M ARCH 0 1 2018 United States Month-End Asset Return Analysis February 2018 Monthly, Quarterly, Annual, and Long-term tables of the major U.S. indices. Morgan Stanley Wealth Management Capital Markets Patrick Natale Simon Kong Absolute and Relative Performance for the S&P 500 Sectors/Groups. Past performance is not a guarantee of future performance. The indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies. Value investing seeks underpriced stocks, but there is no guarantee that a stock's price will rise. Investing in smaller/mid-cap companies involves greater risks not associated with investing in more established companies, such as business risk, significant stock price fluctuations and illiquidity. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. International investing entails greater risk, as well as greater potential rewards compared to U.S. investing. These risks include political and economic uncertainties of foreign countries as well as the risk of currency fluctuations. These risks are magnified in countries with emerging markets, since these countries may have relatively unstable governments and less established markets and economics. Bonds are subject to interest rate risk. When interest rates rise, bond prices fall; generally the longer a bond's maturity, the more sensitive it is to this risk. Bonds may also be subject to call risk, which is the risk that the issuer will redeem the debt at its option, fully or partially, before the scheduled maturity date. The market value of debt instruments may fluctuate, and proceeds from sales prior to maturity may be more or less than the amount originally invested or the maturity value due to changes in market conditions or changes in the credit quality of the issuer. Bonds are subject to the credit risk of the issuer. This is the risk that the issuer might be unable to make interest and/or principal payments on a timely basis. Bonds are also subject to reinvestment risk, which is the risk that principal and/or interest payments from a given investment may be reinvested at a lower interest rate. Information provided herein has been obtained from outside sources that are deemed to be reliable. However, Morgan Stanley Wealth Management has not independently verified them and we make no guarantees, express or implied, as to their accuracy or completeness or as to whether they are current. This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This is not a research report and was not prepared by the research departments of Morgan Stanley & Co. LLC or Morgan Stanley Smith Barney LLC ( Morgan Stanley Wealth Management ). It was prepared by Morgan Stanley Wealth Management sales, trading or other non-research personnel. Morgan Stanley Wealth Management is not acting as a municipal advisor to any municipal entity or obligated person within the meaning of Section 15B of the U.S. Securities Exchange Act of 1934, as amended. Past performance is not a guide to future performance. Please see additional important information and qualifications at the end of this material. Page 1
Figure 1. Month-End Asset Return Table February 2018 Total Return (%) Close 2018 One- Quarter- Three- Six- Twelve- February 28, 2018 Price YTD Month to-date Month Month Month Dow Jones Industrials 25,029.20 1.68-3.96 1.68 3.63 15.25 23.03 S&P 500 Composite 2,713.83 1.83-3.69 1.83 2.96 10.84 17.10 S&P 500 Equal-Weight Index (a) 4,078.82-0.33-4.52-0.33 0.68 8.26 10.66 S&P Industrials - non GICS (a) 3,619.07 2.06-3.88 2.06 3.22 10.01 16.08 S&P GIC Utilities 247.70-6.81-3.86-6.81-12.53-9.18-1.99 S&P GIC Financials 478.88 3.51-2.78 3.51 5.54 18.23 19.94 S&P MidCap 400 1,864.61-1.69-4.43-1.69-1.47 8.55 9.53 S&P SmallCap 600 921.34-1.44-3.87-1.44-1.95 10.36 10.29 S&P SuperComposite 1500 626.24 1.48-3.74 1.48 2.49 10.66 16.34 S&P 500 Growth 1,607.38 5.06-2.02 5.06 5.67 13.45 24.91 S&P 500 Value 1,104.71-1.56-5.48-1.56 0.08 8.10 8.62 Value Line Geometric Composite (a) 548.76-2.41-4.88-2.41-1.84 6.37 5.44 NASDAQ Composite (a) 7,273.01 5.35-1.87 5.35 5.81 13.13 24.85 NASDAQ Industrials (a) 5,847.74 6.05-3.04 6.05 7.56 14.49 22.76 NASDAQ 100 (a) 6,854.42 7.16-1.38 7.16 7.68 14.46 28.59 NYSE Arca Composite (a) 2,452.26-7.86-8.22-7.86-5.95-3.65-0.76 Russell 2000 (a) 1,512.45-1.50-3.97-1.50-2.05 7.63 9.07 MSCI EAFE Index (a) 2,051.73 0.05-4.71 0.05 1.56 6.26 17.04 MSCI ACWI Index (a) 518.08 0.98-4.36 0.98 2.50 8.29 16.55 MSCI World Index - Developed Mkt (a) 2,117.99 0.69-4.30 0.69 1.96 8.08 15.19 MSCI Emerging Markets (EM) Index (a) 1,195.19 3.17-4.73 3.17 6.64 9.88 27.64 (a) Price Only Return (excludes dividends) Source: Morgan Stanley Wealth Management, MSCI and Factset One Mo. Three Mo. Six Mo. Twelve Mo. U.S. Treasury Yields 02/28/2018 Ago Ago Ago Ago Cash (3-Month Treasury Bills) 1.59% 1.43% 1.25% 1.01% 0.51% Bonds (10-Yr Treasury Notes) 2.87% 2.72% 2.42% 2.12% 2.36% Bonds (30-Yr Treasury Bonds) 3.13% 2.94% 2.83% 2.73% 2.97% Source: Factset information and qualifications at the end of this material. 2
