1) THE POWER OF Dividend Indices > In markets where bond yields remain low by historical standards, income sensitive investors find themselves hitting a brick wall. For those seeking longer-term income stability, rediscovering the power of equity-based dividend strategies may break down the barrier to income stability.
2) Why Dividends Matter Sustainable dividend income has played an important part in total equity returns. Since 1926, dividends have contributed approximately one-third of total equity returns (as measured by the S&P 500®). Over an even longer horizon (from 1802 to 2002), 5.0% of the 7.9% annualized equity returns generated, can be accredited to dividend income.1 In this post-financial crisis world, equity-based dividend strategies offer: 1 An attractive source of higher yield when compared to traditional fixed income yields 2 Upside potential when equity markets experience upward trends 3 Inflation protection (historically dividend growth has surpassed the rate of inflation) 4 Favorable tax treatment in many geographies Since all equity dividend strategies are not created equal, there’s more to achieving current income or stable income growth than meets the eye. To address the need for high yield and stable payouts, we offer a suite of dividend strategy indices that serve as a barometer for meeting diversification, income stability and tradeability requirements. Source: (1) Dividends and Three Dwarfs, Robert D. Arnott, (Mar/Apr 2003). Financial Analysts Journal. 1 Why Select our Dividend Indices? The Dow Jones U.S. Select Dividend Index, launched in 2003, pioneered the category of dividend indexing. Today, we continue to be a leader in dividend indexing, developing indices that are suitable for a variety of investment approaches across global markets with the addition of the S&P Dividend Opportunities and S&P Dividend Aristocrats® families. Our family of dividend strategy indices allows investors to stay the course by providing a suite of benchmarks that measure the performance of yield-based investment strategies that are designed to address varying needs for high yield or stable payouts: > S&P DIVIDEND OPPORTUNITIES Optimized absolute dividend yield > S&P DIVIDEND ARISTOCRATS Dividend payouts that grow year-on-year > DOW JONES SELECT DIVIDENDS A balance between dividend growth momentum and current yield
3) A Bird’s Eye View of Our Dividend Indices Platform S&P Dow Jones Dividend Indices S&P Dividend S&P Dividend Opportunities Opportunities > Serves as a benchmark for global income seeking investors > Laser sharp focus on absolute high yield > Each company in the index must demonstrate three years of positive earnings growth and profitability over the past 12 months > Coverage: Global, International, Europe, Pan Asia, Emerging Markets, China A share, Australia, Japan S&P Dividend S&P Dividend Aristocrats Aristocrats Dow Jones Dow Jones Select Dividend Select Dividend > Measures the performance of dividend paying companies across the globe > epresents the R performance of the highest yielding securities in a given country > table dividend growth S is the main objective > alances the trade-off B between near-term high yield and dividend sustainability > ompanies in the index C must follow a managed dividends policy of consistently increasing dividends annually > Coverage: Global, International, U.S., Europe, Pan Asia, Canada > ach company in the E index has been selected for its fundamental strength relative to peers > Coverage: Global, International, Asia Pacific, Emerging Markets, Shariah-compliant
