R T L INVESTING IN THE GATEWAY TO THE CONSUMER I N D E X
WHY RTL INDEX? GATEWAY TO THE CONSUMER The storefront is the gateway to the consumer with commercial real estate serving as an ideal medium for connecting with established shoppers and attracting new ones . The fusion of retail and entertainment has increasingly been taken on in the digital age . This fusion is making tenants utilize the experiential concept to compel consumers to visit their stores . Physical retail stores are transitioning from being primarily a distribution channel for products to becoming a powerful media channel for branded experiences and stories .
THINK ABOUT IT: Smart retailers are turning their stores into beloved gathering points at the hearts of their communities DOUG STEPHENS , RETAIL PROPHET
RTL INDEX LOCATION NECESSITY ENABLES RETAILERS Conveying clear and engaging brand stories through physical engagement and multiple sensory inputs COMPELS CONSUMERS Offering opportunities for immersive and kinetic product experiences INCREASES REVENUES Acting as the interactive gateway to the entire brand ecosystem of products , services and purchase alternatives
2012 RTL INDEX APOCOLYPSE $1.2 BILLION AMOUNT BEST BUY LOST DURING 2012 The problem was the Internet . Customers were comparison shopping and finding lower prices online . Sometimes they checked from a smartphone right in the aisles of a Best Buy store after sizing up the real merchandise . Analysts predicted that the phenomenon , dubbed " showrooming ,” could destroy Best Buy .
2018 RTL INDEX RENAISSANCE 2 OF THE TOP 5 BEST SELLING TELEVISIONS ARE MODELS SOLD ON BEST BUY ’ S NEW STOREFRONT ON AMAZON AS OF DEC . 17 , 2018 The TV deal gives Best Buy access to Amazon ’ s massive online customer base , while Amazon gains a brick - and - mortar presence and additional products that can attach to its Alexa home assistant , which competes against similar devices from Google and Apple . The two Fire TVs , one made by Toshiba and the other from Best Buy house brand Insignia , are also available in Best Buy stores and on its website .
RTL INDEX RENAISSANCE OMNICHANNEL MAKING EVERYTHING POSSIBLE Best Buy has managed to repair their online stores and tie their online presence more tightly to their network of more than 1 , 400 locations , in ways that it thinks may have neutralized the " showrooming " threat . The idea in omnichannel is to reach customers wherever they are — in a store , online or via their phones — and use technology to turn costly physical stores into an advantage . One deceptively simple step Best Buy took was to add a “ Store Pickup ” button to its online shop .
WATERSHED MOMENT AMAZON BUYS WHOLE FOODS JUNE 16, 2017 Irreplaceable real estate Amazon could not even try to replicate the Whole Foods indispensable real estate portfolio It ’ s about the future of commerce : Physical access to rich , urban consumers It bought 431 upper - income , prime - location distribution hubs for everything it does Gains more insight into how the same person shops on and offline
INVESTMENT RESULTS PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS . It is not possible to invest directly in an index . Exposure to an asset class represented by an index is available through investable instruments based on that index . Presentations are communication tools that can be Benchmark Investments does not sponsor , endorse , sell , promote or manage any used as demonstrations , lectures , speeches , reports , investment fund or other investment vehicle that is offered by third parties and and more . Most of the time , they ’ re presented that seeks to provide an investment return based on the performance of any index . before an audience . Please refer to the disclaimers at the end of this document for more information about Benchmark Investments relationship to such third party product offerings .
Portfolios & Strategies RTL INDEX XRT SPX Benchmark Retail Real Estate SCTR SPDR S & P Retail ETF S & P 500 Index Measures the performance of Seeks to provide exposure to the S & P The S & P 500 Index is a diversified exchange listed companies in the U . S . Retail Select Industry Index which large cap U . S . index that holds that primarily own and manage retail comprises the following sub - companies across all eleven GICS real estate and rent space in those industries : Apparel Retail , Automotive sectors . It is a market - capitalization properties to tenants . The securities Retail , Computer & Electronic Retail , weighted index of the 500 largest include REITs that focus on large Department Stores , Drug Retail , Food U . S . publicly traded companies by regional malls , outlet centers , grocery - Retailers , General Merchandise Stores , market value . The index is widely anchored shopping centers and power Hypermarkets & Super Centers , regarded as the best single gauge of centers that feature big box retailers . Internet & Direct Marketing Retail , and large - cap U . S . equities . Specialty Stores .