Figure 2. Long-Term Asset Return Table Annualized Total Return (%) Three Five Seven Ten Fifteen Twenty February 28, 2018 Close Year Year Year Year Year Year Dow Jones Industrials 25,029.20 14.10 14.97 13.57 10.24 10.74 8.01 S&P 500 Composite 2,713.83 11.14 14.73 13.13 9.73 10.36 6.86 S&P 500 Equal-Weight Index (a) 4,078.82 6.99 11.87 10.46 8.88 10.39 N/A S&P Industrials - non GICS (a) 3,619.07 8.81 12.41 11.05 8.44 9.20 5.57 S&P GIC Utilities 247.70 6.45 9.50 10.41 6.85 11.22 6.71 S&P GIC Financials 478.88 15.78 17.37 13.41 5.42 5.90 4.47 S&P MidCap 400 1,864.61 9.10 12.81 11.53 10.69 12.28 10.15 S&P SmallCap 600 921.34 10.61 14.04 12.81 11.17 12.67 9.28 S&P SuperComposite 1500 626.24 10.98 14.57 13.00 9.87 10.61 7.17 S&P 500 Growth 1,607.38 13.16 16.94 14.86 11.65 10.88 7.07 S&P 500 Value 1,104.71 8.61 12.15 11.14 7.59 9.67 6.33 Value Line Geometric Composite (a) 548.76 2.23 6.92 5.06 3.27 5.52 0.67 NASDAQ Composite (a) 7,273.01 13.58 18.14 14.71 12.34 11.95 7.32 NASDAQ Industrials (a) 5,847.74 13.63 16.07 14.13 11.72 12.47 7.76 NASDAQ 100 (a) 6,854.42 15.57 20.14 16.52 14.66 13.62 9.13 NYSE Arca Composite (a) 2,452.26-0.94 0.74 0.42 0.53 7.48 6.42 Russell 2000 (a) 1,512.45 7.04 10.67 9.07 8.22 10.03 6.11 MSCI EAFE Index (a) 2,051.73 2.84 4.23 2.31-0.09 5.73 2.23 MSCI ACWI Index (a) 518.08 6.21 7.89 5.99 N/A N/A N/A MSCI World Index - Developed Mkt (a) 2,117.99 6.11 8.55 6.63 3.82 7.14 3.69 MSCI Emerging Markets (EM) Index (a) 1,195.19 6.47 2.53 1.09 0.23 10.12 5.38 (a) Price Only Return (excludes dividends) Source: Morgan Stanley Wealth Management, MSCI and Factset information and qualifications at the end of this material. 3
Figure 3. Monthly Asset Return Table Total Return (%) 2018 February 28, 2018 Jan. Feb. Mar. April May June July Aug. Sept. Oct. Nov. Dec. YTD Dow Jones Industrials 5.88-3.96 1.68 S&P 500 Composite 5.73-3.69 1.83 S&P 500 Equal-Weight Index (a) 4.39-4.52-0.33 S&P Industrials - non GICS (a) 6.19-3.88 2.06 S&P GIC Utilities -3.07-3.86-6.81 S&P GIC Financials 6.48-2.78 3.51 S&P MidCap 400 2.87-4.43-1.69 S&P SmallCap 600 2.53-3.87-1.44 S&P SuperComposite 1500 5.43-3.74 1.48 S&P 500 Growth 7.23-2.02 5.06 S&P 500 Value 4.15-5.48-1.56 Value Line Geometric Composite (a) 2.59-4.88-2.41 NASDAQ Composite (a) 7.36-1.87 5.35 NASDAQ Industrials (a) 9.38-3.04 6.05 NASDAQ 100 (a) 8.65-1.38 7.16 NYSE Arca Composite (a) 0.39-8.22-7.86 Russell 2000 (a) 2.57-3.97-1.50 MSCI EAFE Index (a) 4.99-4.71 0.05 MSCI ACWI Index (a) 5.58-4.36 0.98 MSCI World Index - Developed Mkt (a) 5.22-4.30 0.69 MSCI Emerging Markets (EM) Index (a) 8.30-4.73 3.17 (a) Price Only Return (excludes dividends) Source: Morgan Stanley Wealth Management, MSCI and Factset information and qualifications at the end of this material. 4
Figure 4. Quarterly Asset Return Table 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 *as of February 28, 2018 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Q1 Dow Jones Industrials 5.19 0.32-0.29-6.96 7.69 2.17 2.05 2.76 8.63 5.17 3.93 5.57 10.95 1.68 S&P 500 Composite 4.93 0.95 0.28-6.44 7.04 1.35 2.46 3.85 3.82 6.07 3.09 4.48 6.64 1.83 S&P 500 Equal-Weight Index (a) 5.59 1.33-1.56-8.00 4.49 2.48 2.15 4.02 3.31 4.92 2.02 3.12 5.71-0.33 S&P Industrials - non GICS (a) 3.40 1.57-0.02-7.35 7.12 1.51 2.01 3.39 0.70 6.42 2.26 4.13 6.09 2.06 S&P GIC Utilities 13.19-5.17-5.80 5.40 1.07 15.56 6.79-5.91 0.14 6.39 2.21 2.87 0.21-6.81 S&P GIC Financials 7.25-2.05 1.72-6.72 5.96-5.06 2.12 4.59 21.10 2.53 4.25 5.24 8.63 3.51 S&P MidCap 400 6.35 5.31-1.06-8.50 2.60 3.78 3.99 4.14 7.42 3.94 1.97 3.22 6.25-1.69 S&P SmallCap 600 9.85 3.96 0.19-9.27 3.72 2.66 3.48 7.20 11.13 1.06 1.71 5.96 3.96-1.44 S&P SuperComposite 1500 5.20 1.39 0.17-6.69 6.59 1.57 2.60 3.98 4.32 5.74 2.96 4.44 6.53 1.48 S&P 500 Growth 5.06 2.47 0.31-4.83 7.86 0.53 1.01 4.76 0.48 8.53 4.42 5.29 6.80 5.06 S&P 500 Value 4.78-0.69 0.24-8.25 6.05 2.20 3.96 2.94 7.35 3.29 1.51 3.48 6.33-1.56 Value Line Geometric Composite (a) 5.15 1.87-2.15-12.40 1.64 1.65 1.27 5.40 4.65 2.79 0.46 3.18 4.26-2.41 NASDAQ Composite (a) 5.40 3.48 1.75-7.35 8.38-2.75-0.56 9.69 1.34 9.82 3.87 5.79 6.27 5.35 NASDAQ Industrials (a) 4.03 4.55 2.32-5.91 7.53-0.75 3.11 4.98 0.88 9.16 3.25 2.34 7.56 6.05 NASDAQ 100 (a) 4.61 2.30 1.46-4.91 9.86-2.39-1.47 10.37-0.25 11.77 3.88 5.89 6.98 7.16 NYSE Arca Composite (a) -6.19-2.65-1.01-7.74-1.11 4.38 7.53 0.94-5.21 8.79 1.77 3.28 0.84-7.86 Russell 2000 (a) 9.35 3.99 0.09-12.22 3.20-1.92 3.40 8.66 8.43 2.12 2.12 5.33 2.99-1.50 MSCI EAFE Index (a) -3.86 4.19-0.37-10.75 4.37-3.74-2.64 5.80-1.04 6.47 5.03 4.81 3.90 0.05 MSCI ACWI Index (a) 0.06 1.83-0.29-9.88 4.64-0.28 0.26 4.79 0.81 6.41 3.61 4.69 5.37 0.98 MSCI World Index - Developed Mkt (a) 0.66 1.82-0.30-8.86 5.11-0.88 0.31 4.38 1.48 5.85 3.38 4.39 5.14 0.69 MSCI Emerging Markets (EM) Index (a) -4.88 1.91-0.24-18.53 0.26 5.37-0.32 8.32-4.56 11.14 5.47 7.02 7.09 3.17 (a) Price Only Return (excludes dividends) Source: Morgan Stanley Wealth Management, MSCI and Factset Total Return (%) information and qualifications at the end of this material. 5
