what s INSIDE SECTOR ANALYSIS CONSTITUENT ANALYSIS DISTRIBUTION ANALYSIS PERFORMANCE as of 6/30/16 3 Month Total Returns

Transcription

1 SDOG Quarterly Scorecard 2nd Quarter 2016 what s INSIDE ETF Stats Ticker: Underlying Index: Listing Exchange: SDOG SDOGXTR NYSE Arca CUSIP: 00162Q 858 Fund Inception: 6/29/12 Dividends Paid: Quarterly Most Recent Dividend*: $ Gross Expense Ratio: 0.40% NAV**: $39.86 Shares Outstanding: Million * Dividend Paid on 6/29/16 ** As of 6/30/16 Investment Objective The Fund seeks investment results that replicate as closely as possible, before fees and expenses, the performance of the S-Network Sector Dividend Dogs Index (the Underlying Index ). Contact Info sdog@alpsinc.com PERFORMANCE, CHARACTERISTICS AND ALLOCATIONS At the conclusion of Q2 2016, the ALPS Sector Dividend Dogs ETF (SDOG) closed at $39.86, up 3.34% for the quarter. This soundly outperformed the S&P 500 s (SPX) gain of 2.46%. The fund maintained its deep value profile, as it closed the quarter with a P/E ratio of vs. a P/E ratio of for the S&P 500. SECTOR ANALYSIS The top performing sector in SDOG for Q was Energy (+18.93%), followed by Health Care (+12.44). For the quarter, the worst performing sector was Industrials (-4.02%), followed by Financials (-3.38%). CONSTITUENT ANALYSIS For the quarter, total return was positive for 32 underlying names and negative for 18. The top performing security was Oneok Inc. (OKE), with a return of %, while the worst performer was Seagate Technology (STX), which posted a return of %. DISTRIBUTION ANALYSIS As of June 30, 2016 the S-Network Sector Dividend Dogs Index had a TTM dividend yield of 4.18% relative to 4.27% on March 31, PERFORMANCE as of 6/30/16 Total Returns 3 Month 6 Month 1 Year 3 Year Cumulative Since Inception 1 Annualized Since Inception 1 YTD ALPS Sector Dividend Dogs ETF (Net Asset Value) 3.34% 14.15% 14.15% 12.77% 12.91% 84.91% 16.60% ALPS Sector Dividend Dogs ETF (Market Price) % 14.21% 14.21% 12.82% 12.92% 84.96% 16.61% S&P 500 Total Return Index (Benchmark) 2.46% 3.84% 3.84% 3.99% 11.66% 67.87% 13.82% S-Network Sector Dividend Dogs TR Index (Benchmark) % 14.50% 14.50% 13.38% 13.47% 88.54% 17.17% Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than actual data quoted. Call or visit com for current month end performance. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. 1 Fund inception date of 6/29/12. 2 Market Price is based on the midpoint of the bid/ask spread at 4 p.m. ET and does not represent the returns an investor would receive if shares were traded at other times. 3 The S-Network Sector Dividend Dogs Index (Ticker: SDOGX) is a portfolio of stocks derived from a universe of mainly U.S. large capitalization stocks. One cannot invest directly in an index

2 PERFORMANCE SDOG 1 Year Performance (NAV) $45 6/8/16 High $40.90 $40 $35 1/20/16 Low $31.70 $30 6/30/15 7/31/15 8/31/15 9/30/15 10/31/15 11/30/15 12/31/15 1/31/16 2/29/16 3/31/16 4/30/16 5/31/16 6/30/16 SDOG NAV 50 Day Moving Average 100 Day Moving Average *Source: Bloomberg NAV returns as of 6/30/16. Past performance is not indicative of future results. INDEX CHARACTERISTICS Fundamentals & Risk Profile SDOGX SPX Description SDOGX SPX Dividend Yield 4.18% 2.18% Price to Earnings Ratio Max Market Cap (Million $) $333,653 $523,642 Price to Earnings Ratio using FY1 Est Min Market Cap (Million $) $3,357 $2,916 Price to Earnings Ratio using FY2 Est Total Market Cap (Agg, Million $) $3,260,960 $19,912,592 Weighted Avg. Market Cap Price to Book Ratio (Agg, Million $) $67, ,581 Price to Sales Ratio Market Cap Breakdown SDOGX SPX Price to Cash Flow Ratio Large Cap 80.10% 95.72% Beta 0.93 Mid Cap 19.90% 4.28% Volatility 11.72% 11.02% Small Cap 0.00% 0.00% Bloomberg Data as of 6/30/16. Beta is to the S&P 500 Index.

