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In advance: 1QTR23 <U/O> Matrix via Applied Indexation is currently available in multi-sheet format utilizing the modularity of business segment operations to illustrate effective Alpha and Alpha-Beta screens derived from a combined Renewables/Diversified Industrials/Technology sector-themed overlay within publicly traded Clean Energy Subindustry Benchmark ETF - PBW.

>> PBW total return: 1Q23 +6.7%, CY23 -6.4%; 12-month performance dispersion +127.0%/-56.0% (042823).

>> SPX 12-month Fwd PE=18.1/042823 v. 17.8/1Q23, 17.3/4Q22, 15.8/3Q22, 17.5/2Q22 (FactSet); CAPE 29.7 from 29.2/27.5/31.1/34.6, mean 17.0 (Shiller).


>> PBW Fwd adj. PE=29.8 Beta=1.5 versus 26.7/1.5, 31.9/1.5 and 30.4/1.5 sequentially [40.0 limit; N/A totals 54.6% (v. 62.0%) based on portfolio weight and 61.3% of count (-0.9%), 10.5% on market capitalization (-5.9%); Large-cap 21.3% (+3.1%), Mid-cap 47.5% (+2.0%), Small-cap 31.2% (-5.3%)].

<U/O> Matrix via Applied Indexation segments include Wind, Solar, Fuel Cells, Smart Grid, Water, LED, Biofuel, Automotive, Natural Gas, Storage and Aviation plus further classifications detailing component member assignments based on corporate business segment operations (12 segments, 61 classifications, 256 single and multi-listed component members; n=75).


Current capital markets sentiment indicates consensus on approaching near-term peaks in both rates and equity valuations, evident in select benchmark proxy ETF total return performance comparisons: e.g., Smart Beta Quality factor ETF (QUAL +11.1%, CY23 042823) over the S&P500 ETF (SPY +9.2%) bested by Large-cap technology Nasdaq 100 (QQQ +21.3%; FY22 -32.6%). Given ecosystem dynamics and supply chain verticals prevalent in institutional portfolio strategies (conventional, index-plus, long/short, niche, thematic, megatrend, factor-based), the permanence of tiered/laddered risks to valuation across economic cycles and subcycles underscores persistent opportunities to capture breadth of performance dispersion within an investment universe.

<U/O> Matrix via Applied Indexation characterizes the corporate composition of component members within an assigned benchmark, defining parameters of differentiated growth rates within companies then linking to peers via business segment operations (Large-cap, Mid-cap, Small-cap; international and domestic). Proprietary research suggests refined hierarchical data sets improve analytics, isolating drivers of valuation at distinct points of inflection. This, coupled with competitive market information and embedded forward looking fundamental analysis, efficiently profiles idiosyncratic catalysts on a portfolio-weighted segment/classification relative basis to isolate Value in Growth (and Growth in Value; cross-asset, multi-factor).

Please message direct for product suite access and development considerations; reference <U/O> Matrix - Establishing Predictive Value: Applied Indexation, Hierarchical Data Sets and Competitive Market Information slideshow tutorial for background methodology.

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