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the magazine for etf advisors /////////////////////////////////////////////////////// January 2013
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Volume 13 | No. 1
Contents
features
8
12
16
Looking Ahead To 2013
The ETF Report staff cracks open the cookies to read the industry’s New Year fortune.
BOND’s Big Year
Pimco took the ETF world by storm in 2012 with its Total Return ETF.
How did the ETF beat its mutual fund sibling, and should you still buy BOND?
Why You Should Stop Worrying &
Learn To Love ETF Closures
2012 was a big year for ETF closures, but don’t let that make you nervous. Here’s what
the fund closures mean for investors—and what we think will shut down in 2013.
SUBSCRIBE TODAY
Subscribe by contacting Nicholas Chang
at nchang@indexuniverse.com
or by calling 415-659-9029.
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Publisher, Director of Sales
Foster Wright, 646-867-4481
fwright@indexuniverse.com
Global Head of Editorial
Matt Hougan
mhougan@indexuniverse.com
Managing Editor
Cory Banks
cbanks@indexuniverse.com
Copy Editor
Lisa Barr
Creative Director
Jeannine Gaubert Pamoukdjian
graphic designer
Patrick Hamaker
IndexUniverse LLC
353 Sacramento Street, Ste. 1520
San Francisco, CA 94111
www.IndexUniverse.com
Founder, CEO
Jim Wiandt
COO, Executive VP
Don Friedman
Departments
2 New ETF Launches
Pyxis’ first ETF challenges BKLN for senior loan dominance.
Plus: Our monthly look at new ETF offerings and filings.
4 ETF Explainer: UGA
What market movements push the return of this gasoline ETF?
Our explainer shows you the news behind the performance.
6 Profile: Astor Asset Management
Rob Stein of Chicago’s Astor Asset Management uses basic,
big-picture themes to adjust portfolios.
20 Why I Own: VBK
Chad Carlson of Chicago’s Balasa Dinverno Foltz LLC explains
why his firm uses Vanguard for small-cap growth exposure.
22 Sectors In Review
Performance was mixed for the U.S. sector ETF markets,
but biotech was the biggest winner.
24 ETF Data
Our monthly databank breaks down ETF returns
for every market segment.
© 2013 IndexUniverse LLC. All rights reserved. The text, images and other materials contained or displayed are proprietary to IndexUniverse LLC,
except where otherwise noted, and constitute valuable intellectual property. No material from any part of any IndexUniverse LLC publication,
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used or otherwise disseminated in any form to any person or entity, without the explicit written consent of IndexUniverse LLC. For permission to
photocopy and use material electronically, please contact reprints@indexuniverse.com or call 415-659-9029.

NEW Funds
ETF
Launches
etf filing activity
6%
INVERSE
9%
INTL FIXED INCOME
6%
COMMODITIES
5%
Alternatives
166
ETFs
Year-to-date
4%
ASSET ALLOCATION
39%
intl EquitY
Launches
International Equity
PureFunds ISE Diamond/Gemstone
PureFunds ISE Mining Service
PureFunds ISE Junior Silver
INTERNATIONAL FIXED INCOME
Pyxis iBoxx Senior Loan
COMMODITIES
RBS Rogers Enhanced Commodity ETN
RBS Rogers Enhanced Agriculture ETN
RBS Rogers Enhanced Energy ETN
9%
LEVERAGED
RBS Rogers Enhanced Precious Metals ETN
RBS Rogers Enhanced Industrial Metals ETN
Featured ETF
10%
US EQUITY
13%
US FIXED INCOME
Pyxis iBoxx Senior Loan ETF (SNLN)
Pyxis Rolls Out First ETF, Challenges BKLN
Filings
AdvisorShares International Gold
First Trust Glb Tactical Commodity Strat
Gartman Gold/British Pound
Gartman Gold/Euro
Gartman Gold/Yen
Global X Super Dividend U.S.
Market Vectors Defaulted/Distressed Bond
Market Vectors HiYld/Treasury Bond
ProShares HiYld-Interest Rate Hedged
Schwab Active Short Duration Income
SNLN Quick View
Issuer
Pyxis Capital
Segment
Fixed Income: U.S. –
Corporate Loans
Expense Ratio 0.55%
Structure
Open-Ended Fund
Date LAUNCHED November 8, 2012
Competing Fund
BKLN
Pyxis Capital, the mutual
fund arm of Dallasbased
money management
firm Highland
Capital, launched its
first ETF on Nov. 8.
The Pyxis iBoxx Senior
Loan ETF (SNLN) tracks
the Markit iBoxx USD
Liquid Leveraged Loan Index and invests
primarily in below-investment-grade senior
loans to domestic and foreign corporations
and partnerships, the company said in a
recent regulatory filing. The ETF has an annual
expense ratio of 0.55%.
Senior loans generally have risk profiles
that are similar to below-investment-
grade securities, but what sets them apart
is that they have a right to payment before
most other debts a borrower has. That
means senior loans have higher recovery
rates than other below-investment-grade
debt should a company default.
They are also less sensitive to interest
rate risk than other high-yield debt because
their yields are adjusted for changes
in short-term rates. That lowers their correlations
to other fixed-income instruments.
SNLN faces stiff competition in the $1.3
billion PowerShares Senior Loan Portfolio
(BKLN), the first ETF to offer direct access to
senior loans. BKLN was launched in March
2011, and costs 0.76%—a price that includes
11 basis points in acquired fund fees.
GO
ONLINE
For the latest ETF listings, visit
IndexUniverse.com/ETFWatch
2 IndexUniverse.com/ETF Report
Source: IndexUniverse. Data and information as of 11/30/2012. ETF filings sidebar covers launches and filings for the month of November.

EMLC
Emerging Markets
Local Currency Bond ETF
➤ Seeks to replicate the J.P. Morgan GBI-EMG Core Index
➤ Provides exposure to local bond markets in emerging economies
➤ Emerging markets currently have higher yields than developed markets*
EMLC surpasses $1B AUM.
Scan to learn more.
marketvectorsetfs.com/emlc
888.MKT.VCTR
*As of November 30, 2012. Past performance is no guarantee of future results.
Investments in emerging market securities are subject to elevated risks, which include, among others, expropriation, confiscatory taxation, issues with repatriation of
investment income, limitations of foreign ownership, political instability, armed conflict and social instability. As the Fund may invest in securities denominated in foreign
currencies and some of the income received by the Fund will be in foreign currency, changes in currency exchange rates may negatively impact the Fund’s return.
Bonds and bond funds will decrease in value as interest rates rise. The Fund may also be subject to credit risk, interest rate risk, sovereign debt risk, tax risk, and risks
associated with non-investment grade securities. Investors should be willing to accept a high degree of volatility and the potential of significant loss. The Fund may loan
its securities, which may subject it to additional credit and counterparty risk.
Market Vectors Emerging Markets Local Currency Bond ETF (EMLC) is not sponsored, endorsed, sold or promoted by J.P. Morgan, and J.P. Morgan makes no
representation regarding the advisability of investing in EMLC. J.P. Morgan does not warrant the completeness or accuracy of the J.P. Morgan GBI-EMG Core Index.
“J.P. Morgan” is a registered service mark of JPMorgan Chase & Co. © 2012. JPMorgan Chase & Co. All rights reserved.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of
shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares
may trade at a premium or discount to their NAV in the secondary market.
Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise.
An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary
prospectus, which contain this and other information, call 888.MKT.VCTR or visit marketvectorsetfs.com/emlc. Please read the prospectus and summary
prospectus carefully before investing.
VAN ECK SECURITIES CORPORATION, DISTRIBUTOR ■ 335 MADISON AVENUE ■ NEW YORK, NY 10017

in detail
ETF Explainer: UGA
United States Gasoline ETF
Each month, we look at an ETF with a particularly interesting chart and explain the market forces
beind its performance. This month, we examine the United States Gasoline ETF, which tracks the
price of futures contracts for unleaded gasoline. What drives UGA’s performance?
RETURN
30 %
25
AUG
31
20
15
APR
26
OCT
31
10
5
0
-5
OCT
26
DEC
28
JUN
19
UGA Quick View
Issuer
US Commodity Funds
Segment
Commodities:
Energy Gasoline
Expense Ratio 1.05%
-10
AUM
Competing Funds N/A
$65 Million
-15
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
2012
UGA ETF
OCT
26
Renewed concerns surrounding Europe’s debt crisis, combined
with an energy department report showing fuel demand fell to its
lowest since January 2004, send UGA to new near-term lows.
JUN
19
Fuel costs fall below $3.50 nationally for the first time in four
months, thanks to strong Saudi and Iraqi production and
record growth in U.S. production.
DEC
28
Gasoline prices set an all-time national high in December at
$3.258, a fitting end to the most expensive year ever for fuel
purchases in the U.S.
AUG
31
After an early summer drop, gasoline prices quickly rebound
as rising crude prices, refinery and pipeline bottlenecks, and
Hurricane Isaac lower pressured prices.
APR
26
Gas prices fall for a tenth-straight day as consumers pare back
consumption. An Energy Information Administration report
shows January fuel demand at its lowest since 2001.
OCT
31
The longest losing streak since 1986 sends gas prices 19%
lower in October — until Hurricane Sandy wreaks havoc on
northeastern refining. Fuel prices jump 10% in four days.
4 IndexUniverse.com/ETF Report
Source: Bloomberg. Data for 10/18/2011 to 11/16/2012.

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Presented by:

PROFILE
Keeping it
SIMPLE
Chicago’s Astor Asset Management uses basic,
big-picture themes to adjust portfolios
By Cinthia Murphy
Rob Stein, Astor’s founder, takes asset management back to basics.
To think that money manager
Rob Stein’s first job was selling
peanuts at Wrigley Field . . .
Still in Chicago all these years later after
brief stints away, Stein now plies his trade
in a spacious corner office on the 39th floor
of Wacker Drive and Monroe St. as the
head of Astor Asset Management, a firm
he founded, and one that now manages $1
billion and is a unit of Knight Capital, the
biggest ETF market maker in the world.
Stein, the author of a few books, including
“The Bull Inside The Bear,” has
made a living out of keeping things simple.
His macro view
Advisor Quick View
of the world has
FIRM Astor Asset Management translated into
FOUNDED 1994
the idea that
there are always
LOCATION Chicago
opportunities
AUM $1 Billion
for an investor
who stays
ALL ETFs? No
focused on the
big picture—even in bear markets. Any
lifelong Chicago Cubs fan should know a
thing or two about bear markets.
Blending a University of Michigan economics
degree, a short stint at the Federal
Reserve and years of trading experience
with some of the largest banks, Stein
honed his economic theories by focusing
on the needs of a 60-year-old aunt rather
than those of super-sophisticated investors
like Warren Buffett.
Big-picture economic themes color
the firm’s stock and bond asset allocation
models, and while the firm will sometimes
sell positions to protect profits, bells
and whistles such as options overlays are
nowhere to be seen.
But that simplicity resonates for Astor’s
growing coterie of registered investment
advisor clients who have turned
to Stein’s firm for allocations that have
helped keep clients ahead—even during
periods of economic contraction.
How did you get into asset management?
I worked at the Federal Reserve and on
Wall Street in the 1980s, and it all evolved
into a career in the trading arena with
some of the larger banking institutions.
When I first started in this field, the market
seemed to have a different character
in the trading arenas; I was there during
the transition from old-school betting,
“bookie”-type personalities to MIT-trained,
algorithmic mathematicians. I was
intrigued from the get-go by what was
moving the markets, what was propelling
the economy.
How did this business evolve to where it
is today?
We had no direct business plan. We went
with what was working. In the beginning,
Astor did anything it could to pay its bills:
It was execution, trading, writing research
and economic reports for clients who then
would do trades through us—all of the
above. What emerged was a simplistic
philosophy of economic analysis at a time
when Fed Chairman Alan Greenspan was
becoming a household name.
You built a money management business
model based on the broadest macro view
of the world?
Very macro. If the market is expanding,
what should you invest in? If it’s contracting,
what should you invest in? Really, it’s
that simple. We’re not overly concerned
with how high up or down the markets
are going. More importantly, we’re focused
on identifying an economic cycle so
that we can try to stay in a specific direction.
I was able to mathematically support
that when certain conditions are occurring;
the economy expands and stocks
generally go up.
Were you primarily an ETF shop from
the beginning?
We were doing a lot of things at the same
time—trading futures, doing brokerage.
But as economists, when we looked at
fundamental analysis that indicated if
something was going to appreciate or
not, it was just easier to express those
views in an indexed product. When we
started, there were only a handful of
ETFs that existed, so we had to round
out the selection with some mutual fund
families. We weren’t all ETFs at the be-
Photo by Stephanie SeRine
6 IndexUniverse.com/ETF Report

ginning. But where we could, we always
chose ETFs first.
We were, however, all about the macro
view from day one. The real value we had
was something simplistic. We said that
during economic contractions, reducing
exposure to stocks is good, and during
economic expansion, investing in stocks is
good. If you take 1999 to 2010, and you sit
out the two recessions that occurred there,
you have a portfolio that’s up double digits
versus one that is down double digits if you
didn’t take equities risk off the table during
the declines. So, the value of identifying
those recessions is important. We believe
that the economic data that we look at are
a great indicator of whether the economy
is headed into a contraction or expansion,
and how we assemble the portfolios.
Tell me a little bit about your ETF
portfolios and how they fit in today’s
market environment.
We have three portfolios: the long/short
balance—our flagship product—which
has a mutual fund version of it and a
separately managed account version.
We adjust the portfolio based on the
economic cycle to profit in any market
environment. This portfolio has avoided
both of the major recessions in the last
decade and, in fact, we made money in
the 2001-2002 recession and pretty much
broke even in 2008. We didn’t know they
were going to be as severe as they turned
out to be, but we did know that a contraction
was upon us in those periods and we
adjusted the portfolio accordingly.
We also have an active income portfolio
that invests in fixed-income ETFs
and attempts to get a yield similar to the
Barclays Aggregate Bond Index (AGG).
Right now it’s yielding about 4 percent—
with less volatility. It also strives to deliver
capital appreciation. We are hoping to
give investors a coupon plus appreciation,
and it’s doing great.
Finally, our third product is called
STAR—Sector Tactical Asset Rotation. It
uses the same economic fundamentals
to adjust the portfolio, but it is a longbias
product. It’s supposed to perform as
equities perform, only tactical. We reduce
exposure when the economy is sluggish
and increase it when the economy is
doing well; so we have a lower-volatility/
lower-risk equity exposure.
We rebalance the portfolios as needed.
We have our investment committee meetings
once a month, but we run our stats
every day. We run a snapshot of economic
data, our economic readings, a momentum
indicator—all of which gives us a
beta target. And we meet on the Friday of
the monthly employment report and discuss
the data. We look at charts and then
we adjust portfolios shortly thereafter.
How hard is it to prospect new business?
How do you go about finding new advisors?
It’s a full-time job for our marketing and
sales group. They have relationships; they
visit; they send statistical information, our
economic updates on what we see happening
in a portfolio, etc. It’s old-fashioned
get-out-there-and-visit-prospective-clients
and explain to them the value of what we
offer. We cover the gambit—advisors that
embrace our philosophy, UMA platforms
that put our model on it, etc.
We also have three mutual funds, but
we don’t have any plans in the near future
to launch an ETF. We could launch more
mutual funds if there was demand for it,
but we don’t see that right now. Mutual
funds are still easier to sell to advisors
because of the fee structure.
Two years ago in October, Knight Capital
bought your firm—at the time, you had
about $650 million in assets under
management. Now you’re a wholly owned
subsidiary. How has that acquisition
helped you grow the business?
It did not have a direct impact on growing
the business, but it did help streamline
and create efficiencies within our operations.
I think the average person hasn’t
heard of Knight. Some advisors have
heard, but not all of them.
Do you get optimal execution on all
your trades?
You’d think so, right? We still have to
comply with Best Acts, so we do some
execution with Knight, but we still trade
with other market makers on the Street.
We have to keep it open to others. And
sometimes the custodian likes you to
trade with them. So if you have an account
with, say, ABC Brokerage firm, they
want you to do the trade at their firm, and
so we have to.
What do you think was Knight’s
motivation to acquire your firm then?
And from your perspective, what was the
biggest advantage of the deal?
We have a recurring revenue stream that
they consider a nice addition to their core
business. For us, having a big corporate
entity behind us allows us to expand
more efficiently.
Clarify how these assets get counted: Do you
count them or does the advisor count them?
We get a fee—the fee is based on the assets
invested. Take a firm, for instance,
like UBS or Merrill or Wells Fargo, and
you get a statement from all the clients
that are at that firm and you put the positions
on in their accounts, so you need to
know the asset level to know what ETFs
to buy, and at the end of the quarter or
period, the firm adds it all up, takes a fee
and pays you.
What are your clients calling you about
the most these days?
Interest rates are high on the list. The
probability of a recession occurring early
next year and what we would do to adjust
the portfolios if that were to happen is
another question I’m getting a lot these
days. We don’t see a recession next year.
I think the economy will pick up some
steam. We may hit a speed bump, but
that’s a buying opportunity. When we hit
that speed bump, whether it’s in a week,
in a month, or in a year, I don’t know. We
are not timers. But we would say—according
to our economic fundamental indicators—that
the economy is still growing,
albeit slowly. There’s a very big difference
between going forward and going backward,
and just because you are only going
forward at 5 miles per hour, it can’t be
confused with going backward.
January 2013 7

