WELCOME

The Accuvest Iconic U.S. Brands Index (“the Index”) measures the performance of U.S. listed companies with Iconic Brands, which is defined as the leading companies that have (A) a primary Business-to-Consumer (B2C) focus, or (B) a primary Business-to-Business (B2B) focus in a sub-industry that is deemed vital to the consumption supply chain. The Index constituents, selected from the identified sub-industries through a multi-step selection process, are intended to provide a better means of tracking a lifetime of consumer spending. As of 2017, the consumption component of U.S. GDP ($12 trillion) equated to roughly 70% of GDP. Accessing a lifetime of household consumption, via Iconic Brands across a diverse group of sectors and industries, is an addressable market not currently being tracked.

CONSUMPTION MATTERS

The brand(s) of a company are often the most valuable corporate asset. Brands spent roughly $493 billion on global advertising in 2016 (Source: CNBC). The bigger the brand, the more ad spending that typically happens. Over time, the most important brands build strong emotional connections with consumers. That loyalty allows for each brand to have a significant competitive advantage over its competitors. The result of sustainable competitive advantages is often strong revenue and cash flow growth. These factors along with many more are typically associated with companies that offer significant shareholder value over full market cycles.

BRANDS MATTER

The Accuvest Iconic U.S. Brands index attempts to capture the benefits of high brand value by tracking a basket of the leading business-to-consumer and business-to-business brands benefitting from a consumption-driven economy. The Brands Index has historically outperformed other popular broad market indices because of two primary and consistent factors from within the Index methodology:
 1. A conscious over-weight to the Consumer Discretionary & Staples sectors
2. A “leaders-only” approach to brand security selection.

A SMART-CORE INDEX

INDEX METHODOLOGY

ICONIC U.S. BRANDS INDEX PRESENTATION

Risk & Return Statistics as of 9/30/2017

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Industry overweights to key consumer segments

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Industry overweights & iconic brand exposure

Retailing:  16.4% Brands Index versus 5.5% for the S&P 500

Index exposure to: Ross Stores, Amazon, Home Depot, Lowe's, Priceline, Expedia, Dollar Tree, Dollar General, Netflix, Target, TJX Cos, Best Buy

Consumer Services:  5.8% Brands Index versus 1.9% for the S&P 500

Index exposure to: Marriot International, Starbucks, McDonalds, Carnival Cruise Lines

Consumer Durables & Apparel:  4.6% Brands Index versus 1.2% for the S&P 500

Index exposure to: Nike, Newell Brands, DR Horton (homes), Lennar (homes)

Automobiles & Components:  3.7% Brands Index versus 0.7% for the S&P 500

Index exposure to: General Motors, Ford Motor Company, Tesla

Food & Staples Retailing:  4.4% Brands Index versus 1.8% for the S&P 500

Index exposure to: CVS Health, Wal-Mart, COSTCO, Kroger, Walgreens

Household & Personal Products:  4.4% Brands Index versus 1.8% for the S&P 500

Index exposure to: Coty, Estee Lauder, Colgate-Palmolive, Proctor & Gamble, Kimberly Clark

 

Aggregate Index Characteristics versus the S&P 500 Index

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Aggregate Index Sector Weights versus the S&P 500

The Iconic U.S. Brands Index offers a persistent & conscious overweight to Consumer Discretionary & Consumer Staples Sectors

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A Smart-CORE Index

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Market-Cap Focus: Large-Mega-Cap Brands

 Average weighted market cap Brands Index: $124.4B Average weighted market cap S&P 500 Index (9/30/17): $181.1B Total market cap of Brands Index constituents (10/13/17): $12.4 trillion  Source: Morningstar, Accuvest for the above Index statistics

Average weighted market cap Brands Index: $124.4B
Average weighted market cap S&P 500 Index (9/30/17): $181.1B
Total market cap of Brands Index constituents (10/13/17): $12.4 trillion

Source: Morningstar, Accuvest for the above Index statistics