Figure 5. Annual Asset Return Table 2018 February 28, 2018 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD Dow Jones Industrials 5.52 1.72 19.03 8.87-31.93 22.64 14.06 8.33 10.23 29.60 10.02 0.22 16.39 28.01 1.68 S&P 500 Composite 10.88 4.91 15.79 5.49-37.00 26.46 15.06 2.11 16.00 32.39 13.69 1.38 11.96 21.83 1.83 S&P 500 Equal-Weight Index (a) 15.22 6.45 14.02-0.03-40.99 43.26 19.81-1.92 15.27 33.62 12.35-4.11 12.50 16.68-0.33 S&P Industrials - non GICS (a) 8.60 2.37 12.92 10.70-34.86 25.91 13.36 3.23 12.24 29.55 10.11 0.79 7.81 20.22 2.06 S&P GIC Utilities 24.28 16.84 20.99 19.38-28.98 11.91 5.46 19.91 1.29 13.21 28.98-4.85 16.29 12.11-6.81 S&P GIC Financials 10.89 6.47 19.19-18.63-55.32 17.22 12.13-17.06 28.82 35.63 15.20-1.53 22.80 22.18 3.51 S&P MidCap 400 16.48 12.56 10.32 7.98-36.23 37.38 26.64-1.73 17.88 33.50 9.77-2.18 20.74 16.24-1.69 S&P SmallCap 600 22.65 7.68 15.12-0.30-31.07 25.57 26.31 1.02 16.33 41.31 5.76-1.97 26.56 13.23-1.44 S&P SuperComposite 1500 11.78 5.66 15.34 5.47-36.72 27.25 16.38 1.75 16.17 32.80 13.08 1.01 13.03 21.13 1.48 S&P 500 Growth 6.13 4.00 11.01 9.13-34.92 31.57 15.05 4.65 14.61 32.75 14.89 5.52 6.89 27.44 5.06 S&P 500 Value 15.71 5.82 20.80 1.99-39.22 21.18 15.10-0.48 17.68 31.99 12.36-3.13 17.40 15.36-1.56 Value Line Geometric Composite (a) 11.51 2.00 10.97-3.82-48.69 36.77 20.47-11.39 11.54 32.96 2.69-11.24 13.54 11.09-2.41 NASDAQ Composite (a) 8.59 1.37 9.52 9.81-40.54 43.89 16.91-1.80 15.91 38.32 13.40 5.73 7.50 28.24 5.35 NASDAQ Industrials (a) 15.84 0.12 12.39 4.22-45.33 46.72 24.98-0.72 19.70 43.14 1.99 8.24 8.38 24.05 6.05 NASDAQ 100 (a) 10.44 1.49 6.79 18.67-41.89 53.54 19.22 2.70 16.82 34.99 17.94 8.43 5.89 31.52 7.16 NYSE Arca Composite (a) 22.22 22.64 16.90 17.17-42.00 30.58 21.01 3.17 3.39 2.99 0.75-12.08 7.39 15.31-7.86 Russell 2000 (a) 17.00 3.32 17.00-2.75-34.80 25.22 25.31-5.45 14.63 37.00 3.53-5.71 19.48 13.14-1.50 MSCI EAFE Index (a) 17.59 10.86 23.47 8.62-45.09 27.75 4.90-14.82 13.55 19.43-7.35-3.30-1.88 21.78 0.05 MSCI ACWI Index (a) N/A N/A N/A N/A N/A N/A N/A -9.41 13.43 20.25 2.10-4.26 5.63 21.62 0.98 MSCI World Index - Developed Mkt (a) 12.84 7.56 17.95 7.09-42.08 26.98 9.55-7.61 13.18 24.10 2.93-2.74 5.32 20.11 0.69 MSCI Emerging Markets (EM) Index (a) 22.45 30.31 29.18 36.48-54.48 74.50 16.36-20.41 15.15-4.98-4.63-16.96 8.58 34.35 3.17 (a) Price Only Return (excludes dividends) Source: Morgan Stanley Wealth Management, MSCI and Factset Total Return (%) information and qualifications at the end of this material. 6
Figure 6. S&P 500 Sector Performance, Ranked by February Performance --------------TOTAL RETURN (%)-------------- ---------RELATIVE TO S&P 500--------- February 28, 2018 WT YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo Information Technology 25.15 7.73 0.10 7.73 7.74 18.18 36.26 5.80 3.93 5.80 4.64 6.63 16.36 Financials 15.03 3.51-2.78 3.51 5.54 18.23 19.94 1.65 0.94 1.65 2.50 6.67 2.42 Consumer Discretionary 12.68 5.55-3.46 5.55 8.10 16.94 22.15 3.66 0.23 3.66 4.99 5.51 4.31 Utilities 2.68-6.81-3.86-6.81-12.53-9.18-1.99-8.48-0.18-8.48-15.05-18.05-16.30 Industrials 10.23 1.15-3.95 1.15 3.07 11.56 16.28-0.67-0.27-0.67 0.11 0.66-0.70 Health Care 13.78 1.90-4.45 1.90 1.25 4.43 14.31 0.07-0.79 0.07-1.67-5.78-2.38 Materials 2.90-1.33-5.26-1.33 0.58 9.21 15.98-3.11-1.63-3.11-2.31-1.46-0.95 Real Estate 2.60-8.47-6.71-8.47-8.94-6.83-3.02-10.12-3.14-10.12-11.55-15.94-17.18 Telecommunication Services 1.88-6.55-7.06-6.55-1.15 0.23-5.01-8.23-3.50-8.23-4.00-9.57-18.88 Consumer Staples 7.55-6.30-7.76-6.30-4.22-1.07-0.32-7.98-4.23-7.98-6.98-10.74-14.88 Energy 5.51-7.42-10.82-7.42-2.90 7.91-2.80-9.08-7.41-9.08-5.69-2.64 Source: Factset & Standard & Poor s -17.00 Figure 7. S&P 500 Sector Performance, Ranked by Year-To-Date Performance --------------TOTAL RETURN (%)-------------- ---------RELATIVE TO S&P 500--------- February 28, 2018 WT YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo Information Technology 25.15 7.73 0.10 7.73 7.74 18.18 36.26 5.80 3.93 5.80 4.64 6.63 16.36 Consumer Discretionary 12.68 5.55-3.46 5.55 8.10 16.94 22.15 3.66 0.23 3.66 4.99 5.51 4.31 Financials 15.03 3.51-2.78 3.51 5.54 18.23 19.94 1.65 0.94 1.65 2.50 6.67 2.42 Health Care 13.78 1.90-4.45 1.90 1.25 4.43 14.31 0.07-0.79 0.07-1.67-5.78-2.38 Industrials 10.23 1.15-3.95 1.15 3.07 11.56 16.28-0.67-0.27-0.67 0.11 0.66-0.70 Materials 2.90-1.33-5.26-1.33 0.58 9.21 15.98-3.11-1.63-3.11-2.31-1.46-0.95 Consumer Staples 7.55-6.30-7.76-6.30-4.22-1.07-0.32-7.98-4.23-7.98-6.98-10.74-14.88 