By Cory Banks
Looking Ahead To
2013
The ETF Report staff cracks open the cookies
to read the industry’s New Year fortune
Say what you will about 2012:
It sure wasn’t boring.
Super-storms and droughts caused
extreme market swings; summer heat
decimated corn crops, affecting agricultural
commodities ETFs like the Teucrium
Corn ETF (CORN); Hurricane Sandy
crashed upon the U.S. Eastern seaboard
in the fall, shutting down Wall Street for
two days as power outages and flooding
brought New York and New Jersey to a
standstill. Knight Capital’s backup generators
failed during the storm, putting
the world’s largest ETF market maker out
of commission—in the same year that a
glitch in a trading algorithm put the firm
temporarily in peril. By year-end, Knight
Capital was up for sale, with two firms
vying for ownership.
Oh, and we had a presidential election.
It was a busy year.
Throughout the chaos and calamity,
the ETF industry grew: As of Nov. 30, the
industry held $1.3 trillion in assets across
1,442 exchange-traded products. That’s
up 24% (or $311 billion) compared with
November 2011, when the market had
$1.06 trillion in assets.
We’ve seen rapid growth in the
number of new products too: 166 new
ETFs launched through November 2012,
a rate of one every two days. In that same
period, 96 funds closed, but net growth
is still the story of the day. (For more on
why ETF closures can be a good thing, see
page 16).
Strong asset growth was driven both
by market appreciation and outright
inflows: Through November, investors
added $160 billion in net new assets, according
to IndexUniverse data. U.S. equity
funds brought in the most new cash, at
$54.4 billion, U.S. fixed income at $44.5
billion and international equity at $38
billion. Investors pulled $1.3 billion out
of currency ETFs and almost $500 million
out of leveraged funds, though those asset
classes still have $2.9 billion and $14 billion
in AUM, respectively.
Vanguard’s MSCI Emerging Markets
ETF (VWO) takes the top spot for inflows
through Nov. 30, bringing in $10.6 billion
in new assets. The iShares iBoxx $ Investment
Grade Corporate Bond ETF (LQD)
came in second, with $6.9 billion, followed
by the SPDR Gold Trust (GLD) with $5.6 billion,
iShares’ MSCI Emerging Markets ETF
(EEM) with $5.2 billion and iShares’ iBoxx
$ High Yield Corporate Bond ETF (HYG)
with $4.7 billion. In outflows, the iShares
MSCI EAFE ETF (EFA) lost $2.7 billion. The
iShares Barclays 1-3 Year Treasury Bond
ETF (SHY) ranked second in outflows,
with $2.5 billion, followed by the Utilities
Select SPDR (XLU) with $1.7 billion, the
SPDR Dow Jones Industrial Average Trust
ETF (DJA) with $1.2 billion, and Direxion’s
Daily Financial Bull 3x ETF (FAS) with just
over $1 billion in outflows.
VWO’s success helped Vanguard bring
in over $53 billion in new ETF assets
in 2012, leading the pack in AUM gain
and growing its overall asset base by
22% to $242 billion. BlackRock’s iShares
came in second, with $28 billion in new
assets, but kept its industry-dominant
lead at $540 billion in total AUM. SSgA
brought in $24 billion through November,
followed by Invesco PowerShares with
$6.1 billion and Pimco with $4.6 billion,
driven by the launch of its Total Return
ETF (BOND), which became the secondfastest-growing
ETF in history. (For more
on Pimco’s 2012 performance, see “BOND’s
Big Year,” on page 12.)
After such a stellar year, what does
2013 hold in store? The ETF Report staff
has peered into its crystal (or Magic 8) ball
for the answer. Here are the five trends to
follow as you prepare your clients for 2013.

1One of the biggest stories of 2012 was the ETF price
war. BlackRock, Vanguard, Schwab and other ETF
providers battled it out at a level never before seen to
offer the cheapest, best exposure to core asset classes.
The war reached its fierce peak in October, when
BlackRock’s iShares launched a new set of “Core” ETFs.
The new lineup features six relaunched funds and four
new options, targeting advisors and retail investors
looking for high-quality, basic exposure.
The biggest change of the bunch is the iShares
Core MSCI Emerging Markets ETF (IEMG), which
offers broader emerging markets exposure than the
$41 billion iShares Emerging Markets ETF (EEM),
but charges far less: 0.18% in fees compared with
EEM’s 0.67%, making IEMG even cheaper than EEM’s
longtime nemesis, Vanguard’s Emerging Markets
ETF, VWO, which charges 0.20%. To see BlackRock—
traditionally focused on delivering “value” rather than
low price—compete on costs marked a new milestone
in the fee war. (Note: Schwab has been slashing fees as
well, and offers the cheapest emerging markets ETF of
all, SCHE, at 0.15%.)
We see no signs of this slowing down, especially for
core products. Early results suggest low fees do matter,
and can drive significant assets. We suspect the fee war
will continue this year, spreading into slightly niche-ier
areas of the market like small-caps, sectors or countryspecific
funds.
The good news? Issuers are courting the financial
advisor community far more than the institutional
audience with these changes. It’s your investment
dollar they’re after. No matter who launches the next
attack, advisors—and their clients—win.
Fee Wars, Round 2
2Tax-Driven
Growth
As this issue of ETF Report goes to press, regulators in
Washington are wringing their hands and eyeballing
the “fiscal cliff”—when the U.S. government will be
forced to raise taxes and slash spending. The outlook
is murky, but one certainty is clear: Tax efficiency will
become more important than ever.
This means more growth for ETFs. As financial
advisors furrow their brows over climbing capital gains
rates, it’s almost a given that their attention will turn
away from mutual funds or single-stock investments
and toward exchange-traded products. Why? Because
they’re extremely tax efficient. According to Index-
Universe data, only 2.7% of all equity ETFs paid out a
capital gain in 2011; by comparison, the Investment
Company Institute says that 24% of mutual fund share
classes paid out gains that same year. Moreover, the ETF
distributions were tiny. 2012 is looking to go on the
books as a similar cap-gains-light year for ETF holders.
Tax efficiency isn’t new, but with capital gains (and
income) rates potentially going up, advisors will be
looking harder than ever for tax-efficient ways to gain
exposure to the market. And that means ETFs.
ETFs Go Retail
3When the SPDR S&P 500 ETF (SPY) was launched almost 20 years ago, it was aimed at
two groups: institutional investors and heavy traders. SPY’s godfather, Nate Most, never
dreamed of seeing ETF ads running on Monday Night Football, but that’s just what
iShares did in November. The times, they are a-changin’.
Regardless of their beginnings, exchange-traded products offer tremendous benefits
for retail investors. As individual investors start focusing more on macro plays, and less
on earnings calls, they’ll be looking for new, low-correlated assets like international
fixed income, commodities, low-volatility plays, dividend-producing stocks and more.
ETFs will be there, and they’ll be getting more and more retail dollars. Asset managers,
institutional investors and traders are in the know with ETFs, but the retail community
is the final frontier.
January 2013
9

Model ETF
Portfolios
Hit Phase 2
4One of the biggest stories in the ETF space over the
past year was the explosive growth of model ETF
portfolios. These models offer advisors who specialize
in asset gathering the ability to offer well-managed
exposure to their clients. According to Morningstar,
assets linked to ETF models it’s tracking grew 43% in
2011, to $23 billion. But the firm estimates the entire
space is likely between $40 billion and $100 billion.
We also saw individual providers experience enormous
growth: Consider Cougar Global Investment, which was
a small Canadian asset manager until about two years
ago, when LPL selected it as one of the first model ETF
providers on its platform. Cougar’s assets have spiked
1,000% since the partnership, according to the firm.
What happens in 2013? More growth, we think,
but also more discerning growth. The huge growth in
assets for model ETF portfolios has attracted hordes of
firms to the space, ranging from well-established and
well-respected shops to small firms with skeleton crews
and hunches. In 2013, the challenge for advisors will be
separating the heroes from the goats in the third-party
manager parade.
We expect the space to grow significantly in 2013,
but it will grow while maturing, as investors focus
on finding best-of-breed providers and not just riding
the most recent (and sometimes unaudited) hot hand
for return.
Next-Gen ETFs Will
Grow At The Expense
Of Older Funds
5There’s an old adage in the ETF industry that “first
mover advantage is key.” In other words, the first ETF
to launch in a particular asset class will gain all the
assets, regardless of whether new and better funds
come along later.
That held true for years, as investors clung to
ETF tickers they were familiar with. But slowly, the
message seems to be getting out that “newer” might
sometimes mean “better.”
The most spectacular, if isolated, example was
when Vanguard’s Emerging Markets ETF (VWO) came
out of nowhere to dominate fund flows against the
entrenched EEM from iShares.
But now, it’s becoming the norm. Consider the
iShares FTSE China 25 ETF (FXI). It was the first China
ETF to hit the market, and immediately garnered
significant assets. But it offers subpar exposure to
China, focusing only on the largest companies and
ignoring smaller, more entrepreneurial firms. Today
FXI is still the biggest, with $6.7 billion in assets. But
other funds are creeping up: the SPDR S&P China ETF
(GXC) has a respectable $936 million in assets, and
iShares’ second-generation China ETF – the iShares
MSCI China ETF (MCHI) – has a very respectable $750
million. And so far this year, MCHI has out-drawn FXI
on an absolute basis, pulling in $640 million in assets
versus $561 for FXI. Better exposure = more flows.
That’s what we like to see. It means investors and
advisors are paying attention.
We’ve seen similar growth in novel approaches to
dividends, emerging markets, bonds and other areas.
If you build a better mousetrap, investors will follow.
Expect more by the end of 2013.
10 IndexUniverse.com/ETF Report

ETF Analytics
There are over 1,000 eTFs on The markeT. own The righT ones.
Equity: U.S. Energy
Equity Segment Report
OVERVIEW
IndexUniverse Insight
Eight ETFs offer very different approaches to the energy space, providing
investors with access to everything from the broad market—dominated
by names like Exxon Mobil or
Eight ETFs offer ConocoPhillips—to quant-based
strategies that attempt to pick
very different
winners from the many companies
approaches to the
energy space.
and sub industries in U.S. energy.
Four funds—VDE, IYE, XLE and
FEG—deliver broad, market-like
sector exposure that ranges from very good to great, though they diverge
sharply on costs and risks. IYE and XLE offer the most representative
portfolio of stocks, but IYE's 0.47% expense ratio is far and away the
highest of these four “plain vanilla” funds. In contrast, XLE delivers the
best combination of broad exposure at the segment-lowest fee: 0.18%.
The fund brings something else to the party--massive liquidity. As one of
the most liquid ETFs in the world, XLE trades about $1 billion a day,
15 June 2012
making its all-in costs from trading and fees tough to beat. VDE also
delivers a market-like basket at a low fee (0.19%). Then there’s FEG, the
polar opposite from XLE on trading volume. Despite an excellent
portfolio offered at the second lowest price in the segment (tied with VDE
at 0.19%), FEG suffers from poor on-screen liquidity and carries high
fund-closure risk from its low asset base.
Four other funds offer clear alternatives to traditional sector exposure
due to their strategy or selection universe. PSCE differs the most from the
sector by focusing exclusively on small-cap energy companies. FXN and
PXI use quant strategies to pick winners from the sector instead of merely
owning the market like the vanilla funds. RYE offers an equal-weighted
version of XLE. As they stray from vanilla exposure, all four funds
come—in varying degrees—with greater risks, higher price tags and
less-than-perfect tracking, but contribute to a well-rounded segment:
There’s something for everyone here.
Analyze, compare and select the
right ETF for every investment strategy
with IndexUniverse ETF Analytics.
Related ETFs
Snapshot
Overall
Ticker Fund Name
Rating Efficiency Tradability Fit Notes
IYE iShares Dow Jones U.S. Energy A 97 88 98 97
VDE Vanguard Energy A 93 91 98 93
TRADABILITY
XLE Energy Select SPDR A 93 94 99 93
FEG Focus Morningstar Energy B 94 85 78 94
IndexUniverse Tradability Insight
U.S. energy funds vary dramatically in Tradability, with XLE reigning over tier, averaging around 0.14% ($0.06). Still, like the top tier, PXI scores
PXI PowerShares Dynamic Energy Portfolio B 65 81 86 65
all. For on-screen liquidity, XLE is not only the most liquid ETF in the high with regard to block liquidity—indicating it’s still easy to trade in
RYE Guggenheim S&P Equal Weight Energy B 52 82 79 52
segment, it’s one of the most liquid size.
FXN First Trust Energy AlphaDEX B 41 80 83 41
U.S. energy funds ETFs in the world, trading an
average of about $1 billion daily. Funds that trade around and below $1 million a day in volume land at
PSCE PowerShares S&P SmallCap Energy B 26 89 74 26
vary dramatically in
Segment Average | Ranked by Overall Score
Tradability.
VDE and IYE are distant seconds by the bottom tier of Tradability—PSCE, RYE, FXN and FEG. Of these, FEG
volume, with ADV averaging $13 may be the least lucky, considering its portfolio of securities is among the
million and $9 million,
most liquid. FEG was victim to a pricing error on its first day of trading
1-Year Total Return
respectively. Still, VDE and IYE deliver excellent liquidity for most
that led to wacky trades and bad press—likely scaring away investors at a
investors. All of the top three funds trade multiples of their creation unit critical early stage for the new fund. While all four funds experience
1-Year
sizes (50,000 shares), with average spreads between 0.01% and 0.04%. wider spreads—with averages as high as 0.24% in the case of PSCE—their
PXI -7.97%
holdings are incredibly liquid, as indicated by their high block-liquidity
10%
Bench -8.44% PXI occupies a second tier of Tradability within the U.S. Energy segment. scores. The irony of this is that large investors will find these funds easy FIT
IYE -9.08% With its ADV of $2 million, it trades well above our minimum threshold to trade in size (with the help of a liquidity provider), but small investors
0%
FEG -9.41% of $1 million. Spreads range a good deal wider for PXI than for the top only have limit orders to use as an aid when placing trades.
IndexUniverse Fit Insight
Segment funds deliver clear choices regarding their portfolios, roughly exposure: It overweights service and equipment firms and completely
XLE -10.11%
Median
split along the lines of those that try to match the sector and those that ignores the integrated oil & gas industry. (PSCE passes on names like
-10%
VDE -10.54%
Average Daily
Average
Premium/
Maximum
Maximum
Creation
don’t. VDE, IYE, XLE and FEG all Chevron and Exxon Mobil in favor of SEACOR Holdings and Lufkin
Ticker Tradability Rating
Volume ($)
Spread
Discount
Premium
Discount
Basket Size
RYE -16.60%
Segment funds land in the first camp. They aim to Industries.) Though PSCE has outperformed its competitors over the
XLE 99 1.07 B 0.02% 0.00% 0.38% -0.17% 50,000
deliver the broad market and past year, its beta of 1.42 indicates that it’s risky relative to the broad
-20%
PSCE -19.54%
deliver clear
generally do a great job at it, with market, though this shouldn’t surprise (or necessarily deter) investors
IYE 98 9.55 M 0.04% 0.00% 0.16% -0.20% 50,000
FXN -24.28%
VDE 98 13.08 M 0.04% 0.00% 0.17% -0.15% 100,000choices regarding
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
2012
PXI 86 2.32 M 0.14% -0.03% 0.60% -1.03% 50,000their portfolios.
IYE and XLE edging out the rest. looking for small-cap energy companies.
These four funds all follow a
market-cap weighting scheme that Investors looking for an equal-weight strategy will want to examine RYE.
As of 06/14/12
FXN 83 963.16 K 0.13% -0.04% 0.38% -0.50% 50,000
gives them top-heavy
The fund strays from the broad market—instead it overweights midcap
concentration of major players such as Exxon Mobil and Chevron, and companies with zero exposure to small-caps. As a result, RYE loads up on
RYE 79 309.18 K 0.12% -0.02% 1.97% -1.80% 50,000
generally heavy exposure to the integrated oil & gas industry. However, the exploration & production industry—a space that tends to be
FEG 78 309.04 K 0.14% 0.00% 1.93% -1.35% 50,000there are differences to note. For one, XLE selects from a mid-to-large dominated by midcap firms. RYE’s beta of 1.18 indicates the fund is
PSCE 74 621.02 K 0.24% -0.05% 0.68% -0.52% 50,000universe within the S&P 500, but due to the capping restrictions of the relatively risky compared to the broad market.
S&P indexes, the fund ends up with a portfolio slightly skewed toward
Segment Average | Ranked by Tradability Score
midcaps. VDE, the second-broadest fund in the segment, slightly
PXI and FXN follow similar strategies: They use quant strategies to select
overweights exploration & production firms, making it a tad riskier than winners within the energy space. While their goals are similar, their
Spread Dispersion
Premium/Discount Dispersion
the market with a beta of 1.03. That said, it’s FEG that tilts the most selection screens differ. As a result, PXI heavily overweights mid- and
Premium
toward smaller companies (among the four vanilla funds), with a
small-cap stocks. FXN also dips into the small-cap space, but loads up
| Equity: U.S. Energy | 15 June 2012 | Source data provided by
Page 1 of 6
weighted average market cap of $130 billion vs. the sector’s $150 billion. massively on midcaps. By industry, both funds skimp on the integrated
0.8%
oil & gas space, while loading up on exploration & production firms. In
1%
PSCE
PSCE The other 4 funds diverge from the market, and from each other, by the case of PXI, its current portfolio is particularly exposed to refining
0.6%
FXN
VDE nature of their unique strategies. PSCE scores lowest in Fit, but with good and marketing firms. Both funds are relatively risky in comparison to the
PXI
FXN
reason—the fund doesn’t attempt to represent the broad market—it broad market. FXN and PXI have yet to show any statistically significant
0%
focuses solely on small-caps. PSCE’s firm size-universe affects industry alpha relative to the market.
FEG
XLE
0.4%
RYE
IYE
VDE -1%
FEG
Index Methodology
Average # of Goodness
0.2%
IYE
PXI Ticker Fit Rating Weighting Selection P/E P/B
Market Cap Holdings of Fit (R) Note
XLE Discount
RYE IYE 97 Market Cap Market Cap 9.7 1.6 $144.96 B 91 99.94% Broad exposure, high
cost
JunJul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
JunJul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
2012
2012
FEG 94 Market Cap Market Cap 10.0 1.6 $130.36 B 100 99.86% Youngest fund
VDE 93 Market Cap Market Cap 9.8 1.6 $131.08 B 172 99.90% Broad exposure,
IndexUniverse / Knight Block Liquidity
second for lowest cost
IYE VDE XLE FEG PXI RYE FXN PSCE This measure shows how easy it is to trade
XLE 93 Market Cap Proprietary 9.8 1.6 $126.55 B 44 99.80% AUM giant, cheapest
25,000 shares of any given ETF. It reflects
5
5
5
5
5
5
5
5
fund
the liquidity and hedgeability of a fund’s
4
4
4
4
4
4
4
4 underlying securities. A score of 5 means a
PXI 65 Tiered Multi-Factor 9.9 1.5 $26.45 B 60 95.75% Quant-based strategy
3
3
3
3
3
3
3
3 fund is extremely liquid.
RYE 52 Equal Proprietary 10.7 1.3 $31.77 B 44 96.91% Equal-weighted
2
2
2
2
2
2
2
2
exposure
|
1
1
1
1
1
1
1
1
FXN 41 Tiered Multi-Factor 9.2 1.2 $27.27 B 54 95.42% Quant-based strategy
PSCE 26 Tiered Proprietary 15.0 1.1 $1.02 B 24 90.04% Small-cap play
Segment Average | Ranked by Fit Score
} Complete eTF due
diligence process
} robust scoring system:
efficiency, Tradability, Fit
} Unbiased institutional analysis
| Equity: U.S. Energy | 15 June 2012 | Source data provided by
Geographic Exposure
United States Switzerland Bermuda Netherlands Brazil Canada
Benchmark 96.84% 2.00% 0.65% 0.32% 0.10% 0.09%
IYE 97.15% 2.19% 0.22% 0.44% 0.00% 0.00%
VDE 97.74% 1.26% 0.43% 0.42% 0.00% 0.15%
XLE 98.87% 0.60% 0.52% 0.00% 0.00% 0.00%
Page 3 of 6PXI 96.15% 0.00% 1.30% 1.24% 0.00% 1.30%
RYE 96.04% 2.20% 1.76% 0.00% 0.00% 0.00%
FXN 96.51% 0.00% 2.16% 1.34% 0.00% 0.00%
PSCE 100.00% 0.00% 0.00% 0.00% 0.00% 0.00%
FEG 97.81% 1.88% 0.32% 0.00% 0.00% 0.00%
Balanced 5%+ 1% to 3% 1% to to 5% Underweight 3% to 5% Overweight 3% 3% 5%+
} Plain-english explanations
} Best data in the eTF industry
| Equity: U.S. Energy | 15 June 2012 | Source data provided by
Page 4 of 6
Learn more at www.IndexUniverse.com/ETF-Analytics or by contacting
our ETF Analyst team at 415-501-0939 or analytics@indexuniverse.com
©2012 IndexUniverse LLC, IndexUniverse ETF Analytics

