Coleman ETF Fund Sector & Regional Captain Presentations.

Coleman ETF Fund

Sector & Regional Captain Presentations

Domestic Sectors

COLEMAN:DOMESTIC ETFS

Consumer Staples

&

Water Utilities

Bob Goslin

Mike Cavanaugh

CONSUMER STAPLES

Powershares Dynamic

Consumer Staples – PSLMorningstar Rating:

• Net Assets: $39 million

• Morningstar Risk Rating: Average

• Morningstar Return Rating: Average

iShares Dow Jones U.S.

Consumer Services – IYCMorningstar Rating:

• Net Assets: $ 160 million

• Morningstar Risk Rating:Low

• Morningstar Return Rating:Average

Consumer Staples

Top 10 Holdings:

Walgreen Co.Coca-Cola Co.General Mills, Inc.Proctor & Gamble Co.Philip Morris Int’l Inc.Kellogg CompanyColgate-Palmolive Co.PepsiCo. Inc.Archer Daniels

MidlandKimberly-Clark Corp.

% YTD Return % Net Assets

57.29 2.7020.06 2.6610.01 2.65-2.46 2.6413.79 2.6119.82 2.5715.66 2.5412.08 2.5112.14 2.4820.97 2.39

Powershares Dynamic Consumer Staples – Ticker: PSL

Top 10 Holdings:

Wal-Mart Stores, Inc.

McDonald’s Corp.CVS Caremark Corp.Walt Disney Co.Home Depot, Inc.Amazon.comWalgreen’s Co.Time Warner, Inc.TargetComcast, Inc.

% YTD Return % Net Assets

-8.67 8.85-0.64 5.1926.84 4.1323.53 3.8311.36 3.47128.35 3.0461.50 2.9837.31 2.8644.11 2.67-15.14 2.44

iShares Dow Jones U.S. Consumer Services – Ticker: IYC

Performance Comparison:Consumer Staples

Powershares: PSL iShares: IYL

Trailing Total Returns

Market Return %

NAVReturn%

Market Return %

NAVReturn%

YTD 15.39 15.98 23.08 23.19

1 Month 1.08 1.35 1.77 1.53

3 Month 3.66 3.30 6.87 6.70

6 Month 12.98 15.28 13.88 16.80

12 Month 7.47 9.06 16.87 19.48

3 Year Annualized 0.17 0.21 -6.02 -6.11

Other Key Figures: Consumer StaplesPowerShares iShares

Fund Inception Date October 2006 June 2000

Expected Returns 11.76% 13.66%

Market Price 23.89 51.50

Fair Value Estimate 25.04 56.57

Price/Fair Value 0.95 0.91

Beta (S & P 500) 0.72 0.96

Alpha 3.80 -0.28

Volatility (Std. Dev. 3 years) 15.57 20.28

WATER UTILITES

Powershares Water Resources – PHOMorningstar Rating:

• Net Assets: $1,328 Million

• Morningstar Risk Rating:

Above Average

• Morningstar Return Rating:

Above Average

Water Utilities

Top 10 Holdings:

AECOM Technology Corp.

Tetra Tech, Inc.

Valmont Industries, Inc.

URS Corporation

Veolia Environment ADR

Itron Inc.

Danaher Corporation

Roper Industries, Inc.

Flowserve Corporation

Ameron International, Inc.

% YTD Return % Net Assets

-18.29 5.178.03 5.1521.27 5.14-3.04 5.147.69 5.06-3.92 4.6022.01 4.5617.29 4.1694.29 4.12-1.65 3.93

Powershares Water Resources

Performance – PHO

Trailing Total Returns Market Return % NAV Return %

YTD 11.44 10.66

1 Month 0.51 0.95

3 Month -0.54 1.25

6 Month 9.58 13.78

12 Month 14.80 14.70

3 Year Annualized -2.74 -2.59

Other Key Figures: Water UtilitiesPowershares Water Resources PHO

2008 Market Return % 32.43

2008 NAV Return % 32.17

2007 Market Return % 16.73

2007 NAV Return % 17.22

Beta (S & P 500) 1.24

Alpha 7.31

Volatility (Std. Dev. 3 years) 26.96

DOMESTIC ETF’S

November 5, 2009

Pavala Kane: Information Technology

Olivia Pietrunti: Personal Products

Sumedha Verma: Household Products

Ebele Nwaoduah: Food Products

Kevin Hylinski: Household Durables

•Corporate efficiency

• After layoffs

•Small IT budgets

•Positive growth in most areas of outsourcing

• Risk: US unemployment

•Health Care industry

• Obama

• Evolution

Decision:YES

Information Technology

Vanguard Information Technology ETF - VGT

•Price: $49.77•Key Holdings:

• Microsoft (9.43%)• IBM (7.93%)• Hewlett- Packard (5.23%)• Accenture (1.07%)• Automatic Data Processing (0.94%)

•Includes software, hardware, internet, and other tech related stocks•Mostly large-cap > long-term competitive advantage•0.25% expense ratio

•Pantry and Medicine Cabinet “de-stocking”

•Emphasis on value products

• Margins

•Much restructuring within the sub-industries - costs

•Weak consumer spending

•Weakening dollar

• International business

•A few strong picks

Decision: NO

Personal and Household Products

•Agricultural products and packaged foods

•Cooking rather than dining out

•Inexpensive brands, reduced purchase volume, coupons

•Consolidation among retailers - overhead

•Hyper Markets & Super Centers

•Defer spending on others goods

•Commodity prices - wheat, corn, and cattle

Decision: YES

Food Products

Vanguard Consumer Staples ETF - VDC

•Price: $65.31•Key Holdings:

