Value Weighted Index – A New Approach to Long-Term Investing

Comparison

Performance Comparison*

	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	AVG
S&P 500 TR	30.5	7.6	10.1	1.3	37.6	23.0	33.4	28.6	21.0	(9.1)	(11.9)	(22.1)	28.7	10.9	4.9	15.8	5.5	(37.0)	26.5	15.1	9.1%
Russell 1000 TR	33.0	8.9	10.2	0.4	37.8	22.4	32.9	27.0	20.9	(7.8)	(12.4)	(21.7)	29.9	11.4	6.3	15.5	5.8	(37.6)	28.4	16.1	9.5%
S&P 500 Equal Weight TR	35.5	15.6	15.1	1.0	32.0	19.0	29.0	12.2	12.0	9.6	(0.4)	(18.2)	41.0	17.0	8.1	15.8	1.5	(39.7)	46.3	21.9	11.8%
FTSE RAFI 1000 Index	31.5	14.7	15.7	0.3	37.3	22.2	33.6	20.7	10.7	10.8	1.8	(17.9)	34.0	14.8	6.1	19.7	3.0	(40.0)	42.0	20.0	12.2%
Value Weighted Index*	48.7	19.2	16.3	4.2	38.7	23.4	33.0	9.1	8.6	18.6	15.3	(6.7)	40.7	21.5	10.3	17.4	2.7	(35.2)	48.5	23.1	16.1%

CAGR Performance*

	1 Year	3 Year	5 Year	10 Year	20 Year
S&P 500 TR	15.1%	-2.9%	2.3%	1.4%	9.1%
Russell 1000 TR	16.1%	-2.4%	2.6%	1.8%	9.5%
S&P 500 Equal Weight TR	21.9%	2.4%	4.8%	6.3%	11.8%
FTSE RAFI 1000 Index	20.0%	0.7%	4.7%	5.6%	12.2%
Value Weighted Index*	23.1%	5.8%	7.4%	11.2%	16.1%

Risk Characteristics*

	Beta (to Russell 1000 TR, Monthly)	Beta (to Russell 1000 TR, Annual)	Standard Deviation Annual
S&P 500 TR	0.99	0.99	19.3%
Russell 1000 TR	1.00	1.00	19.5%
S&P 500 Equal Weight TR	1.05	0.94	20.0%
FTSE RAFI 1000 Index	0.97	0.94	19.5%
Value Weighted Index*	1.01	0.85	19.9%

* Returns for the value-weighted index, which is based on the author's measures of "cheapness" and "quality", based on trailing results, represent back-tested research results, are not indicative of any specific investment and are not based on actual trading. The back-tested research results assume dividends are reinvested, do not include a deduction for management fees, do reflect the potential market impact of trade timing and security liquidity and do reflect a deduction for average trading and market impact costs of 0.21% of principal traded. Returns for the other indexes presented do not include any fees or expenses and do include the reinvestment of dividends. Research results represent the 20 year time period ending 12/31/2010.