The accompanying table presents an updated version of the ETFI Highly Defensive PerformIdex, which is expanded to 40 companies with market caps of at least $10B from the industry groups listed below. This defensive growth index is heavily weighted in consumer staples and healthcare and is now structured to include companies based in Europe, in addition to the United States and Canada.
Compared to the previous version, this index has a lower beta and higher average market cap and adds European companies such as Nestle (NSRGY), Roche (RHHBY), British American Tobacco (BTI), Unilever (UN), Diageo (DEO), Alcon (ACL), and Tesco (TSCDY). New companies from the U.S. include McDonalds (MCD), Medtronic (MDT), Baxter (BAX), Gilead Sciences (GILD), and Pfizer (PFE).
Health insurance and managed care companies were removed as an industry group from the index in order to focus on drug makers, medical equipment, diagnostics, and biotech. Other adjustments include reducing exposure to aerospace and defense to a single company while adding McDonalds as a trade-down, fast food play during the economic downturn.
(A) Consumer Staple Retailers (3) – Groceries (1), Drugs (1), Mass Merchant Discounters (1)
(B) Consumer Staple Products (13) – Non-Food/Beverage (2), Processed & Packaged Foods (4), Tobacco (2), Alcoholic Beverages (2), Non-Alcoholic Beverages (2), Diversified Products (1)
(C) Telecom Services (3)
(D) At Home Entertainment (3) – Cable Television Providers (1), Internet Portals & Online Advertising (1), Television Programming + Movie Studios (1)
(E) Utilities (3)
(F) Fast Food Restaurants (1)
(G) Commodities (2): Gold Mining (1) + Agricultural Products – Seeds & Fertilizers (1)
(H) Healthcare (11) – Brand Drugs (3), Biotech (3), Medical Equipment + Supplies (3), Generic Drugs (1), Diagnostics (1)
(I) Aerospace & Defense (1)
Compared to the previous version, this index has a lower beta and higher average market cap and adds European companies such as Nestle (NSRGY), Roche (RHHBY), British American Tobacco (BTI), Unilever (UN), Diageo (DEO), Alcon (ACL), and Tesco (TSCDY). New companies from the U.S. include McDonalds (MCD), Medtronic (MDT), Baxter (BAX), Gilead Sciences (GILD), and Pfizer (PFE).
Health insurance and managed care companies were removed as an industry group from the index in order to focus on drug makers, medical equipment, diagnostics, and biotech. Other adjustments include reducing exposure to aerospace and defense to a single company while adding McDonalds as a trade-down, fast food play during the economic downturn.
(A) Consumer Staple Retailers (3) – Groceries (1), Drugs (1), Mass Merchant Discounters (1)
(B) Consumer Staple Products (13) – Non-Food/Beverage (2), Processed & Packaged Foods (4), Tobacco (2), Alcoholic Beverages (2), Non-Alcoholic Beverages (2), Diversified Products (1)
(C) Telecom Services (3)
(D) At Home Entertainment (3) – Cable Television Providers (1), Internet Portals & Online Advertising (1), Television Programming + Movie Studios (1)
(E) Utilities (3)
(F) Fast Food Restaurants (1)
(G) Commodities (2): Gold Mining (1) + Agricultural Products – Seeds & Fertilizers (1)
(H) Healthcare (11) – Brand Drugs (3), Biotech (3), Medical Equipment + Supplies (3), Generic Drugs (1), Diagnostics (1)
(I) Aerospace & Defense (1)
$45.6 (10/23/08)