By Cory Banks
Pimco took the ETF world by storm in 2012 with its Total Return ETF.
How did the ETF beat its mutual fund sibling, and should you still buy BOND?
Bill Gross is pacing on the stage at the 2012 Inside Fixed Income
conference. Normally controlled and reserved, the legendary cofounder
of Pimco is more animated than usual as he tells the Southern
California audience about his current economic view, and why it makes his
new ETF the best in the world.
He’s speaking without a filter, and the words that come out are as honest
as he can possibly be. “If you have clients in BND or AGG, get them over [to
BOND],” Gross exhorts the audience. “I don’t care about the fees. Just bring
them over because you’ll be helping them out.”
“I can’t guarantee it,” he adds quickly, but then the joy comes back in his
voice. “But I think it’s a pretty good bet.”
No other market participant of Gross’ stature would dare say such things
in a public forum. In an industry dominated by careful disclosures and crowded
compliance teams, every word must be checked and double-checked. But
here, Gross lets go. It’s a sign of just how well his flagship bond ETF is doing.
Bill Gross
couldn’t hide
his excitement
for Pimco’s new
Total Return
ETF (BOND) at
the 2012 Inside
Fixed Income
Conference.
That fund, the Pimco Total Return ETF (BOND),
launched in March 2012, after years of speculation
and filings that said the powerhouse fixed-income shop
would create an ETF version of its massive Total Return mutual
(PTTRX). Both total return funds are actively managed
strategies that seek to beat the fixed-income market by investing
at least 65% of their assets in a portfolio of fixedincome
instruments.
Those specific instruments are almost completely the
choice of Gross and his team: The portfolios hold debt of
varying maturities, from bonds to loans, government-issued
Treasurys and high-yield corporate debt. Everything’s on
the table, with the biggest goal being to beat the market.
Expectations were high: The 25-year-old mutual fund,
at $285 billion in assets under management, has been one
of the most successful products available, and its long-term
track record is hard to beat. An ETF version would let investors
get in on the ground floor. And thanks to the inherent
transparency in exchange-traded products, it might possibly
give savvy traders a window into what’s made Gross one of
the world’s most successful money managers.
That was the hope. In reality, the $3.6 billion BOND differs
in key ways from PTTRX, and therefore only offers partial
insight to Gross’ mutual fund strategy.
But that’s a boon for ETF investors: Since BOND’s inception,
the ETF has outperformed PTTRX by 4.6%. Even on a
month-by-month basis, BOND has beaten its sibling fund in
all but two 30-day periods since its inception, when the portfolio
was much smaller (and even those monthly returns
were almost equal). The ETF has also been exceedingly popular
with investors: BOND reached the $1 billion AUM milestone
on May 21, making it the second-fastest-growing ETF
in history, behind the SPDR Gold Trust (GLD).
In the end, there are three key reasons for that outperformance
and rapid growth, and those reasons will help you
decide if BOND belongs in your portfolio for 2013.
Photos by Bill Wilbur
12 IndexUniverse.com/ETF Report

eason No. 1 is the simplest: size. Throughout its 25-
year history, PTTRX has accumulated so much in assets
that making directional changes in its strategy becomes complex.
BOND, in comparison, is far more agile. Imagine if Gross
decided it was time to take a 10% position in Citibank bonds. In
the mutual fund, his team would either have to wait for a big
inflow from new investors or, more likely, start getting choosy
on positions to sell to generate the cash. The process would
become arduous, and adding such a large bet to the portfolio
could take a significant chunk of time. Even worse: When it’s
time to sell that Citibank position, unloading the bonds and
distributing cash elsewhere could take weeks.
Based on its size alone, BOND doesn’t have this problem.
Micromanaging a fund portfolio for a $3 billion pool versus a
$285 billion pool is simply easier. If Gross took the same position
in BOND, selling those bonds when it’s time to leave the
position would require far less work.
One of the largest differences between PTTRX and
BOND is what the funds are allowed to hold. Both
funds use investment-grade and high-yield bond positions
of varying maturities, as well as debts and loans from firms
both public and private. But as PTTRX grew, its strategy relied
more heavily on derivatives to make larger moves. Specifically,
the mutual fund uses credit default swaps to help make
directional moves. BOND, however, cannot use those investments—the
Securities and Exchange Commission currently
has a hold on exemptive relief for all ETF issuers that seek to
add swaps to their tool belt.
This is both a plus and a minus for the ETF. On one hand,
the CDS usage in PTTRX can amount to “dead money”—assets
in the portfolio that are not actively providing return.
BOND can skip the cash drag and focus on actionable additions
to its portfolio. The lack of swaps in the ETF portfolio
Because BOND’s portfolio is smaller, it’s also easier for
Gross to take more concentrated bets. Unlike stocks, many
bond issuances are small, making meaningful positions in big
portfolios hard to accomplish. Even if Gross wanted to add the
Citibank position listed above to PTTRX, it could never get a
meaningful position to give the bet on Citibank significant
weight. At best, we’re talking about a few basis points of the
portfolio. In contrast, Gross could buy all of an issuance to add a
meaningful position to BOND’s holdings. Consider BOND’s 3.4%
position in Italian government bonds, as of Dec. 4: That amounts
to $93 million, or 0.6% of that particular issue. A comparable
position in PTTRX would have to be $970 million, or 6.3% of that
Italian government bond issue. That’s a logistical nightmare.
This often makes the ETF a “best-case scenario” version of
the Bill Gross Total Return strategy—in many investors’ eyes, the
ETF portfolio can be a purer version of the strategy that made
Gross (and Pimco) so successful in the first place. That thought
alone was enough for ETF investors to buy shares of BOND; they
wanted to get in on the ground floor. But depending on your
view, there could be room on that ground floor for investors for
the rest of 2013, and possibly beyond.
also means it doesn’t benefit from the insurance of the CDS.
Default levels have been extremely low recently, but potential
negative factors such as an EU implosion could significantly
impact BOND’s return, whereas the mutual fund is far better
equipped to ride the tidal wave.
The question remains, Should you own BOND? Certainly,
if you currently hold PTTRX (or any of its
share-class siblings), it could make sense to switch to the
ETF. BOND’s outperformance over the mutual fund looks to
continue through 2013 based simply on its size. Those who
haven’t jumped onboard the Bill Gross bandwagon, however,
will likely watch the headlines carefully for insight
into the investor’s next bet. And when Gross makes a call,
it’s almost a given that the purer form of that strategy will
be through the ETF instead of the mutual fund. 2012 was
the year BOND launched, but 2013 could be the year that
BOND goes truly big.
January 2013
13

sponsored content
NASDAQ OMX:
The Next Major Global Indexer
NASDAQ OMX® built its reputation as one of the world’s leading
stock exchange companies on the foundation of technology.
NASDAQ OMX is famous for leveraging advanced technological
solutions to deliver a high-quality trading experience to customers.
Now NASDAQ OMX is taking this technological expertise
and translating it into an effort to shake up the global index
industry. Already an established player in the index space
thanks to its landmark NASDAQ-100® Index, NASDAQ OMX
has embarked on a series of initiatives—from buying the index
business of Mergent Inc. to building an index calculation tool
powered by NASDAQ OMX’s famous INET technology, the
world’s fastest trading system technology. These initiatives are
intended to catapult NASDAQ OMX into a position to challenge
the status quo in the modern global indexing industry.
IndexUniverse recently met with NASDAQ OMX’s Executive
Vice President John Jacobs to discuss the company’s new
initiatives in the space.
Matt Hougan: NASDAQ OMX recently announced it had
entered into an agreement to acquire the index business
of Mergent, including Indxis, in a high-profile transaction.
What is the goal in bringing this business inside the
NASDAQ OMX fold?
John Jacobs, Executive Vice President, NASDAQ OMX: There
were a couple of reasons the proposed transaction makes sense
for us. Mergent owns the Dividend Achievers brand and family
of indexes, some of the most widely followed dividend indexes
out there. There are 19 products following those indexes with
more than $16 billion in assets under management. Dividends are
a critical area of the market for advisors, and this acquisition will
give us a leadership position in the dividend space. That’s No. 1.
No. 2 is related to technology. Indxis has a leading global
index calculator that we plan to build out, which will allow us
to significantly expand our footprint in the space. We recently
rolled out a new index calculator for equity indexes, and this
acquisition will give us an index calculator for fixed income and
other asset classes. It’s a best-of-breed tool.
Hougan: When you say “index calculator,” what do you
mean? And why is that important?
Jacobs: The index calculator is the core of how indexing works.
Let’s suppose I come up with an idea for an index. I want it to reflect
a certain part of the marketplace and have certain rules. I need
technology that takes inputs on holdings, prices, formulas, etc., and
then calculates and disseminates the index. That’s the calculator.
We’re able to do exciting things today that are pushing the
boundaries of how indexes work and are disseminated. Most
“real-time” indexes are not really real time; they are distributed
every 15 seconds to market
participants. We moved
to the second-by-second
dissemination a while ago.
But with this new calculator,
we’ll be able to do tick-by-tick
calculation and dissemination.
The more often you calculate
an index, the more accurate
the index is. Moreover, there’s
John Jacobs
information there: sentiment, Executive Vice President, NASDAQ OMX
direction. I think that people
are going to want to be able to capture that. And because we have the
fastest trading technology, we are confident we will be able to deliver
the fastest index engine.
Our system is also very scalable: If I roll out 10,000 indexes, I can
roll out another 60,000 by taking the same indexes and putting them in
six different currencies. Instantly. So I can do 70,000 indexes for what it
used to cost to do 10,000 indexes.
Technology, I think, is going to play a bigger and bigger role
in indexing. And that’s the kind of company we are—we’re a
transformative technology company.
Hougan: Will we see index providers compete more on price?
Jacobs: I think what you’re going to see is more competition on brand
and value. In today’s market, you’ve got to have a credible brand. You
have to have well-constructed, well-thought-out indexes and be able to
deliver all of the quantitative back data that goes with it. But you also
need to be able to compete on the ability to deliver the product set that
investors want. So we have to have great value and it’s certainly to our
advantage to be able to develop the indexes on a very inexpensive basis.
We’re finding that, more and more, the index business is moving
from who has the hot index to what index families are well-constructed,
have a deep set of data that goes with them, and solid data distribution.
The indexes need to be useful, and people want to pay less. That’s the
changing world. And because we already are the low-cost producer, we
will continue to thrive in that world. And we’re just going to get better at it.
Hougan: There are some thorny issues involved in building a
global index series, in terms of dividing the market between
emerging and developed, and between sector allocations,
size and style, etc. How has NASDAQ OMX addressed these
controversial decision points?
Jacobs: Whether it’s the NASDAQ-100 Index or a fixed-income index
we’re doing in Stockholm, we believe in objective, transparent, rulesbased
indexes. It shouldn’t be a surprise. If you’re following an objective,
rules-based, transparent index methodology, we believe that reduces
tracking error and expense.

