INVESCO UNIT TRUSTS, SERIES 2259
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INVESCO UNIT TRUSTS, SERIES 2259
The Dow Jones Total Market Portfolio, Enhanced Index Strategy 2023-1
Supplement to the Prospectus
Effective January 13, 2023, Jefferies Financial Group, Inc. (the “Company”) (ticker: JEF) has distributed all common stock of
Vitesse Energy, Inc. (“Vitesse”) (ticker: VTS) owned by the Company (the “Spin-Off”) to holders of the Company’s common stock
as of the close of business on December 27, 2022 (the “Record Date”). In connection with the Spin-Off, the Portfolio will receive
1 share of Vitesse for every 8.5 shares of the Company’s common stock that it owed as of the Record Date. The Portfolio will
continue to hold and buy shares of each of the Company and Vitesse.
Supplement Dated: January 17, 2023 U-EMSSPT2259ESG Opportunity Portfolio 2023-1
The Dow Jones Total Market Portfolio, Enhanced Index Strategy 2023-1
The unit investment trusts named above (the “Portfolios”) included in Invesco Unit Trusts, Series 2259, each invest
in a portfolio of securities. Of course, we cannot guarantee that the Portfolio will achieve its objective.
December 8, 2022
You should read this prospectus and retain it for future reference.
The Securities and Exchange Commission has not approved or disapproved of the Units
or passed upon the adequacy or accuracy of this prospectus.
Any contrary representation is a criminal offense.ESG Opportunity Portfolio
Investment Objective. The Portfolio seeks to final portfolio based on consideration of other factors,
provide the potential for capital appreciation and current including, but not limited to:
income.
• Valuation – Companies whose current valuations
Principal Investment Strategy. The Portfolio seeks appear attractive relative to long-term trends.
to achieve its objective by investing in common stocks of
• Growth – Companies with a history of and
companies across a range of sectors and industries
prospects for above average growth of sales and
demonstrating highly favorable Environmental, Social, and
earnings.
Governance (“ESG”) practices. The Sponsor evaluates a
company’s ESG profile primarily through examination of • Cash Flow Generation – Companies with a
the company’s environmental impact, social values and history of generating attractive operating and free
risk controls. The components of a favorable ESG profile cash flows.
are commonly understood to be the following: • Balance Sheet – Companies displaying balance
• Environmental – Companies that have sought to sheet strength evidenced by a history of
reduce their impact on the environment by achieving strong financial results and making
avoiding/mitigating pollution, adopting clean and disciplined capital management decisions.
efficient energy usage and working towards • Returns – Companies with a history of above-
sustainable business practices. average returns on invested capital.
• Social – Companies that value human rights The ESG practices considered by the Sponsor may
through fair labor practices and equal change over time and one or more ESG practices may
opportunities for all employees, avoid not be relevant with respect to all issuers eligible for
controversial industries like tobacco, gambling investment. There may be situations where the
and weapons manufacturing and/or avoid the Sponsor will select for the Portfolio a security of a
production and distribution of foods containing company that has been identified by the Sponsor as
controversial ingredients, such as GMOs. having involvement in potentially harmful ESG
• Governance – Companies that have adopted practices. This may arise for certain companies whose
more rigorous governance practices such as activities or operations, typically due to a legacy
Board independence, proper executive business mix, have created poor environmental or
incentives and accounting controls. social outcomes, but are investing and positively
adapting to future needs (for example, this may include
A company’s ESG profile and practices are evaluated energy companies that are preparing for a transition to
against a peer group of companies operating in a similar a lower carbon world). Similarly, in some instances, the
sector or industry. From among the companies identified Sponsor may select for the Portfolio a security of a
to have demonstrated highly favorable ESG practices, company where the Sponsor has determined that
the Sponsor focuses on companies across a range of prevailing ESG information and data have not fully
sectors and industries with generally stable or increasing captured positive environmental or social-related
levels of commitment towards further strengthening their initiatives of the company. Companies selected for the
ESG practices. The Sponsor’s ESG methodology utilizes Portfolio may not have applied favorable ESG practices
both proprietary and third-party ESG indicators and in the past and there is no guarantee that the
related data to evaluate a company’s ESG profile and companies will continue to apply favorable ESG
practices. The Sponsor then selects companies for the practices over the life of the Portfolio.
2Of course, we cannot guarantee that your Portfolio • The Portfolio invests in securities of
will achieve its objective. The value of your Units may fall companies demonstrating favorable ESG
below the price you paid for the Units. You should read practices. The securities of companies with
the “Risk Factors” section before you invest. favorable ESG practices may underperform the
stock market as a whole. As a result, the Portfolio
The Portfolio is designed as part of a long-term
may underperform other investment products
investment strategy. The Sponsor may offer a
that do not screen companies based on ESG
subsequent series of the portfolio when the current
practices. The criteria used to select companies
Portfolio terminates. As a result, you may achieve more
for investment may result in the Portfolio investing
consistent overall results by following the strategy
in securities, industries, or sectors that
through reinvestment of your proceeds over several
underperform the market as a whole. Further, the
years if subsequent series are available. Repeatedly
ESG practices used by the Sponsor to evaluate
rolling over an investment in a unit investment trust may
a company’s ESG profile may incorporate
differ from long-term investments in other investment
different data and methodologies as compared
products when considering the sales charges, fees,
to other investment products. As a result, the
expenses and tax consequences attributable to a
Portfolio’s investments may differ from, and
Unitholder. For more information see “Rights of
potentially underperform, other investment
Unitholders--Rollover”.
products that incorporate ESG data from other
Principal Risks. As with all investments, you can sources or utilize other methodologies.
lose money by investing in this Portfolio. The Portfolio
• The Portfolio is concentrated in
also might not perform as well as you expect. This can
securities issued by companies in the
happen for reasons such as these:
information technology industry. As further
• Security prices will fluctuate. The value of discussed in “Risk Factors – Industry Risks,” the
your investment may fall over time. information technology industry faces risks
• An issuer may be unwilling or unable to related to rapidly changing technology, rapid
declare dividends in the future, or may product obsolescence, cyclical market patterns,
reduce the level of dividends declared. evolving industry standards and frequent new
This may result in a reduction in the value of product introductions. Negative developments
your Units. in this industry will affect the value of your
investment more than would be the case in a
• The financial condition of an issuer may more diversified investment.
worsen or its credit ratings may drop,
resulting in a reduction in the value of • We do not actively manage the Portfolio.
your Units. This may occur at any point in time, Except in limited circumstances, the Portfolio will
including during the initial offering period. hold, and may continue to buy, shares of the
same securities even if their market value
• You could experience dilution of your declines.
investment if the size of the Portfolio is
increased as Units are sold. There is no
assurance that your investment will maintain its
proportionate share in the Portfolio’s profits and
losses.
