Transparency Index™

EXCLUDED Industry:

Summary of Methodology

Transparency Index™ methodology applies the exclusionary screening process to filter out industries that do not align with a positive impact on investment performance and the well-being of people.

Description of Industry

Tobacco industry is comprised of companies that manufacture cigarettes, cigars, snuff, chewing tobacco,
e-cigarettes, vapes and all other smokable or non-smokeable products containing nicotine.

Tobacco industry, as defined by GICS sub-industry classification, includes manufacturers of cigarettes and other tobacco products.

Number of Companies

Number of tobacco companies in the S&P 500: 2

Harmful Impact

Investment in tobacco production and use have adverse impacts on people and societal well-being.
  • 8 Million Deaths Annually due to harmful use of tobacco.1
  • $300B Annual Healthcare Costs associated tobacco and smoking.2
  • +5,000 Chemicals in Cigarette Smoke – 70 known to cause cancer.3
  • 766,571 Metric Tons Cigarette Butts found in environment every year.4
  • ~600 Million Trees Chopped Down by tobacco industry every year.5 (1 tree = only 15 packs of cigarettes)

Performance Impact

The Transparency Index 5-year cumulative dollarized return is more than 5 times higher than the S&P 500 Tobacco Industry Index.

Transparency Tobacco Screen Impact Performance
  • The graph shows cumulative returns for the period from October 1, 2016 to September 30, 2021*
  • Starting value $10,000 hypothetical investment, assuming no withdrawal and no dividends
  • Past performance is not an indicator of future performance
  • View Annualized Returns*

*The Transparency 100 Index (the “Index”) commenced on June 16th, 2021 following the market close. All information presented prior to this date is back-tested. Back-tested performance is hypothetical performance, not actual performance.  Back-tested performance is prepared by retrospectively applying the Index methodology to historical information with the benefit of hindsight.  Back-tested performance, therefore, does not reflect the results of actual trading.  Back-tested, as well as actual performance, are not indicative of future results.  The back-tested performance uses the same methodology that was in effect when the Index officially launched on June 16th, 2021. The back-tested performance shown in this presentation are unaudited, and do not reflect the investment of dividends or other earnings. The Index does not reflect the reinvestment of dividends.

Reason for Exclusion

Oil & Natural Gas industry is excluded from Transparency Index due to negative impact on investment performance and the well-being of people.