Market Exposures RTL INDEX TOP TEN XRT TOP TEN Source : Bloomberg Time Period : 1 / 12 / 2019
5 YEAR INDEX TOTAL RETURNS Time Period : 1 / 1 / 2014 to 12 / 31 / 2018
ANNUALIZED RTL INDEX 3 . 37 RETURNS Benchmark Retail SCTR Index Net of Fees Return is the amount of money an investment made for a portfolio . Return is given as a percentage . XRT - 0 . 16 SPDR S & P Retail ETF SPX 8 . 50 S & P 500 Total Return Index Source : Morningstar Direct Time Period : 1 / 1 / 2014 to 12 / 31 / 2018
UP/DOWN UPSIDE DOWNSIDE CAPTURE RATIO CAPTURE RATIO RTL CAPTURE RATIOS INDEX 43 . 36 46 . 26 Upside / downside capture ratio show whether a given strategy has outperformed , gained more or lost less than , a Benchmark Retail SCTR broad market benchmark during periods of market strength and weakness , and if so , by how much . Index Net of Fees Upside capture ratios for strategy ' s are calculated by taking the strategy ' s monthly return during months when the benchmark had a positive return and dividing it by the benchmark return during that same month . Downside XRT 57 . 79 103 . 78 capture ratios are calculated by taking the fund ' s monthly return during the periods of negative benchmark performance and dividing it by the benchmark return . SPDR S & P Retail ETF 100 100 SPX S & P 500 Total Return Index Source : Morningstar Direct Time Period : 1 / 1 / 2014 to 12 / 31 / 2018
BETA RTL INDEX 0 . 57 Beta is a measure of a strategy ' s sensitivity to market Benchmark Retail SCTR movements . Index Net of Fees It measures the relationship between a fund ' s excess return over T - bills and the excess return of the benchmark index . Equity funds are compared with the S & P 500 index . Morningstar calculates beta using the same regression equation as the one used for alpha , which regresses excess return for the fund against excess XRT 1 . 04 return for the index . This approach differs slightly from other methodologies that rely on a regression of raw SPDR S & P Retail ETF returns . SPX 1 . 00 S & P 500 Total Return Index Source : Morningstar Direct Time Period : 1 / 1 / 2014 to 12 / 31 / 2018
ALPHA RTL INDEX - 0 . 72 A measure of the difference between a strategy ' s actual Benchmark Retail SCTR returns and its expected performance , given its level of Index Net of Fees risk as measured by beta . A positive alpha figure indicates the strategy has performed better than its beta would predict . In contrast , a negative alpha indicates the strategy ' s underperformance , given the expectations established by XRT - 7 . 95 the strategy ' s beta . SPDR S & P Retail ETF SPX 0 . 00 S & P 500 Total Return Index Source : Morningstar Direct Time Period : 1 / 1 / 2014 to 12 / 31 / 2018
SHARPE RATIO RTL INDEX 0 . 29 This risk - adjusted measure was developed by Nobel Benchmark Retail SCTR Laureate William Sharpe . It is calculated by using Index Net of Fees standard deviation and excess return to determine reward per unit of risk . The higher the Sharpe ratio , the better the fund ' s historical risk - adjusted performance . It is calculated for the past 36 - month period by dividing a portfolios ' annualized excess returns over the risk - free rate by its annualized standard deviation . The Sharpe ratio XRT 0 . 05 can be used to compare directly how much risk two funds each had to bear to earn excess return over the risk - free rate . SPDR S & P Retail ETF SPX 0 . 76 S & P 500 Total Return Index Source : Morningstar Direct Time Period : 1 / 1 / 2014 to 12 / 31 / 2018
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