3Fee Table The maximum sales charge is 1.85% of the Public Offering Price
The amounts below are estimates of the direct and indirect expenses per Unit. There is no initial sales charge at a Public Offering Price of
that you may incur based on a $10 Public Offering Price per Unit. Actual $10 or less. If the Public Offering Price exceeds $10 per Unit, the initial
expenses may vary. sales charge is the difference between the total sales charge (maximum
of 1.85% of the Public Offering Price) and the sum of the remaining
As a % of deferred sales charge and the creation and development fee. The
Public Amount
Offering Per 100 deferred sales charge is fixed at $0.135 per Unit and accrues daily from
Sales Charge Price
_________ Units
_________ April 10, 2023 through September 9, 2023. Your Portfolio pays a
proportionate amount of this charge on the 10th day of each month
Initial sales charge 0.000% $ 0.000
beginning in the accrual period until paid in full. The combination of the
Deferred sales charge 1.350 13.500 initial and deferred sales charges comprises the “transactional sales
Creation and development fee 0.500
______ 5.000
______ charge”. The creation and development fee is fixed at $0.05 per Unit
Maximum sales charge 1.850%
______ $18.500
______ and is paid at the earlier of the end of the initial offering period
______ ______
(anticipated to be three months) or six months following the Initial Date
As a % Amount of Deposit. For more detail, see “Public Offering Price -- General.”
of Net Per 100
Assets
_________ Units
_________
Essential Information
Estimated Organization Costs 0.667%
______ $6.500
______
______ ______
Unit Price at Initial Date of Deposit $10.0000
Estimated Annual Expenses Initial Date of Deposit December 8, 2022
Trustee’s fee and operating expenses 0.208% $2.028 Mandatory Termination Date March 11, 2024
Supervisory, bookkeeping Historical Annual Distributions1 $0.1053 per Unit
and administrative fees 0.056
______ 0.550
______
Record Dates2 10th day of April,
Total 0.264%
______ $2.578*
______
______ ______ July and October
Distribution Dates2 25th day of April,
Example July and October
This example helps you compare the cost of the Portfolio with other CUSIP Numbers Cash – 46149A300
unit trusts and mutual funds. In the example we assume that the expenses Reinvest – 46149A318
do not change and that the Portfolio’s annual return is 5%. Your actual Fee Based Cash – 46149A326
returns and expenses will vary. This example also assumes that you continue Fee Based Reinvest – 46149A334
to follow the Portfolio strategy and roll your investment, including all
distributions, into a new trust each year subject to a sales charge of 1.85%. 1 As of close of business day prior to Initial Date of Deposit. The actual
Based on these assumptions, you would pay the following expenses for distributions you receive will vary from this per Unit amount due to
every $10,000 you invest in the Portfolio: changes in the Portfolio’s fees and expenses, in actual income received
by the Portfolio, currency fluctuations and with changes in the Portfolio
such as the acquisition or liquidation of securities. In addition, due to the
1 year $ 276 negative economic impact across many industries caused by the recent
3 years 845 COVID-19 outbreak, certain issuers of the securities included in the
Portfolio may elect to reduce the amount of, or cancel entirely, dividends
5 years 1,439
and/or distributions paid in the future. See “Rights of Unitholders--
10 years 3,035 Historical and Estimated Distributions.”
2 The Trustee will make distributions of income and capital on each
* The estimated annual expenses are based upon the estimated trust size Distribution Date to Unitholders of record on the preceding Record Date,
for the Portfolio determined as of the initial date of deposit. Because certain provided that the total cash held for distribution equals at least $0.01 per
of the operating expenses are fixed amounts, if the Portfolio does not reach Unit on such Record Date. Undistributed income and capital will be
the estimated size, or if the value of the Portfolio or number of outstanding distributed on the next Distribution Date on which the total cash held for
units decline over the life of the trust, or if the actual amount of the distribution equals at least $0.01 per Unit.
operating expenses exceeds the estimated amounts, the actual amount
of the operating expenses per 100 units would exceed the estimated
amounts. In some cases, the actual amount of operating expenses may
substantially differ from the amounts reflected above.
4ESG Opportunity Portfolio 2023-1
Portfolio
______________________________________________________________________________________________________________
Cost of
Number Market Value Securities to
of Shares
___________ Name of Issuer (1)
___________________________________________ per Share (2)
_____________ Portfolio (2)
_____________
Communication Services - 10.00%
39 Electronic Arts, Inc. $ 126.010 $ 4,914.39
33 T-Mobile US, Inc. 148.790 4,910.07
54 Walt Disney Company 92.150 4,976.10
Consumer Discretionary - 13.18%
2 AutoZone, Inc. 2,455.260 4,910.52
15 Home Depot, Inc. 320.150 4,802.25
18 McDonald’s Corporation 270.340 4,866.12
32 Target Corporation 153.760 4,920.32
Consumer Staples - 6.68%
64 Colgate-Palmolive Company 77.550 4,963.20
27 PepsiCo, Inc. 182.180 4,918.86
Energy - 3.32%
45 Marathon Petroleum Corporation 109.000 4,905.00
Financials - 10.03%
151 Bank of America Corporation 32.740 4,943.74
66 MetLife, Inc. 74.590 4,922.94
57 Morgan Stanley 87.280 4,974.96
Health Care - 13.47%
47 Abbott Laboratories 104.810 4,926.07
19 Intuitive Surgical, Inc. 267.960 5,091.24
9 Thermo Fisher Scientific, Inc. 558.140 5,023.26
9 UnitedHealth Group, Inc. 542.910 4,886.19
Industrials - 6.72%
+ 75 Johnson Controls International plc 66.390 4,979.25
30 Waste Management, Inc. 165.210 4,956.30
Information Technology - 26.64%
15 Adobe, Inc. 326.680 4,900.20
35 Apple, Inc. 140.940 4,932.90
46 Applied Materials, Inc. 106.110 4,881.06
28 Keysight Technologies, Inc. 177.700 4,975.60
20 Microsoft Corporation 244.370 4,887.40
31 NVIDIA Corporation 161.200 4,997.20
15 Synopsys, Inc. 323.800 4,857.00
24 Visa, Inc. - CL A 207.810 4,987.44
Materials - 3.36%
+ 15 Linde plc 331.400 4,971.00
Real Estate - 3.28%
23 American Tower Corporation 211.110 4,855.53
Utilities - 3.32%
116
___________ Exelon Corporation 42.310 4,907.96
____________
1,160
___________ $ 147,944.07
____________
___________ ____________
See “Notes to Portfolio”.
