iQ S&P 500 Defensive Sector Model — iQUANT.pro (2024)

FAQs

What is the iQ S&P 500 defensive sector model? ›

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

What stock sectors are considered defensive? Utilities, consumer staples, and healthcare represent the main defensive sectors. These sectors are considered essential and typically maintain their income streams and overall stability even when the market is volatile.

Defensive sector funds are mutual funds or exchange-traded funds (ETFs) that invest in companies in recession-proof industries. These industries are called "defensive sectors" because they tend to stay stable whether the market is healthy or not.

S&P Capital IQ Pro (also known as Market Intelligence and as SNL Interactive) provides access to financial data, news, and analytics for real estate investment trusts (REITs) as well as industry data on bank & thrifts, financial services, insurance, real estate in North America and other markets.

The S&P Capital IQ platform is your source for a powerful array of financial data, analytics, and research. Our web-based platform combines deep information on companies, markets, and people worldwide with robust tools for analysis, idea generation, and workflow management. – Perform deep company and industry research.

Defensive stocks offer the substantial benefit of similar long-term gains with lower risk than other stocks. On the downside, the low volatility of defensive stocks often leads to smaller gains during bull markets and a cycle of mistiming the market.

What sectors do well in a bear market? ›

Among equities, defensive stock market sectors including consumer staples, utilities, and health care have outperformed during bear markets. 4 The goods and services these sectors supply tend to be in demand regardless of economic or market conditions.

A company stock with beta greater than one is called an aggressive stock. If beta is less than one, the returns on the company stock are less volatile than the market return. A company stock with beta less than one is called a defensive stock.

The largest Aerospace & Defense ETF is the iShares U.S. Aerospace & Defense ETF ITA with $5.64B in assets. In the last trailing year, the best-performing Aerospace & Defense ETF was PPA at 10.59%.

Cap IQ maintains a reliable and continuously updated store of M&A transactions that one can reference for the purpose of analyzing deal activity in a particular industry subsector.

Company Information

Company Intelligence provides comprehensive information on over 60,000 public companies, 685,000 private companies, 10,600 private capital firms, 312,000 transactions and 985,000 professionals worldwide.

The term Investability Quotient (IQ) refers to a proprietary tool developed by Standard and Poor's (S&P) that evaluated a stock's investment characteristics across a universe of companies. The IQ indicated a stock's medium- to long-term return prospects as well as its downside risk potential.

Capital IQ is widely used by finance professionals for many aspects of their day-to-day jobs. Some of the most common uses of CapIQ include: Research companies and industries (investment banking, equity research, and others)

YOU don't have to be a genius to pick good investments. But does having a high I.Q. score help? The answer, according to a paper published in the December issue of The Journal of Finance, is a qualified yes.

What are the benefits of Capital IQ? ›

The capital IQ renders research, data and analysis on private and public companies to assist professionals finance experts in the analysis. It helps transactions such as mergers and acquisitions and investment recommendations such as those made by equity research.

Defense stocks did well in 2022, enjoying a big rally in October and far outpacing the wider stock market: the MSCI Aerospace & Defense index has seen 18.66% growth in a 12-month period. They could be a good addition to investor portfolios with the current climate.

For example, some investors might argue that certain giants in the tech sector — like Amazon and Alphabet (Google's parent company) — are prosperous, life- and industry-dominant, and adaptable enough to be considered defensive stocks.

Consumer defensive companies are engaged in the manufacturing of food, beverages, household/personal products, packaging, or tobacco. Procter & Gamble PG, PepsiCo PEP, and Costco Wholesale COST are among the largest companies in the consumer defensive index.

Always have at least 33% of the portfolio invested in defensive shares.

In general, defense stocks (companies that produce weapons and armaments) tend to fare the best during a wartime environment.

They're less likely to drop in value when there are events that trigger an economic downturn thanks to their steady nature and low volatility. In a recession, defensive stocks can protect you from further losses.

For the rest of 2023, investors should consider some safe stock winners like Walmart (NYSE:WMT), Home Depot (NYSE:HD) and O'Reilly Automotive (NASDAQ:ORLY). Today, these stocks still have substantial competitive advantages and unique business characteristics likely to support outperformance in this cycle.

Treasury Bills, Notes and Bonds

U.S. Treasury securities are considered to be about the safest investments on earth. That's because they are backed by the full faith and credit of the U.S. government. Government bonds offer fixed terms and fixed interest rates.

