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.
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:
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 may have been higher than the S&P 500 Index.
*Maximum 20% per industry can be selected