5The Dow Jones Total Market Portfolio, Enhanced Index Strategy
Investment Objective. The Portfolio seeks Of course, we cannot guarantee that your Portfolio will
above-average capital appreciation. achieve its objective. The value of your Units may fall
Principal Investment Strategy. The Portfolio below the price you paid for the Units. You should read
invests in stocks of domestic companies selected by the “Risk Factors” section before you invest.
applying separate uniquely specialized enhanced sector The Portfolio is designed as part of a long-term
strategies1. Invesco Capital Markets, Inc., the Sponsor, investment strategy. The Sponsor may offer a
implemented the Portfolio strategy using information subsequent series of the portfolio when the current
available as of the close of business on November 30,
Portfolio terminates. As a result, you may achieve more
2022 (the “Selection Date”). The Portfolio strategy
consistent overall results by following the strategy
combines ten enhanced sector strategies: the Basic
Materials Strategy, the Consumer Goods Strategy, the through reinvestment of your proceeds over several years
Consumer Services Strategy, the Energy Strategy, the if subsequent series are available. Repeatedly rolling over
Financials Strategy, the Health Care Strategy, the an investment in a unit investment trust may differ from
Industrials Strategy, the Technology Strategy, the long-term investments in other investment products
Telecommunications Strategy and the Utilities Strategy. when considering the sales charges, fees, expenses and
Please refer to “Portfolio Strategies” for details of each tax consequences attributable to a Unitholder. For more
enhanced sector strategy. Each strategy makes up that information see “Rights of Unitholders--Rollover”.
percentage of the initial Portfolio as its respective sector
makes up of the Dow Jones U.S. Index. Although each Principal Risks. As with all investments, you can
enhanced sector strategy is designed to produce a lose money by investing in this Portfolio. The Portfolio
certain number of stocks, it is possible that a particular also might not perform as well as you expect. This can
strategy could produce less. In particular, the happen for reasons such as these:
Telecommunications Strategy produced only 4 stocks • Security prices will fluctuate. The value of
instead of 10 for this series of the Portfolio. When the your investment may fall over time.
Portfolio terminates you can elect to follow the strategy by
redeeming your Units and reinvesting the proceeds in a new • An issuer may be unwilling or unable to
portfolio, if available. declare dividends in the future, or may
The Dow Jones U.S. Index is a widely adopted reduce the level of dividends declared. This
measure of the U.S. stock market. It is made up of may result in a reduction in the value of your Units.
approximately 95% of U.S. stocks, and weighted by float- • The financial condition of an issuer may
adjusted market capitalization, excluding the most thinly worsen or its credit ratings may drop,
traded securities. The Dow Jones U.S. Index is broken resulting in a reduction in the value of
down into 10 sector indices including the Dow Jones U.S. your Units. This may occur at any point in time,
Basic Materials Index, the Dow Jones U.S. Consumer including during the initial offering period.
Goods Index, the Dow Jones U.S. Consumer Services
Index, the Dow Jones U.S. Financials Index, the Dow • You could experience dilution of your
Jones U.S. Health Care Index, the Dow Jones U.S. investment if the size of the Portfolio is
Industrials Index, the Dow Jones U.S. Oil & Gas Index, the increased as Units are sold. There is no
Dow Jones U.S. Technology Index, the Dow Jones U.S. assurance that your investment will maintain its
Telecommunications Index and the Dow Jones U.S. proportionate share in the Portfolio’s profits and
Utilities Index. losses.
1
An enhanced index strategy, or in this case, an enhanced sector strategy,
refers to a unit investment trust strategy, sponsored by Invesco Capital
Markets, Inc., that seeks to outperform an index by investing in an
objectively selected subset of stocks from the same index.
6• The Portfolio’s performance might not
sufficiently correspond to published
hypothetical performance of the
Portfolio’s investment strategy. This can
happen for reasons such as an inability to exactly
replicate the weightings of stocks in the strategy
or be fully invested, timing of the Portfolio offering
or timing of your investment, and Portfolio
expenses. The hypothetical performance
presented is not the past performance of the
Portfolio.
• The Portfolio invests in stocks of smaller
capitalization companies. These stocks are
often more volatile and have lower trading
volumes than stocks of larger companies.
Smaller capitalization companies may have
limited products or financial resources,
management inexperience and less publicly
available information.
• The Portfolio is concentrated in
securities issued by companies in the
technology industry. As further discussed in
“Risk Factors – Industry Risks,” the technology
industry faces risks related to rapidly changing
technology, rapid product obsolescence, cyclical
market patterns, evolving industry standards and
frequent new product introductions. Negative
developments in this industry will affect the value
of your investment more than would be the case
in a more diversified investment.
• We do not actively manage the Portfolio.
Except in limited circumstances, the Portfolio will
hold, and may continue to buy, shares of the same
securities even if their market value declines.
7Fee Table The maximum sales charge is 1.85% of the Public Offering Price per
The amounts below are estimates of the direct and indirect expenses Unit. There is no initial sales charge at a Public Offering Price of $10 or less.
that you may incur based on a $10 Public Offering Price per Unit. Actual If the Public Offering Price exceeds $10 per Unit, the initial sales charge is
expenses may vary. the difference between the total sales charge (maximum of 1.85% of the
Public Offering Price) and the sum of the remaining deferred sales charge
As a % of and the creation and development fee. The deferred sales charge is fixed
Public Amount
Offering Per 100 at $0.135 per Unit and accrues daily from April 10, 2023 through
Sales Charge Price
_________ Units
_________ September 9, 2023. Your Portfolio pays a proportionate amount of this
charge on the 10th day of each month beginning in the accrual period until
Initial sales charge 0.000% $ 0.000
paid in full. The combination of the initial and deferred sales charges
Deferred sales charge 1.350 13.500
comprises the “transactional sales charge”. The creation and development
Creation and development fee 0.500
______ 5.000
______ fee is fixed at $0.05 per Unit and is paid at the earlier of the end of the initial
Maximum sales charge 1.850%
______ $18.500
______ offering period (anticipated to be three months) or six months following the
______ ______
Initial Date of Deposit. For more detail, see “Public Offering Price - General.”
As a % Amount
of Net Per 100
Assets
_________ Units
_________ Essential Information
Estimated Organization Costs 0.667%
______ $6.500
______ Unit Price at Initial Date of Deposit $10.0000
______ ______
Initial Date of Deposit December 8, 2022
Estimated Annual Expenses Mandatory Termination Date March 11, 2024
Trustee’s fee and operating expenses 0.465% $4.537 Historical 12 Month Distributions1 $0.1039 per Unit
Supervisory, bookkeeping
and administrative fees 0.056 0.550 Record Dates2 10th day of April,
______ ______
July and October
Total Estimated Annual Expenses 0.521%
______ $5.087*
______
______ ______
Distribution Dates2 25th day of April,
July and October
Example
CUSIP Numbers Cash – 46149A342
This example helps you compare the cost of the Portfolio with other Reinvest – 46149A359
unit trusts and mutual funds. In the example we assume that the expenses
Fee Based Cash – 46149A367
do not change and that the Portfolio’s annual return is 5%. Your actual returns
Fee Based Reinvest – 46149A375
and expenses will vary. This example also assumes that you continue to
follow the Portfolio strategy and roll your investment, including all distributions,
into a new trust each year subject to a sales charge of 1.85%. Based on 1 As of close of business day prior to Initial Date of Deposit. The actual
distributions you receive will vary from this per Unit amount due to changes
these assumptions, you would pay the following expenses for every $10,000
in the Portfolio’s fees and expenses, in actual income received by the
you invest in the Portfolio: Portfolio, currency fluctuations and with changes in the Portfolio such as
the acquisition or liquidation of securities. In addition, due to the negative
1 year $ 301 economic impact across many industries caused by the recent COVID-
19 outbreak, certain issuers of the securities included in the Portfolio may
3 years 919 elect to reduce the amount of, or cancel entirely, dividends and/or
5 years 1,561 distributions paid in the future, which will likely cause actual distributions
to be lower than this per Unit amount. See “Rights of Unitholders--
10 years 3,272
Historical and Estimated Distributions”.