Buy Bonds during a Market Crash

Government bonds are generally considered the safest investment, though they are decidedly unsexy and usually offer meager returns compared to stocks and even other bonds.

What sectors will do well in 2023? ›

For investors, “cash is king during a recession” sums up the advantages of keeping liquid assets on hand when the economy turns south. From weathering rough markets to going all-in on discounted investments, investors can leverage cash to improve their financial positions.

High net worth investors typically keep millions of dollars or even tens of millions in cash in their bank accounts to cover bills and unexpected expenses. Their balances are often way above the $250,000 FDIC insured limit.

The most obvious mistake one can make when retiring into a bear market is to sell stocks when they are low. This can be tempting when the market is down and times look bleak, but it is important to remember that bear markets are temporary. The market will eventually recover.

“The bear [market] is almost over, and a new exciting bull market awaits in the second half of 2023,” he said, pointing to potential in technology stocks in particular.

Aggressive investing is a term used to describe an investment strategy that carries a high level of risk with the potential for high returns. This type of investing is typically associated with stocks, mutual funds, exchange-traded funds (ETFs), options and futures, real estate, and alternative investments.

If the company is generating revenue and has future growth potential, and still the company stocks are plummeting and trading, sometimes as low as its floor, then there's a high chance that the company stocks are being shorted or manipulated.

What is the highest yielding ETF? ›

Product Details. The Invesco Defensive Equity ETF (Fund) is based on the Invesco Defensive Equity Index (Index). The Fund will invest at least 80% of its total assets in securities that comprise the Index. The Index is designed to provide exposure to securities of large-cap US issuers.

Short-term bond ETFs

This kind of bond ETF gives exposure to bonds with a short maturity, typically no more than a few years. These bond ETFs won't move much in response to changes to interest rates, meaning they're relatively low risk.

While cash, gold and Treasuries are all considered defensive asset classes, each arrives at that characteristic in a different way. Cash has historically provided stability in the form of very low volatility, along with a lower return.

Based on the 68-95-99.7 Rule, approximately 68% of the individuals in the population have an IQ between 85 and 115. Values in this particular interval are the most frequent. Approximately 95% of the population has IQ scores between 70 and 130. Approximately 99.7% of the population has IQ scores between 55 and 145.

Intelligence quotient (IQ) is a measure of human intelligence. People who want to have their IQ measured take standardized tests and receive a score that ranks their intelligence level. The higher one's IQ score, the more intelligent that person is considered to be.

How are the S&P 500 sectors weighted? ›

Each company in the S&P 500 index is weighted differently based on their respective market capitalization, which can be calculated by dividing the company's market cap by the total market cap of the S&P 500.

Although there are no publicly available statistics to support his IQ, it is believed to be between 150 and 155. He might qualify as a genius. With an IQ of 150, Elon Musk belongs to the "GENIUS" category, and with a score of 155, he belongs to the "HIGH GENIUS" category.

A graph of intelligence quotient (IQ), a measure of human intelligence, is an example of normal distribution, in which the most frequent scores are clustered near the center. The mean score is 100. The shaded region between 85 and 115 accounts for about 68 percent of the total area, hence 68 percent of all IQ scores.

"Near" genius or genius. 120–140. Very superior intelligence. 110–120. Superior intelligence.

What's the average IQ in the U.S.? According to 2019's The Intelligence of the Nations report, the average IQ in the United States is 97.43. This number was calculated using multiple versions of IQ tests as well as detailed sample data regarding socioeconomic and environmental factors.

IQ, or intelligence quotient A number representing a person's reasoning ability. It's determined by dividing a person's score on a special test by his or her age, then multiplying by 100.

In short, the best way to calculate an IQ score using an IQ scale is to use the formula IQ = (intelligence age / chronological age) x 100.

These sectors include healthcare, materials, real estate, consumer staples, consumer discretionary, utilities, energy, industrials, consumer services, financials, and technology.

Who is Capital IQ owned by? ›

S&P Capital IQ is the research arm of S&P Global, the provider of research, ratings, and market indices. The company was first bought by McGraw-Hill Financial in 2004 when it was called Capital IQ. McGraw-Hill has since been rebranded as S&P Global and Capital IQ is now known as S&P Capital IQ.

Blackstone, with a market value of about $110 billion, is the largest company ranked by market value not in the S&P 500 index. Other companies that may now be included in the S&P as a result of the rule change are Snowflake (SNOW), Snap (SNAP), Workday (WDAY), and KKR (KKR).