Restaurant Finance Monitor Stock INDXX - Methodology

The Restaurant Finance Monitor Stock INDXX Process 

• The index process rebalances at the end of every quarter with a search for restaurant companies that are
publicly traded on a US markets for about 200 days, have a minimum of $1.5 million of daily trading volume
and a minimum market cap of $300 million. Over the past 10 years, the universe of companies has been
within a range of approximately 65 companies which then has been narrowed down to a range of between
35 to 40 companies using these minimum criteria. (Average 38).
• Using the 38 companies from Step 1 above, as an example,  the companies are then divided between
QSR/Fast Casual (70%) and then Full Service (30%). 
• Assuming 28 companies are QSR/Fast Casual and 10  Companies are Full Service, the weighting
is 70%/30%. ($100 = $70/28= 2.5% per company and $30/10 =3% per Company)
• (3A) Using a Static Quantitative (SQ) screen, the process then sidelines two companies from each
category that are showing relative weak underperformance vs. the group and re-weights that percentage
towards the top 5 largest companies. (Example: Now 27 & 9 names = 36 names)
• (3B) Using a Dynamic Quantitative (DQ) screen similar to SQ across both segments the process then
sidelines an additional four companies. Assuming one company is QSR and three companies are Full Service,
the largest five companies would see an increase of 11.5% towards their weightings.  
• Step 3 reduces the number of companies to 32 names and tilts (5.5% of capital + 11.5% capital =17%
of the weighting to the top five market cap companies which if they are QSR =2.5% + 17%/5 = 5.9% per top 5 holdings

 

Companies Included in the Restaurant Finance Monitor Stock INDXX

Quick Service/Fast Casual (QSR)

  Name Weight
  McDonald's Corp. 4.75%
  Starbucks Corp. 4.75%
  Yum Brands, Inc. 4.75%
  Yum China Holdings, Inc. 4.75%
  Restaurant Brands International 4.75%
  Domino's Pizza, Inc. 3.56%
  Chipotle Mexican Grill, Inc. 3.56%
  Dunkin' Brands Group, Inc. 3.56%
  The Wendy's Co. 3.56%
  Jack in the Box, Inc. 3.56%
  Arcos Dorados Holdings, Inc. 3.56%
  Shake Shack, Inc. 3.56%
  Wingstop, Inc. 3.56%
  Sonic Corp. 3.56%
  Fiesta Restaurant Group, Inc. 3.56%
  Del Taco Restaurants, Inc. 3.56%
  Carrols Restaurant Group, Inc. 3.56%
  Potbelly Corporation 3.56%

 

Full Service (FSR)

  Name Weight
  Del Frisco's Restaurant Group, Inc. 2.73%
  Darden Restaurants, Inc. 2.73%
  Texas Roadhouse, Inc. 2.73%
  Cracker Barrel Old Country Store, Inc. 2.73%
  Bloomin' Brands, Inc. 2.73%
  Brinker International, Inc. 2.73%
  DineEquity, Inc. 2.73%
  Denny's Corp. 2.73%
  BJ's Restaurants, Inc. 2.73%
  Ruth's Hospitality Group         2.73%
  Chuy's Holdings, Inc. 2.73%
     

The Restaurant Finance Monitor INDXX Stock Index (formerly the Restaurant Leaders INDXX Index) is owned by Access ETF Solutions LLC (AETFS) and licensed to the Restaurant FinanceMonitor. AETFS is independently owned and operated and not affiliated with Investment Planners, Inc or IPI Wealth Management, Inc. Access ETF Solutions LLC, its affiliates and their independent providers are not liable for any information errors, incompleteness or delays, or for any actions taken in reliance on information contained herein.      

Index returns are for illustrative purposes only. Indexes are unmanaged and one cannot invest directly in an index. Index performance does not represent actual fund or portfolio performance. A fund or portfolio may differ significantly from securities in the Index. Index performance assumes reinvestment of dividends, but does not reflect any management fees, transaction costs or other expenses that would be incurred by a portfolio or fund, or brokerage commissions on transactions in a Fund shares. Such fees and commissions could reduce returns.

Effective August 8, 2016, the Restaurant Finance Monitor INDXX Stock Index was listed as a “live index”, but the rules for the back test date back to December 31, 2005.

Concentration, volatility and other risk characteristics of an investor's advisory account or fund also may differ from the indexes shown herein. Each of the above indexes is included merely to show general trends in the market during the periods indicated. Inclusion of these indexes is provided only for reference purposes and is not intended to imply that any Restaurant Finance Monitor INDXX Stock Index was comparable to any index in either composition or element of risk. There is no guarantee that any investor will achieve performance similar to, or better than, an index mentioned herein.

No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Any projections, market outlooks or estimates in this presentation are forward-looking statements and are based upon certain assumptions and should not be construed as indicative of actual events that will occur.

Past performance of the index is not an indication of future results. Please refer to the information provided about the methodology used to construct the indexes for more details about the indexes, including the manner in which it is rebalanced, the timing of such rebalancing, criteria for additions and deletions, as well as all index calculations.

Restaurant Finance Monitor INDXX Stock Index listed above is calculated and maintained by Indxx, LLC as a third party who is unaffiliated with Access ETF Solutions LLC (AETFS). Indxx, LLC does not sponsor, endorse, or promote the index and bears no liability with respect to any such index.  AETFS has contracted with Indxx (collectively, with its subsidiaries and affiliates, “Indxx”) to license the Indxx  registered trademark and calculate and maintain the Index. Indxx shall have no liability for any errors or omissions in calculating the Index.

This material is proprietary and may not be reproduced, transferred or distributed in any form without prior written permission from AETFS. which reserves the right at any time and without notice to change, amend, or cease publication of the information contained herein. This material has been prepared solely for informative purposes. The information contained herein includes information that has been obtained from third party sources and has not been independently verified. It is made available on an "as is" basis without warranty.

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