* The estimated annual expenses are based upon the estimated trust size 2 The Trustee will make distributions of income and capital on each
for the Portfolio determined as of the initial date of deposit. Because Distribution Date to Unitholders of record on the preceding Record Date,
certain of the operating expenses are fixed amounts, if the Portfolio does provided that the total cash held for distribution equals at least $0.01 per
not reach the estimated size, or if the value of the Portfolio or number of Unit on such Record Date. Undistributed income and capital will be
outstanding units decline over the life of the trust, or if the actual amount distributed on the next Distribution Date on which the total cash held for
of the operating expenses exceeds the estimated amounts, the actual distribution equals at least $0.01 per Unit.
amount of the operating expenses per 100 units would exceed the
estimated amounts. In some cases, the actual amount of operating
expenses may substantially differ from the amounts reflected above.
8Hypothetical Strategy Performance of The Dow Jones Total Market Portfolio, Enhanced Index Strategy
The table below compares the hypothetical total return of not guarantees of future results and the value of your Units will
stocks selected using the Portfolio’s investment strategy (the fluctuate. Due to the application of the relevant screens described
“Hypothetical Strategy Stocks”) with the stocks in the Dow under “Portfolio Strategies”, small and mid-cap stocks are often
Jones U.S. Index. Hypothetical total return includes any more highly represented in the Hypothetical Strategy Stocks than
dividends paid on the stocks together with any increase or in the Dow Jones U.S. Index, which in certain years, may result in
decrease in the value of the stocks. The table illustrates a significant differences in relative hypothetical total returns. You
hypothetical investment in the Hypothetical Strategy Stocks at should note that the returns shown below are hypothetical annual
the beginning of each year -- similar to buying Units of the returns based on a calendar year investment. The performance
Portfolio, redeeming them after one year and reinvesting the of the Portfolio may differ because the Portfolio has a 15 month
proceeds in a new portfolio each year. life that is not based on a calendar year investment cycle. For more
These hypothetical returns are not actual past performance of information about the hypothetical total return calculations, see
the Portfolio or prior series but do reflect the sales charge or “Notes to Hypothetical Performance Tables”.
expenses you will pay. Of course, these hypothetical returns are
Hypothetical Total Return
Hypothetical Dow
Strategy Jones
Year Stocks U.S. Index
_____________________________________________________________
1993 18.92% 9.78%
1994 (1.65) 0.21
1995 34.72 36.62
1996 24.82 22.02
1997 36.07 31.81
1998 18.58 24.90
1999+ 64.94 22.72
2000 21.60 (9.23)
2001 21.80 (11.95)
2002 (6.12) (22.08)
2003+ 52.55 30.75
2004 19.06 12.01
2005 14.07 6.33
2006 10.44 15.63
2007 (2.97) 6.14
2008 (46.84) (37.15)
2009+ 54.41 28.82
2010 20.85 16.72
2011 (3.45) 1.38
2012 10.21 16.56
2013 41.20 32.96
2014 11.05 12.94
2015 (4.39) 0.62
2016 17.40 12.24
2017 17.87 21.48
2018 (14.72) (4.98)
2019 25.87 31.14
2020 5.26 20.39
2021 23.49 26.47
Through 11/30/22 (14.90) (14.41)
+ These returns are the result of extraordinary market events and are not expected to be repeated.
See “Notes to Hypothetical Performance Tables”.
9The Dow Jones Total Market Portfolio, Enhanced Index Strategy 2023-1
Portfolio
______________________________________________________________________________________________________________
Cost of
Number Market Value Securities to
of Shares
___________ Name of Issuer (1)
___________________________________________ per Share (2)
_____________ Portfolio (2)
_____________
Basic Materials - 2.15%
4 Celanese Corporation $ 101.910 $ 407.64
4 CF Industries Holdings, Inc. 100.520 402.08
14 Chemours Company 30.340 424.76
28 Cleveland-Cliffs, Inc. 15.830 443.24
9 Commercial Metals Company 49.270 443.43
9 Dow, Inc. 50.700 456.30
6 DuPont de Nemours, Inc. 69.700 418.20
5 Eastman Chemical Company 84.750 423.75
23 Element Solutions, Inc. 18.930 435.39
16 Huntsman Corporation 28.210 451.36
4 International Flavors & Fragrances, Inc. 108.100 432.40
+ 5 LyondellBasell Industries N.V. 81.670 408.35
9 Mosaic Company 47.330 425.97
9 Newmont Corporation 47.190 424.71
3 Nucor Corporation 149.800 449.40
8 Olin Corporation 55.320 442.56
2 Reliance Steel & Aluminum Company 208.730 417.46
4 Steel Dynamics, Inc. 107.600 430.40
16 United States Steel Corporation 26.650 426.40
4 Westlake Corporation 106.660 426.64
Consumer Goods - 8.35%
18 Archer-Daniels-Midland Company 93.170 1,677.06
21 Autoliv, Inc. 81.390 1,709.19
41 BorgWarner, Inc. 41.180 1,688.38
+ 29 Capri Holdings, Ltd. 57.450 1,666.05
17 Crocs, Inc. 96.930 1,647.81
20 D.R. Horton, Inc. 86.270 1,725.40
127 Ford Motor Company 13.100 1,663.70
44 General Motors Company 37.960 1,670.24
9 Genuine Parts Company 182.860 1,645.74
36 Harley-Davidson, Inc. 46.260 1,665.36
19 Lamb Weston Holdings, Inc. 87.070 1,654.33
13 Lear Corporation 131.050 1,703.65
4 Lululemon Athletica, Inc. 372.330 1,489.32
28 Performance Food Group Company 60.050 1,681.40
38 PulteGroup, Inc. 44.600 1,694.80
15 Ralph Lauren Corporation - CL A 109.780 1,646.70
45 Tapestry, Inc. 36.750 1,653.75
20 THOR Industries, Inc. 79.950 1,599.00
35 Toll Brothers, Inc. 49.500 1,732.50
48 US Foods Holding Corporation 35.230 1,691.04
10The Dow Jones Total Market Portfolio, Enhanced Index Strategy 2023-1
Portfolio (continued)
______________________________________________________________________________________________________________
Cost of
Number Market Value Securities to
of Shares