Telecommunication Services 1.88-6.55-7.06-6.55-1.15 0.23-5.01-8.23-3.50-8.23-4.00-9.57-18.88 Utilities 2.68-6.81-3.86-6.81-12.53-9.18-1.99-8.48-0.18-8.48-15.05-18.05-16.30 Energy 5.51-7.42-10.82-7.42-2.90 7.91-2.80-9.08-7.41-9.08-5.69-2.64-17.00 Real Estate 2.60-8.47-6.71-8.47-8.94-6.83-3.02-10.12-3.14-10.12-11.55-15.94 Source: Factset & Standard & Poor s -17.18 Figure 8. S&P 500 Sector Performance, Ranked by 12-Month Performance --------------TOTAL RETURN (%)-------------- ---------RELATIVE TO S&P 500--------- February 28, 2018 WT YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo Information Technology 25.15 7.73 0.10 7.73 7.74 18.18 36.26 5.80 3.93 5.80 4.64 6.63 16.36 Consumer Discretionary 12.68 5.55-3.46 5.55 8.10 16.94 22.15 3.66 0.23 3.66 4.99 5.51 4.31 Financials 15.03 3.51-2.78 3.51 5.54 18.23 19.94 1.65 0.94 1.65 2.50 6.67 2.42 Industrials 10.23 1.15-3.95 1.15 3.07 11.56 16.28-0.67-0.27-0.67 0.11 0.66-0.70 Materials 2.90-1.33-5.26-1.33 0.58 9.21 15.98-3.11-1.63-3.11-2.31-1.46-0.95 Health Care 13.78 1.90-4.45 1.90 1.25 4.43 14.31 0.07-0.79 0.07-1.67-5.78-2.38 Consumer Staples 7.55-6.30-7.76-6.30-4.22-1.07-0.32-7.98-4.23-7.98-6.98-10.74-14.88 Utilities 2.68-6.81-3.86-6.81-12.53-9.18-1.99-8.48-0.18-8.48-15.05-18.05-16.30 Energy 5.51-7.42-10.82-7.42-2.90 7.91-2.80-9.08-7.41-9.08-5.69-2.64-17.00 Real Estate 2.60-8.47-6.71-8.47-8.94-6.83-3.02-10.12-3.14-10.12-11.55-15.94-17.18 Telecommunication Services 1.88-6.55-7.06-6.55-1.15 0.23-5.01-8.23-3.50-8.23-4.00-9.57 Source: Factset & Standard & Poor s -18.88 information and qualifications at the end of this material. 7
Figure 9. S&P 500 Group Performance, Ranked by February Performance --------------TOTAL RETURN (%)-------------- ---------RELATIVE TO S&P 500--------- February 28, 2018 WT YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo Communications Equipment 1.11 16.29 7.17 16.29 18.50 36.62 33.41 14.20 11.27 14.20 15.09 23.27 13.93 Computers & Peripherals 4.52 6.84 6.06 6.84 5.55 11.29 31.74 4.93 10.11 4.93 2.51 0.41 12.50 Internet & Catalog Retail 3.66 29.58 4.63 29.58 29.29 45.84 68.55 27.25 8.63 27.25 25.57 31.59 43.94 Real Estate Management & Development 0.06 7.94 2.32 7.94 7.82 29.57 31.25 6.00 6.24 6.00 4.72 16.91 12.08 Personal Products 0.17 6.28 1.99 6.28 11.57 27.18 48.73 4.38 5.89 4.38 8.36 14.75 27.01 Semiconductor & Semiconductor Equipment 4.14 8.38 0.98 8.38 7.27 27.05 44.77 6.44 4.85 6.44 4.19 14.63 23.63 Leisure Equipment & Products 0.07 4.97 0.83 4.97-2.67-1.67-15.77 3.08 4.69 3.08-5.47-11.28-28.07 Aerospace & Defense 2.96 13.08 0.65 13.08 15.92 25.24 46.21 11.05 4.50 11.05 12.59 12.99 24.86 Software 5.72 10.61-0.41 10.61 10.34 19.92 44.26 8.63 3.40 8.63 7.17 8.19 23.20 Capital Markets 3.16 5.23-0.72 5.23 7.05 21.14 28.45 3.34 3.08 3.34 3.97 9.29 9.69 IT Services 4.28 7.50-1.22 7.50 8.19 19.47 30.83 5.57 2.56 5.57 5.08 7.79 11.73 Trading Companies & Distributors 0.19 4.14-2.06 4.14 10.62 44.93 17.70 2.27 1.68 2.27 7.43 30.77 0.52 Electronic Equipment & Instruments 0.42 2.18-2.09 2.18 1.18 16.85 27.87 0.35 1.66 0.35-1.73 5.43 9.20 Textiles, Apparel & Luxury Goods 0.72 5.62-2.50 5.62 9.97 21.85 25.63 3.72 1.23 3.72 6.81 9.94 7.29 Multiline Retail 0.50 8.36-2.67 8.36 16.11 37.23 29.82 6.41 1.05 6.41 12.77 23.81 10.86 Commercial Banks 6.81 5.32-2.73 5.32 8.40 23.62 21.51 3.43 1.00 3.43 5.28 11.53 3.77 Airlines 0.50-4.40-2.86-4.40 1.40 12.06 1.69-6.12 0.85-6.12-1.51 1.10-13.16 Containers & Packaging 0.37 1.58-2.91 1.58 2.32 10.19 18.08-0.24 0.81-0.24-0.62-0.58 0.84 Commercial Services & Supplies 0.30 1.06-2.93 1.06 4.57 11.17 17.23-0.75 0.79-0.75 1.56 0.30 0.11 Independent Power Producers & Energy Traders 0.06-4.26-3.24-4.26-1.67 2.27 22.31-5.98 0.46-5.98-4.49-7.73 4.45 Electrical Equipment 0.55-0.47-3.41-0.47 2.91 14.55 17.79-2.26 0.29-2.26-0.05 3.36 0.59 Diversified Financial Services 1.75 4.23-3.51 4.23 7.01 14.12 20.13 2.36 0.18 2.36 3.93 2.96 2.58 Consumer Finance 0.76-1.36-3.78-1.36 4.02 20.13 12.65-3.13-0.10-3.13 1.03 8.39-3.80 Multi-Utilities 0.91-6.86-3.84-6.86-11.77-7.15-0.13-8.54-0.16-8.54-14.31-16.23-14.72 Electric Utilities 1.65-6.64-3.89-6.64-13.30-10.90-3.93-8.31-0.21-8.31-15.80-19.61-17.96 Road & Rail 0.91-2.21-4.04-2.21 0.93 17.48 18.80-3.96-0.36-3.96-1.97 6.00 1.45 Pharmaceuticals 4.40-2.45-4.04-2.45-2.34-1.06 2.21-4.20-0.37-4.20-5.15-10.73-12.72 Health Care Equipment & Supplies 2.80 5.32-4.18 5.32 2.87 11.70 23.22 3.42-0.52 3.42-0.09 0.78 5.22 Metals & Mining 0.29 0.69-4.25 0.69 16.95 15.04 19.07-1.11-0.59-1.11 13.59 3.79 1.68 Hotels Restaurants & Leisure 1.79-1.34-4.31-1.34-0.53 6.85 23.48-3.12-0.65-3.12-3.39-3.60 5.44 Biotechnology 2.84 4.23-4.37 4.23 4.38-0.80 15.14 2.36-0.71 2.36 1.38-10.50-1.67 Professional Services 0.28 0.04-4.45 0.04 0.49-1.18-2.51-1.76-0.80-1.76-2.40-10.84-16.75 Diversified Consumer Services 0.02-3.39-4.56-3.39-2.35-3.53 27.61-5.13-0.91-5.13-5.16-12.96 8.98 