The accompanying table [click to enlarge] includes the 10 largest companies in the ETF Innovators [ETFI] Nation Cap Leaders Index, which includes 51 companies with the largest market cap from each nation that is at least $5B U.S. Dollars. Exxon Mobil (XOM) has pulled away from the pack as the largest company by market cap in the world now that PetroChina (PTR) has declined by 45.7% in the past year on falling oil prices and the sell-off in emerging stock markets such as China.
The Top 30 Rated companies in the index posted a total return of -9% in the past year while all 51 companies declined by 24% compared to losses in benchmark ETFs of 35% for iShares MSCI EAFE (EFA), 43% for iShares MSCI Emerging Markets (EEM), 35% for Dow Jones Global Titans (DGT), and 32% for iShares S&P Global 100 ETF (IOO). As with XOM in the U.S. market, the largest companies offer a safe haven for investors since they tend to be well capitalized and profitable. Also, the average dividend yield of 4.7% is 50% above the S&P 500 SPDR ETF (SPY) yield of 3.1%.
The 10 largest companies are dominated by energy and resource stocks, including XOM, PTR, Royal Dutch Shell (RDS-A), British Petroleum (BP), Total (TOT), and BHP Billiton (BHP). The remaining companies offer a mix of industries, including auto makers Toyota Motor (TM) + Volkswagen (VLKAY), Telefonica (TEF) – telecom services, and diversified consumer products giant Nestle (NSRGY).
$42.7499 (12/18/08)
