Shelton Equity Premium Income ETF · AMEX:SEPI
Shelton Equity Premium Income ETF — Shelton Capital Management — Investor Presentation (September 2026)
35 slides from Shelton Equity Premium Income ETF's investor presentation, September 2026
Slide 1: Strategy Overviews
SECOND QUARTER 2026 | Shelton Active Allocation Solutions Strategy Overviews sheltoncap.com/active-allocation-solutions | (800) 955-9988 | info@sheltoncap.com For Financial Professionals Only 1
Slide 2: Agenda
Agenda » Shelton Capital Management » Our Approach » Our Strategies » Communication » Our Team » Disclosures For Financial Professionals Only 2
Slide 3: Your success is how we measure our success
Your success is how we measure our success For Financial Professionals Only 3
Slide 4: Shelton Capital Management Returns
Shelton Capital Management YOUR SUCCESS IS HOW WE MEASURE OURS Average Investor Performance vs. Market Benchmarks | January 2021 – December 2025 16.0% Sources: Shelton Capital Management and DALBAR, QAIB 12/31/25. DALBAR investor 14.42% returns are not Shelton strategy performance. The graph shown i
Slide 5: Our Approach
Our Approach 4.60% 2.10% 1.80% Asset allocation Market timing Security selection 91.50% Undetermined 1Source: Brinson, Gary, and Brian Singer, and Gilbert Beebower. “Determinants of Portfolio Performance II: An Update.” Financial Analysts Journal 47.3 (1991): 40-48. Print. Asset allocation is the mo
Slide 6: Our Approach
Our Approach GOING BEYOND THE STANDARD WITH THREE LEVELS OF RISK MANAGEMENT Our Cash Indicator methodology acts as a plan in case of an emergency. This is analogous to the multiple safety systems in a modern automobile, which includes an airbag. We manage risk tactically over the short-term by inves
Slide 7: Our Approach
Our Approach GOING BEYOND THE STANDARD BY MANAGING RISK IN REAL TIME We blend Strategic and Tactical Management. While our philosophy is centered on Modern Portfolio Theory and asset allocation, we realize that has limits. To further refine our allocations, we focus on a combination of a 3- to 5-yea
Slide 8: Our Approach
Our Approach GOING BEYOND THE STANDARD BY MANAGING RISK IN REAL TIME Strategic Allocation: Tactical Allocation: • Value | Growth | Momentum • Equity Sectors • Capitalization Weightings • Global Regions • Domestic | International | ≈75% ≈ 25% • Emerging Markets Emerging Markets • High Yield Credit •
Slide 9: Our Approach
Our Approach GOING BEYOND THE STANDARD BY INCLUDING ALTERNATIVE ASSETS +20% 7% +10% Alternatives Alternatives 6% 100% Equity Return 6% Hypothetical Efficient Frontier 5% 100% Bonds Standard Deviation 5% 3% 6% 8% 11% 13% 16% We incorporate alternative investments in an effort to diversify portfolio e
Slide 10: Our Approach
Our Approach GOING BEYOND THE STANDARD WITH OUR INVESTMENT SELECTION We begin with the comprehensive universe of ETFs. Investment Universe Our quantitative analysis includes a review of returns and volatility from multiple perspectives. Our qualitative analysis Quantitative | Qualitative includes a
Slide 11: Our Approach
Our Approach GOING BEYOND THE STANDARD WITH OUR CASH INDICATOR Pleasure Loss Aversion in behavioral economics refers to the tendency of people to prefer avoiding losses to acquiring equivalent gains. Daniel Kahneman, 1X the Nobel Prize winning economist, posited that people (investors) feel the pain
Slide 12: Our Approach
Our Approach GOING BEYOND THE STANDARD WITH OUR CASH INDICATOR The Cash Indicator | January 1986 – June 2026 25% Cash 200 Raise: Long-Term 54 Median: 150 25 50% cash raise 6/30/26 13.95 100 Current: 25% cash raise 13.95 50% Cash Raise: 50 100 0 Cash Indicator '86 '90 '94 '98 '02 '06 '10 '14 '18 '22
Slide 13: Our Approach
Our Approach GOING BEYOND THE STANDARD WITH OUR CASH INDICATOR Maximum Drawdown Hypothetical Allocation Risk and Return Characteristics: Annualized Standard Return Deviation Black 1990 Late 2008 Early January 1987 - December 2025 Monday Recession 1990s Recession 2020 Growth Allocation Model 7.88% 18
Slide 14: Our Approach
Our Approach GOING BEYOND THE STANDARD WITH OUR CASH INDICATOR • The Cash Indicator (CI) helps investors stay the course during difficult times by being a defined process to raise cash. • When volatility spikes and the Cash Indicator is activated, it acts as a relief valve for investors by satisfyin
Slide 15: Our Approach
Our Approach PROCESS IMPLEMENTATION Constant Communication Macroeconomic Analysis We combine weekly, formal Our expectations for equities and fixed portfolio management meetings income are influenced by data such as with continuous interaction. We GDP growth, corporate earnings, manage our strategie
Slide 16: Our Strategies
Our Strategies HYPOTHETICAL PLOT 8% Return Growth Portfolio Moderate Growth Portfolio 6% Conservative Growth Portfolio Income with Growth 4% Portfolio Income Equity Portfolio Fixed Income 2% Cash Alternatives 0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Standard Deviation We incorporate a diversified b
Slide 17: Our Strategies
Our Strategies RISK/REWARD PLOT: SINCE INCEPTION TO JUNE 2026 Annualized Return 10% Shelton Growth - Gross 8% MSCI ACWI Index Shelton Moderate Growth – Gross 6% 65% MSCI ACWI - 35% BC Agg Index Shelton Conservative Growth – Gross 4% 50% MSCI ACWI - 50% BC Agg Index 2% Shelton Income – Gross Deviatio
Slide 18: Risk/Reward Plot: Since Inception to June 2026
RISK/REWARD PLOT: SINCE INCEPTION TO JUNE 2026 10% Annualized Return Shelton Growth - Gross Shelton Growth - Net MSCI ACWI Index 8% Shelton Moderate Growth – Gross Shelton Moderate Growth – Net 65% MSCI ACWI - 35% BC Agg Index 6% Shelton Conservative Growth – Gross Shelton Conservative Growth – Net
Slide 19: Our Strategies
Our Strategies PRELIMINARY MANAGER COMPOSITE (GROSS) VS BENCHMARK: JUNE 2026 Since Inception (9/1/2008) 1-YR 3-YRS 5-YRS 7-YRS 10-YRS Trailing Standard Yield YTD Beta Alpha Trailing Trailing Trailing Trailing Trailing Return Deviation Shelton Growth – Gross 2.23% 12.83% 21.65% 14.69% 7.33% 10.01% 9.