3 ALLOCATIONS Geography Sector Market Cap United States - 100% Utilities % Energy % Health Care % Consumer Staples % Information Technology % Consumer Discretionary % Industrials % Materials % Financials % Telecommunication Services % Large Cap % Mid Cap % SECTOR ATTRIBUTION - Q Overall, sector allocation was a driver of relative outperformance vs. the S&P 500, with its largest positive effects coming from the relative underweight to Information Technology and its largest negative effects coming from the relative underweight to Health Care. Selection effect had a moderately adverse impact on the fund s performance, with the biggest gains coming from the names in Energy and Health Care and the largest negative impacts coming from fund constituents in Telecommunication Services and Industrials. Avg % Wgt Contribution to Return Total Return Total Attribution Allocation Effect Selection Effect SDOG SPX +/- SDOG SPX +/- SDOG SPX +/- Consumer Discretionary 10.21% 12.71% -2.50% -0.05% -0.12% 0.07% -0.52% -0.91% 0.39% 0.12% 0.08% 0.04% Consumer Staples 10.18% 10.31% -0.13% 0.51% 0.47% 0.04% 5.02% 4.63% 0.39% 0.03% -0.01% 0.04% Energy 10.68% 7.13% 3.55% 1.85% 0.78% 1.07% 18.93% 11.62% 7.31% 0.99% 0.29% 0.70% Financials 10.12% 15.94% -5.82% -0.33% 0.33% -0.66% -3.38% 2.12% -5.50% -0.51% 0.02% -0.53% Health Care 10.59% 14.96% -4.37% 1.23% 0.91% 0.32% 12.44% 6.27% 6.17% 0.42% -0.17% 0.59% Industrials 10.25% 9.79% 0.46% -0.44% 0.11% -0.55% -4.02% 1.24% -5.26% -0.55% -0.01% -0.55% Information Technology 9.70% 20.17% % -0.11% -0.58% 0.47% -1.18% -2.84% 1.66% 0.72% 0.55% 0.17% Materials 10.05% 2.89% 7.16% -0.13% 0.10% -0.23% -1.15% 3.71% -4.86% -0.39% 0.09% -0.48% Telecommunication Services 7.87% 2.71% 5.16% -0.03% 0.19% -0.22% -0.32% 7.06% -7.38% -0.35% 0.22% -0.57% Utilities 10.37% 3.39% 6.98% 0.95% 0.23% 0.72% 9.37% 6.79% 2.58% 0.54% 0.31% 0.23% Totals 1.02% 1.37% -0.36% Past performance is not indicative of future results. Subject to change.

4 CONSTITUENT ANALYSIS Total Return Dispersion - Q ONEOK INC (OKE US) SPECTRA ENERGY CORP (SE US) PFIZER INC (PFE US) CENTERPOINT ENERGY INC (CNP US) NRG ENERGY INC (NRG US) CINCINNATI FINANCIAL CORP (CINF US) JOHNSON & JOHNSON (JNJ US) AT&T INC (T US) ALTRIA GROUP INC (MO US) BAXTER INTERNATIONAL INC (BAX US) MERCK & CO. INC. (MRK US) ABBVIE INC (ABBV US) CONOCOPHILLIPS (COP US) CA INC (CA US) DUKE ENERGY CORP (DUK US) GARMIN LTD (GRMN US) WAL-MART STORES INC (WMT US) QUALCOMM INC (QCOM US) KINDER MORGAN INC (KMI US) NUCOR CORP (NUE US) SOUTHERN CO/THE (SO US) PHILIP MORRIS INTERNATIONAL (PM US) VERIZON COMMUNICATIONS INC (VZ US) INTERNATIONAL PAPER CO (IP US) ENTERGY CORP (ETR US) PROCTER & GAMBLE CO/THE (PG US) CUMMINS INC (CMI US) HP INC (HPQ US) COACH INC (COH US) INTL BUSINESS MACHINES CORP (IBM US) NAVIENT CORP (NAVI US) CATERPILLAR INC (CAT US) ENSCO PLC-CL A (ESV US) - DOW CHEMICAL CO/THE (DOW US) COCA-COLA CO/THE (KO US) MOSAIC CO/THE (MOS US) WYNN RESORTS LTD (WYNN US) EMERSON ELECTRIC CO (EMR US) EATON CORP PLC (ETN US) NATIONAL OILWELL VARCO INC (NOV US) + MATTEL INC (MAT US) FORD MOTOR CO (F US) PEOPLE'S UNITED FINANCIAL (PBCT US) CENTURYLINK INC (CTL US) METLIFE INC (MET US) FRONTIER COMMUNICATIONS CORP (FTR US) LYONDELLBASELL INDU-CL A (LYB US) INVESCO LTD (IVZ US) PITNEY BOWES INC (PBI US) SEAGATE TECHNOLOGY (STX US) (+) Added at 6/17/16 Rebalance (-) Dropped at 6/17/16 Rebalance Past performance is not indicative of future results. Subject to change.