We encourage people to dig into the methodology. What
you’ll find is a very rules-based system that is simple for
investors to understand.
Hougan: Does being an exchange give your firm any
special advantages?
Jacobs: That’s a great question. There are some great
advantages to being an index company that are related to a
global exchange company. One advantage is that I can get more
visibility for a lot of our index products.
For example, I can turn to an ETF sponsor and say, “Pick
my index versus some other index company’s index.” I will
guarantee, if it’s eligible, to have an option launched on that
product in the U.S. I can’t guarantee that it will sustain itself in
the marketplace, but I can get it out there. Our team at our three
U.S. options markets will launch an option on the index. They
will go out and do the work, and we’ll pay the costs and front the
money to get it launched. So we can do that, whereas indexers
who don’t own options markets can’t do that.
Also, as a company with an exchange, we have lots of ways
to drive visibility. Our website, for example, gets 3.5 million
unique visitors and 35 million page views per month. We host
market opens and closes and investor events at the NASDAQ
MarketSite® in Times Square. So we have the advantage of
reaching out to the media and hosting webinars and other
valuable activities that raise visibility for our sponsors’ products
and help educate end-users.
Being part of an exchange company gives us an ability to
launch a broader suite of products with greater visibility. That’s
what we’re bringing to the table.
Hougan: A year or two out, what do you expect NASDAQ
OMX’s place to be in the market? How do you compete with
the other big providers out there, to win market share?
Jacobs: Just think about what we’ve done in 18 months: We
started building a new index calculator; we began the rollout of
the NASDAQ Global Index Family, which represents more than
98% of the global equity investable marketplace; we launched the
NASDAQ Axioma Equity Commodity-Index Family, which provides
exposure to the spot price movements of commodities through
the use of equity securities; we introduced the Edbiz-NASDAQ
OMX Sharia Index Family; we launched the NASDAQ OMX
Green Economy Indexes, a complete family of indexes tracking
the environmental and clean-energy sector; we unveiled the
NASDAQ US All Market Index® family, down to four subsectors;
we introduced two other commodity indexes and a new family of
indexes based on U.S. Treasury instruments. Now we’re acquiring
a family of dividend indexes, a second global index calculator for
fixed income and other non-equity asset classes, and we’re rolling
out our new equity calculator that will eventually calculate 24,000
new global indexes.
We expect to not only compete and win market share but
also redefine how the indexing business works and how indexers,
sponsors, investors and exchanges interact.
We’re going to build up more asset classes. More fixed
income will come. You’ll see more dividend products. And we
will do all this with a robust data set, so this new global index family
will come out with 10 years of back data. We know that this has
become a very quantitative business. People want to be able to run
their fingers through that data and understand what would happen in
different scenarios.
Hougan: What should investors consider when they think about
which index brand to choose?
Jacobs: First, don’t rely just on a reputation. You need to conduct a
disciplined, quantitative review of an index and its family.
You do want to understand the brand, in terms of the credibility of
the indexer to deliver a high-quality experience. Anyone can create an
index. I can do one by myself with a PC at home. You need someone
who has the infrastructure to develop and sustain these indexes.
And you want to be able to get the data to understand the index and
incorporate it into your system.
You also really need to dig into how that index is built, how it will be
changed and how well you can track it. You don’t want to get an index
for exposure, if that index is impossible to track.
Hougan: There are probably 50 or 60 indexers out there. If you
took every existing index product, how many are going to be
around in five years, three years?
Jacobs: That’s a great question. I think the overall number of indexes
will be larger, but it will be far more concentrated among indexers. There
will be a dozen major index players, or fewer. And then there will be a
bunch of small niche players. I think everyone in the middle is going to
go away, either to be swallowed up by a bigger provider, or to become
smaller, more of a niche player.
I think it’s going to be really hard to compete in this new
quantitative reality if you’re a small one-off shop. I also think that
some of the larger incumbent players have a challenge with their cost
structure. So I think you’ll see more concentration among the more
technologically sophisticated firms.
Hougan: So you think there’s room for significant growth for a
firm like yours?
Jacobs: I think it’s ideal for us because we don’t have a high cost
base, because we always have tried to compete on objectivity and
transparency. That’s our DNA. You get great technology. You make sure
you keep your costs low and focused. And you provide a superior solution.
When I was both the indexer and the sponsor of PowerShares
QQQ when it first launched, that situation required me to create very
clear firewalls between those processes. It was in my best interest to
create an objective, rules-based index so I wouldn’t have companies
calling me saying, “Hey, we’re listed on the NASDAQ Stock Market®.
Put us in the index or we’re leaving.” I had to have a way that I could
say, “Sorry; we’ve got rules.”
We’ve learned that objective, transparent, rules-based methodology
makes better indexes and better tracking. We think this is our sweet
spot. And because of our technological advantages, it’s going to be hard
for everyone else to compete with us on cost. We’re very bullish.
sponsored content

Why You
Should Stop
Worrying
And Learn To
By Paul Baiocchi
Paul Baiocchi is the lead sector ETF
specialist at IndexUniverse. Email him
at pbaiocchi@indexuniverse.com.
ETF
Closures
2012 was a big year for ETF closures. In spite of rapid growth across the industry in terms of
assets, as of this writing, 96 ETFs and ETNs shut down in 2012—more than any other year in
ETF history. This record has many investors nervous about their ETF holdings, and indeed,
the stability of the industry. While the ETF industry is doing just fine, it’s worth understanding
what fund closures do (and don’t) mean for investors.
A Broader View
To be clear: ETF closures are a real issue. The
pace of closures had been relatively stable for
the better part of the past five years: In 2011,
30 funds shut down, compared with 49 in 2010,
56 in 2009 and 59 in 2008. That makes the 96
closures in 2012 through November all the
more troubling. Even more troubling, this record
could soon be surpassed, as our proprietary
measure of fund-closure risk has more than 300
funds pegged at “High Risk” heading into 2013.
On the other hand, while the 96 ETF closures
are a record, the real story is that those 96 funds
had less than $750 million combined under management,
with an average of just $8 million in each
fund when closure was announced—a drop in the
bucket for an industry with $1.3 trillion in AUM as
of Nov. 30. It also doesn’t represent any real shrinkage
in the number of offerings investors have to
choose from. In total, 166 new ETFs came to market
in 2012 through November. The cornucopia—
and challenge—of choice is bigger than ever.
Ultimately, the number of closures isn’t what
matters; rather, it’s the reasons behind those closures
that are important. Nobody wants to be in a
fund that closes, incurring unwanted transaction
and potential tax costs, not to mention the facesaving
problems if you’re an advisor who recommended
that fund to a client.
Few people have stopped to analyze just why
ETFs close. Here at IndexUniverse, however, we
have documented every single one of the 288
fund closures in history and zeroed in on what
we believe are the exact causes of closure. Looking
at these factors, it’s relatively straightforward
to evaluate an ETF and determine if it’s at real
risk of closing in the near term.
16 IndexUniverse.com/ETF Report

2012 Closures
Ticker
Fund Name
EMGX
EMVX
MEXS
XOIL
BARN
FISN
EATX
WSTE
FXRU
FXM
EEN
XGC
OTR
OTP
XRO
EWAC
WCAT
DENT
SKOR
FMU
FLG
FMM
FOS
FBM
FCQ
FCL
FCD
FEG
FFL
FHC
FIL
FRL
FTQ
FUI
COWL
COWS
MATS
BRIL
BRIS
SICK
INDZ
LHB
RETS
HBTA
LBTA
HVOL
LVOL
HMTM
SHBT
SLBT
SHVY
SLVY
SHMO
XLBT
XLVO
XHMO
Global X Russell Emerging Markets Growth ETF
Global X Russell Emerging Markets Value ETF
Global X Mexico Small-Cap ETF
Global X Oil Equities ETF
Global X Farming ETF
Global X Fishing Industry ETF
Global X Food ETF
Global X Waste Management ETF
CurrencyShares Russian Ruble Trust
CurrencyShares Mexican Peso Trust
Guggenheim EW Euro-Pacific LDRs ETF
Guggenheim International Small Cap LDRs ETF
Guggenheim Ocean Tomo Growth ETF
Guggenheim Ocean Tomo Patent ETF
Guggenheim Sector Rotation ETF
Rydex MSCI All Country World Equal Weight ETF
TR/J CRB Wildcatters Exploration & Production Equity ETF
Dent Tactical Advantage ETF
IQ South Korea Small Cap ETF
Focus Morningstar US Market Index ETF
Focus Morningstar Large Cap Index ETF
Focus Morningstar Mid Cap Index ETF
Focus Morningstar Small Cap Index ETF
Focus Morningstar Basic Materials Index ETF
Focus Morningstar Communications Services Index ETF
Focus Morningstar Consumer Cyclical Index ETF
Focus Morningstar Consumer Defensive Index ETF
Focus Morningstar Energy Index ETF
Focus Morningstar Financial Services Index ETF
Focus Morningstar Health Care Index ETF
Focus Morningstar Industrials Index ETF
Focus Morningstar Real Estate Index ETF
Focus Morningstar Technology Index ETF
Focus Morningstar Utilities ETF
Direxion Daily Agribusiness Bull 3X Shares
Direxion Daily Agribusiness Bear 3X Shares
Direxion Daily Basic Materials Bear 3X Shares
Direxion Daily BRIC Bull 3X Shares
Direxion Daily BRIC Bear 3X Shares
Direxion Daily Healthcare Bear 3X Shares
Direxion Daily India Bear 3X Shares
Direxion Daily Latin America Bear 3X Shares
Direxion Daily Retail Bear 3X Shares
Russell 1000 High Beta ETF
Russell 1000 Low Beta ETF
Russell 1000 High Volatility ETF
Russell 1000 Low Volatility ETF
Russell 1000 High Momentum ETF
Russell 2000 High Beta ETF
Russell 2000 Low Beta ETF
Russell 2000 High Volatility ETF
Russell 2000 Low Volatility ETF
Russell 2000 High Momentum ETF
Russell Developed ex-U.S. Low Beta ETF
Russell Developed ex-U.S. Low Volatility ETF
Russell Developed ex-U.S. High Momentum ETF
The Big Sleep
By far the biggest reason that an
ETF closes is that the issuer exits
the industry entirely. Roughly half
of all 288 closures have been driven
by the fund provider leaving altogether.
Why do issuers abandon
the market? Because they’re unable
to develop a total complex of
ETFs that make a compelling business
proposition.
That doesn’t mean, however,
that you only need to worry about
small issuers with no other business
behind them. Being a large financial
firm is no guarantee of success in
ETFs. Indeed, two of the most spectacular
flame-outs—Northern Trust
and FocusShares—were supported
by massive companies.
Consider FocusShares. It came
to market with a seemingly great
strategy, backed by a large brokerage
firm with big assets (Scottrade)
with what would seem like a captive
distribution infrastructure. Focus-
Shares targeted vanilla equity strategies
(sector, size and style) and
attempted to compete on cost, offering
the lowest expense ratio in
the 15 market segments its ETFs
covered. On paper, it seemed like a
great way to gather assets, at least
from existing Scottrade clients.
However, investors quickly realized
that the low expense ratios
were the only part of the funds
that made sense. Wide spreads
and tracking error plagued the
FocusShares products, meaning the
true costs to investors were much,
much higher than the low-cost offering
advertised.
These trading and management
problems exacerbated the other
major problem—the me-too nature
of the product offerings. With
large, extremely liquid competitors
with nearly identical products,
there was no compelling reason for
investors to consider an untested
newcomer. In many ways, the market
made the collective right choice
here. After all, not every issuer can
manage the S&P 500 as cheaply and
efficiently as Vanguard.
Russell’s ETF business also closed
shop in 2012, shuttering 25 funds. It
lasted less than a year, despite offering
a suite of credibly designed products
with potential value to a wide
range of investors. While the products
were sound, the firm’s shotgun
approach to releasing products overwhelmed
its ability to provide support.
So even unique products don’t
always generate enough in assets to
keep the business line afloat.
In a way, the ETF industry has a
built-in virtuous cycle that can lead
to near-monopolies: In any given asset
class, the fund with the most assets
often gets the most volume and
is therefore the cheapest to trade.
Thus, assets often beget more assets.
Whether that type of monopoly is
“fair” is a topic for another day, but
as the market is currently constructed,
that’s reality.
It’s not impossible for “me too”
entrants to succeed, of course;
Charles Schwab has built a respectable
ETF business based on low
costs, by leveraging its self-directed
investor base and strong RIA network
in a way that Scottrade failed
to do. Still, Chuck’s $8 billion in assets
just gets it into the top 10 on
the ETF league table, so it’s not exactly
a powerhouse.
Disinterested Investors
The second-most-common reason
for ETF closures is a simple lack of
investor interest. More than 25%
of fund closures to date have shut
down because they could not attract
enough assets to make them
profitable. Historically, the profitability
threshold for an ETF has
been roughly $50 million, and of
the 288 fund closures in history,
fewer than 2% had more than $50
million in AUM.
January 2013
17
Continued on page 18

But importantly, while some
small funds close, others are supported
by their issuers indefinitely.
It comes down to a matter of
issuer culture. Issuers like First
Trust have never closed a fund, despite
having some low-AUM dogs
in their portfolio; by comparison,
PowerShares and Global X regularly
close small funds as a matter
of course. The upshot? You’re
safer in a low-AUM fund from First
Trust than in a comparably lowasset
fund from PowerShares.
An ETF’s success, from a profitability
perspective, comes down to
the asset base it can attract and the
fees it can charge. From an investor’s
perspective, it comes down to
whether a fund can truly deliver on
its core promise. When a fund trades
with wide spreads or tracks poorly,
its attractiveness to investors wanes.
Taking Your Medicine
So what happens when you read
the dreaded headline that your favorite
small ETF is being shuttered?
The process of closing an ETF is actually
relatively straightforward
and painless: The issuer sends out
a press release announcing the closure
and the date on which trading
will terminate, liquidation will
begin and distribution of proceeds
will occur. The entire timeline generally
lasts less than a month, and
doesn’t result in any loss of investors’
capital.
It Does, However,
Introduce Some Risks
The first risk is to your credibility.
As an advisor, having to call a client
to inform them that the ETF
you chose for them is shutting
down is simply embarrassing. As
the guardian of their wealth, it can
raise questions: If you can’t choose
a viable ETF, are you choosing a viable
strategy?
Still, as soon as you learn of the
closure of an ETF you hold for clients,
it is best to exit as quickly as
Continued from page 17
AGRG Russell Aggressive Growth ETF
CONG Russell Consistent Growth ETF
CNTR Russell Contrarian ETF
EQIN Russell Equity Income ETF
GRPC Russell Growth at a Reasonable Price ET
LWPE Russell Low P/E ETF
SGGG Russell Small Cap Aggressive Growth ETF
SCOG Russell Small Cap Consistent Growth ETF
SCTR Russell Small Cap Contrarian ETF
SCLP Russell Small Cap Low P/E ETF
HDIV Russell High Dividend Yield ETF
DIVS Russell Small Cap High Dividend Yield ETF
VXAA Etracs Daily 1-Month S&P 500 VIX Futures ETN
VXBB Etracs Daily 2-Month S&P 500 VIX Futures ETN
VXCC Etracs Daily 3-Month S&P 500 VIX Futures ETN
VXDD Etracs Daily 4-Month S&P 500 VIX Futures ETN
VXEE Etracs Daily 5-Month S&P 500 VIX Futures ETN
VXFF Etracs Daily 6-Month S&P 500 VIX Futures ETN
AAVX Etracs Daily Short 1-Month S&P 500 VIX Futures ETN
BBVX Etracs Daily Short 2-Month S&P 500 VIX Futures ETN
CCVX Etracs Daily Short 3-Month S&P 500 VIX Futures ETN
DDVX Etracs Daily Short 4-Month S&P 500 VIX Futures ETN
EEVX Etracs Daily Short 5-Month S&P 500 VIX Futures ETN
FFVX Etracs Daily Short 6-Month S&P 500 VIX Futures ETN
SFSA iPath Short Extended S&P 500 TR Index ETN
ROSA iPath Short Extended Russell 1000 TR Index ETN
ALUM Global X Aluminum ETF
VROM Global X Auto ETF
QQQV Global X Nasdaq 500 ETF
QQQM Global X Nasdaq 400 Mid Cap
ROI WisdomTree LargeCap Growth Fund
SZR WisdomTree Dreyfus South African Rand Fund
JYF WisdomTree Dreyfus Japanese Yen Fund
BTAH QuantShares U.S. Market Neutral High Beta Fund
NOMO QuantShares U.S. Market Neutral Anti-Momentum Fund
QLT QuantShares U.S. Market Neutral Quality Fund
EMER IQ Emerging Markets Mid Cap ETF
Selected 2013 Closure Candidates
CARZ First Trust Nasdaq Global Auto Index Fund
QCLN First Trust Nasdaq Clean Edge Green Energy Index Fund
PWND PowerShares Global Wind Energy Portfolio
PKOL PowerShares Global Coal Portfolio
PSTL PowerShares Global Steel Portfolio
ICN WisdomTree Dreyfus Indian Rupee Fund
RWW RevenueShares Financials Sector Fund Fund
WFVK Guggenheim Wilshire 5000 Total Market ETF
KROO Index IQ Australia Small Cap ETF
CCX WisdomTree Dreyfus Commodity Currency Fund
DSTJ JPMorgan Double Short US Long Bond Treasury Futures ETN
FWDD AdvisorShares Madrona Domestic ETF
QGEM EG Shares Technology GEMS ETF
possible. Whatever paltry volume
the fund has will quickly erode,
and the ability of the fund to provide
the promised exposure will
ebb as the fund’s assets are sold
off. In other words, if you don’t
sell soon after the announcement,
you risk being stuck with the
fund until the end, and that prospect
is fraught with risk. While
most fund closures have resulted
in clean wind-downs, it has happened
that the last shareholders
standing have been stuck with
closing expenses that have eroded
their final payouts. Not often, but
it has happened.
Clean Bill Of Health
Rather than dealing with the aftermath,
it’s better to avoid being in a
closing fund altogether.
When choosing the “core” portion
of your ETF exposure—aggregate
bond funds, size and style
funds, sector funds—stick to funds
issued by the large, established
firms with significant asset bases.
Even within this seemingly vanilla
cohort, there is enough competition
to provide different index approaches
and all-in costs. The big
three issuers (BlackRock, Vanguard
and SSgA) just don’t close funds in
their product lines (although they
may rename them or change indexes
occasionally).
When venturing beyond the
core into the more specialized
strategies offered by many of the
smaller issuers, you can avoid surprises
by choosing only those ETFs
with more than $50 million in
AUM. As described above, this has
proved historically to be a threshold
of safety, and less than 2% of
historical ETF closures had more
than $50 million in AUM. And if
the strategy you’re looking for is
available only in an ETF with less
than $50 million in AUM, focus
on funds issued by big issuers or
those issuers that have historically
shown an aversion to closure.
Source: IndexUniverse
18 IndexUniverse.com/ETF Report