Insurance 2.55-2.00-4.61-2.00-3.47 4.84 9.46-3.76-0.96-3.76-6.24-5.41-6.53 Health Care Providers & Services 2.81 2.54-4.94 2.54 2.26 11.54 22.89 0.70-1.31 0.70-0.68 0.64 4.95 Internet Software & Services 4.97 3.85-5.04 3.85 5.32 11.70 31.77 1.98-1.41 1.98 2.30 0.78 12.53 Machinery 1.70-1.37-5.17-1.37 2.61 20.20 32.02-3.14-1.54-3.14-0.34 8.45 12.74 Chemicals 2.13-1.68-5.38-1.68-1.27 9.11 16.60-3.45-1.75-3.45-4.11-1.55-0.43 Automobiles 0.43-8.47-5.49-8.47-10.24 4.44-0.96-10.11-1.87-10.11-12.82-5.77-15.42 Life Sciences Tools & Services 0.84 5.82-5.75 5.82 3.19 9.56 32.68 3.92-2.15 3.92 0.22-1.15 13.31 Food Products 1.16-5.08-6.04-5.08-4.78 2.24-7.58-6.78-2.44-6.78-7.52-7.76-21.08 Tobacco 1.21-6.46-6.59-6.46-1.85-5.31-6.35-8.14-3.01-8.14-4.67-14.56-20.02 Building Products 0.32-3.01-6.73-3.01-2.66 1.33 3.33-4.75-3.16-4.75-5.46-8.58-11.76 Real Estate Investment Trusts 2.54-8.81-6.91-8.81-9.27-7.45-3.62-10.44-3.35-10.44-11.88-16.50-17.70 Diversified Telecommunication Services 1.88-6.55-7.06-6.55-1.15 0.23-5.01-8.23-3.50-8.23-4.00-9.57-18.88 Industrial Conglomerates 1.75-6.10-7.16-6.10-8.96-11.01-14.31-7.78-3.61-7.78-11.57-19.71-26.83 Health Care Technology 0.09-4.79-7.19-4.79-9.24-5.34 16.57-6.50-3.64-6.50-11.85-14.59-0.45 Media 2.64-2.74-7.50-2.74 1.53-2.92-1.71-4.49-3.96-4.49-1.39-12.41-16.06 Beverages 1.87-5.29-7.72-5.29-2.90-0.44 9.29-6.99-4.19-6.99-5.69-10.18-6.67 Household Products 1.42-11.72-7.90-11.72-9.28-10.35-9.35-13.31-4.37-13.31-11.89-19.12-22.58 Specialty Retail 2.18-2.52-8.16-2.52 3.06 20.63 13.87-4.27-4.64-4.27 0.09 8.83-2.76 Auto Components 0.18 1.52-8.29 1.52-1.48 9.44 25.02-0.30-4.78-0.30-4.32-1.26 6.76 Distributors 0.11-3.14-9.14-3.14-0.19 13.23 9.64-4.88-5.66-4.88-3.06 2.16-6.37 Construction & Engineering 0.09-2.50-9.30-2.50 0.88 18.51 2.61-4.25-5.83-4.25-2.02 6.92-12.37 Household Durables 0.38-11.96-10.19-11.96-12.67-8.12-3.98-13.54-6.75-13.54-15.18-17.11-18.00 Food & Staples Retailing 1.71-4.41-10.47-4.41-3.87 5.95 5.12-6.12-7.05-6.12-6.64-4.41-10.23 Air Freight & Logistics 0.68-5.76-10.66-5.76-3.81 4.90 13.40-7.45-7.24-7.45-6.58-5.35-3.16 Oil, Gas & Consumable Fuels 4.75-7.94-10.78-7.94-4.14 7.77-0.22-9.59-7.36-9.59-6.90-2.77-14.79 Energy Equipment & Services 0.76-4.06-11.10-4.06 5.64 8.80-15.69-5.79-7.70-5.79 2.60-1.84-28.00 Construction Materials 0.12-7.93-11.86-7.93-4.35-2.99-3.05-9.58-8.49-9.58-7.10-12.48-17.21 Source: Factset & Standard & Poor s information and qualifications at the end of this material. 8
Figure 10. S&P 500 Group Performance, Ranked by Year-To-Date Performance --------------TOTAL RETURN (%)-------------- ---------RELATIVE TO S&P 500--------- February 28, 2018 WT YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo Internet & Catalog Retail 3.66 29.58 4.63 29.58 29.29 45.84 68.55 27.25 8.63 27.25 25.57 31.59 43.94 Communications Equipment 1.11 16.29 7.17 16.29 18.50 36.62 33.41 14.20 11.27 14.20 15.09 23.27 13.93 Aerospace & Defense 2.96 13.08 0.65 13.08 15.92 25.24 46.21 11.05 4.50 11.05 12.59 12.99 24.86 Software 5.72 10.61-0.41 10.61 10.34 19.92 44.26 8.63 3.40 8.63 7.17 8.19 23.20 Semiconductor & Semiconductor Equipment 4.14 8.38 0.98 8.38 7.27 27.05 44.77 6.44 4.85 6.44 4.19 14.63 23.63 Multiline Retail 0.50 8.36-2.67 8.36 16.11 37.23 29.82 6.41 1.05 6.41 12.77 23.81 10.86 Real Estate Management & Development 0.06 7.94 2.32 7.94 7.82 29.57 31.25 6.00 6.24 6.00 4.72 16.91 12.08 IT Services 4.28 7.50-1.22 7.50 8.19 19.47 30.83 5.57 2.56 5.57 5.08 7.79 11.73 Computers & Peripherals 4.52 6.84 6.06 6.84 5.55 11.29 31.74 4.93 10.11 4.93 2.51 0.41 12.50 Personal Products 0.17 6.28 1.99 6.28 11.57 27.18 48.73 4.38 5.89 4.38 8.36 14.75 27.01 Life Sciences Tools & Services 0.84 5.82-5.75 5.82 3.19 9.56 32.68 3.92-2.15 3.92 0.22-1.15 13.31 Textiles, Apparel & Luxury Goods 0.72 5.62-2.50 5.62 9.97 21.85 25.63 3.72 1.23 3.72 6.81 9.94 7.29 Commercial Banks 6.81 5.32-2.73 5.32 8.40 23.62 21.51 3.43 1.00 3.43 5.28 11.53 3.77 Health Care Equipment & Supplies 2.80 5.32-4.18 5.32 2.87 11.70 23.22 3.42-0.52 3.42-0.09 0.78 5.22 Capital Markets 3.16 5.23-0.72 5.23 7.05 21.14 28.45 3.34 3.08 3.34 3.97 9.29 9.69 Leisure Equipment & Products 0.07 4.97 0.83 4.97-2.67-1.67-15.77 3.08 4.69 3.08-5.47-11.28-28.07 Biotechnology 2.84 4.23-4.37 4.23 4.38-0.80 15.14 2.36-0.71 2.36 1.38-10.50-1.67 Diversified Financial Services 1.75 4.23-3.51 4.23 7.01 14.12 20.13 2.36 0.18 2.36 3.93 2.96 2.58 Trading Companies & Distributors 0.19 4.14-2.06 4.14 10.62 44.93 17.70 2.27 1.68 2.27 7.43 30.77 0.52 Internet Software & Services 4.97 3.85-5.04 3.85 5.32 11.70 31.77 1.98-1.41 1.98 2.30 0.78 12.53 Health Care Providers & Services 2.81 2.54-4.94 2.54 2.26 11.54 22.89 0.70-1.31 0.70-0.68 0.64 4.95 Electronic Equipment & Instruments 0.42 2.18-2.09 2.18 1.18 16.85 27.87 0.35 1.66 0.35-1.73 5.43 9.20 Containers & Packaging 0.37 1.58-2.91 1.58 2.32 10.19 18.08-0.24 0.81-0.24-0.62-0.58 