New Index of Global Market Cap Leaders

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 that is at least $5B U.S. dollars, from a variety of countries. 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.PK), Telefonica (TEF) – telecom services, and diversified consumer products giant Nestle (NSRGY.PK).