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in their goal to create “all-weather,” “volatility-buffered,” “crash-proof” portfolios. For two days, join
leading practitioners as well as globally recognized index providers, index fund managers, ETF issuers
and academics to address the most significant and timely issues facing investment officers and other
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Presented by:

Strategy
WHY
I own
vbK
Vanguard Small-Cap
Growth ETF
Chad Carlson
Head of Investment Research & Wealth Manager
FIRM: Balasa Dinverno Foltz LLC
LOCATION: Chicago
FOUNDED: 1986
AUM: $2.1 Billion
ALL ETFs? No
What’s one ETF that you own and like right now?
One fund that we have owned for a while now is the
Vanguard Small-Cap Growth ETF (VBK). We previously
used the iShares S&P SmallCap 600 Growth
Index ETF (IJT) for that allocation, but we changed to
Vanguard three years ago.
Why?
VBK is great from the expense ratio side. It only
charges 10 basis points in expenses. IJT charges 25.
The iShares Russell 2000 Growth Index ETF (IWO) also
charges 25. Twenty-five basis points is not that expensive,
but 10 is a lot better.
Don’t those three funds offer different exposures?
When we evaluate the traditional small-cap growth
space, we really don’t see anything too exotic, so we
don’t worry too much about the small index differences.
Does it concern you that Vanguard is changing the
benchmark for VBK from MSCI to CRSP?
We’ve talked to Vanguard, and of course they say there
will not be significant tracking differences or tax distributions.
They see no problems.
We’ve talked to iShares as well, and of course they
say it will be a disaster: 36% of the fund will turn over,
the tracking in the early days will be an issue, and so
on. They mention significant issues when Vanguard
switched its funds to MSCI indexes many
years ago.
So how do you compare those diametrically
opposed views?
It comes down to a gut feel, backed up by
analysis. Both Vanguard and iShares have
fair points to make, and of course they’re
going to disagree. Long term, we have to ask
ourselves, Do we think the CRSP index will
be so different from the MSCI benchmark
that it will dramatically impact performance
in a negative way? We don’t.
We also think that Vanguard will be able to manage
the transition successfully, given the flexibility of the
ETF structure and the assets it houses in-house. And
long term, the more favorable licensing arrangement
Vanguard was able to strike with CRSP should help
keep costs under control.
People worry that funds will have difficulty tracking
their new benchmarks after the transition.
People do. But we’re not an institutional manager looking
at minute tracking differences. We don’t really care
if the fund fails to perfectly track the CRSP index a few
days after the transition. We liked the old index, and
we’re fine with the new one, so if it doesn’t catch up
with the new index for a few days, that’s fine.
What could iShares do to change your opinion?
iShares recently cut costs substantially on a series of
core ETFs, which was great. But they left small-cap out
of it. For now, VBK is 10 basis points versus 25 basis
points for its competitors, and that matters to us.
In general, we’ve been very happy with the Vanguard
ETF. The performance over the long term has held
up; the fund is positioned right on a size and style basis;
and it fits neatly into the overall construction of our
portfolios. With ultra-low costs, it just works.
How often will you re-evaluate this decision?
We look at all of our positions continuously with a
deep dive every six months. We also do spot evaluations
when things change: So, for instance, we revisited
the VBK decision when Vanguard announced the index
change. But even if everything is dull and nothing is
happening, we look at things every six months.
Vanguard Small-Cap Growth ETF (VBK)
Segment:
Equity: U.S. - Small Cap Growth
Issuer: Vanguard
Legal Structure:
Open-Ended Fund
Expense Ratio: 0.10%
AUM: $2.1 Billion
AD$V (30-Day): $9.8 Million
Avg. Spread: 0.01%
Competing Funds: IJT, FYC, RZG, PXSG
RETURN
20%
15
10
5
0
-5
-10
J F M A M J J A S
2012
O
12.15%
Source: Bloomberg. Data as of 12/04/2012.
20 IndexUniverse.com/ETF Report

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in review
November’s markets were mixed.
Telecom underperformed, as the iShares Dow Jones
Telecommunications ETF (IYZ) lost 2% and the Vanguard
Telecommunication Services ETF (VOX) lost 1%.
Financial ETFs were down slightly, as the broad Financial
Select SPDR (XLF) dipped just under 1%, while the
PowerShares KBW Bank ETF (KBWB) fell almost 2%. But
the biggest drop was in mining, where the SPDR S&P
Metals and Mining ETF (XME) fell more than 4.5%, even
as the broader Materials Select SPDR (XLB) rose 1.9%.
Other areas prospered. The Consumer Discretionary
Select SPDR (XLY) climbed more than 3% as the holiday
retail season hit full swing. Internet stocks, represented
by the First Trust Dow Jones Internet ETF (FDN), jumped
almost 5%, while the SPDR S&P Semiconductor ETF
(XSD) gained 4.4%, showing strength in the tech sector.
iShares’ Nasdaq Biotechnology ETF (IBB) gained more
than 5%, leading performance in the health care sector.
In flows, XLY added $455 million, followed by the
Industrial Select SPDR (XLI) with $409 million. For outflows,
the iShares Dow Jones U.S. Real Estate ETF (IYR)
lost $320 million in AUM, followed by the Technology
Select SPDR (XLK) with $297 million and the Energy
Select SPDR (XLE) with $214 million.
Top Inflows ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ticker net flows aum ($m)
Consumer Discretionary Select SPDR XLY 455.32 3,733.0 Consumer Cyclicals
Industrial Select SPDR XLI 408.92 3,405.0 Industrials
Consumer Staples Select SPDR XLP 361.60 6,316.2 Consumer Non-cyclicals
Market Vectors Gold Miners GDX 327.09 9,534.8 Basic Materials
Materials Select SPDR XLB 248.98 2,561.6 Basic Materials
Top Outflows |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ticker net flows aum ($m)
iShares Dow Jones U.S. Real Estate IYR -319.77 4,726.2 Real Estate
Technology Select SPDR XLK -297.22 9,166.9 Technology
Energy Select SPDR XLE -214.25 6,931.2 Energy
iShares Dow Jones U.S. Industrial IYJ -202.72 459.8 Industrials
iShares Dow Jones U.S. Energy IYE -123.25 809.1 Energy
Sector
Performance November 2012
BASIC MATERIALS CONS. CYCL. CONS. NON-CYCL. ENERGY FINANCIAL HEALTH CARE INDUSTRIAL REAL ESTATE TECH TELECOM UTILITIES
BROAD
XLB
1.91%
MINING
XME
-4.52%
BROAD
XLY
3.18%
HOMEBLD
XHB
0.92%
MEDIA
PBs
0.17%
RETAIL
xrt
1.62%
LEISURE
PeJ
1.24%
BROAD
XLP
1.66%
FOOD
PBJ
3.05%
BROAD
XLe
-1.06%
EQUIP
iez
1.16%
EXPLOR
xop
-1.34%
BROAD
XLF
-0.82%
BANKS
kbwb
-1.93%
BANK & IN
iai
0.80%
insurance
kbwi
0.07%
SERVICES
iyg
0.46%
BROAD
XLV
0.55%
BIOTECH
ibb
5.17%
MED DEV
ihi
1.94%
pharma
ihe
0.30%
equipment
xhe
0.50%
services
ihf
-1.14%
BROAD
XLI
1.75%
DEFENSE
ppa
2.54%
TRANSPO
iyt
1.20%
engineer
pkb
2.32%
BROAD
IYR
-0.61%
BROAD
vnq
-0.37%
BROAD
xlk
0.91%
INTERNET
fdn
4.87%
SEMIS
xsd
4.41%
software
igv
1.75%
BROAD
IYZ
-2.17%
BROAD
vox
-1.12%
BROAD
XLU
-4.30%
BROAD
vpu
-3.80%
///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Source: Bloomberg. Data for 10/31/2012 to 11/30/2012. ETFs chosen to represent each sector based
on the most liquid ETF in each segment of the IndexUniverse ETF Classification System.
KEY:
-
≤-5.0
-3.0 ≤-4.9
-1.0 ≤-2.9
-0.1 ≤-0.9
0
0.1 ≤ 0.9
1.0 ≤ 2.9
3.0 ≤ 4.9
≥ 5.0
+
22 IndexUniverse.com/ETF Report

8 Goldman Sachs GS 2.88%
9 Simon Property SPG 2.41%
10 American Intl AIG 2.13%
TIRED OF TOEING THE LINE WITH YOUR
EQUITY
DISCOVER A STOCK ALTERNATIVE
THE FINANCIAL SECTOR SPDR ETF
Potential benefits of adding XLF to your portfolio include:
• Undiluted exposure to the Financial Sector of the S&P 500
• The all-day tradability of stocks
• The diversification of mutual funds
• Total transparency
• Liquidity
XLF Top 10 Holdings Symbol Portfolio %
1 Wells Fargo WFC 8.64%
2 Berkshire Hathaway B BRK.b 8.27%
3 JP Morgan Chase JPM 8.27%
4 Citigroup C 5.72%
Visit www.sectorspdrs.com
or call 1-866-SECTOR-ETF
5 Bank of America BAC 5.24%
6 US Bancorp USB 3.29%
7 American Express AXP 2.88%
* Components and weightings as of 10/31/12. Please see website
for daily updates. Holdings subject to change.
Consumer Discretionary - XLY Consumer Staples - XLP Utilities - XLU Financial - XLF Technology - XLK Health Care - XLV Energy - XLE Industrial - XLI Materials - XLB
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information,
call 1-866-SECTOR-ETF or visit www.sectorspdrs.com. Read the prospectus carefully before investing.
The S&P 500, SPDRs, and Select Sector SPDRs are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use. The stocks included in each Select Sector Index
were selected by the compilation agent. Their composition and weighting can be expected to differ to that in any similar indexes that are published by S&P. The S&P 500 Index is an
unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. The index is heavily weighted toward stocks with large market capitalizations
and represents approximately two-thirds of the total market value of all domestic common stocks. Investors cannot invest directly in an index. The S&P 500 Index fi gures do not refl ect
any fees, expenses or taxes. Ordinary brokerage commissions apply. ETFs are considered transparent because their portfolio holdings are disclosed daily. Liquidity is characterized by a
high level of trading activity.
Select Sector SPDRs are subject to risks similar to those of stocks, including those regarding short-selling and margin account maintenance. All ETFs are subject to risk, including possible
loss of principal. Funds focusing on a single sector generally experience greater volatility. Diversifi cation does not eliminate the risk of experiencing investment losses.
ALPS Distributors, Inc. a registered broker-dealer, is distributor for the Select Sector SPDR Trust. SEL001087 exp. 03/31/2013

