, 1991 to December 31, 2012 Avail. Hist. 3-Year 5-Year 7-Year 10-Year (12/31/91) 25.53% 31.29% 27.48% 24.63% 22.22% Dow Jones U.S. Consumer Goods Index 11.49% 15.45% 13.49% 12.58% 12.98% Dow Jones U.S. Consumer Services Index 15.59% 19.65% 17.37% 16.04% 17.12% Dow Jones U.S. Financials Index 19.75% 29.41% 25.57% 22.33% 20.33% Dow Jones U.S. Health Care Index 12.05% 15.80% 14.13% 12.81% 14.75% Dow Jones U.S. Industrials Index 19.77% 24.81% 21.50% 19.11% 17.84% Dow Jones U.S. Oil & Gas Index 22.39% 24.56% 23.00% 21.76% 19.64% Dow Jones U.S. Technology Index 19.47% 23.10% 20.80% 19.63% 27.62% Dow Jones U.S. Telecommunications Index 14.15% 18.36% 17.10% 16.30% 19.89% Dow Jones U.S. Utilities Index 9.54% 14.54% 13.59% 13.15% 14.62% Dow Jones U.S. Index 15.79% 19.57% 17.06% 15.21% 15.18% Annualized Return 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 10.0% 15.0% 20.0% 25.0% 30.0% Annualized Risk Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities Dow Jones U.S. Index Copyright © 2013 by S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies. All rights reserved. “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). STANDARD & POOR’S and S&P are registered trademarks of Standard & Poor’s Financial Services LLC. The Dow Jones U.S. Index and the Dow Jones U.S. Industry Indices were first calculated in February 2000. All information presented prior to this date is back-tested. Back-tested performance is not actual performance, but is hypothetical. The backtest calculations are based on the same methodology that was in effect when the index was officially launched. Complete index methodology details are available at www.spindices.com. Past performance is not an indication of future results. Prospective application of the methodology used to construct the Dow Jones U.S. Index may not result in performance commensurate with the back-test returns shown. The back-test period does not necessarily correspond to the entire available history of the index. Please refer to the methodology paper for the index, available at www.spdji.com or www.spindices.com for more details about the index, including the manner in which it is rebalanced, the timing of such rebalancing, criteria for additions and deletions, as well as all index calculations. It is not possible to invest directly in an Index. Another limitation of back-tested hypothetical information is that generally the back-tested calculation is prepared with the benefit of hindsight. Back-tested data reflect the application of the index methodology and selection of index constituents in hindsight. No hypothetical record can completely account for the impact of financial risk in actual trading. For example, there are numerous factors related to the equities (or fixed income, or commodities) markets in general which cannot be, and have not been accounted for in the preparation of the index information set forth, all of which can affect actual performance. The index returns shown do not represent the results of actual trading of investor assets. S&P/Dow Jones Indices LLC maintains the indices and calculates the index levels and performance shown or discussed, but does not manage actual assets. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause actual and back-tested performance to be lower than the performance shown. In a simple example, if an index returned 10% on a US $100,000 investment for a 12-month period (or US$ 10,000) and an actual asset-based fee of 1.5% were imposed at the end of the period on the investment plus accrued interest (or US$ 1,650), the net return would be 8.35% (or US$ 8,350) for the year. Over 3 years, an annual 1.5% fee taken at year end with an assumed 10% return per year would result in a cumulative gross return of 33.10%, a total fee of US$ 5,375, and a cumulative net return of 27.2% (or US$ 27,200). Source: S&P Dow Jones Indices; data as of December 31, 2012. For more information, please visit the S&P Dow Jones Indices web site at www.spdji.com. www.journalofindexes.com March / April 2013 61
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Plus an interview with Robert Mayna
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www.journalofndexes.com Vol. 16 No.
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McGRAW-HILL You can never have too
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©2013 Morningstar, Inc. All rights
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THE POWERSHARES DB COMMODITY INDEX
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Page 61: Morningstar Index Funds U.S. Style
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