0.84 Auto Components 0.18 1.52-8.29 1.52-1.48 9.44 25.02-0.30-4.78-0.30-4.32-1.26 6.76 Commercial Services & Supplies 0.30 1.06-2.93 1.06 4.57 11.17 17.23-0.75 0.79-0.75 1.56 0.30 0.11 Metals & Mining 0.29 0.69-4.25 0.69 16.95 15.04 19.07-1.11-0.59-1.11 13.59 3.79 1.68 Professional Services 0.28 0.04-4.45 0.04 0.49-1.18-2.51-1.76-0.80-1.76-2.40-10.84-16.75 Electrical Equipment 0.55-0.47-3.41-0.47 2.91 14.55 17.79-2.26 0.29-2.26-0.05 3.36 0.59 Hotels Restaurants & Leisure 1.79-1.34-4.31-1.34-0.53 6.85 23.48-3.12-0.65-3.12-3.39-3.60 5.44 Consumer Finance 0.76-1.36-3.78-1.36 4.02 20.13 12.65-3.13-0.10-3.13 1.03 8.39-3.80 Machinery 1.70-1.37-5.17-1.37 2.61 20.20 32.02-3.14-1.54-3.14-0.34 8.45 12.74 Chemicals 2.13-1.68-5.38-1.68-1.27 9.11 16.60-3.45-1.75-3.45-4.11-1.55-0.43 Insurance 2.55-2.00-4.61-2.00-3.47 4.84 9.46-3.76-0.96-3.76-6.24-5.41-6.53 Road & Rail 0.91-2.21-4.04-2.21 0.93 17.48 18.80-3.96-0.36-3.96-1.97 6.00 1.45 Pharmaceuticals 4.40-2.45-4.04-2.45-2.34-1.06 2.21-4.20-0.37-4.20-5.15-10.73-12.72 Construction & Engineering 0.09-2.50-9.30-2.50 0.88 18.51 2.61-4.25-5.83-4.25-2.02 6.92-12.37 Specialty Retail 2.18-2.52-8.16-2.52 3.06 20.63 13.87-4.27-4.64-4.27 0.09 8.83-2.76 Media 2.64-2.74-7.50-2.74 1.53-2.92-1.71-4.49-3.96-4.49-1.39-12.41-16.06 Building Products 0.32-3.01-6.73-3.01-2.66 1.33 3.33-4.75-3.16-4.75-5.46-8.58-11.76 Distributors 0.11-3.14-9.14-3.14-0.19 13.23 9.64-4.88-5.66-4.88-3.06 2.16-6.37 Diversified Consumer Services 0.02-3.39-4.56-3.39-2.35-3.53 27.61-5.13-0.91-5.13-5.16-12.96 8.98 Energy Equipment & Services 0.76-4.06-11.10-4.06 5.64 8.80-15.69-5.79-7.70-5.79 2.60-1.84-28.00 Independent Power Producers & Energy Traders 0.06-4.26-3.24-4.26-1.67 2.27 22.31-5.98 0.46-5.98-4.49-7.73 4.45 Airlines 0.50-4.40-2.86-4.40 1.40 12.06 1.69-6.12 0.85-6.12-1.51 1.10-13.16 Food & Staples Retailing 1.71-4.41-10.47-4.41-3.87 5.95 5.12-6.12-7.05-6.12-6.64-4.41-10.23 Health Care Technology 0.09-4.79-7.19-4.79-9.24-5.34 16.57-6.50-3.64-6.50-11.85-14.59-0.45 Food Products 1.16-5.08-6.04-5.08-4.78 2.24-7.58-6.78-2.44-6.78-7.52-7.76-21.08 Beverages 1.87-5.29-7.72-5.29-2.90-0.44 9.29-6.99-4.19-6.99-5.69-10.18-6.67 Air Freight & Logistics 0.68-5.76-10.66-5.76-3.81 4.90 13.40-7.45-7.24-7.45-6.58-5.35-3.16 Industrial Conglomerates 1.75-6.10-7.16-6.10-8.96-11.01-14.31-7.78-3.61-7.78-11.57-19.71-26.83 Tobacco 1.21-6.46-6.59-6.46-1.85-5.31-6.35-8.14-3.01-8.14-4.67-14.56-20.02 Diversified Telecommunication Services 1.88-6.55-7.06-6.55-1.15 0.23-5.01-8.23-3.50-8.23-4.00-9.57-18.88 Electric Utilities 1.65-6.64-3.89-6.64-13.30-10.90-3.93-8.31-0.21-8.31-15.80-19.61-17.96 Multi-Utilities 0.91-6.86-3.84-6.86-11.77-7.15-0.13-8.54-0.16-8.54-14.31-16.23-14.72 Construction Materials 0.12-7.93-11.86-7.93-4.35-2.99-3.05-9.58-8.49-9.58-7.10-12.48-17.21 Oil, Gas & Consumable Fuels 4.75-7.94-10.78-7.94-4.14 7.77-0.22-9.59-7.36-9.59-6.90-2.77-14.79 Automobiles 0.43-8.47-5.49-8.47-10.24 4.44-0.96-10.11-1.87-10.11-12.82-5.77-15.42 Real Estate Investment Trusts 2.54-8.81-6.91-8.81-9.27-7.45-3.62-10.44-3.35-10.44-11.88-16.50-17.70 Household Products 1.42-11.72-7.90-11.72-9.28-10.35-9.35-13.31-4.37-13.31-11.89-19.12-22.58 Household Durables 0.38-11.96-10.19-11.96-12.67-8.12-3.98-13.54-6.75-13.54-15.18-17.11-18.00 Source: Factset & Standard & Poor s information and qualifications at the end of this material. 9
Figure 11. S&P 500 Group Performance, Ranked by 12-Month Performance --------------TOTAL RETURN (%)-------------- ---------RELATIVE TO S&P 500--------- February 28, 2018 WT YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo Internet & Catalog Retail 3.66 29.58 4.63 29.58 29.29 45.84 68.55 27.25 8.63 27.25 25.57 31.59 43.94 Personal Products 0.17 6.28 1.99 6.28 11.57 27.18 48.73 4.38 5.89 4.38 8.36 14.75 27.01 Aerospace & Defense 2.96 13.08 0.65 13.08 15.92 25.24 46.21 11.05 4.50 11.05 12.59 12.99 24.86 Semiconductor & Semiconductor Equipment 4.14 8.38 0.98 8.38 7.27 27.05 44.77 6.44 4.85 6.44 4.19 14.63 23.63 Software 5.72 10.61-0.41 10.61 10.34 19.92 44.26 8.63 3.40 8.63 7.17 8.19 23.20 Communications Equipment 1.11 16.29 7.17 16.29 18.50 36.62 33.41 14.20 11.27 14.20 15.09 23.27 13.93 Life Sciences Tools & Services 0.84 5.82-5.75 5.82 3.19 9.56 32.68 3.92-2.15 3.92 0.22-1.15 13.31 Machinery 1.70-1.37-5.17-1.37 2.61 20.20 32.02-3.14-1.54-3.14-0.34 8.45 12.74 Internet Software & Services 4.97 3.85-5.04 3.85 5.32 11.70 31.77 1.98-1.41 1.98 2.30 0.78 12.53 Computers & Peripherals 4.52 6.84 6.06 6.84 5.55 11.29 31.74 4.93 10.11 4.93 2.51 0.41 12.50 Real Estate Management & Development 0.06 7.94 2.32 7.94 7.82 29.57 31.25 6.00 6.24 6.00 4.72 16.91 12.08 IT Services 4.28 7.50-1.22 7.50 8.19 19.47 30.83 5.57 2.56 5.57 5.08 7.79 11.73 Multiline Retail 0.50 8.36-2.67 8.36 16.11 37.23 29.82 6.41 1.05 6.41 12.77 23.81 10.86 Capital Markets 3.16 5.23-0.72 5.23 7.05 21.14 28.45 3.34 3.08 3.34 3.97 