S R V R INVESTING IN THE TECHNOLOGY & INTELLIGENCE REVOLUTION I N D E X
WHY SRVR INDEX? FOUNDATION OF TECH Our economy depends on an increasingly sophisticated backbone of servers , fiber optic cable , satellites and network switches to move their critical information and analytic algorithms in and out of the citadels of digital power including data centers , wireless towers , and fiber optic networks .
THINK ABOUT IT: What we ' re seeing is a transition , the beginning of an S curve of growth for the data center industry DAVE CROWLEY, MICROSOFT CHIEF TECHNICAL ADVISOR
SRVR INDEX 55 Billion Internet of Things UNPRECEDENTED Devices by 2025 DEMAND 90 % of IoT Workloads will be deployed in Cloud by 2020 4000 Data Centers needed by 2020 to meet current demand Cisco predicts by 2021 that 94 % of all compute workloads will be by cloud data centers The cloud accounts for only 5 % of the $ 3 . 7 trillion spent on IT around the world
SRVR INDEX: FUTURE FOUR HORSEMEN VIRTUAL REALITY / BLOCKCHAIN / THE INTERNET ARTIFICIAL AUGMENTED DISTRIBUTED OF THINGS INTELLIGENCE REALITY LEDGERS Autonomous driving Amazon ’ s Cloud Equifax will not be hacked Pokemon Go got 50 vehicles , watches , brought on over going forward if they use million users in 19 refrigerators are going to 80 , 000 databases for multiple cloud datacenters to days lead to unparalleled AI last quarter validate user permissions connectivity as we already have more than four billion internet users globally
SRVR INDEX: 5G / INTERNET OF THINGS American Tower CEO on their impressive growth rate and why they beat earnings last quarter : “ Unlimited data plans and increasing mobile video consumption continue to drive additional spectrum deployment and equipment installations by our domestic tenants to support 4G network technology and that ' s leading to those elevated growth rates .” “ Moreover , our major U . S . customers are beginning to embark on tangible plans for 5G technology …”
INVESTMENT RESULTS PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS . It is not possible to invest directly in an index . Exposure to an asset class represented by an index is available through investable instruments based on that index . Presentations are communication tools that can be Benchmark Investments does not sponsor , endorse , sell , promote or manage any used as demonstrations , lectures , speeches , reports , investment fund or other investment vehicle that is offered by third parties and and more . Most of the time , they ’ re presented that seeks to provide an investment return based on the performance of any index . before an audience . Please refer to the disclaimers at the end of this document for more information about Benchmark Investments relationship to such third party product offerings .
Portfolios & Strategies SRVR XLK SPX Benchmark Data & Infrastructure Technology Select Sector SPDR Fund S & P 500 Index Real Estate SCTR Index Seeks to provide exposure to the The S & P 500 Index is a diversified Measures the performance of Technology Select Sector Index which large cap U . S . index that holds exchange listed companies in the U . S . seeks to provide precise exposure to companies across all eleven GICS that primarily are engaged in companies from technology sectors . It is a market - capitalization businesses within the following hardware , storage , and peripherals ; weighted index of the 500 largest business lines : ( i ) Data storage and software ; communications U . S . publicly traded companies by information management services equipment ; semiconductors and market value , The index is widely including record management , data semiconductor equipment ; IT services ; regarded as the best single gauge of management , document and electronic equipment , large - cap U . S . equities . management , and data centers ( ii ) instruments and components . General Infrastructure & Outdoor Media including fiber cables , wireless infrastructure , telecommunications towers , and outdoor media sites .