4) Our Dividend Index Offerings INDEX NAME CURRENCY BLOOMBERG TICKER EXCHANGE TRADED PRODUCT NAME ETF TICKER S&P Dividend Opportunities S&P Emerging Markets Dividend Opportunities Index USD JPY EUR USD USD AUD USD SGD USD EUR USD RMB SPGTEDUP SPGTEDJP SPGTEDEP SPGTGDO SPGTDOU SPAXDI SPAEDOUP SPAEDOSP SPDOEUP SPDOEEP SPASDOUP CSPSADRP S&P 500 Dividend Aristocrats® S&P High Yield Dividend Aristocrats USD USD SPDAUDP SPHYDA S&P/TSX Canadian Dividend Aristocrats S&P UK High Yield Dividend Aristocrats S&P Euro High Yield Dividend Aristocrats S&P Europe 350 Dividend Aristocrats S&P Pan Asia Dividend Aristocrats Index CAD GBP EUR EUR USD EUR SPTXDV SPUKHDA SPEUHDA SPDAEEP SPDGPAUP SPDGPAEP DJAPSD DJEPCSD DJEMDIV DJGSD DJCASD Dow Jones U.S. Select Divided Index USD USD USD USD CAD USD USD Dow Jones U.S. Dividend 100 Index USD DJUSDIV S&P Global Dividend Opportunities Index S&P International Dividend Opportunities Index S&P/ASX Dividend Opportunities Index S&P Ethical Pan Asia Select Dividend Opportunities Index S&P Europe Dividend Opportunities Index S&P Pan Asia Dividend Opportunities Index S&P/CITIC China A-Share Dividend Opportunities Index SPDR S&P Emerging Markets Dividend ETF Guggenheim S&P Global Dividend Opportunities Index ETF SPDR S&P International Dividend ETF iShares S&P/ASX High Dividend CIMB S&P Ethical Asia Pacific Dividend ETF EDIV LVL DWX IHD AU CIMBDVD SP S&P Dividend Aristocrats Indices SPDR S&P Dividend ETF SDY iShares S&P US Dividend Growers Index Fund (CAD-Hedged) CUD iShares S&P/TSX Canadian Dividend Aristocrats Index Fund CDZ SPDR S&P UK Dividend Aristocrats ETF SPYG GR SPDR S&P Euro Dividend Aristocrats ETF SPYW GR Dow Jones Dividend Indices Dow Jones Asia/Pacific Select Dividend 30 Index Dow Jones EPAC Select Dividend Index Dow Jones Emerging Markets Select Dividend Index (USD) Dow Jones Global Select Dividend Index Dow Jones Canada Select Dividend DJDVP iShares Asia / Pacific Dividend 30 Index Fund iShares Dow Jones International Select Dividend Index Fund iShares Dow Jones Emerging Markets Select Dividend ETF First Trust Dow Jones Global Select Dividend Index Fund Dow Jones Canada Select Dividend Index Fund iShares Dow Jones Select Dividend Index Fund iShares Dow Jones U.S. Select Dividend (DE) Schwab U.S. Dividend Equity ETF DVYA IDV SEDY FGD XDV DVY DJDVPEX GY SCHD S&P Dow Jones Indices does not sponsor, promote or endorse any investment product linked to any of our indices. We have attempted to provide a complete list of all ETFs that are currently linked to the indices mentioned in this publication. SPDJI does not recommend or suggest one product over any other product. CONTACT INFORMATION Beijing 86.10.6569.2905 Dubai 971 (0)4 371 7131 Hong Kong 852 2532 8000 New York 1.212.438.2046 London 18.104.22.16888 1.877.325.5415 Sydney 61 2 9255 9802 Tokyo 81 3-4550-8564 VISIT US www.spdji.com Copyright © 2013 by S&P Dow Jones Indices LLC, a subsidiary of the McGraw-Hill Companies, Inc., and/or its affiliates. All rights reserved. Redistribution, reproduction and/ or photocopying in whole or in part are prohibited without written permission. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), a subsidiary of The McGraw-Hill Companies, Inc. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (“S&P Dow Jones Indices”) makes no representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and S&P Dow Jones Indices shall have no liability for any errors, omissions, or interruptions of any index or the data included therein. Past performance of an index is not an indication of future results. This document does not constitute an offer of any services. All information provided by S&P Dow Jones Indices is general in nature and not tailored to the needs of any person, entity or group of persons. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments offered by third parties that are based on that index. S&P Dow Jones Indices does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that seeks to provide an investment return based on the performance of any Index. S&P Dow Jones Indices LLC is not an investment advisor, and S&P Dow Jones Indices makes no representation regarding the advisability of investing in any such investment fund or other investment vehicle. Credit-related and other analyses, including ratings, are generally provided by affiliates of S&P Dow Jones Indices, including but not limited to Standard & Poor’s Financial Services LLC and Capital IQ, Inc. Such analyses and statements are opinions as of the date they are expressed and are not statements of fact. S&P Dow Jones Indices LLC is analytically separate and independent from any other analytical department. For more information on any of our indices please visit www.spdji.com or www.spindices.com.