9.29 9.69 Electronic Equipment & Instruments 0.42 2.18-2.09 2.18 1.18 16.85 27.87 0.35 1.66 0.35-1.73 5.43 9.20 Diversified Consumer Services 0.02-3.39-4.56-3.39-2.35-3.53 27.61-5.13-0.91-5.13-5.16-12.96 8.98 Textiles, Apparel & Luxury Goods 0.72 5.62-2.50 5.62 9.97 21.85 25.63 3.72 1.23 3.72 6.81 9.94 7.29 Auto Components 0.18 1.52-8.29 1.52-1.48 9.44 25.02-0.30-4.78-0.30-4.32-1.26 6.76 Hotels Restaurants & Leisure 1.79-1.34-4.31-1.34-0.53 6.85 23.48-3.12-0.65-3.12-3.39-3.60 5.44 Health Care Equipment & Supplies 2.80 5.32-4.18 5.32 2.87 11.70 23.22 3.42-0.52 3.42-0.09 0.78 5.22 Health Care Providers & Services 2.81 2.54-4.94 2.54 2.26 11.54 22.89 0.70-1.31 0.70-0.68 0.64 4.95 Independent Power Producers & Energy Traders 0.06-4.26-3.24-4.26-1.67 2.27 22.31-5.98 0.46-5.98-4.49-7.73 4.45 Commercial Banks 6.81 5.32-2.73 5.32 8.40 23.62 21.51 3.43 1.00 3.43 5.28 11.53 3.77 Diversified Financial Services 1.75 4.23-3.51 4.23 7.01 14.12 20.13 2.36 0.18 2.36 3.93 2.96 2.58 Metals & Mining 0.29 0.69-4.25 0.69 16.95 15.04 19.07-1.11-0.59-1.11 13.59 3.79 1.68 Road & Rail 0.91-2.21-4.04-2.21 0.93 17.48 18.80-3.96-0.36-3.96-1.97 6.00 1.45 Containers & Packaging 0.37 1.58-2.91 1.58 2.32 10.19 18.08-0.24 0.81-0.24-0.62-0.58 0.84 Electrical Equipment 0.55-0.47-3.41-0.47 2.91 14.55 17.79-2.26 0.29-2.26-0.05 3.36 0.59 Trading Companies & Distributors 0.19 4.14-2.06 4.14 10.62 44.93 17.70 2.27 1.68 2.27 7.43 30.77 0.52 Commercial Services & Supplies 0.30 1.06-2.93 1.06 4.57 11.17 17.23-0.75 0.79-0.75 1.56 0.30 0.11 Chemicals 2.13-1.68-5.38-1.68-1.27 9.11 16.60-3.45-1.75-3.45-4.11-1.55-0.43 Health Care Technology 0.09-4.79-7.19-4.79-9.24-5.34 16.57-6.50-3.64-6.50-11.85-14.59-0.45 Biotechnology 2.84 4.23-4.37 4.23 4.38-0.80 15.14 2.36-0.71 2.36 1.38-10.50-1.67 Specialty Retail 2.18-2.52-8.16-2.52 3.06 20.63 13.87-4.27-4.64-4.27 0.09 8.83-2.76 Air Freight & Logistics 0.68-5.76-10.66-5.76-3.81 4.90 13.40-7.45-7.24-7.45-6.58-5.35-3.16 Consumer Finance 0.76-1.36-3.78-1.36 4.02 20.13 12.65-3.13-0.10-3.13 1.03 8.39-3.80 Distributors 0.11-3.14-9.14-3.14-0.19 13.23 9.64-4.88-5.66-4.88-3.06 2.16-6.37 Insurance 2.55-2.00-4.61-2.00-3.47 4.84 9.46-3.76-0.96-3.76-6.24-5.41-6.53 Beverages 1.87-5.29-7.72-5.29-2.90-0.44 9.29-6.99-4.19-6.99-5.69-10.18-6.67 Food & Staples Retailing 1.71-4.41-10.47-4.41-3.87 5.95 5.12-6.12-7.05-6.12-6.64-4.41-10.23 Building Products 0.32-3.01-6.73-3.01-2.66 1.33 3.33-4.75-3.16-4.75-5.46-8.58-11.76 Construction & Engineering 0.09-2.50-9.30-2.50 0.88 18.51 2.61-4.25-5.83-4.25-2.02 6.92-12.37 Pharmaceuticals 4.40-2.45-4.04-2.45-2.34-1.06 2.21-4.20-0.37-4.20-5.15-10.73-12.72 Airlines 0.50-4.40-2.86-4.40 1.40 12.06 1.69-6.12 0.85-6.12-1.51 1.10-13.16 Multi-Utilities 0.91-6.86-3.84-6.86-11.77-7.15-0.13-8.54-0.16-8.54-14.31-16.23-14.72 Oil, Gas & Consumable Fuels 4.75-7.94-10.78-7.94-4.14 7.77-0.22-9.59-7.36-9.59-6.90-2.77-14.79 Automobiles 0.43-8.47-5.49-8.47-10.24 4.44-0.96-10.11-1.87-10.11-12.82-5.77-15.42 Media 2.64-2.74-7.50-2.74 1.53-2.92-1.71-4.49-3.96-4.49-1.39-12.41-16.06 Professional Services 0.28 0.04-4.45 0.04 0.49-1.18-2.51-1.76-0.80-1.76-2.40-10.84-16.75 Construction Materials 0.12-7.93-11.86-7.93-4.35-2.99-3.05-9.58-8.49-9.58-7.10-12.48-17.21 Real Estate Investment Trusts 2.54-8.81-6.91-8.81-9.27-7.45-3.62-10.44-3.35-10.44-11.88-16.50-17.70 Electric Utilities 1.65-6.64-3.89-6.64-13.30-10.90-3.93-8.31-0.21-8.31-15.80-19.61-17.96 Household Durables 0.38-11.96-10.19-11.96-12.67-8.12-3.98-13.54-6.75-13.54-15.18-17.11-18.00 Diversified Telecommunication Services 1.88-6.55-7.06-6.55-1.15 0.23-5.01-8.23-3.50-8.23-4.00-9.57-18.88 Tobacco 1.21-6.46-6.59-6.46-1.85-5.31-6.35-8.14-3.01-8.14-4.67-14.56-20.02 Food Products 1.16-5.08-6.04-5.08-4.78 2.24-7.58-6.78-2.44-6.78-7.52-7.76-21.08 Household Products 1.42-11.72-7.90-11.72-9.28-10.35-9.35-13.31-4.37-13.31-11.89-19.12-22.58 Industrial Conglomerates 1.75-6.10-7.16-6.10-8.96-11.01-14.31-7.78-3.61-7.78-11.57-19.71-26.83 Energy Equipment & Services 0.76-4.06-11.10-4.06 5.64 8.80-15.69-5.79-7.70-5.79 2.60-1.84-28.00 Leisure Equipment & Products 0.07 4.97 0.83 4.97-2.67-1.67-15.77 3.08 4.69 3.08-5.47-11.28-28.07 Source: Factset & Standard & Poor s information and qualifications at the end of this material. 10