___________ Name of Issuer (1)
___________________________________________ per Share (2)
_____________ Portfolio (2)
_____________
Consumer Services - 11.40%
1 Booking Holdings, Inc. $ 1,955.560 $ 1,955.56
9 Casey’s General Stores, Inc. 246.950 2,222.55
6 Charter Communications, Inc. - CL A 374.890 2,249.34
83 Chegg, Inc. 27.590 2,289.97
66 Comcast Corporation - CL A 34.620 2,284.92
67 Delta Air Lines, Inc. 34.330 2,300.11
25 Expedia Group, Inc. 90.790 2,269.75
59 Foot Locker, Inc. 38.880 2,293.92
155 Gap, Inc. 14.410 2,233.55
38 Liberty Media Corporation — Series C Liberty Formula One 58.990 2,241.62
56 Liberty Media Corporation — Series C Liberty SiriusXM 41.530 2,325.68
8 Murphy USA, Inc. 296.200 2,369.60
7 Netflix, Inc. 308.420 2,158.94
13 Nexstar Media Group, Inc. 181.880 2,364.44
30 Planet Fitness, Inc. - CL A 76.010 2,280.30
61 Southwest Airlines Company 37.810 2,306.41
24 Texas Roadhouse, Inc. 97.210 2,333.04
5 Ulta Beauty, Inc. 480.050 2,400.25
69 Warner Music Group Corporation - CL A 33.000 2,277.00
100 Wendy’s Company 22.930 2,293.00
Energy - 5.11%
33 Antero Resources Corporation 31.420 1,036.86
23 APA Corporation 43.660 1,004.18
6 Chevron Corporation 172.520 1,035.12
9 ConocoPhillips 114.880 1,033.92
40 Coterra Energy, Inc. 25.480 1,019.20
16 Devon Energy Corporation 64.250 1,028.00
8 EOG Resources, Inc. 126.160 1,009.28
28 EQT Corporation 36.730 1,028.44
20 HF Sinclair Corporation 51.180 1,023.60
38 Marathon Oil Corporation 27.410 1,041.58
9 Marathon Petroleum Corporation 109.000 981.00
17 Matador Resources Company 59.030 1,003.51
16 Occidental Petroleum Corporation 63.950 1,023.20
20 Ovintiv, Inc. 50.000 1,000.00
15 PDC Energy, Inc. 66.430 996.45
10 Phillips 66 103.010 1,030.10
4 Pioneer Natural Resources Company 229.380 917.52
41 Range Resources Corporation 25.270 1,036.07
171 Southwestern Energy Company 6.040 1,032.84
9 Valero Energy Corporation 120.190 1,081.71
11The Dow Jones Total Market Portfolio, Enhanced Index Strategy 2023-1
Portfolio (continued)
______________________________________________________________________________________________________________
Cost of
Number Market Value Securities to
of Shares
___________ Name of Issuer (1)
___________________________________________ per Share (2)
_____________ Portfolio (2)
_____________
Financials - 16.84%
133 Ally Financial, Inc. $ 25.000 $ 3,325.00
26 Assurant, Inc. 129.050 3,355.30
63 Brighthouse Financial, Inc. 52.980 3,337.74
36 Capital One Financial Corporation 93.230 3,356.28
114 Carlyle Group, Inc. 29.000 3,306.00
75 Citigroup, Inc. 44.670 3,350.25
32 Discover Financial Services 103.740 3,319.68
+ 89 Essent Group, Ltd. 37.710 3,356.19
+ 134 Janus Henderson Group plc 25.240 3,382.16
95 Jefferies Financial Group, Inc. 35.550 3,377.25
392 New York Community Bancorp, Inc. 8.590 3,367.28
90 OneMain Holdings, Inc. 36.730 3,305.70
+ 52 Popular, Inc. 65.500 3,406.00
185 Radian Group, Inc. 18.290 3,383.65
29 Signature Bank 116.990 3,392.71
16 SVB Financial Group 208.280 3,332.48
97 Synchrony Financial 34.630 3,359.11
81 Truist Financial Corporation 41.840 3,389.04
82 Unum Group 41.060 3,366.92
56 Western Alliance Bancorporation 60.120 3,366.72
Health Care - 14.73%
18 AbbVie, Inc. 165.400 2,977.20
10 Amgen, Inc. 285.760 2,857.60
10 Biogen, Inc. 292.150 2,921.50
36 Bio-Techne Corporation 80.670 2,904.12
37 Bristol-Myers Squibb Company 79.930 2,957.41
39 DaVita, Inc. 74.830 2,918.37
179 Exelixis, Inc. 16.350 2,926.65
40 Hologic, Inc. 73.800 2,952.00
+ 19 Jazz Pharmaceuticals plc 151.100 2,870.90
230 Maravai LifeSciences Holdings, Inc. - CL A 12.710 2,923.30
27 Merck & Company, Inc. 110.090 2,972.43
17 Moderna, Inc. 179.000 3,043.00
58 Pfizer, Inc. 50.240 2,913.92
31 QuidelOrtho Corporation 92.610 2,870.91
4 Regeneron Pharmaceuticals, Inc. 764.270 3,057.08
351 Sotera Health Company 8.330 2,923.83
11 United Therapeutics Corporation 277.080 3,047.88
9 Vertex Pharmaceuticals, Inc. 317.580 2,858.22
268 Viatris, Inc. 10.900 2,921.20
114 Vir Biotechnology, Inc. 25.590 2,917.26
12The Dow Jones Total Market Portfolio, Enhanced Index Strategy 2023-1
Portfolio (continued)
______________________________________________________________________________________________________________
Cost of
Number Market Value Securities to
of Shares
___________ Name of Issuer (1)
___________________________________________ per Share (2)
_____________ Portfolio (2)
_____________
Industrials - 11.73%
13 Acuity Brands, Inc. $ 182.050 $ 2,366.65
54 Allison Transmission Holdings, Inc. 43.760 2,363.04
36 Builders FirstSource, Inc. 65.470 2,356.92
10 Caterpillar, Inc. 228.980 2,289.80
20 Clean Harbors, Inc. 118.770 2,375.40
21 Expeditors International of Washington, Inc. 107.600 2,259.60
9 Hubbell, Inc. 246.780 2,221.02
20 Insperity, Inc. 115.920 2,318.40
33 Jabil, Inc. 70.580 2,329.14
26 Owens Corning 90.600 2,355.60
22 PACCAR, Inc. 104.490 2,298.78
8 Parker-Hannifin Corporation 292.060 2,336.48
32 Textron, Inc. 72.570 2,322.24
34 Timken Company 69.610 2,366.74
29 UFP Industries, Inc. 80.580 2,336.82
7 United Rentals, Inc. 351.520 2,460.64
4 W.W. Grainger, Inc. 586.410 2,345.64
15 WEX, Inc. 161.460 2,421.90
49 WillScot Mobile Mini Holdings Corporation 46.980 2,302.02
65 XPO Logistics, Inc. 35.720 2,321.80
Technology - 25.70%
248 ACI Worldwide, Inc. 20.560 5,098.88
54 Alphabet, Inc. - CL A 94.940 5,126.76
193 Amkor Technology, Inc. 26.310 5,077.83
70 Cirrus Logic, Inc. 74.040 5,182.80
191 DXC Technology Company 26.620 5,084.42
15 EPAM Systems, Inc. 338.980 5,084.70
320 Hewlett Packard Enterprise Company 16.060 5,139.20
181 Intel Corporation 28.330 5,127.73
+ 262 Liberty Global plc - CL C 19.640 5,145.68
98 Lumentum Holdings, Inc. 51.700 5,066.60
45 Meta Platforms, Inc. - CL A 113.930 5,126.85
96 Micron Technology, Inc. 53.820 5,166.72
63 MKS Instruments, Inc. 81.730 5,148.99
54 Qorvo, Inc. 95.420 5,152.68
39 Salesforce, Inc. 130.480 5,088.72
