is publication quali es for 5 CE credits under the guide-

lines of the CFA Institute C ontinuing Education Program.

 Fair Valu e $25.00

$25.00 Secu rities

ETF Shares

$24.90
 LSE, Lond on
8:00 8:30 9:00 9:30 10:0010:3011:00 11:3012:0012:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00
Overlap
9:00 9:30 10:00 10:30 11:00 11:3012:0012:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00
N YSE, New York

TSE, Tokyo
9:00 9:30 10:0010:3011:00 11:3012:0012:30 1:00 1:30 2:00 2:30 3:00

9:30 10:00 10:30 11:00 11:30 12:0012:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00
NYSE, New York
Shares (thousands)
22,000

18,000

14,000

10,000

6,000

2,000
31/ M ar/ 2011 31/ M ar/ 2014

lend s it to 102% collateral

Market Maker Authorized Particip ant sent to
Bu yer #1
t to
el ls i
os
wh

w ho lend s it to 102% collateral

Bu yer #2 Borrow er #2 sent to
Bu yer #2
o
ls it t
o sel
wh

w ho etc., ...
Bu yer #3
 Total

Alternatives

Asset Allocation

Inverse

Leverage

Currency

Com m od ities

International Fixed Incom e

US Fixed Incom e

International Equ ity

US Equity

0 0.25 0.50 0.75 1.00 1.25

Exp ense Ratio (%)
 Total Return (%)
30

25 VWO

20

15

10
EEM
5

10

15

20
31/ Dec/ 2009 31/ Dec/ 2012
 UBS
Svenska Hand elsbanken AB
Royal Bank of Scotland Grou p
Morgan Stanley
JPMorgan Chase
HSBC Hold ings PLC
Gold m an Sachs
Deu tsche
Cred it Su isse
Citigrou p Inc.
Barclays

0 5 10 15 20 25 30 35 40
Basis Points
 Percentage of Total Market (inclu ding OTCBB)
30

Dollar Value Trad ed

20

10

Consolid ated Tap e

0
1/ Ap r/ 2013 30/ Jun/ 2013 28/ Sep/ 2013 27/ Dec/ 2013 27/ Mar/ 2014
3 Months 12 Months 3 Years

0.66%
0.84%

1.32%
Hold ing Period Com m ission
BidAsk Sp read
Managem ent Fee
 All ETFs

Alternatives

Asset Allocation

Inverse

Leveraged

Cu rrency

Comm od ities

International Fixed Incom e

US Fixed Incom e

International Equ ity

US Equity

0 0.1 0.2 0.3 0.4 0.5

Sp read (%)
Bid Ask Spread (%)

0.5

0.4

0.3

0.2

0.1

0
9:30 10:00 10:30 11:00 11:30 12:00 12:30 1:00 1:30 2:00 2:30 3:00 3:30
a.m . a.m . a.m . a.m . a.m . p .m . p .m . p .m . p .m . p .m . p .m . p .m . p .m .

IGV Spread Weighted Average Spread of Und erlying H oldings

Prem iu m (%) Flow ($ m illions)
8 550

6
350
4
150
2

0 50

2
250
4
450
6

8 650
3/ 09 9/ 09 3/ 10 9/ 10 3/ 11 9/ 11 3/ 12 9/ 12 3/ 13 9/ 13 3/ 14

Prem iu m Net Flow s

Dollars
71.00

70.50

70.00

69.50

69.00 Price

68.50

68.00
NAV
67.50

67.00
1/ 18 1/ 19 1/ 20 1/ 23 1/ 24 1/ 25 1/ 26 1/ 27 1/ 30 1/ 31
 Total Return (%)
40