Glossary of Indices Index Dow Jones Industrial Average (DJIA) S&P 500 Definition The Dow Jones Industrial Average is a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry. It has been a widely followed indicator of the stock market since November 1, 1928. The Standard & Poor s 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index was developed with a base level of 10 for the 1941-43 base period. S&P Industrials The S&P Industrials Index is comprised of the stocks representing the industrial sector of the S&P 500 and represents about 75 percent of the S&P 500 (exclusive of the utility, financial and transportation sectors). S&P GIC Utilities/ Financials S&P Midcap 400 In 1999, Standard & Poor s and MSCI/Barra jointly developed the Global Industry Classification Standard (GICS ) to establish a global standard for categorizing companies into sectors and industries. GICS is used as a basis for S&P and MSCI indexes in which each company is assigned to a sub-industry, and to a corresponding industry, industry group and sector, according to the definition of its principal business activity. Measures the performance of 400 mid-size domestic stocks chosen for market size, liquidity and industry group representation. A mid-cap stock is broadly defined as a company with a market capitalization ranging from US$2 billion to US$10 billion. S&P Smallcap 600 S&P Supercomposite 1500 S&P/Citigroup Growth S&P/Citigroup Value Value Line Geometric Composite NASDAQ Composite NASDAQ Industrials NASDAQ 100 Wiltshire 5000 Russell 2000 Index MSCI EAFE Index MSCI ACWI Index MSCI World Index (Developed Market) MSCI EM Index The S&P 600 Index is an equity index representing 600 small-sized companies in various industries weighted by market capitalization. The index includes small cap stocks with market capitalization ranging from about US$300 million dollars to about US$2 billion. Consists of the 1500 companies that comprise the S&P 500, the S&P mid-cap 400 and the S&P small-cap 600. A market-capitalization-weighted index consisting of those stocks within the S&P 500 Index that exhibit strong growth characteristics. The index is a numerical ranking system based on three growth factors and four value factors to determine the constituents and their weightings. A market-capitalization-weighted index consisting of those stock within the S&P 500 Index that exhibit strong value characteristics. The index uses a numerical ranking system based on four value factors and three growth factors to determine the constituents and their weightings. An equally weighted price index of all the stocks covered in The Value Line Investment Survey. Geometric refers to the geometric averaging technique that is used to compute the average. Geometric indices are not commonly used. A proxy for the market s performance, the index is considered to represent the typical retail investor s portfolio The NASDAQ Composite Index is a broad-based capitalization-weighted index of stocks in all three NASDAQ tiers: Global Select, Global Market, and Capital Market. The index was developed with a base level of 100 as of February 5, 1971. Measures performance of NASDAQ-listed companies not in another NASDAQ index. Includes agricultural, mining, construction, manufacturing, retail and wholesale trade, services, and public administration enterprises, as well as health maintenance organizations and companies not included in NASDAQ s Biotechnology Index. The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain securities of financial companies including investment companies. The Wilshire 5000 Equity Index measures the performance of all U.S. headquartered equity securities with readily available price data. Over 7,000 capitalization weighted security returns are used to adjust the index. The Russell 2000 Index is designed to measure the performance of the bottom 2,000 companies from a universe of 3,000 of the largest stocks in the U.S. This index is capitalization-weighted and includes only common stocks belonging to organizations domiciled in the U.S. and its territories and traded on the NYSE, NASDAQ or AMEX. The Russell 2000 Index is adjusted once per year, in June, to reflect changes in rankings and shares outstanding. The MSCI (Morgan Stanley Capital International Inc.) EAFE (Europe, Australia, Far East) Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. The MSCI (Morgan Stanley Capital International Inc.) All Country World Index (ACWI) is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of the developed & emerging markets. As of Jan 2012 the MSCI World Index consisted of large and mid cap representation across 23 Developed Markets (DM) & 23 Emerging Markets (EM) countries. The MSCI (Morgan Stanley Capital International Inc.) Developed Market World Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of the developed markets. As of Jan 2012 the MSCI World Index consisted of large and mid cap representation across 24 Developed Markets (DM) countries. DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global markets, which consists of 26 emerging markets country indices: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey and Venezuela. For important disclosures (including copies of historical disclosures) regarding the securities and/or companies that are the subject of this material, please contact Morgan Stanley Wealth Management Research, 522 Fifth Ave., New York, N.Y. 10036, Attention: Research 11
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