56 Skyworks Solutions, Inc. 91.960 5,149.76
53 TD SYNNEX Corporation 96.600 5,119.80
112 Twilio, Inc. - CL A 45.300 5,073.60
46 Universal Display Corporation 112.490 5,174.54
58 Ziff Davis, Inc. 88.030 5,105.74
13The Dow Jones Total Market Portfolio, Enhanced Index Strategy 2023-1
Portfolio (continued)
______________________________________________________________________________________________________________
Cost of
Number Market Value Securities to
of Shares
___________ Name of Issuer (1)
___________________________________________ per Share (2)
_____________ Portfolio (2)
_____________
Telecommunications - 1.04%
54 AT&T, Inc. $ 19.300 $ 1,042.20
41 Frontier Communications Parent, Inc. 25.230 1,034.43
7 T-Mobile US, Inc. 148.790 1,041.53
28 Verizon Communications, Inc. 37.170 1,040.76
Utilities - 2.95%
11 Alliant Energy Corporation 54.500 599.50
7 Ameren Corporation 86.610 606.27
6 American Electric Power Company, Inc. 96.670 580.02
14 Avangrid, Inc. 42.320 592.48
8 Black Hills Corporation 69.660 557.28
10 CMS Energy Corporation 61.130 611.30
10 Dominion Energy, Inc. 58.000 580.00
6 Duke Energy Corporation 99.580 597.48
5 Entergy Corporation 116.000 580.00
10 Evergy, Inc. 59.670 596.70
7 Eversource Energy 83.760 586.32
9 National Fuel Gas Company 62.680 564.12
21 NiSource, Inc. 27.670 581.07
17 NRG Energy, Inc. 33.140 563.38
37 PG&E Corporation 15.570 576.09
8 Pinnacle West Capital Corporation 77.620 620.96
12 Portland General Electric Company 48.230 578.76
20 PPL Corporation 28.980 579.60
9 Southern Company 68.500 616.50
15
___________ UGI Corporation 38.730 580.95
____________
8,742
___________ $ 398,676.96
____________
___________ ____________
See “Notes to Portfolios”.
14Enhanced Sector Strategies of The Dow Jones Total Market Portfolio, Enhanced Index Strategy
The following section sets forth the enhanced sector Consumer Goods Strategy
strategies used by The Dow Jones Total Market Beginning with the stocks in the Dow Jones U.S.
Portfolio, Enhanced Index Strategy. Index, the strategy excludes the bottom 1% of stocks
Basic Materials Strategy based on market capitalization. The strategy then ranks
each remaining company in the Dow Jones U.S.
Beginning with the stocks in the Dow Jones U.S. Consumer Goods Index from highest to lowest based
Index, the strategy excludes the bottom 1% of stocks on the following strategy screens:
based on market capitalization. The strategy then ranks
each remaining company in the Dow Jones U.S. Basic • Dividend Yield to Five-Year Median,
Materials Index from highest to lowest based on the • Long-Term Expected Profit Growth,
following strategy screens:
• One-Year Earnings Growth,
• Dividend Yield,
• Operating Income Change Last Quarter,
• Operating Margin,
• Price/Cash Flow Ratio, and
• Price/Book Value Ratio,
• Total Return for the Past Six Months.
• Price/Free Cash Flow Ratio,
• Price/Sales Ratio, and Please refer to the “Glossary of Strategy Screens” for
definitions of these screens. The strategy assigns each
• Price/Sales to Five-Year Average. stock a rank score for each of these categories with the
lowest score being 1 and the highest score being the total
Please refer to the “Glossary of Strategy Screens” for number of stocks in the Dow Jones U.S. Consumer
definitions of these screens. The strategy assigns each Goods Index. The strategy then ranks the stocks by total
stock a rank score for each of these categories with the score and selects the top 20 stocks. If two stocks are
lowest score being 1 and the highest score being the assigned the same total score, the stock with the higher
total number of stocks in the Dow Jones U.S. Basic score for Long-Term Expected Profit Growth is ranked
Materials Index. The strategy then ranks the stocks by higher. In addition, a company will be excluded and its
total score and selects the top 20 stocks. If two stocks stock will be replaced with the stock with the next highest
are assigned the same total score, the stock with the total score, if the company is an affiliate of the Sponsor,
higher score for Price/Book Value Ratio is ranked higher. if there is any restriction on the Sponsor’s ability to
In addition, a company will be excluded and its stock purchase a company’s stock, or, if based on publicly
will be replaced with the stock with the next highest total available information as of the Selection Date, a proposed
score, if the company is an affiliate of the Sponsor, if corporate action would result in it not being the surviving
there is any restriction on the Sponsor’s ability to company following a business combination or in its
purchase a company’s stock, or, if based on publicly security being delisted.
available information as of the Selection Date, a
proposed corporate action would result in it not being
the surviving company following a business combination
or in its security being delisted.
15Consumer Services Strategy Energy Strategy
Beginning with the stocks in the Dow Jones U.S. Beginning with the stocks in the Dow Jones U.S.
Index, the strategy excludes the bottom 1% of stocks Index, the strategy excludes the bottom 1% of stocks
based on market capitalization. The strategy then ranks based on market capitalization. The strategy then ranks
each remaining company in the Dow Jones U.S. each remaining company in the Dow Jones U.S. Oil &
Consumer Services Index from highest to lowest based Gas Index from highest to lowest based on the following
on the following strategy screens: strategy screens:
• Cash Flow to Net Income, • Enterprise Value to EBITDA,
• EPS Change Last Quarter, • Five-Year Earnings Growth,
• Long-Term Expected Profit Growth, • Gross Margin Trend,
• Price/Earnings Ratio, • Long-Term Expected Profit Growth,
• Price/Sales to Five-Year Average, and • Price/Sales Value Ratio, and
• Total Return for the Past Six Months. • Price/Sales to Three-Year Average.
