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 specified below.

Mass Merchant Discount Retailer (1): Wal-Mart (WMT)

Consumer Staples (12): Coca-Cola (KO), Colgate-Palmolive (CL), Diageo (DEO), General Mills (GIS), Danone (GDNNY.PK), Kraft Foods (KFT), Nestle (NSRGY.PK), PepsiCo (PEP), Philip Morris International (PM), Procter & Gamble (PG), Reckitt Benckiser (RBGPF.PK), Unilever (UN)

Telecom Services (4): AT&T (T), Telefonica (TEF), Verizon (VZ), Vodafone (VOD)

At-Home Services (2): Cable TV/Internet Provider (1), Internet Portal/Search Provider (1) – Comcast (CMCSA), Google (GOOG)

Utilities (2): Exelon (EXC), Southern Company (SO)

Fast Food Restaurants (1): McDonalds (MCD)

Commodities (2): Gold Mining (1) + Agri-Biotech (1) – Barrick Gold (ABX), Monsanto (MON)

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.PK), Teva Pharma (TEVA)

Aerospace (Non-Commercial) & Defense (1): Lockheed Martin (LMT)

Waste Management (1): Waste Management (WMI)

Integrated Energy (1): ExxonMobil (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).

Comments

[Anonymous 2:]

Interesting - but many questions - a few for starters:
on what day/date did this index start?
how often would such a portfolio be reallocated to maintain the equal weightings?
"who" (at ETF Innovators ?) and how often would exchanges to take place going forward to allow for mergers?

Feb 26 06:05 PM

[Mike Havrilla:]

Started last year on 2/1/08
Quarterly Rebalancing
Exchanges within one week of mergers
Will be tracked on daily closing basis at my new website once the web programmer adds this feature, for now the component stocks are listed:
www.biomedreports.com/...



On Feb 26 06:05 PM Anonymous 2 wrote:

> Interesting - but many questions - a few for starters:
> on what day/date did this index start?
> how often would such a portfolio be reallocated to maintain the equal
> weightings?
> "who" (at ETF Innovators ?) and how often would exchanges to take
> place going forward to allow for mergers?

Feb 26 06:27 PM

[anonymous @...:]

interesting index--does it have a symbol and can it be traded?

Feb 27 10:50 PM

[Mike Havrilla:]

All of the ETF Innovators indexes are featured at my new site and will be tracked at the site in the future, but not initially -- none of the indexes have tickers or associated ETFs/funds yet:
www.biomedreports.com/...

Feb 28 09:38 AM

[rusb:]

What happened to ETF Innovators? I cannot find thier web site.

Jul 14 09:08 AM

[Mike Havrilla:]

23 stock indexes summarized below, tracked at Investars YOU site:
biomedreports.com/blog...


On Jul 14 09:08 AM rusb wrote:

> What happened to ETF Innovators? I cannot find thier web site.

Jul 14 09:43 AM