iQ S&P 500 Defensive Sector (UIT) Model

 

CLICK HERE for a complimentary Model Fact-card.

INVESTMENT OBJECTIVE

The iQ S&P 500 Defensive Sector  Model seeks to outperform the S&P 500 index by selecting 20 stocks based on Value Momentum, Share Buyback and Operating Earnings Yield.

PROCESS

The iQ S&P 500 Defensive Sector Model selects its holdings based on the following rules-based investment process:

  • Starting Universe = The S&P 500 Index

  • Eliminate any stock that is not from the following sectors and/or industries:

    • Utilities

    • Aerospace

    • Healthcare

    • Consumer Staples

    • Telecommunications

    • Real Estate Investment Trusts

  • Sort the remaining companies by Value Momentum plus Share Buyback Yield and select the top 60.

  • Sort the remaining 60 companies by Operating Earnings Yield and select the top 20 stocks.

  • Re-constitute every calendar year.

If this hypothetical Model had been applied since 1976, the returns would have been higher than the S&P 500 Index.