US Large Cap Selection for Peace of Mind

US Large Cap Selection  for Peace of Mind
  • Pininvest Analysis

With the launch of a number of low volatility funds, the fact higher risk may not after all – and over time – be rewarded with higher performance, as the theory suggests, has been given publicity

However, a few sectors will be overweight in low volatility asset selections, with Utilities and Finance counting for 50¨% of a 100 low volatility / large market cap asset selection

The sensitivity of these dominant sectors to the business cycle will determine the actual outcome over time, as the business cycle runs its course – and not over just one year

Under the assumption an investor might seek stability without having to align his or her expectations with the full cycle, we create – as a reference dated mid-January 2018 – a portfolio based on the lowest volatilities and the lowest Maximum Drawdown (smallest continuous price drop observed over the past year), resulting in a fairly balanced sector combination in the large cap universe

If this selection provides peace of mind (by outperforming the benchmark SPDR® S&P® 500 ETF) remains to be seen

Take a closer look

US Large Cap Selection for Peace of Mind • Updated:

Name Ticker Exchange Sector Industry Currency Cur.Price Mkt.Cap Perf. Vol. Vol. Contrib. MDD
 
Ametek AME NYSE Industrial Goods Precision, Measurement & Processing USD 80.86 18 B 4.0% 23%   7% -22%
Amphenol Corp. APH NYSE Industrial Goods Cables, Connectors & Cabling Networks USD 95.21 28 B 5.3% 21%   6% -23%
Coca-Cola Company KO NYSE Consumer Non-Durables Beverages - Diversified USD 45.53 195 B 8.6% 17%   3% -12%
Ecolab Inc. ECL NYSE Industrial Goods Pollution Control Equipment USD 174.47 50 B 28.9% 17%   6% -14%
Fidelity National Information Services FIS NYSE Services Design Engng, Supply Chain & IT Services USD 106.75 34 B 7.1% 19%   6% -13%
Fortive FTV NYSE Industrial Goods Precision, Measurement & Processing USD 82.99 28 B 6.1% 23%   6% -27%
Honeywell International Inc. HON NYSE Conglomerates Industrial Conglomerates USD 156.29 114 B 8.6% 19%   6% -25%
Johnson & Johnson JNJ NYSE Health Care Drug Manufacturers - Diversified USD 137.29 366 B 6.0% 20%   4% -17%
Lockheed Martin Corp. LMT NYSE Industrial Goods Aerospace/Defense - Major Diversified USD 295.98 84 B -10.5% 23%   5% -32%
Marsh & McLennan Companies MMC NYSE Finance Specialty Insurers & Brokers USD 92.18 47 B 10.5% 18%   5% -15%
McDonald's Corp. MCD NYSE Services Hotels, Restaurants, Fast-Food & Resorts USD 184.97 142 B 18.0% 19%   3% -10%
Moody's Corp. MCO NYSE Finance Financial Database Services USD 177.25 34 B 6.6% 25%   7% -31%
NextEra Energy NEE NYSE Utilities Electric Utilities & Grid USD 189.87 91 B 20.1% 16%   2% -8%
Northrop Grumman Corp. NOC NYSE Industrial Goods Aerospace/Defense - Engineered Systems USD 270.46 46 B -21.4% 26%   4% -37%
Raytheon Company RTN NYSE Industrial Goods Aerospace/Defense - Engineered Systems USD 180.02 51 B -14.5% 23%   5% -36%
Roper Industries ROP NYSE Industrial Goods Engines, Industrial Equipt & Cpts USD 330.72 34 B 14.5% 23%   7% -21%
Torchmark Corp. TMK NYSE Finance Life Insurance USD 81.92 9.0 B -4.3% 20%   5% -21%
Visa Inc. V NYSE Finance Financial Transaction Services USD 153.75 309 B 25.2% 24%   8% -19%
Waste Management WM NYSE Utilities Environmental Services & Waste Mngt USD 100.80 43 B 18.5% 17%   4% -11%