30

20

10

10

20

30

40

50

60
31/ Dec/ 2007 28/ Dec/ 2012
IWM VB IJR
 Total Return (%)
40

30

20

10

10

20

30

40

50

60
31/ Dec/ 2007 28/ Dec/ 2012
MDY VO IWR
 Total Return (%)
20

10

10

20

30

40

50

60
31/ Dec/ 2007 28/ Dec/ 2012
SPY VV IWB
 Total Return (%)
250

200

150

100

50

0
31/ Mar/ 2009 31/ Mar/ 2014
SPY SLY MDY
 Equity Style Box

Large

Med iu m

Small

Valu e Blend Grow th

 Total Return (%)
180

150

120
IJK
90

60

30 IJJ

30
31/ Dec/ 2008 31/ Dec/ 2013

Total Return (%)

75

60

IJJ
45

30

IJK
15

15

30
31/ Dec/ 2003 30/ Dec/ 2008
 Total Return (%)
275
250
225
200
175
150
RPG
125
100
75 SPYG

50
25
0
31/ Mar/ 2009 31/ Mar/ 2014
Total Return (%)
60

40

20

20

40

60
31/ Dec/ 2007 31/ Dec/ 2012

IYC IYK XLP XLY

Total Retu rn (%)
10

CSI 300 Ind ex

5

5
PEK
10

15

20

25
1/ Ap r/ 2013 31/ Mar/ 2014
(1 9 Bonds) + (11 1 Bond)
= 2,
10

( 0.1% 9) + ( 7.3% 1)
= 0.82%,
10
Total Return (%)
100

80

60

40

20
Natu ral Gas Sp ot
0

20

40

60
UN G
80
31/ Mar/ 2011 31/ Mar/ 2014
Total Return (%)
10
CN Y/ USD Cross

4
CYB

0
CN Y

2
31/ Dec/ 2009 31/ Dec/ 2012
Volatility S&P 500
80 2,000

1,600
60

1,200
40
800

20
400

0 0
1986 91 96 2001 06 11

VXO/ VIX 30-Day Realized Volatility S&P 500

Price ($)
21

20

19

18

17

16

15

14

13
2/ 13 3/ 13 4/ 13 5/ 13 6/ 13 7/ 13 8/ 13 9/ 13 10/ 13

Price ($)
45

43

41

39

37

35

33

31

29

27

25
Spot 9/ 11 10/ 11 11/ 11 12/ 11 1/ 12 2/ 12 3/ 12 4/ 12 5/ 12
4
Roll Yield Cost (%)
20

15

10

10
2/ 09 11/ 09 8/ 10 5/ 11 2/ 12 11/ 12 8/ 13 5/ 14
VIX Short-Term Fu tu res Roll Cost VIX Mid -Term Fu tu res Roll Cost
Return (%) S&P 500
350 2,000
300 1,800
250 1,600
200 1,400
1,200
150
1,000
100
800
50 600
0 400
50 200
100 0
3/ 07 10/ 07 5/ 08 12/ 08 7/ 09 2/ 10 9/ 10 4/ 11 11/ 11 6/ 12 1/ 13 8/ 13 3/ 14

Rolled VIX Mid -Term Fu tu res

Rolled VIX Short-Term Fu tures S&P 500
Cumu lative Retu rn
115

110
TBT

105

TBF
100

BarCap LT Treasury Ind ex

95

90
28/ Jun/ 2013 30/ Sep / 2013
Cum ulative Return
110

105
S&P 500

100

SH
95

SDS

90

85
28/ Jun/ 2013 30/ Sep / 2013
Assets ($ billions) Num ber of ETFs
70 350
60 300
50 250
40 200
30 150
20 100
10 50
0 0
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
Nu mber of ETFs ETF Assets
Assets ($ billions) Num ber of ETFs
14 50
45
12
40
10 35
8 30
25
6 20
4 15
10
2
5
0 0
02 03 04 05 06 07 08 09 10 11 12 13 14
Num ber of ETFs ETF Assets
Assets ($ billions) Nu m ber of ETFs
100 140
90
120
80
70 100
60 80
50
40 60
30 40
20
20
10
0 0
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
N um ber of ETFs ETF Assets
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