Fund Name Ticker ExP Ratio % AUM ($M) YTD % 3Yr % 5Yr %
ETF
DATA
U.S. Equity: Total Market
PowerShares Dynamic Market PWC 0.60 129.5 17.97 10.84 -0.24
Vanguard Total Stock Market VTI 0.06 23,383.2 14.97 11.92 1.92
Schwab US Broad Market SCHB 0.04 1,237.9 14.78 11.85 -
iShares Russell 3000 IWV 0.20 3,663.2 14.75 11.56 1.52
iShares Dow Jones US IYY 0.20 609.8 14.71 11.50 1.61
SPDR Dow Jones Total Market TMW 0.20 429.0 14.64 11.59 1.73
iShares MSCI USA EUSA 0.15 148.2 14.15 - -
FlexShares Morningstar U.S. Market Factor Tilt Index TILT 0.27 153.9 13.61 - -
WisdomTree Total Dividend DTD 0.28 295.0 12.16 12.85 1.59
iShares MSCI USA Minimum Volatility USMV 0.15 657.2 11.78 - -
WisdomTree Dividend Ex-Financials DTN 0.38 1,177.1 11.42 16.56 3.18
U.S. Equity: Total Market Growth
Fidelity NASDAQ Composite ONEQ 0.31 178.4 16.49 13.07 3.53
iShares Russell 3000 Growth IWZ 0.25 348.6 14.78 12.42 2.87
U.S. Equity: Total Market Value
iShares Russell 3000 Value IWW 0.25 366.3 14.69 10.66 0.01
U.S. Equity: Extended Cap
Vanguard Extended Market VXF 0.14 1,400.7 15.21 14.97 3.56
PowerShares FTSE RAFI US 1500 SmMid PRFZ 0.39 467.4 13.92 14.60 5.79
U.S. Equity: Large Cap
U.S.-Listed ETFs
by Asset Class and
Year-to-Date Return
› Data as of 11/30/2012
› Exp Ratio is annual expense ratio
› AUM is net assets in $US millions
› YTD is year-to-date
› 3YR and 5YR returns are annualized
› Includes all U.S.-listed ETFs and ETNs
with assets of $125 million and above
› Source: Morningstar
Fund Name Ticker ExP Ratio % AUM ($M) YTD % 3Yr % 5Yr %
RevenueShares Large Cap RWL 0.49 149.1 15.99 11.67 -
iShares Morningstar Large Core JKD 0.20 286.0 15.82 11.04 2.12
Guggenheim Russell Top 50 XLG 0.20 593.0 15.70 9.83 0.83
iShares S&P 100 OEF 0.20 4,103.3 15.57 10.39 0.89
Vanguard Mega Cap 300 MGC 0.12 454.0 15.27 10.87 -
iShares Russell 1000 IWB 0.15 6,448.6 15.15 11.46 1.46
Vanguard Large-Cap VV 0.10 3,559.8 14.98 11.39 1.58
iShares S&P 500 IVV 0.07 32,642.2 14.97 11.16 1.28
Vanguard Russell 1000 VONE 0.12 175.6 14.96 - -
SPDR S&P 500 SPY 0.09 110,870.0 14.96 11.16 1.25
Schwab US Large-Cap SCHX 0.04 968.2 14.86 11.35 -
Vanguard S&P 500 VOO 0.05 6,027.2 14.83 - -
Guggenheim S&P Equal Weight RSP 0.40 2,696.8 14.56 13.05 3.31
PowerShares FTSE RAFI US 1000 PRF 0.39 1,443.2 14.24 11.52 2.63
PowerShares S&P 500 High Quality SPHQ 0.29 175.7 13.83 15.48 -1.87
WisdomTree LargeCap Dividend DLN 0.28 1,294.0 12.20 12.51 1.10
First Trust Large Core AlphaDEX FEX 0.70 339.6 11.66 11.98 2.23
iShares MSCI KLD 400 Social DSI 0.50 172.4 10.95 8.84 0.98
PowerShares S&P 500 Low Volatility SPLV 0.25 3,061.5 10.85 - -
SPDR DJ Industrial Average Trust DIA 0.17 10,483.6 9.19 10.71 2.10
iShares MSCI USA ESG Select Social KLD 0.50 174.9 8.70 8.87 0.93
Barclays ETN+ S&P Veqtor ETN VQT 0.95 347.9 0.60 - -
U.S. Equity: Large Cap Growth
PowerShares Dyn Large Cap Growth PWB 0.61 192.4 18.71 11.31 1.15
PowerShares QQQ QQQ 0.20 30,738.3 18.66 15.67 5.79
iShares Morningstar Large Growth JKE 0.25 453.9 18.45 11.86 2.37
Vanguard Mega Cap 300 Growth MGK 0.12 779.7 17.79 12.60 -
Vanguard Growth VUG 0.10 8,446.5 16.93 12.97 3.33
Schwab US Large-Cap Growth SCHG 0.07 511.4 16.34 - -
iShares Russell Top 200 Growth IWY 0.20 355.4 15.53 11.73 -
iShares Russell 1000 Growth IWF 0.20 16,686.5 15.18 12.27 2.87
iShares S&P 500 Growth IVW 0.18 6,851.1 14.53 11.97 3.30
SPDR 500 Growth SPYG 0.20 221.3 14.45 13.39 3.59
Guggenheim S&P 500 Pure Growth RPG 0.35 329.3 13.47 14.90 5.76
U.S. Equity: Large Cap Value
iShares S&P 500 Value IVE 0.18 4,724.2 14.98 10.12 -1.06
iShares Russell 1000 Value IWD 0.20 13,696.3 14.92 10.55 -0.17
PowerShares Dyn Large Cap Value PWV 0.59 464.4 14.05 12.22 3.51
First Trust Large Cap Value AlphaDEX FTA 0.70 266.8 13.68 12.54 4.20
Schwab US Large-Cap Value SCHV 0.07 407.0 13.48 - -
Vanguard Mega Cap 300 Value MGV 0.12 430.7 12.97 9.11 -
Vanguard Value VTV 0.10 6,758.2 12.80 9.76 -0.23
iShares Morningstar Large Value JKF 0.25 239.1 10.60 8.45 -1.83
U.S. Equity: Mid Cap
iShares Morningstar Mid Core JKG 0.25 161.0 15.71 16.38 4.51
iShares S&P 400 MidCap IJH 0.15 12,884.2 15.30 14.88 4.49
SPDR S&P MidCap 400 MDY 0.25 9,644.7 15.18 14.73 4.29
Schwab US Mid-Cap SCHM 0.07 265.1 15.03 - -
WisdomTree MidCap Earnings EZM 0.38 162.5 14.89 16.51 6.99
iShares Russell Midcap IWR 0.21 6,281.5 14.54 14.23 2.91
Vanguard Mid-Cap VO 0.10 3,828.6 13.33 13.96 2.65
WisdomTree MidCap Dividend DON 0.38 388.4 13.02 15.71 4.73
First Trust Mid Cap Core AlphaDEX FNX 0.70 299.3 11.41 14.87 5.81
U.S. Equity: Mid Cap Growth
Guggenheim S&P MidCap 400 Pure Growth RFG 0.35 520.1 16.55 18.76 9.97
iShares S&P Mid Cap 400 Growth IJK 0.25 3,117.1 15.68 16.25 5.54
iShares Russell Mid Cap Growth IWP 0.25 3,220.5 13.58 14.25 2.72
Vanguard Mid-Cap Growth VOT 0.10 1,165.3 13.32 14.71 1.63
iShares Morningstar Mid Growth JKH 0.30 157.9 13.02 14.46 1.61
U.S. Equity: Mid Cap Value
iShares Russell Midcap Value IWS 0.28 3,713.0 15.21 14.07 2.90
iShares S&P MidCap 400 Value IJJ 0.27 2,197.6 14.79 13.50 3.36
Vanguard Mid-Cap Value VOE 0.10 1,123.4 13.35 13.14 3.42
U.S. Equity: Small Cap
Vanguard Small-Cap VB 0.16 4,491.0 14.83 15.56 4.35
Schwab US Small-Cap SCHA 0.10 695.2 14.74 15.45 -
WisdomTree SmallCap Dividend DES 0.38 392.8 14.67 15.21 4.09
iShares Morningstar Small Core JKJ 0.25 131.1 12.87 13.80 3.80
iShares S&P SmallCap 600 IJR 0.16 7,807.9 12.75 15.91 4.18
iShares Russell 2000 IWM 0.23 15,450.6 12.62 13.81 2.84
Vanguard Russell 2000 VTWO 0.22 164.4 12.39 - -
SPDR S&P SmallCap 600 Index SLY 0.20 216.3 11.76 15.82 4.74
First Trust Small Cap Core AlphaDEX FYX 0.70 157.3 11.36 15.34 5.02
WisdomTree SmallCap Earnings EES 0.38 151.9 10.85 14.31 6.71
U.S. Equity: Small Cap Growth
Vanguard Small-Cap Growth VBK 0.10 2,101.1 14.77 17.17 4.76
iShares Russell 2000 Growth IWO 0.25 3,962.8 11.74 14.91 3.06
iShares S&P SmallCap 600 Growth IJT 0.25 1,564.6 11.11 16.99 4.64
SPDR S&P SmallCap 600 Growth SLYG 0.25 160.5 10.89 17.91 5.39
U.S. Equity: Small Cap Value
Vanguard Small-Cap Value VBR 0.21 2,169.9 15.13 13.83 3.86
iShares Morningstar Small Value JKL 0.30 186.7 14.61 15.04 6.01
24 IndexUniverse.com/ETF Report

Fund Name Ticker ExP Ratio % AUM ($M) YTD % 3Yr % 5Yr % Fund Name Ticker ExP Ratio % AUM ($M) YTD % 3Yr % 5Yr %
iShares S&P SmallCap 600 Value IJS 0.29 1,834.6 14.19 14.82 3.74
SPDR S&P SmallCap 600 Value Index SLYV 0.25 136.0 13.94 14.22 4.55
iShares Russell 2000 Value IWN 0.37 4,182.5 13.27 12.73 2.44
U.S. Equity: Micro Cap
iShares Russell Microcap IWC 0.69 450.0 15.69 13.24 0.28
U.S. Equity: Basic Materials
First Trust Materials AlphaDEX FXZ 0.70 233.5 19.13 13.11 4.67
Vanguard Materials VAW 0.19 700.4 13.31 9.45 1.05
Materials Select SPDR XLB 0.18 2,561.6 11.14 6.80 -0.01
iShares DJ US Basic Materials IYM 0.47 490.2 5.68 6.38 -0.32
SPDR S&P Metals and Mining XME 0.35 1,013.1 -12.62 -3.77 -7.76
U.S. Equity: Consumer Cyclicals
iShares DJ US Home Construction ITB 0.47 1,614.3 73.11 22.23 4.77
SPDR S&P Homebuilders XHB 0.35 2,235.1 55.21 24.09 8.30
Vanguard Consumer Discr VCR 0.19 572.8 23.59 20.61 7.67
iShares DJ US Consumer Services IYC 0.47 345.2 23.52 18.95 7.46
Consumer Discr Select SPDR XLY 0.18 3,733.0 23.04 20.24 8.28
SPDR S&P Retail XRT 0.35 794.5 21.30 23.84 13.82
First Trust Consumer Discr AlphaDEX FXD 0.70 519.1 15.47 17.23 5.93
U.S. Equity: Consumer Non-Cyclicals
iShares DJ US Consumer Goods IYK 0.47 385.9 13.39 13.95 5.58
Vanguard Consumer Staples VDC 0.19 1,202.6 13.33 13.97 7.25
Consumer Staples Select SPDR XLP 0.18 6,316.2 13.08 13.56 7.17
First Trust Consumer Staples AlphaDEX FXG 0.70 429.7 8.50 14.82 6.46
U.S. Equity: Energy
JPMorgan Alerian MLP ETN AMJ 0.85 5,127.8 7.27 20.33 -
ETRACS MLP Infrastructure ETN MLPI 0.85 450.0 6.98 - -
Alerian MLP AMLP 0.85 4,466.7 4.41 - -
Energy Select SPDR XLE 0.18 6,931.2 4.14 9.57 0.97
iShares Dow Jones US Energy IYE 0.47 809.2 3.31 8.46 0.56
Credit Suisse Cushing 30 MLP ETN MLPN 0.85 301.3 3.24 - -
Vanguard Energy VDE 0.19 1,880.6 2.16 8.75 0.76
iShares DJ US Oil/Gas Expl & Production IEO 0.47 313.6 1.47 8.15 0.67
SPDR S&P Oil/Gas Expl & Production XOP 0.35 792.6 1.22 12.19 2.51
iShares DJ US Oil Equipment & Services IEZ 0.47 333.5 -2.31 7.18 -3.14
SPDR S&P Oil/Gas Equipment & Services XES 0.35 260.3 -2.67 7.59 -1.72
First Trust ISE-Revere Natural Gas FCG 0.60 413.2 -12.89 -0.55 -4.82
U.S. Equity: Financials
iShares DJ US Financial Services IYG 0.47 328.0 26.11 2.02 -11.01
Financial Select SPDR XLF 0.18 8,147.0 22.70 3.90 -10.71
iShares DJ US Financial IYF 0.47 565.7 21.45 5.74 -8.21
Vanguard Financials VFH 0.23 850.5 21.04 5.96 -7.91
SPDR KBW Insurance KIE 0.35 132.0 19.30 10.35 -2.45
SPDR KBW Bank KBE 0.35 1,621.5 18.82 2.99 -11.64
First Trust Financials AlphaDEX FXO 0.70 227.9 18.57 10.30 0.65
iShares Dow Jones US Regional Banks IAT 0.47 147.1 15.33 6.24 -8.15
PowerShares KBW High Div Yld Financial KBWD 1.32 162.8 14.91 - -
SPDR KBW Regional Banking KRE 0.35 1,132.5 14.35 11.20 -4.79
U.S. Equity: Health Care
Market Vectors Biotech BBH 0.35 141.2 49.47 - -
First Trust NYSE Arca Biotechnology FBT 0.60 236.0 40.39 19.41 12.57
SPDR S&P Biotech XBI 0.35 608.2 33.84 21.00 8.25
iShares NASDAQ Biotechnology IBB 0.48 2,191.6 33.50 21.36 10.76
PowerShares Dyn Pharmaceuticals PJP 0.63 312.9 24.04 25.33 13.98
First Trust Health Care AlphaDEX FXH 0.70 659.3 19.80 16.81 9.74
Vanguard Health Care VHT 0.19 1,014.3 19.15 12.69 4.90
iShares DJ US Healthcare IYH 0.47 715.3 19.12 12.30 4.63
Health Care Select SPDR XLV 0.18 5,617.4 17.79 11.67 4.02
PowerShares Dyn Biotech/Genome PBE 0.63 130.5 16.20 13.63 3.64
iShares DJ US Medical Devices IHI 0.47 280.7 15.47 9.95 2.75
iShares DJ US Pharmaceuticals IHE 0.47 399.4 15.18 17.64 11.14
iShares DJ US Healthcare Providers IHF 0.47 224.4 14.02 13.85 1.75
Market Vectors Pharmaceutical PPH 0.35 171.1 12.23 - -
SPDR S&P Pharmaceuticals XPH 0.35 348.7 11.02 16.81 11.93
U.S. Equity: Industrials
iShares DJ US Industrial IYJ 0.47 459.8 14.22 13.16 1.35
Vanguard Industrials VIS 0.19 515.5 13.55 13.19 0.62
Industrial Select SPDR XLI 0.18 3,405.0 11.76 12.83 1.07
iShares DJ Transportation Average IYT 0.47 528.2 2.56 10.19 3.16
U.S. Equity: Technology
First Trust DJ Internet FDN 0.60 519.7 17.96 17.02 8.06
Technology Select SPDR XLK 0.18 9,166.9 15.74 11.86 3.61
iShares S&P North Amer Software IGV 0.48 630.2 14.04 11.80 4.36
Vanguard Information Technology VGT 0.19 2,484.1 13.61 11.03 3.85
SPDR Morgan Stanley Technology MTK 0.50 165.3 13.45 7.45 2.14
iShares S&P North American Technology IGM 0.48 493.8 12.92 9.80 3.03
iShares DJ US Technology IYW 0.47 1,513.8 11.47 10.02 3.35
Market Vectors Semiconductor SMH 0.35 388.6 5.29 - -
First Trust Technology AlphaDEX FXL 0.70 136.6 4.75 9.28 0.02
iShares PHLX SOX Semiconductor SOXX 0.48 226.7 3.98 6.62 -2.02
iShares S&P North Am Multimedia Netwrk IGN 0.48 241.0 1.88 3.10 -3.76
U.S. Equity: Telecommunications
iShares DJ Telecommunications IYZ 0.47 516.0 15.78 12.05 -0.80
Vanguard Telecommunication Svcs VOX 0.19 484.9 14.57 13.02 1.47
U.S. Equity: Utilities
Vanguard Utilities VPU 0.19 1,129.8 1.70 10.98 0.78
iShares DJ US Utilities IDU 0.47 627.0 1.15 10.80 0.24
Utilities Select SPDR XLU 0.18 5,859.1 1.05 10.31 0.17
U.S. Equity: Real Estate
iShares DJ US Real Estate IYR 0.47 4,636.8 14.89 17.94 2.70
Vanguard REIT VNQ 0.10 14,609.3 13.41 19.29 4.16
First Trust S&P REIT FRI 0.50 379.7 13.27 18.62 3.72
SPDR Dow Jones REIT RWR 0.25 1,875.5 12.69 18.87 3.12
Schwab U. S. REIT SCHH 0.07 347.2 12.57 - -
iShares Cohen & Steers Realty Majors ICF 0.35 2,658.5 11.24 19.04 2.06
iShares FTSE NAREIT Residential Plus REZ 0.48 240.9 9.49 21.04 7.62
U.S Equity: Theme
iShares FTSE NAREIT Mortgage Plus REM 0.48 870.4 23.47 10.03 -2.82
PowerShares Water Resources PHO 0.62 812.8 21.17 8.98 -0.28
U.S. Equity: Alpha-Seeking
PowerShares DWA Technical Leaders PDP 0.67 682.5 17.86 16.77 1.14
PowerShares Buyback Achievers PKW 0.71 199.3 13.04 15.03 4.79
U.S. Equity: High Dividend Yield
Guggenheim Multi-Asset Income CVY 0.78 791.2 12.50 13.86 4.18
Vanguard High Dividend Yield VYM 0.13 4,230.7 12.38 12.79 2.09
WisdomTree Equity Income DHS 0.38 551.7 11.52 14.97 0.68
Schwab US Dividend Equity SCHD 0.07 558.7 11.46 - -
Vanguard Dividend Appreciation VIG 0.13 12,040.1 11.12 10.89 3.38
SPDR S&P Dividend SDY 0.35 9,415.0 11.04 12.39 4.41
iShares High Dividend Equity HDV 0.40 2,238.8 10.96 - -
PowerShares Dividend Achievers PFM 0.60 284.9 10.85 11.64 1.51
First Trust Value Line Dividend FVD 0.70 508.5 10.37 12.86 4.36
iShares DJ Select Dividend DVY 0.40 10,809.3 10.20 14.49 0.90
First Trust Mstar Dividend Leaders FDL 0.45 586.0 9.72 14.82 1.58
PowerShares HiYld Equity Div Achievers PEY 0.60 282.0 6.08 13.05 -2.81
Global Equity
Vanguard Total World Stock VT 0.22 1,559.6 13.60 6.46 -
iShares MSCI ACWI ACWI 0.34 3,017.2 13.49 6.31 -
iShares MSCI All Country World Min Volatility ACWV 0.35 649.0 11.15 - -
iShares S&P Global 100 IOO 0.40 1,042.4 10.50 3.90 -2.50
Global Equity Ex-U.S.
Vanguard FTSE All-World ex-US SmCap VSS 0.28 1,067.2 15.02 5.78 -
SPDR S&P World ex-US GWL 0.34 441.1 14.23 3.65 -3.80
Vanguard FTSE All-World ex-US VEU 0.18 7,829.5 13.18 3.33 -3.67
Vanguard Total International Stock VXUS 0.18 1,065.7 13.09 - -
iShares MSCI ACWI ex US ACWX 0.34 1,157.2 12.40 2.67 -
SPDR MSCI ACWI ex-US CWI 0.34 392.3 11.59 2.80 -3.67
January 2013
25

