iQ Canada Defensive Super Sector Model
INVESTMENT OBJECTIVE
The iQ Canada Defensive Super Sector Model seeks to generate long-term returns in excess of the total return of the S&P / TSX Index with less down-market risk by selecting stocks of companies from sectors whose betas are consistently below 1.
DEFENSIVE SUPER SECTOR - DEFINED
The Defensive Super Sector is comprised of industries that are relatively immune to economic cycles. These industries provide services that consumers require in both good and bad times, such as health care and utilities. In general, the stocks in these industries have betas of less than 1.
Defensive Super Sector includes the following Sectors:
Healthcare
Utilities
Consumer Staples
PROCESS
The iQ Canada Defensive Super Sector Model represents an equal-weighted portfolio of ten Canadian stocks. The stocks are selected by applying a proprietary investment strategy to a database of all Canadian-traded common stocks from the Healthcare, Utilities, and Consumer Staples sectors.
The stocks are selected by applying the following rules-based investment process:
We begin with all common stocks of Healthcare, Utilities, and Consumer Staples sectors as identified by Standard & Poors.
We rank these securities by trading volume and keep the top twenty.
Of the twenty remaining securities, we rank by earnings-to-price ratio and select the top ten.
This model reconstitutes every February, May, August and November