New Index of Highly Defensive Market Cap Leaders
The ETF Innovators Highly Defensive Index contains 40 market cap leading companies which are based in either North America or Europe from the defensive industry groups (A-K) specified below.
www.BioMedReports.com - Mike Havrilla
(A) Mass Merchant Discount Retailer (1): Wal-Mart (WMT)
(B) Consumer Staples (12): Coca-Cola (KO), Colgate-Palmolive (CL), Diageo (DEO), General Mills (GIS), Danone (GDNNY), Kraft Foods (KFT), Nestle (NSRGY), PepsiCo (PEP), Philip Morris International (PM), Procter & Gamble (PG), Reckitt Benckiser (RBGPF), Unilever (UN)
(C) Telecom Services (4): AT&T (T), Telefonica (TEF), Verizon (VZ), Vodafone (VOD)
(D) At-Home Services (2): Cable TV/Internet Provider (1), Internet Portal/Search Provider (1) - Comcast (CMCSA), Google (GOOG)
(E) Utilities (2): Exelon (EXC), Southern Company (SO)
(F) Fast Food Restaurants (1): McDonalds (MCD)
(G) Commodities (2): Gold Mining (1) + Agri-Biotech (1) - Barrick Gold (ABX), Monsanto (MON)
(H) Healthcare (13): Abbott Labs (ABT), Amgen (AMGN), Celgene (CELG), Genentech (DNA), Genzyme (GENZ), Gilead (GILD), Baxter (BAX), Johnson & Johnson (JNJ), MedcoHealth Solutions (MHS), Novartis (NVS), Medtronic (MDT), Roche (RHHBY), Teva Pharma (TEVA)
(I) Aerospace (Non-Commercial) & Defense (1): Lockheed Martin (LMT)
(J) Waste Management (1): Waste Management (WMI)
(K) Integrated Energy (1): Exxon Mobil (XOM)
Over the past year, the index has outpaced the overall market and all of its benchmark defensive ETFs on a total return basis (all stats current through 2/24/09) with a loss of 15.2%, including losses of 29.7% for the Sabrient/Claymore Defensive ETF (DEF), 16.7% for the Consumer Staples Sector SPDR (XLP), 19.4% for the Healthcare Sector SPDR (XLV), 27% for the Utilities Sector SPDR (XLU), 37.8% for the Dow Jones Global Titans (DGT), 41.6% for the iShares Dow Jones Select Dividend (DVY), and 38.4% for the S&P 500 SPDR (SPY).
This equally-weighted, defensive index is only 58% as volatile as the overall market with an average market cap of about $71B and an average dividend yield of 3.1%. The goal of this index is to provide a combination of companies with U.S.-listed stocks to create a composite blend of traditional safe havens represented by the benchmark funds outlined above, rather than choosing a single sector (i.e. healthcare or consumer staples) or a specific strategy (i.e. high dividend yields or Dogs of the Dow).
$56.15 (02/25/09)