• Wal-Mart Stores (9.35%)• Coca-Cola Company (8.09%)• Kraft Foods (3.81%)• Costco Wholesale (1.99%)• General Mills (1.81%)• Kroger Company (1.24%)

•Brings in strong personal products (PG and CL) •Mature and stable cash flows

•Appliances and Furniture

• Highly correlated to real estate and consumer spending

• Unemployment and household debt hurt home improvement spending

•Absent replacement cycle

• major kitchen and laundry appliances

•Furniture has minimum pricing power and low net margins

Decision: NO

Household Durables

ENERGY EQUIPMENT & SERVICESCONSTRUCTION & ENGINEERINGSOFTWAREMETALS & MINING

• Credit crisis, global recession, price volatility• = pullback in capital spending by producers• Brunt of the pullback is in North America and

natural gas• ST: greater emphasis on development• LT: demand should recover as demand for oil

recovers– Increased efforts to boost supply– Companies searching for additional drilling opportunities

Energy Equipment & Services

• Positive outlook for industry as a whole– Economic recovery, expectations of increased oil

consumption– Thin spare capacity, high field depletion rates

• ETF:– 63.27% YTD / -14.48% 1 Yr / 1.65% 3 Yr– Holdings relatively equal– Schlumberger, Haliburton, FMC Tech, Baker

Hughes

SPDR S&P Oil & Gas Equipment Services ETF (XES)

• Negative• No significant growth expected within

investment horizon• Sector relies on big construction projects,

which are at a standstill due to economic environment

Construction & Engineering

• International• Current ST cut backs in technology spending• Companies implementing new technologies to

save time and resources• Positive trends:

– Consolidation– Rapid growth of the internet and network computing– Demand for systems software and applications that

take advantage of new tech

Software Industry

• Tracks US-traded software related stocks• 36.82% YTD / -0.41% 1 YR / 0.21% 3

YR / 4.82% 5 YR• Microsoft, Adobe, Symantec, Oracle

iShares S&P North American Technology-Software Index Fund (IGV)

• Highly sensitive to business cycle• High gold / silver / copper prices + weak

dollar = good returns• Coal producers should perform well due to

electricity, steel demand• Global in scale• Con: if economy doesn’t recover, then not a

good sector

Metals & Mining

• Tracks S&P select industry• 65.35% YTD / -1.84% 1 YR / 4.20% 3

YR• Freeport-Mcmoran, Newmont Mining,

Alcoa, Nucor, Consol Energy

SPDR S&P Metals and Mining ETF(XME)

Regional ETFs

EURO ZONE REGION

Eurozone Region

• Recommended for investment– Germany

• Not recommended for investment– Austria– Belgium– France– Italy– Netherlands– Spain

Germany

• Pros– Manufacturing stabilizing and

improving– Exports stabilizing and improving– Stable government

• Cons– Slow growth– Consumer demand– Business investment

Germany ETF

• Name: iShares MSCI Germany Index Fund• Ticker: EWG• Sector Weights:

ASIAN REGION

• Pros- Net Assets- $8.860 Million• 8.7% GDP growth expected • Pipeline from Russia• Gradual decrease in deficit

• Cons- Domestic Politics!!• Hu vs. Xi• Ethnic Minorities• Trade Tensions• 50% Financials

CHINA FTSE/Xinhua China 25 Index Fund (FXI)

• Cons- Domestic Politics!!• Former

Pres. Typhoon• Infrastructure• High Speed

Rail• 15.68% Financials

• Pros- Bilateral Trade Agreement

with China• 58.5% IT• Top Holding are

strong• Expect Rate

Cuts Mid 2010

Taiwan MSCI Taiwan Index Fund (EWT)

(EWY)

Cons- -North Korea-Volatile Currency

Pros- -Diversity-Top Holdings-Ties to Superpowers-Business Friendly-Lower Fiscal Spending

South KoreaMSCI South Korea Index Fund

SWEDEN & TURKEY

TURKEY

Pros:• 2002-2007 solid GDP growth of around 7%

per year• Privatization a key to economic growth• Young and urbanizing population• Reduction in Debt/GDP ratio• Monetary policy focused on lowering inflation

• EIU’s overall business rating got upgraded from 5 to 6 in 2004

• Macroeconomic stability rating went up from 6 to a 7 in 2007

• Bright spot in Europe• Contributes towards geographical

diversification

Cons: • Several short comings in country’s infrastructure still

persist• Prone to severe economic and financial crises (e.g.

2001)• 2009 real GDP was -5.7% • Terrorist attacks can be an economic threat

TUR (MSCI Turkey Investable market Index)

• Fund Inception date: 3/26/2008• Tracks the IMI index (0.99 correlation)

Inception: 1994• ETF has been performing very well

YTD: up 89%

1 year: up 16.83%

• Recommendation: YES

SWEDEN

Pros• The Swedish economy appears to bottom in

fourth quarter 2008• Second quarter 2009 economic results were

better than expected• EIU’s Overall business environment rating is at 8• Government has committed itself to Skr38bn

($US4.5bn) of additional spending through 2011• Trade and service surplus are expected to narrow

but remain positive through the end of 2010

Cons• GDP projected to be under 2% for the next two

years• Macroeconomic rating has dropped from 10 to

8 in recent times.• The Krona has been weakening since

September 2008• Slump in global demand has hurt Sweden

exports tremendously • Recovering credit markets

EWD (MSCI Sweden Index)

• Good returns in recent times:

YTD up around 60%

1 year around 19%

• Since inception up 8.65 %

Recommendation: YES