Fund Name Ticker ExP Ratio % AUM ($M) YTD % 3Yr % 5Yr % Fund Name Ticker ExP Ratio % AUM ($M) YTD % 3Yr % 5Yr %
International Equity: Blended Development
iShares S&P Asia 50 AIA 0.50 211.7 19.22 8.42 0.58
iShares MSCI All Country Asia ex-Japan AAXJ 0.69 1,964.7 17.80 4.04 -
International Equity: Developed
iShares MSCI New Zealand ENZL 0.51 149.9 29.19 - -
iShares MSCI Singapore EWS 0.52 1,519.2 27.02 10.01 3.02
iShares MSCI Hong Kong EWH 0.52 2,918.5 26.42 9.58 -0.05
iShares MSCI Germany EWG 0.51 3,796.8 26.08 3.89 -5.03
iShares MSCI Pacific ex-Japan EPP 0.50 3,533.3 22.13 7.75 0.54
iShares MSCI Australia EWA 0.52 2,349.8 18.99 6.86 0.20
iShares MSCI Switzerland EWL 0.52 693.4 18.99 8.18 1.36
iShares MSCI Sweden EWD 0.51 351.2 18.01 9.09 1.20
iShares MSCI France EWQ 0.52 434.9 17.72 -1.75 -7.15
iShares MSCI EMU EZU 0.52 1,875.8 17.68 -2.54 -8.72
Vanguard European VGK 0.14 4,379.1 16.56 2.90 -4.93
SPDR Euro STOXX 50 FEZ 0.29 1,180.8 16.22 -3.65 -8.73
WisdomTree Intl SmallCap Dividend DLS 0.58 445.8 15.96 6.87 -2.63
iShares S&P Europe 350 IEV 0.60 1,088.0 15.79 2.02 -5.39
iShares MSCI EAFE Small Cap SCZ 0.40 1,609.8 15.71 6.61 -
iShares MSCI EAFE Growth EFG 0.40 1,355.2 14.75 4.55 -4.09
iShares MSCI Kokusai TOK 0.25 633.4 14.26 7.75 -
Schwab International Small-Cap Eq SCHC 0.20 198.9 14.20 - -
iShares MSCI South Korea EWY 0.59 2,987.2 14.12 11.22 -1.05
iShares MSCI EAFE EFA 0.34 37,830.8 13.85 2.85 -4.74
Schwab International Equity SCHF 0.09 937.9 13.79 3.26 -
Vanguard MSCI EAFE VEA 0.12 10,212.7 13.74 2.89 -4.49
iShares MSCI EAFE Value EFV 0.40 1,533.1 13.49 1.11 -5.53
WisdomTree DEFA DWM 0.48 412.7 13.18 2.34 -5.09
WisdomTree Intl LargeCap Dividend DOL 0.48 195.3 12.24 1.69 -5.16
iShares MSCI United Kingdom EWU 0.52 1,415.2 12.08 6.10 -3.41
SPDR S&P International Small Cap GWX 0.59 684.9 11.34 6.03 -2.70
PowerShares F/R Dev Mkts ex-US SmMid PXF 0.45 289.4 10.92 -0.01 -5.42
iShares MSCI EAFE Minimum Volatility EFAV 0.19 201.7 10.56 - -
Vanguard Pacific VPL 0.14 1,599.3 10.51 4.00 -3.43
iShares MSCI Italy EWI 0.51 370.1 8.91 -10.84 -14.84
WisdomTree Japan Hedged Equity DXJ 0.48 650.8 8.27 -3.01 -7.39
Maxis Nikkei 225 NKY 0.50 192.9 6.97 - -
WisdomTree Intl Dividend ex-Financials DOO 0.58 340.2 6.94 2.00 -5.67
iShares MSCI Canada EWC 0.52 4,475.6 6.58 4.67 -0.63
WisdomTree Japan SmallCap Dividend DFJ 0.58 156.7 3.93 5.59 -0.53
iShares MSCI Japan EWJ 0.51 4,209.8 3.36 0.94 -6.38
iShares MSCI Spain EWP 0.52 212.1 -1.65 -11.59 -10.43
International Equity: Emerging
iShares MSCI Turkey TUR 0.59 653.9 53.25 12.89 -
iShares MSCI Philippines EPHE 0.59 173.3 43.68 - -
iShares MSCI Thailand THD 0.59 700.2 30.50 27.29 -
iShares MSCI Poland EPOL 0.59 145.1 28.31 - -
iPath MSCI India ETN INP 0.89 464.9 26.79 -1.26 -9.43
iShares MSCI Mexico EWW 0.52 1,507.9 26.37 13.61 4.86
iShares S&P India Nifty 50 INDY 0.92 350.5 26.18 0.30 -
WisdomTree India Earnings EPI 0.83 1,107.1 21.58 -3.69 -
Global X/InterBolsa FTSE Colombia 20 GXG 0.78 178.1 18.69 15.17 -
iShares MSCI All Peru EPU 0.59 402.1 18.47 13.16 -
SPDR S&P Emrg Mkts Small Cap EWX 0.65 897.9 17.59 2.21 -
iShares MSCI Emerging Markets Min Volatility EEMV 0.25 670.8 17.20 - -
Guggenheim China Small Cap HAO 0.75 241.0 16.63 -3.34 -
iShares MSCI Taiwan EWT 0.59 2,606.0 15.80 6.19 0.48
WisdomTree Emrg Mkts SmallCap Div DGS 0.64 1,116.3 15.71 7.97 3.21
iShares MSCI China MCHI 0.58 749.8 14.91 - -
SPDR S&P Emerging Asia Pacific GMF 0.59 391.2 14.57 4.71 -1.50
PowerShares India PIN 0.79 396.6 13.68 -4.45 -
SPDR S&P China GXC 0.59 938.1 13.26 0.40 -4.99
iShares MSCI Emerging Markets EEM 0.67 41,086.1 11.50 2.89 -2.14
Vanguard MSCI Emerging Markets VWO 0.20 56,968.5 11.33 3.67 -2.17
SPDR S&P Emerging Markets GMM 0.59 166.4 10.86 3.37 -1.66
iShares MSCI Malaysia EWM 0.52 967.5 10.36 13.95 7.03
Schwab Emerging Markets Equity SCHE 0.15 632.6 10.32 - -
iShares FTSE China 25 FXI 0.74 6,686.5 9.21 -3.24 -7.98
iShares MSCI South Africa EZA 0.59 493.3 7.64 8.16 2.02
iShares MSCI BRIC BKF 0.67 744.2 7.52 -3.72 -6.74
PowerShares FTSE RAFI Emrg Mkts PXH 0.49 354.6 7.48 1.12 -2.47
SPDR S&P BRIC 40 BIK 0.50 303.9 6.64 -0.89 -4.73
iShares MSCI Russia ERUS 0.58 189.6 6.42 - -
iShares MSCI Chile ECH 0.59 520.0 5.59 6.79 5.38
Market Vectors Brazil Small-Cap BRF 0.59 523.7 4.61 -0.52 -
Market Vectors Russia RSX 0.62 1,625.5 4.47 -1.59 -9.84
iShares MSCI Indonesia EIDO 0.59 365.3 3.26 - -
BLDRS Emerging Markets 50 ADR ADRE 0.30 319.0 2.49 -2.12 -4.87
Market Vectors Indonesia IDX 0.57 408.8 0.74 13.73 -
iShares S&P Latin America 40 ILF 0.50 1,552.8 -0.66 -1.94 -1.12
Guggenheim BRIC EEB 0.64 322.7 -1.54 -4.69 -6.01
PowerShares Halter USX China PGJ 0.69 190.1 -4.24 -6.92 -10.93
iShares MSCI Brazil EWZ 0.59 8,621.7 -8.27 -8.95 -5.13
International Equity: Frontier
Market Vectors Vietnam VNM 0.76 252.8 7.15 -14.24 -
Guggenheim Frontier Markets FRN 0.70 149.1 6.06 3.62 -
Global Equity: Sector
iShares S&P Global Financials IXG 0.48 211.3 24.15 0.37 -9.80
PowerShares Listed Private Equity PSP 2.32 295.1 23.37 7.41 -11.19
iShares S&P Global Consumer Discr RXI 0.48 138.7 21.92 14.18 2.80
SPDR DJ Global Real Estate RWO 0.50 632.9 21.30 14.89 -
Guggenheim Timber CUT 0.70 175.5 17.90 5.46 -2.89
Guggenheim S&P Global Water CGW 0.70 204.6 16.92 8.32 -0.19
iShares S&P Global Healthcare IXJ 0.48 610.1 16.77 10.34 3.41
iShares S&P Global Timber/Forestry WOOD 0.48 202.8 16.67 7.09 -
iShares S&P Global Consumer Staples KXI 0.48 503.7 14.54 12.53 5.67
iShares S&P Global Technology IXN 0.48 516.4 14.47 8.91 1.20
PowerShares Global Water PIO 0.75 198.6 12.87 0.80 -5.39
iShares S&P Global Industrials EXI 0.48 147.1 12.82 9.18 -1.79
Market Vectors Agribusiness MOO 0.53 5,585.8 10.65 7.61 1.39
Global X Silver Miners SIL 0.65 377.8 8.41 - -
iShares S&P Global Infrastructure IGF 0.48 371.4 8.35 5.07 -
iShares S&P Global Telecommunications IXP 0.48 506.8 7.34 6.53 -1.47
Market Vectors Hard Assets Producers HAP 0.49 125.0 5.63 3.30 -
FlexShares Morningstar Global Upstream Nat Res GUNR 0.48 604.2 5.55 - -
iShares S&P Global Materials MXI 0.48 467.8 5.21 0.95 -3.80
SPDR Global Natural Resources GNR 0.40 438.3 3.62 - -
iShares S&P Global Energy IXC 0.48 1,056.2 1.50 4.37 -1.17
Market Vectors Oil Services OIH 0.35 1,296.4 1.11 - -
iShares S&P North Amer Natural Res IGE 0.48 1,774.1 0.82 5.17 -0.79
iShares S&P Global Utilities JXI 0.48 236.1 0.54 -0.28 -6.42
Market Vectors Steel SLX 0.55 141.2 -7.19 -7.28 -10.34
Market Vectors Gold Miners GDX 0.52 9,534.8 -7.54 -1.99 1.08
Market Vectors Junior Gold Miners GDXJ 0.54 2,826.2 -12.71 -3.16 -
Market Vectors Rare Earth Metals REMX 0.57 168.8 -15.95 - -
Market Vectors Coal KOL 0.59 230.6 -26.51 -10.58 -
iShares MSCI Global Select Metals & Mining Prod PICK 0.39 226.9 - - -
Global Ex-U.S. Equity: Sector
Vanguard Global ex-US Real Estate VNQI 0.35 423.3 35.27 - -
SPDR DJ Intl Real Estate RWX 0.59 3,424.7 33.79 11.81 -2.33
International Equity: Developed Sector
iShares S&P Dev Ex-US Property WPS 0.48 209.3 33.39 9.95 -3.13
iShares FTSE E/N Dev Real Est ex-US IFGL 0.48 1,464.5 32.79 8.92 -3.36
International Equity: Emerging Sector
iShares S&P Emrg Mkts Infrastructure EMIF 0.75 125.3 14.71 6.53 -
EGShares DJ Emrg Mkts Consumer Titans ECON 0.85 476.6 14.33 - -
Global X China Consumer CHIQ 0.65 146.1 4.16 - -
26 IndexUniverse.com/ETF Report

Fund Name Ticker ExP Ratio % AUM ($M) YTD % 3Yr % 5Yr % Fund Name Ticker ExP Ratio % AUM ($M) YTD % 3Yr % 5Yr %
Global Equity: High Dividend Yield
First Trust Dow Jones Global Select Dividend FGD 0.60 216.4 13.02 7.70 -0.87
Global X SuperDividend SDIV 0.58 167.9 12.47 - -
Global Ex-U.S. Equity: High Dividend Yield
SPDR S&P International Dividend DWX 0.45 1,055.2 3.70 -0.09 -
International Equity: High Dividend Yield
iShares DJ Intl Select Dividend IDV 0.50 1,317.4 15.44 6.24 -2.35
WisdomTree DEFA Equity Income DTH 0.58 177.4 11.17 0.81 -5.75
PowerShares Intl Dividend Achievers PID 0.56 725.1 8.28 6.93 -2.94
WisdomTree Emrg Mkts Equity Income DEM 0.63 4,557.5 7.23 7.52 4.32
SPDR S&P Emrg Mkts Dividend EDIV 0.59 323.6 -1.96 - -
International Equity: Alpha Seeking
PowerShares DWA EM Tech Leaders PIE 0.90 200.3 12.95 9.02 -
U.S. Fixed Income: Broad Market - Broad Maturities
iShares Barclays Government/Credit Bond GBF 0.20 185.7 4.30 5.85 6.03
Vanguard Total Bond Market BND 0.10 17,720.5 4.07 5.54 5.90
iShares Barclays Aggregate Bond AGG 0.08 15,517.9 4.01 5.34 5.77
Schwab US Aggregate Bond SCHZ 0.05 379.4 3.97 - -
SPDR Barclays Aggregate Bond LAG 0.17 621.7 3.73 5.43 5.94
U.S. Fixed Income: Broad Market - Short-Term
Vanguard Short-Term Bond BSV 0.11 9,274.4 2.08 2.68 3.81
U.S. Fixed Income: Broad Market - Intermediate
Vanguard Intermediate-Term Bond BIV 0.11 4,368.2 7.30 8.25 7.81
iShares Barclays Intermdt Gov/Cred Bond GVI 0.20 953.6 3.46 4.44 5.08
U.S. Fixed Income: Broad Market - Long-Term
Vanguard Long-Term Bond BLV 0.11 832.4 9.06 12.66 10.11
U.S. Fixed Income: Government
Vanguard Intermediate-Term Government Bond VGIT 0.14 126.3 2.75 5.57 -
Vanguard Short-Term Govt Bond VGSH 0.14 225.5 0.35 1.12 0.40
iShares Barclays U.S. Treasury Bond GOVT 0.15 142.0 - - -
U.S. Fixed Income: Treasury - Broad Maturities
PowerShares 1-30 Laddered Treasury PLW 0.25 169.5 4.55 9.14 8.09
U.S. Fixed Income: Treasury - Short-Term
iShares Barclays 1-3 Yr Treasury Bond SHY 0.15 8,385.3 0.25 1.03 2.22
Schwab Short-Term US Treasury SCHO 0.08 242.6 0.23 - -
iShares Barclays Short Treasury Bond SHV 0.15 2,656.0 0.00 0.06 0.67
SPDR Barclays 1-3 Month T-Bill BIL 0.13 1,498.1 -0.04 -0.03 0.39
U.S. Fixed Income: Treasury - Intermediate
iShares Barclays 7-10 Yr Treasury Bond IEF 0.15 4,703.7 4.65 8.16 7.84
Schwab Intermediate-Term US Treasury SCHR 0.10 220.6 2.67 - -
iShares Barclays 3-7 Yr Treasury Bond IEI 0.15 3,095.7 2.26 4.70 5.54
SPDR Barclays Intermediate Treasury ITE 0.13 171.9 1.87 3.71 4.64
U.S. Fixed Income: Treasury - Long-Term
Vanguard Ext Duration Treasury EDV 0.13 176.6 6.20 18.39 -
iShares Barclays 10-20 Yr Treasury TLH 0.15 633.5 5.52 10.01 9.00
iShares Barclays 20+ Yr Treasury TLT 0.15 3,539.8 5.25 12.92 9.86
PIMCO 25+ Year Zero Coupon US Treasury ZROZ 0.15 130.6 5.16 18.73 -
U.S. Fixed Income: Agencies
Vanguard Mortgage-Backed Securities VMBS 0.15 288.6 2.40 4.08 -
iShares Barclays MBS Bond MBB 0.26 6,531.5 2.00 3.92 5.22
iShares Barclays Agency Bond AGZ 0.20 427.1 1.67 2.94 -
U.S. Fixed Income: TIPS
PIMCO 15+ Year US TIPS LTPZ 0.20 169.2 13.47 13.87 -
PIMCO Broad US TIPS TIPZ 0.20 137.7 7.61 8.47 -
SPDR Barclays TIPS IPE 0.18 786.5 7.53 8.32 7.02
iShares Barclays TIPS Bond TIP 0.20 22,887.6 7.27 8.09 6.93
Schwab US TIPS SCHP 0.07 577.8 7.24 - -
FlexShares iBoxx 5-Year Target Duration TIPS TDTF 0.20 384.8 5.54 - -
FlexShares iBoxx 3-Year Target Duration TIPS TDTT 0.20 719.8 2.59 - -
PIMCO 1-5 Year US TIPS STPZ 0.20 1,044.9 2.37 3.31 -
iShares Barclays 0-5 Year TIPS Bond STIP 0.20 422.9 2.20 - -
U.S. Fixed Income: Municipal - Broad Market
PowerShares Insured Natl Muni Bond PZA 0.28 1,007.3 12.08 8.72 5.82
iShares S&P California Muni Bond CMF 0.25 282.2 9.95 7.82 6.32
iShares S&P New York AMT-Free Municipal Bond NYF 0.25 125.1 8.93 6.21 6.01
iShares S&P Natl Municipal Bond MUB 0.25 3,472.9 7.98 7.02 5.90
SPDR Barclays Municipal Bond TFI 0.23 1,253.1 7.83 7.00 6.30
Market Vectors Short Municipal SMB 0.20 177.4 2.20 3.00 -
U.S. Fixed Income: Municipal - Short-Term
SPDR Nuveen Barclays Sh-Trm Muni Bond SHM 0.20 1,634.8 1.36 2.06 3.37
iShares S&P Short Term Natl Muni Bond SUB 0.25 612.5 0.91 1.62 -
U.S. Fixed Income: Municipal - Intermediate
Market Vectors Intermediate Muni ITM 0.24 690.0 8.22 7.51 -
PIMCO Intermediate Muni Bond Strategy MUNI 0.35 207.7 6.17 5.74 -
U.S. Fixed Income: Municipal - High Yield
SPDR Nuveen S&P High Yield Municipal Bond HYMB 0.45 184.0 17.68 - -
Market Vectors High-Yield Municipal HYD 0.35 1,044.1 17.54 9.78 -
U.S. Fixed Income: Municipal - VRDO
PowerShares VRDO Tax-Free Weekly PVI 0.25 295.0 0.00 0.33 1.12
U.S. Fixed Income: Municipal - Build America Bonds
PowerShares Build America Bond BAB 0.28 1,106.2 11.31 12.52 -
U.S. Fixed Income: Corporate - Investment Grade - Broad Maturities
PIMCO Investment Grade Corporate Bond CORP 0.20 243.3 11.50 - -
iShares iBoxx $ Inv Gr Corporate Bond LQD 0.15 25,525.5 10.95 9.24 7.96
iShares Barclays Credit Bond CFT 0.20 1,415.1 8.14 7.94 7.25
iShares Aaa-A Rated Corporate Bond QLTA 0.15 307.7 - - -
U.S. Fixed Income: Corporate - Investment Grade - Short-Term
Vanguard Short-Term Corporate Bond VCSH 0.14 4,648.5 5.38 4.47 -
SPDR Barclays Sh-Trm Corporate Bond SCPB 0.12 1,667.5 3.58 - -
iShares Barclays 1-3 Year Credit Bond CSJ 0.20 9,512.9 2.57 2.42 3.63
U.S. Fixed Income: Corporate - Investment Grade - Intermediate
Vanguard Intermediate Corporate Bond VCIT 0.14 3,222.7 10.70 9.56 -
SPDR Barclays US Intermediate Corp Bond ITR 0.15 337.9 8.30 6.64 -
iShares Barclays Intermediate Credit Bond CIU 0.20 5,577.1 7.01 6.24 6.32
U.S. Fixed Income: Corporate - Investment Grade - Long-Term
iShares 10+ Year Credit Bond CLY 0.20 427.7 11.76 - -
Vanguard Long-Term Corporate Bond VCLT 0.14 1,164.0 11.46 12.49 -
SPDR Barclays Long Term Corporate Bond LWC 0.15 134.0 10.23 11.19 -
U.S. Fixed Income: Corporate - Investment Grade - Fixed Maturities
Guggenheim BulletShares 2017 Corporate Bond BSCH 0.24 174.9 10.01 - -
Guggenheim BulletShares 2016 Corporate Bond BSCG 0.24 156.8 6.60 - -
Guggenheim BulletShares 2015 Corporate Bond BSCF 0.24 160.3 5.90 - -
Guggenheim BulletShares 2014 Corporate Bond BSCE 0.24 178.5 3.32 - -
Guggenheim BulletShares 2013 Corporate Bond BSCD 0.24 159.6 1.59 - -
U.S. Fixed Income: Corporate - Investment Grade - Floating Rate
iShares Floating Rate Note FLOT 0.20 402.9 3.98 - -
U.S. Fixed Income: Corporate - High Yield - Broad Maturities
Peritus High Yield HYLD 1.35 176.1 12.63 - -
SPDR Barclays High Yield Bond JNK 0.40 12,362.9 11.83 11.65 6.99
iShares iBoxx $ HiYld Corporate Bond HYG 0.50 16,094.9 10.12 10.90 6.85
PowerShares Fundamental HiYld Corp Bond PHB 0.50 821.9 9.05 9.71 2.19
U.S. Fixed Income: Corporate - High Yield - Short-Term
Pimco 0-5 Year High Yield Corporate Bond HYS 0.55 653.1 9.62 - -
SPDR Barclays Short Term High Yield Bond SJNK 0.40 520.7 - - -
U.S. Fixed Income: Corporate - High Yield - Fixed Maturities
Guggenheim BulletShares 2015 High Yield Corporate Bond BSJF 0.42 332.9 9.52 - -
Guggenheim BulletShares 2014 High Yield Corporate Bond BSJE 0.42 182.1 8.96 - -
Guggenheim BulletShares 2013 High Yield Corporate Bond BSJD 0.42 195.9 6.48 - -
U.S. Fixed Income: Corporate - Convertibles
SPDR Barclays Convertible Bond CWB 0.40 855.2 13.15 7.13 -
U.S. Fixed Income: Corporate - Loans
PowerShares Senior Loan BKLN 0.76 1,372.1 8.59 - -
U.S. Fixed Income: Corporate - Preferred Stock
PowerShares Financial Preferred PGF 0.66 1,732.2 21.12 13.89 6.03
iShares S&P US Preferred Stock PFF 0.48 10,707.7 17.74 11.66 6.07
PowerShares Preferred PGX 0.50 2,120.8 14.66 11.15 -
SPDR Wells Fargo Preferred Stock PSK 0.45 308.9 13.67 11.37 -
January 2013
27

