Objective

The Defensive Strategy folio was developed for investors seeking long-term capital appreciation with lower volatility.

Strategy

The Defensive Strategy folio consists of large, established companies that are engaged in businesses that are less affected by periods of economic growth and decline. The folio may provide a safe haven during periods of significant volatility or an attractive investment for more conservative investors.

The Defensive Strategy folio is designed to be less impacted by economic downturns. As such, there may be less correlation in movements between this folio and the S&P 500. For example, companies engaged in consumer staples, public utilities and insurance generally do not move with the markets, because even in an economic slowdown, people generally continue to use them. While this folio may not appreciate in line during a bull market, it may also not decline with the overall market during a bear market.

Last Updated: December 9, 2016

Category: Strategy
Inception Date: 2008-02-28 00:00:00.0
Date Funded: 2009-08-31*

Folio S&P 500 Total Return
One-Month 2.68% 4.66%
Three-Month 2.18% 6.76%
Year-to-Date 7.58% 12.86%
One-Year 9.08% 12.76%
Three-Year (Annualized) 11.1% 10.0%
Five-Year (Annualized) 16.39% 14.9%
Since Inception 11.24% N/A
Volatility 10.9% 13.67%

Past performance is no guarantee of future results.
See how returns are calculated

* Returns reflect model performance from the Inception Date to the Date Funded, and funded performance since the Date Funded, if funded. Your returns may deviate significantly from the values displayed here, due to many factors, including how long after a strategy has been updated that you place orders to update your holdings.

#SymbolCompanyWeight
(% of Folio)
1AEPamerican elec pwr inc2.50%
2AGNallergan plc shs3.00%
3AZOautozone inc2.50%
4BAXbaxter intl inc3.00%
5BMYbristol myers squibb co3.00%
6CAGconagra brands inc2.50%
7CAHcardinal health inc2.50%
8CLcolgate palmolive co2.50%
9CLXclorox co del2.50%
10COSTcostco whsl corp new2.50%
11CPBcampbell soup co3.00%
12Ddominion resources inc.2.50%
13ESeversource energy2.50%
14EXCexelon corp3.00%
15GISgeneral mls inc2.50%
16GSKglaxosmithkline plc sponsored adr adr2.50%
17HSYhershey co com2.50%
18IBMinternational business machs2.50%
19KMBkimberly clark corp2.50%
20LLYlilly eli & co2.50%
21LMTlockheed martin corp2.50%
22MCDmcdonalds corp2.50%
23MCKmckesson corporation3.00%
24NKEnike inc cl b3.00%
25PEPpepsico inc2.50%
26PFEpfizer inc2.50%
27RAIreynolds american inc com2.50%
28RTNraytheon co3.00%
29SOsouthern co2.50%
30SYYsysco corp2.50%
31Tat&t inc com2.50%
32TGTtarget corp3.00%
33TJXtjx cos inc new2.50%
34UNHunitedhealth group2.50%
35UNPunion pac corp3.00%
36VZverizon communications inc.2.50%
37WMwaste mgmt inc del2.50%
38WMTwal mart stores inc2.50%

Steps to Create This Folio

  1. We identified a set of large-cap stocks which generally do not move with the broader market.
  2. We combined a subset of these securities to form a portfolio that has historically provided relatively consistent performance in both up and down markets.
  3. Our goal was to combine securities in the folio to provide diversification benefits.

Number of Securities

The number of securities in this folio may vary.

Update Frequency

Quarterly.

If the characteristics of the folio have changed substantially, the securities included may change. Also, corporate actions, such as a merger, or other events may cause changes to the securities held at any time. Your returns may deviate significantly from the values displayed here, due to many factors, including how long after a folio has been updated that you place orders to update your holdings.