5 Dividend Update Of the 49 current SDOG constituents, 11 companies, or 22% of the fund holdings, increased their dividend from Q to Q2 2016, and 1 holding decreased its dividend on a quarter- over- quarter basis. 33 companies, or 66% of the fund holdings, increased their dividend year- over- year from Q2 2015, while only 6 companies decreased their dividends. At the fund level, SDOG s 2nd quarter distribution was $ per share. Quarter/Quarter Year/Year Increases Decreases Q Q Q Q Q Q Q Q Past performance is not indicative of future results. Portfolio Names Increasing Dividend Quarter/Quarter Dividend Increases Year/Year Dividend Increases Q Q Q Q Sector Yield Breakdown The S-Networks Sector Dividend Dogs Index usage of yield analysis on a sector-by-sector basis as its primary screen continues to provide meaningfully higher yields compared to the broad based benchmark across all 10 GICS Sectors. TTM Yield* 8% S-Net Sector Dividend Dogs S&P 500 7% 6% 5% 4% 3% 2% 1% 0% Telecom Energy Info Tech Cons Disc Financials Utilities Materials Industrials Cons Stpls Health Care Total * Excluding special dividends. Past performance is not indicative of future results.

6 IMPORTANT DISCLOSURES & DEFINITIONS An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus which contain this and other information call or visit Read the prospectus carefully before investing. ALPS Sector Dividend Dogs ETF Shares are not individually redeemable. Investors buy and sell shares of the ALPS Sector Dividend Dogs ETF on a secondary market. Only market makers or authorized participants may trade directly with the Fund, typically in blocks of 50,000 shares. There are risks involved with investing in ETFs including the loss of money. Additional information regarding the risks of this investment is available in the prospectus. The Fund is subject to the additional risks associated with concentrating its investments in companies in the market sector. Diversification does not eliminate the risk of experiencing investment losses. The Fund s investments in non-u.s. issuers may involve unique risks compared to investing in securities of U.S. issuers, including, among others, greater market volatility than U.S. securities and less complete financial information than for U.S. issuers. In addition, adverse political, economic or social developments could undermine the value of the Fund s investments or prevent the Fund from realizing the full value of its investments. Financial reporting standards for companies based in foreign markets differ from those in the United States. Finally, the value of the currency of the country in which the Fund has invested could decline relative to the value of the U.S. dollar, which may affect the value of the investment to U.S. investors. An investor cannot invest directly in an index. The S-Network Sector Dividend Dogs Index (Ticker: SDOGX) is designed to serve as a fair, impartial and transparent measure of the performance of US large cap equities with above average dividend yields. The S&P 500 (Ticker: SPX) is an index of 500 stocks chosen for market size, liquidity and industry grouping among other factors. S&P 500: an index of 500 stocks chosen for market size, liquidity and industry grouping among other factors. Dogs of the Dow Theory: an investment strategy which proposes that an investor annually select for investment the ten Dow Jones Industrial Average stocks whose dividend is the highest fraction of their price. Downside risk: the probability that an asset will fall in price. It is also the measure of the possible loss from that decline. Tracking error: a measure of how closely a portfolio follows the index to which it is benchmarked. Sharpe ratio: a measure that indicates the average return minus the risk-free return divided by the standard deviation of return on an investment. Information ratio: A ratio of portfolio returns above the returns of a benchmark (usually an index) to the volatility of those returns. Price to earnings ratio: an equity valuation multiple. It is defined as market price per share divided by annual earnings per share. Price to book ratio: a financial ratio used to compare a company s current market price to its book value. Beta: A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Dividend yield: a dividend expressed as a percentage of a current share price. Basis point: A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. ALPS Portfolio Solutions Distributor, Inc. is the distributor for the ALPS Sector Dividend Dogs ETF. DOG /31/16