Please refer to the “Glossary of Strategy Screens” for Please refer to the “Glossary of Strategy Screens” for
definitions of these screens. The strategy assigns each definitions of these screens. The strategy assigns each
stock a rank score for each of these categories with the stock a rank score for each of these categories with the
lowest score being 1 and the highest score being the total lowest score being 1 and the highest score being the
number of stocks in the Dow Jones U.S. Consumer total number of stocks in the Dow Jones U.S. Oil & Gas
Services Index. The strategy then ranks the stocks by Index. The strategy then ranks the stocks by total score
total score and selects the top 20 stocks. If two stocks and selects the top 20 stocks. If two stocks are assigned
are assigned the same total score, the stock with the the same total score, the stock with the higher score for
higher score for Long-Term Expected Profit Growth is Long-Term Expected Profit Growth is ranked higher. In
ranked higher. In addition, a company will be excluded addition, a company will be excluded and its stock will
and its stock will be replaced with the stock with the next be replaced with the stock with the next highest total
highest total score, if the company is an affiliate of the score, if the company is an affiliate of the Sponsor, if there
Sponsor, if there is any restriction on the Sponsor’s ability is any restriction on the Sponsor’s ability to purchase a
to purchase a company’s stock, or, if based on publicly company’s stock, or, if based on publicly available
available information as of the Selection Date, a proposed information as of the Selection Date, a proposed
corporate action would result in it not being the surviving corporate action would result in it not being the surviving
company following a business combination or in its company following a business combination or in its
security being delisted. security being delisted.
16Financials Strategy Health Care Strategy
Beginning with the stocks in the Dow Jones U.S. Beginning with the stocks in the Dow Jones U.S.
Index, the strategy excludes the bottom 1% of stocks Index, the strategy excludes the bottom 1% of stocks
based on market capitalization. The strategy then ranks based on market capitalization. The strategy then ranks
each remaining company in the Dow Jones U.S. each remaining company in the Dow Jones U.S. Health
Financials Index from highest to lowest based on the Care Index from highest to lowest based on the following
following strategy screens: strategy screens:
• Earnings Predictability, • Enterprise Value to EBITDA,
• Long-Term Expected Profit Growth, • Gross Margin,
• Price/Earnings Ratio, • One-Year Net Income Growth,
• Price/Book Value Ratio, • Price/Earnings Ratio,
• Price/Sales Ratio, and • Price/Free Cash Flow Ratio, and
• Tangible Book One-Year Change. • Return on Equity.
Please refer to the “Glossary of Strategy Screens” for Please refer to the “Glossary of Strategy Screens” for
definitions of these screens. The strategy assigns each definitions of these screens. The strategy assigns each
stock a rank score for each of these categories with the stock a rank score for each of these categories with the
lowest score being 1 and the highest score being the lowest score being 1 and the highest score being the
total number of stocks in the Dow Jones U.S. Financials total number of stocks in the Dow Jones U.S. Health
Index. The strategy then ranks the stocks by total score Care Index. The strategy then ranks the stocks by total
and selects the top 20 stocks. If two stocks are assigned score and selects the top 20 stocks. If two stocks are
the same total score, the stock with the higher score for assigned the same total score, the stock with the higher
Tangible Book One-Year Change is ranked higher. In score for Return on Equity is ranked higher. In addition,
addition, a company will be excluded and its stock will a company will be excluded and its stock will be
be replaced with the stock with the next highest total replaced with the stock with the next highest total score,
score, if the company is an affiliate of the Sponsor, if if the company is an affiliate of the Sponsor, if there is
there is any restriction on the Sponsor’s ability to any restriction on the Sponsor’s ability to purchase a
purchase a company’s stock, or, if based on publicly company’s stock, or, if based on publicly available
available information as of the Selection Date, a information as of the Selection Date, a proposed
proposed corporate action would result in it not being corporate action would result in it not being the surviving
the surviving company following a business company following a business combination or in its
combination or in its security being delisted. security being delisted.
17Industrials Strategy Technology Strategy
Beginning with the stocks in the Dow Jones U.S. Beginning with the stocks in the Dow Jones U.S.
Index, the strategy excludes the bottom 1% of stocks Index, the strategy excludes the bottom 1% of stocks
based on market capitalization. The strategy then ranks based on market capitalization. The strategy then ranks
each remaining company in the Dow Jones U.S. each remaining company in the Dow Jones U.S.
Industrials Index from highest to lowest based on the Technology Index from highest to lowest based on the
following strategy screens: following strategy screens:
• EPS Revisions Current Quarter, • Net Profit Margin,
• EPS Surprise Last Quarter, • Price/Book Value Ratio,
• Long-Term Expected Profit Growth, • Price/Sales Ratio,
• Price/Earnings Ratio, • Price/Sales to Five-Year Average,
• Price/Free Cash Flow Ratio and • Tangible Book Five-Year Change, and
• Total Return for the Past Six Months. • Total Return for the Past Six Months.
Please refer to the “Glossary of Strategy Screens” Please refer to the “Glossary of Strategy Screens” for
for definitions of these screens. The strategy assigns definitions of these screens. The strategy assigns each
each stock a rank score for each of these categories stock a rank score for each of these categories with the
with the lowest score being 1 and the highest score lowest score being 1 and the highest score being the
being the total number of stocks in the Dow Jones U.S. total number of stocks in the Dow Jones U.S. Technology
Industrials Index. The strategy then ranks the stocks by Index. The strategy then ranks the stocks by total score
total score and selects the top 20 stocks. If two stocks and selects the top 20 stocks. If two stocks are assigned
are assigned the same total score, the stock with the the same total score, the stock with the higher score for
higher score for Price/Earnings Ratio is ranked higher. Total Return for the Past Six Months is ranked higher. In
In addition, a company will be excluded and its stock addition, a company will be excluded and its stock will
will be replaced with the stock with the next highest be replaced with the stock with the next highest total
total score, if the company is an affiliate of the Sponsor, score, if the company is an affiliate of the Sponsor, if there
if there is any restriction on the Sponsor’s ability to is any restriction on the Sponsor’s ability to purchase a
purchase a company’s stock, or, if based on publicly company’s stock, or, if based on publicly available
available information as of the Selection Date, a information as of the Selection Date, a proposed
proposed corporate action would result in it not being corporate action would result in it not being the surviving
the surviving company following a business company following a business combination or in its
combination or in its security being delisted. security being delisted.
18Telecommunications Strategy Utilities Strategy
Beginning with the stocks in the Dow Jones U.S. Index, Beginning with the stocks in the Dow Jones U.S.
the strategy excludes the bottom 1% of stocks based Index, the strategy excludes the bottom 1% of stocks
on market capitalization. The strategy then ranks each based on market capitalization. The strategy then ranks
remaining company in the Dow Jones U.S. each remaining company in the Dow Jones U.S. Utilities
Telecommunications Index from highest to lowest based Index from highest to lowest based on the following
on the following strategy screens: strategy screens:
• Asset Turnover Trend, • EBIT Margin,
• Dividend Yield, • Long-Term Expected Profit Growth,
• Enterprise Value to EBITDA, • Price/Earnings Ratio,
• Price/Cash Flow Ratio, • Price/Book Value Ratio versus Three-Year
Average,
• Three-Year Sales Growth, and
• Price/Cash Flow Ratio, and
• Total Return for the Past Six Months.