Slide 20: Our Strategies
Our Strategies PRELIMINARY MANAGER COMPOSITE (GROSS) VS BENCHMARK: JUNE 2026 Since Inception (9/1/2008) 1-YR 3-YRS 5-YRS 7-YRS 10-YRS Trailing Standard Yield YTD Beta Alpha Trailing Trailing Trailing Trailing Trailing Return Deviation Shelton Growth – Gross 2.23% 12.83% 21.65% 14.69% 7.33% 10.01% 9.
Slide 21: Communication
Communication Retail and Institutional Clients: Clients vary greatly in their level of involvement in the investment management process. We provide a concierge level of service, backed by a dedicated Client Service PM and CIO-level access and transparency, giving you an intimate knowledge of how eac
Slide 22: Communication
Communication » Monthly Market Review & Outlook: A client approved document that provides a brief review and outlook. We schedule a brief conference call for 8 Advisors. » Quarterly Economic & Market Summary: A client approved chart book that provides valuable insights into current economic trends a
Slide 23: Communication
Communication Holdings Summaries: We understand our role as your investment management team, and your need to understand and communicate portfolio information to clients periodically. To support that, we offer a level of transparency that distinguishes our approach. We provide advisors with granular
Slide 24: Communication
Communication Trade Rationales: It is important for financial advisors to be able to both communicate and document trades and the rationale behind those. We create trade rationales for advisors to use whether its for sharing with certain clients who want that level of detail or simply an item for th
Slide 25: The Cycle of a Market's Emotion
Communication The Cycle of a Market’s Emotion We are all prone to recency bias, meaning that we tend to extrapolate recent events into the future indefinitely. Bloomberg surveys market strategists on a weekly basis and asks for their recommended weightings of stocks, bonds and cash. The peak recomme
Slide 26: Communication
Communication YOUR SUCCESS IS HOW WE MEASURE OURS Average Investor Performance vs. Market Benchmarks | January 2021 – December 2025 16.0% Sources: Shelton Capital Management and DALBAR, QAIB 12/31/25. DALBAR investor 14.42% returns are not Shelton strategy performance. 12.0% The graph shown is for i
Slide 27: Mutual Fund Flows & Market Performance
Communication MUTUAL FUND FLOWS & MARKET PERFORMANCE 2018 2019 2020 2021 2022 2023 2024 2025 U.S. Equity Mutual Funds ($111.52) ($177.67) ($371.64) ($243.80) ($208.94) ($302.10) ($412.97) ($610.75) U.S. Equity ETFs $145.20 $141.71 $134.05 $391.22 $255.26 $282.24 $585.28 $578.47 Sector Equity Mutual
Slide 28: Communication
Communication The Shelton Active Allocation Solutions investment management team is a group of investment professionals that have worked together for nearly a decade managing money through both calm and turbulent markets. Our investment philosophy is founded on proven diversification methodologies b
Slide 29: Disclosures
Disclosures Performance: Shelton Capital Management is an investment adviser in Denver, CO. Shelton Capital Management is registered with the Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute
Slide 30: Disclosures
Disclosures Performance (continued): The Moderate Growth Composite includes all portfolios that mainly invest the majority of their assets in equity exchange-traded funds but also includes fixed income and alternative ETFs selected from the global investment opportunity set. The Moderate Growth Comp
Slide 31: Disclosures
Disclosures Performance (continued): The Income with Growth Composite includes all portfolios that invest their assets in equity, fixed income and alternative exchange-traded funds selected from the global investment opportunity set. The Income with Growth Composite has risk characteristics lower th
Slide 32: Disclosures
Disclosures Index Definitions: Bloomberg Barclays U.S. Aggregate Bond Index – This Index provides a measure of the U.S. investment grade bond market, which includes investment grade U.S. Government bonds, investment grade corporate bonds, mortgage pass-through securities and asset-backed securities
Slide 33: Disclosures
Disclosures Statistical Definitions: Standard deviation – A statistical measure of volatility, deviation is often used as an indicator of the ‘risk’ associated with a return series. deviation of return measures the average deviations of a return series from its mean. A large deviation implies that t
Slide 34: Disclosures
Disclosures Principal Risks: Allocation risk – The performance of the portfolio relative to its benchmark will depend largely on the decisions to strategic asset allocation and tactical adjustments made to the asset allocation. At times, judgments as to the asset classes in which the portfolio shoul
Slide 35: Shelton Capital Management
-- For Financial Professionals Only -- Shelton Capital Management | Email: info@sheltoncap.com | Phone: 800-955-9988 For Financial Professionals Only 35
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