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)
|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%|
|Fiesta Restaurant Group, Inc.||3.56%|
|Del Taco Restaurants, Inc.||3.56%|
|Carrols Restaurant Group, Inc.||3.56%|
Full Service (FSR)
|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%|
|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.
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