|Table 1. Model ETF Portfolio|
|ETF (Ticker)||Weight in Portfolio (%)||YTD Return (%)||1-Year Annual Return (%)||Annualized Return Since Inception* (%)|
|First Trust Dow Jones Select MicroCap Index (FDM)||16||6.2||16.2||8.4|
|PowerShares FTSE RAFI US 1000 (PRF)||16||7.6||21.7||16.9|
|Rydex S&P Midcap 400 Pure Value (RFV)||16||8.5||20.3||16.4|
|Rydex S&P Smallcap 600 Pure Value (RZV)||16||4.5||15.9||8.6|
|iShares Cohen & Steers Realty Majors (ICF)||16||-8.6||11.6||7.7|
|SPDR S&P International Small Cap (GWX)**||5||na||na||na|
|SPDR DJ Wilshire International Real Estate (RWX)||5||4.4||na||na|
|Vanguard FTSE All-World Ex-U.S. (VEU)||5||4.4||na||na|
|Vanguard Emerging Markets (VWO)||5||18||43.9||na|
|Average of ETFs***||5.6||21.6||11.6|
|Actual Portfolio Return***||3.3||17||11.3|
|iShares Lehman 1-3 Year Treasury Bond (SHY)||2.1||5||4.5|
|Fidelity NASDAQ Composite Index (ONEQ)||7.9||20.3||13.9|
|iShares S&P 500 Index (IVV)||6.9||20.5||14.5|
|*Model ETF Portfolio was started on 4/1/2006.
**GWX inception date is 4/20/2007, year-to-date and annual data is not available.
***Only previously existing funds are included and all are equally weighted.
Sources: Yahoo! Finance and Morningstar Principia. Data as of 6/30/2007.
A Note on Weightings: If you are trying to follow this portfolio with your own funds, it is recommended that the First Trust Dow Jones Select MicroCap Index, PowerShares FTSE RAFI US 1000, Rydex S&P Midcap 400 Pure Value, and Rydex S&P Smallcap 600 Pure Value funds be weighted equally as they are in the Model ETF Portfolio. The weighting of the iShares Cohen & Steers Realty Majors fund can vary based on other real estate holdings. Since the Model ETF Portfolio has no other real estate, it was weighted equally in the actual portfolio. These five ETFs each make up 16% of the portfolio. The international ETFs-SDPR S&P Int'l Small Cap, SDPR DJ Wilshire Int'l Real Estate, Vanguard FTSE All-World Ex-U.S., and Vanguard Emerging Markets-are each weighted 5% of the portfolio from 6/29/2007. The iShares Lehman 1-3 Year Treasury Bond fund would be used to reduce risk. Since the Model Portfolio is very long-term, the iShares Lehman 1-3 Year Treasury Bond fund was not included in the actual portfolio, but in the future we will show the risk and return effect of holding this exchange-traded fund.