• Price/Sales to Three-Year Average.
Please refer to the “Glossary of Strategy Screens” for
definitions of these screens. The strategy assigns each Please refer to the “Glossary of Strategy Screens” for
stock a rank score for each of these categories with the definitions of these screens. The strategy assigns each
lowest score being 1 and the highest score being the stock a rank score for each of these categories with the
total number of stocks in the Dow Jones U.S. lowest score being 1 and the highest score being the
Telecommunications Index. The strategy then ranks the total number of stocks in the Dow Jones U.S. Utilities
stocks by total score and selects the top 10 stocks. If Index. The strategy then ranks the stocks by total score
two stocks are assigned the same total score, the stock and selects the top 20 stocks. If two stocks are
with the higher score for Enterprise Value to EBITDA is assigned the same total score, the stock with the higher
ranked higher. In addition, a company will be excluded score for Price/Earnings Ratio is ranked higher. In
and its stock will be replaced with the stock with the next addition, a company will be excluded and its stock will
highest total score, if the company is an affiliate of the be replaced with the stock with the next highest total
Sponsor, if there is any restriction on the Sponsor’s ability score, if the company is an affiliate of the Sponsor, if
to purchase a company’s stock, or, if based on publicly there is any restriction on the Sponsor’s ability to
available information as of the Selection Date, a purchase a company’s stock, or, if based on publicly
proposed corporate action would result in it not being available information as of the Selection Date, a
the surviving company following a business combination proposed corporate action would result in it not being
or in its security being delisted. the surviving company following a business combination
or in its security being delisted.
19Glossary of Strategy Screens
Asset Turnover Trend – The median asset turnover for the EPS Revisions Current Quarter – The net percentage of
four most recent fiscal quarters divided by the median asset positive profit-estimate revisions, as provided by Capital IQ*.
turnover of the 12 most recent fiscal quarters. Asset turnover First, the number of earnings estimates for the next fiscal
is the sum of the four most recent fiscal quarters of sales quarter that have been decreased over the past 90 days are
divided by the average of the four most recent fiscal quarters subtracted from the number that have been increased. Next,
of assets. that result is divided by the total number of earnings estimates
for the fiscal quarter.
Cash Flow to Net Income – Sum of the four most recent
fiscal quarters of cash flow divided by sum of the four most EPS Surprise Last Quarter – The difference between last
recent fiscal quarters of net income. Cash flow is defined as fiscal quarter’s actual earnings per share and the average of
income before extraordinary items plus depreciation and analysts’ earnings estimates as provided by Capital IQ*, divided
amortization. by the absolute value of the actual earnings per share.
Dividend Yield – The indicated annual dividend divided by Five-Year Earnings Growth – The difference between
the current stock price. operating earnings per share in the most recent four fiscal
quarters and operating earnings per share in the four fiscal
quarters five years earlier, expressed as a percentage.
Dividend Yield to Five-Year Median – Current dividend
yield divided by the median dividend yield over the past 60
months. Gross Margin – Net sales in most recent four fiscal quarters
minus cost of goods sold in most recent four fiscal quarters,
with this total then divided by net sales.
Earnings Predictability – A ratio measuring of the stability
of year-to-year earnings growth over the past 20 fiscal
quarters. Calculated by dividing the standard deviation of year- Gross Margin Trend – The median gross margin over the
to-year changes in per-share earnings by the average past four fiscal quarters divided by median gross margin over
year-to-year change in per-share earnings. the past 12 fiscal quarters.
EBIT Margin – Earnings before interest and taxes (EBIT) Long-Term Expected Profit Growth – The simple average
divided by sales. of analysts’ estimates for five-year growth in earnings per
share, as provided by Capital IQ*.
Enterprise Value to EBITDA – Enterprise value divided by
earnings before interest, taxes, depreciation, and amortization. Net Profit Margin – Net income divided by sales.
Enterprise value equals stock market capitalization plus sum
of debt and preferred stock minus cash and cash equivalents.
One-Year Earnings Growth – The difference between
operating earnings per share in the most recent four fiscal
EPS Change Last Quarter – Year-to-year change in quarters divided by operating earnings per share in the four
operating earnings per share. Operating earnings exclude the fiscal quarters one year earlier, expressed as a percentage.
effect of all nonrecurring items, including cumulative effect of
accounting changes, discontinued operations, extraordinary
One-Year Net Income Growth – The difference between
items, special items, and one-time income tax
net earnings per share in the most recent four fiscal quarters
expenses/benefits.
and net earnings per share in the four fiscal quarters one year
earlier, expressed as a percentage. Net earnings exclude
discontinued operations and extraordinary items.
20Operating Margin – Operating income before depreciation Tangible Book One-Year Change – The change in
divided by sales, calculated for most recent four fiscal quarters. tangible shareholders equity per share over the most recent
year. Tangible shareholders equity equals shareholders equity
minus intangible assets, such as goodwill.
Operating Income Change Last Quarter – The difference
between operating income in the latest fiscal quarter and the
year-earlier fiscal quarter. Tangible Book Five-Year Change – The change in
tangible shareholders equity per share over the past five years.
Tangible shareholders equity equals shareholders equity minus
Price/Earnings Ratio – Stock price divided by earnings per
intangible assets, such as goodwill.
share from operations over past four fiscal quarters.
Three-Year Sales Growth – The difference between
Price/Book Value Ratio – Stock price divided by current
per-share sales in the most recent four fiscal quarters and
book value per share.
per-share sales in the four fiscal quarters three years earlier,
expressed as a percentage.
Price/Book Value Ratio versus Three-Year Average –
The current price/book value ratio divided by the median of
Total Return for the Past Six Months – The percentage
the price/book value ratio over the past 36 months.
return on a stock over most recent six months, reflecting
dividends and change in price on the principal exchange where
Price/Cash Flow Ratio – Stock price divided by per-share the stock is traded.
cash flow over past four fiscal quarters, with cash flow defined
as net income plus depreciation and amortization.
Price/Free Cash Flow Ratio – Stock price divided by per-
share free cash flow over past four fiscal quarters. Free cash
flow represents the net change in cash from all items classified
in the operating activities section on a statement of cash flows,
minus capital spending and cash dividends.
Price/Sales Ratio – Stock price divided by per-share sales
over most recent four fiscal quarters.
Price/Sales to Three-Year Average – Current price/sales
ratio divided by median price/sales ratio over past 36 months.
Price/Sales to Five-Year Average – Current price/sales
ratio divided by median price/sales ratio over past 60 months.
Return on Equity – Income before extraordinary items over
most recent four fiscal quarters divided by average for
common equity over four most recent fiscal quarters.
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