Fund Name Ticker ExP Ratio % AUM ($M) YTD % 3Yr % 5Yr % Fund Name Ticker ExP Ratio % AUM ($M) YTD % 3Yr % 5Yr %
Global FixeD Income
PIMCO Enh Short Maturity Strategy MINT 0.35 2,105.9 2.33 1.45 -
Guggenheim Enhanced Ultra-Short Bond ETF GSY 0.27 230.6 1.30 0.41 -
PIMCO Total Return BOND 0.55 3,755.3 - - -
Market Vectors International High Yield Bond IHY 0.40 195.5 - - -
International Fixed Income: Blended Development
SPDR DB Intl Govt Infl-Protected Bond WIP 0.50 1,426.9 12.44 5.81 -
WisdomTree Asia Local Debt ALD 0.55 455.5 6.95 - -
International Fixed Income: Developed
PowerShares Intl Corporate Bond PICB 0.50 132.8 13.71 - -
SPDR Barclays Intl Treasury Bond BWX 0.50 1,981.0 5.69 2.62 4.64
iShares S&P/Citi Intl Treasury Bond IGOV 0.35 350.7 4.64 0.74 -
SPDR Barclays Sh-Trm Intl Treasury Bond BWZ 0.35 238.3 3.18 -0.03 -
iShares S&P/Citi 1-3 Yr Intl Treasury Bond ISHG 0.35 185.0 1.25 -1.80 -
International Fixed Income: Emerging
PowerShares Emrg Mkts Sov Debt PCY 0.50 3,000.8 20.25 13.19 10.40
iShares JPM USD Emrg Mkts Bond EMB 0.60 6,520.0 16.09 11.55 -
Market Vectors EM Lcl Currency Bond EMLC 0.47 1,160.0 13.49 - -
WisdomTree Emrg Mkts Local Debt ELD 0.55 1,406.1 11.87 - -
SPDR Barclays Emrg Mkts Local Bond EBND 0.50 152.4 11.02 - -
iShares Emerging Markets Local Currency Bond LEMB 0.60 365.6 9.00 - -
iShares Emerging Markets High Yield Bond EMHY 0.65 179.5 - - -
Commodities: Broad Market
PowerShares DB Commodity Tracking DBC 0.85 6,563.1 4.69 4.45 -0.70
ETRACS CMCI ETN UCI 0.65 155.5 3.58 4.60 -
United States Commodity USCI 0.95 490.1 2.40 - -
ELEMENTS Rogers Intl Commodity ETN RJI 0.75 643.1 2.23 3.75 -3.19
iPath DJ-UBS Commodity ETN DJP 0.75 1,975.0 0.57 0.92 -4.64
iShares S&P GSCI Commodity GSG 0.75 1,214.2 -0.06 1.51 -7.91
GreenHaven Continuous Commodity GCC 0.85 499.6 -0.23 4.56 -
GS Connect S&P GSCI Enh ETN GSC 1.25 251.2 -0.92 2.97 -4.15
Commodities: Agriculture
ELEMENTS RICI Agricultural ETN RJA 0.75 388.5 4.58 5.29 -1.91
PowerShares DB Agriculture DBA 0.85 1,753.9 -0.10 2.89 -0.55
Commodities: Energy
PowerShares DB Energy DBE 0.75 146.1 1.67 2.36 -2.50
PowerShares DB Oil DBO 0.75 792.8 -11.27 -2.91 -4.40
United States Oil USO 0.65 1,440.7 -14.56 -5.96 -14.17
iPath S&P GSCI Crude Oil ETN OIL 0.75 438.8 -15.33 -6.32 -16.22
United States Natural Gas UNG 0.85 1,134.8 -21.09 -34.69 -41.15
Commodities: Industrial Metals
PowerShares DB Base Metals DBB 0.75 322.9 3.11 -2.78 -3.20
Commodities: Precious Metals
ETFS Physical Silver SIVR 0.30 631.2 20.24 21.45 -
iShares Silver SLV 0.50 10,750.1 20.12 21.26 18.41
ETFS Physical Platinum PPLT 0.60 807.9 14.24 - -
ETFS Physical Precious Metal Basket GLTR 0.60 217.3 13.02 - -
PowerShares DB Precious Metals DBP 0.75 379.4 10.34 13.41 15.54
iShares Gold Trust IAU 0.25 11,930.7 9.52 12.95 16.57
SPDR Gold GLD 0.40 74,823.3 9.25 12.82 16.52
ETFS Physical Swiss Gold SGOL 0.39 1,951.5 9.22 12.80 -
PowerShares DB Gold DGL 0.75 481.7 8.06 11.59 14.83
ETFS Physical Palladium PALL 0.60 488.0 4.13 - -
Currency: Developed
CurrencyShares Australian Dollar FXA 0.40 601.1 4.88 8.14 7.32
CurrencyShares Canadian Dollar FXC 0.40 515.6 2.63 2.05 0.55
CurrencyShares Swiss Franc FXF 0.40 334.6 1.02 2.30 3.99
CurrencyShares Euro FXE 0.40 213.1 0.13 -4.79 -1.70
CurrencyShares Japanese Yen FXY 0.40 249.8 -6.97 1.19 5.78
Currency: Emerging
WisdomTree Dreyfus Emrg Currency CEW 0.55 279.4 5.63 1.18 -
WisdomTree Dreyfus Chinese Yuan CYB 0.45 242.6 2.34 1.57 -
Asset Allocation
PowerShares CEF Income Composite PCEF 1.56 374.9 15.14 - -
iShares S&P Growth Allocation AOR 0.31 146.8 9.91 7.70 -
iShares S&P Moderate Allocation AOM 0.31 150.4 7.49 6.04 -
Alternatives: Absolute Return
PowerShares DB G10 Currency Harvest DBV 0.75 324.1 8.50 4.09 -0.99
PowerShares S&P 500 BuyWrite PBP 0.75 286.0 5.00 5.67 -
IQ Hedge Multi-Strategy Tracker QAI 1.03 322.6 4.32 2.21 -
WisdomTree Managed Futures Strategy Fund WDTI 0.95 128.0 -11.54 - -
Alternatives: Tactical Tools
iPath S&P Dynamic VIX ETN XVZ 0.95 292.2 -15.07 - -
ProShares VIX Short-Term VIXY 0.83 148.5 -79.14 - -
iPath S&P 500 VIX Short-Term Futures ETN VXX 0.89 1,274.2 -79.16 -64.18 -
Leveraged
Direxion Daily Financial Bull 3x FAS 1.10 1,102.7 65.33 -5.06 -
ProShares UltraPro QQQ TQQQ 0.95 306.6 55.29 - -
ProShares Ultra Financials UYG 0.95 751.0 43.08 4.13 -32.44
ProShares UltraPro S&P 500 UPRO 0.95 352.8 42.73 21.73 -
Direxion Daily Large Cap Bull 3x SPXL 1.11 218.7 40.58 21.34 -
ProShares Ultra QQQ QLD 0.95 681.2 36.71 27.51 2.13
Direxion Daily Technology Bull 3x TECL 1.10 142.5 34.65 16.73 -
VelocityShares 3X Long Silver ETN USLV 1.65 155.1 30.48 - -
ProShares Ultra Silver AGQ 2.58 939.0 29.26 16.35 -
ProShares Ultra Real Estate URE 0.95 344.8 29.08 30.61 -17.78
Direxion Daily Small Cap Bull 3x TNA 1.13 766.1 28.72 18.93 -
ProShares Ultra MidCap 400 MVV 0.95 597.8 28.40 24.07 -2.05
ProShares Ultra S&P 500 SSO 0.91 1,206.9 28.36 17.89 -6.27
ProShares Ultra Russell 2000 UWM 0.98 156.6 22.32 20.45 -6.73
Direxion Daily Emrg Mkts Bull 3x EDC 1.15 339.9 21.15 -14.03 -
ProShares Ultra Dow30 DDM 0.95 209.1 16.56 17.89 -3.29
PowerShares DB Gold Dbl Long ETN DGP 0.75 493.8 14.98 20.96 -
ProShares Ultra Gold UGL 1.85 364.4 13.69 19.76 -
ProShares Ultra 7-10 Year Treasury UST 0.95 739.5 8.85 - -
ProShares Ultra Basic Materials UYM 0.95 161.8 6.75 3.65 -15.96
ProShares Ultra Oil/Gas DIG 0.95 199.5 2.66 9.35 -12.91
Direxion Daily Energy Bull 3x ERX 1.09 287.9 1.34 6.98 -
ProShares Ultra DJ-UBS Crude Oil UCO 0.99 537.1 -31.49 -18.51 -
Direxion Daily Gold Miners Bull 2X NUGT 1.26 439.2 -40.11 - -
ProShares Ultra VIX Short-Term Futures UVXY 1.56 144.5 -97.32 - -
UBS AG FI Enhanced Big Cap Growth ETN FBG 1.20 129.1 - - -
Inverse
VelocityShares Daily Inv VIX Sh-Trm ETN XIV 1.35 346.6 195.24 - -
ProShares UltraShort Yen YCS 0.93 298.5 12.11 -6.35 -
PowerShares DB US Dollar Bullish UUP 0.75 802.5 -2.45 -0.38 -1.35
ProShares UltraShort Euro EUO 0.93 671.3 -3.64 4.88 -
ProShares Short 20+ Yr Treasury TBF 0.95 793.9 -7.99 -15.49 -
ProShares Short Dow30 DOG 0.95 305.0 -10.39 -13.05 -7.63
ProShares UltraShort 7-10 Yr Treasury PST 0.95 304.5 -11.18 -18.35 -
ProShares Short MSCI Emrg Mkts EUM 0.95 235.4 -14.50 -10.74 -15.31
ProShares Short S&P 500 SH 0.89 1,900.9 -14.87 -13.78 -7.69
ProShares Short Russell 2000 RWM 0.95 486.3 -14.93 -19.28 -13.82
ProShares Short MSCI EAFE EFZ 0.95 159.7 -15.63 -9.70 -5.98
ProShares UltraShort 20+ Yr Treasury TBT 0.92 2,903.2 -16.23 -30.08 -
ProShares Short QQQ PSQ 0.95 239.0 -18.50 -17.93 -12.47
ProShares UltraShort Dow 30 DXD 0.95 300.0 -20.30 -26.00 -19.54
Active Bear HDGE 1.93 287.8 -22.46 - -
Direxion Daily 30-Yr Treasury Bear 3x TMV 1.09 299.6 -25.26 -43.22 -
ProShares UltraShort S&P 500 SDS 0.89 1,693.5 -28.18 -27.63 -20.34
ProShares UltraShort Russell 2000 TWM 0.95 279.2 -29.29 -38.71 -33.32
ProShares UltraShort FTSE China 25 FXP 0.95 140.9 -30.26 -19.30 -42.87
ProShares UltraShort QQQ QID 0.95 377.9 -34.61 -34.72 -28.78
ProShares UltraShort Financials SKF 0.95 196.3 -38.42 -27.97 -36.72
ProShares UltraPro Short S&P 500 SPXU 0.93 479.5 -40.14 -41.23 -
Direxion Daily Large Cap Bear 3x SPXS 1.14 171.2 -40.57 -42.53 -
Direxion Daily Small Cap Bear 3x TZA 1.13 645.7 -42.72 -56.86 -
ProShares UltraPro Short QQQ SQQQ 0.95 139.4 -48.62 - -
Direxion Daily Financial Bear 3x FAZ 1.13 606.5 -54.10 -44.07 -
28 IndexUniverse.com/ETF Report

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Source: * Morningstar as of 6/30/2012. Based on the 2012 ETF industry expense ratio for the only other four U.S. Short-Term Inflation-Protected
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