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.
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(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).
$34.78 (02/25/09)