Market Exposures SRVR INDEX TOP TEN XLK TOP TEN Source : Bloomberg Time Period : 1 / 12 / 2019
SRVR INDEX: WATERSHED MOMENT APPLE REINVENTS THE PHONE WITH IPHONE PRESS RELEASE January 9 , 2007 TOTAL RETURNS SINCE 2007 MACWORLD SAN FRANCISCO iPhone will be available in the US in June 2007 iPhone is a Breakthrough Internet Communications Device iPhone also ushers in an era of software power and sophistication never before seen in a mobile device , which completely redefines what users can do on their mobile phones Time Period : 1 / 1 / 2007 to 1 / 11 / 2019
SRVR INDEX WATERSHED MOMENT THE START OF CLOUD COMPUTING In 2012 , the biggest thing to TOTAL RETURNS SINCE 2012 happen to the cloud was the arrival of three major new IaaS ( infrastructure as a service ) players : Google Compute Engine , HP Cloud , and Microsoft Windows Azure All three entrants faced an uphill battle competing against the incumbent leader Amazon Web Services and even against Rackspace , long the distant No . 2 IaaS provider . Time Period : 1 / 1 / 2012 to 12 / 31 / 2018
7 YR ANNUALIZED SRVR INDEX 14 . 57 RETURNS Benchmark Data & Infrastructure SCTR Index Net of Fees Return is the amount of money an investment made for a portfolio . Return is given as a percentage . XLK 15 . 52 SPDR S & P Technology ETF SPX 12 . 69 S & P 500 Total Return Index Source : Morningstar Direct Time Period : 1 / 1 / 2012 to 12 / 31 / 2018
UP/DOWN UPSIDE DOWNSIDE CAPTURE RATIO CAPTURE RATIO SRVR CAPTURE RATIOS INDEX 94 . 51 70 . 70 Upside / downside capture ratio show whether a given strategy has outperformed , gained more or lost less than , a Benchmark Data & Infrastructure SCTR broad market benchmark during periods of market strength and weakness , and if so , by how much . Index Net of Fees Upside capture ratios for strategy ' s are calculated by taking the strategy ' s monthly return during months when the benchmark had a positive return and dividing it by the benchmark return during that same month . Downside XLK 112 . 90 102 . 62 capture ratios are calculated by taking the fund ' s monthly return during the periods of negative benchmark performance and dividing it by the benchmark return . SPDR S & P Technology ETF 100 100 SPX S & P 500 Total Return Index Source : Morningstar Direct Time Period : 1 / 1 / 2012 to 12 / 31 / 2018
BETA SRVR SRVR INDEX 0 . 78 Beta is a measure of a strategy ' s sensitivity to market Benchmark Data & Infrastructure SCTR movements . Index Net of Fees It measures the relationship between a fund ' s excess return over T - bills and the excess return of the benchmark index . Equity funds are compared with the S & P 500 index . Morningstar calculates beta using the same regression equation as the one used for alpha , which regresses excess return for the fund against excess XLK 1 . 05 return for the index . This approach differs slightly from other methodologies that rely on a regression of raw returns . SPDR S & P Technology ETF SPX 1 . 00 S & P 500 Total Return Index Source : Morningstar Direct Time Period : 1 / 1 / 2012 to 12 / 31 / 2018
ALPHA SRVR SRVR INDEX 4 . 58 A measure of the difference between a strategy ' s actual Benchmark Data & Infrastructure SCTR returns and its expected performance , given its level of Index Net of Fees risk as measured by beta . A positive alpha figure indicates the strategy has performed better than its beta would predict . In contrast , a negative alpha indicates the strategy ' s underperformance , given the expectations established by XLK 2 . 18 the strategy ' s beta . SPDR S & P Technology ETF SPX 0 . 00 S & P 500 Total Return Index Source : Morningstar Direct Time Period : 1 / 1 / 2012 to 12 / 31 / 2018
SHARPE RATIO SRVR SRVR INDEX 1 . 20 This risk - adjusted measure was developed by Nobel Benchmark Data & Infrastructure SCTR Laureate William Sharpe . It is calculated by using Index Net of Fees standard deviation and excess return to determine reward per unit of risk . The higher the Sharpe ratio , the better the fund ' s historical risk - adjusted performance . It is calculated for the past 36 - month period by dividing a portfolios ' annualized excess returns over the risk - free rate by its annualized standard deviation . The Sharpe ratio XLK 1 . 17 can be used to compare directly how much risk two funds each had to bear to earn excess return over the risk - free rate . SPDR S & P Technology ETF SPX 1 . 15 S & P 500 Total Return Index Source : Morningstar Direct Time Period : 1 / 1 / 2012 to 12 / 31 / 2018
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