© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016. S-Network International Sector Dividend Dogs Index Q4 2019
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
S-Network International
Sector Dividend Dogs Index
Q4 2019
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
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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© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
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
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
Index Performance and Yields
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
Historical Performance
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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
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
Current Dividend Yield Comparison
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The S-Network International Sector Dividend Dogs Index Offers a
Higher Dividend Yield than the SND1000.
Source: S-Network, as of 12/31/2019
4.98%
2.87%
IDOGX Index
SND1000 Index
Dividend Yield
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
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
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
Index Constituents and Fundamentals
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
Index Constituents
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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
Source: S-Network as of 12/31/2019
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
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
Sector Distribution
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Source: S-Network, as of 12/31/2019
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
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
Country Distribution
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Source: S-Network, as of 12/31/2019
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
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
Index Fundamentals
12
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
Source: S-Network as of 12/31/2019
IDOGX SND1000
Price/Earnings 14.25 18.28
Price/Book Value 1.47 1.73
Dividend Yield 4.98% 2.87%
Index Fundamentals
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
Statistical Profiles
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
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
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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%
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* 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
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016. 16
Statistical Profile II
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* 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
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* 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)
*From 12/31/1999 Source: S-Network as of 12/31/2019
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016. 17
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)
*From 12/31/1999 Source: S-Network as of 12/31/2019
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016. 18
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
*From 12/31/1999 Source: S-Network as of 12/31/2019
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 0.9312 1.0013 0.9565
S&P Intl Div Opps TR** 0.8286 1.0000 0.8772 0.8261
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
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
Statistical Profile V
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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 0.7716 0.9166 0.9097
S&P Intl Div Opps TR** 0.7716 1.0000 0.7907 0.7626
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
*From 12/31/1999 Source: S-Network as of 12/31/2019
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
Index Construction and Distribution
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
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.
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
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
22
A Detailed Methodology and Rules Is Available at www.sectordividenddogs.com
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
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
23
© 2020 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
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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