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

Read our note

US Large Cap Selection for Peace of Mind • Updated:

Name Ticker Exchange Sector Industry Currency Cur.Price Mkt.Cap Perf. Vol. Risk Contrib. MDD
 
AMETEK AME NYSE Industrial Goods Precision, Measurement & Processing USD 73.72 17 B -10.4% 42%   6% -43%
Amphenol APH NYSE Industrial Goods Cables, Connectors & Cabling Networks USD 75.83 23 B -18.7% 35%   4% -38%
Coca-Cola Company KO NYSE Consumer Non-Durables Beverages - Diversified USD 45.00 193 B -0.5% 28%   4% -38%
Ecolab ECL NYSE Industrial Goods Pollution Control Equipment USD 161.40 47 B -7.5% 39%   6% -40%
Fidelity National Information Services FIS NYSE Services Design Engng, Supply Chain & IT Services USD 125.29 77 B 12.0% 40%   7% -35%
Fortive FTV NYSE Industrial Goods Precision, Measurement & Processing USD 52.10 18 B -37.6% 39%   4% -53%
Honeywell International HON NYSE Conglomerates Industrial Conglomerates USD 131.75 94 B -14.9% 37%   5% -43%
Johnson & Johnson JNJ NYSE Health Care Drug Manufacturers - Diversified USD 133.01 350 B -2.1% 29%   4% -28%
Lockheed Martin LMT NYSE Industrial Goods Aerospace/Defense - Major Diversified USD 348.85 98 B 19.3% 36%   6% -37%
Marsh & McLennan Companies MMC NYSE Finance Specialty Insurers & Brokers USD 89.55 45 B -2.7% 31%   5% -36%
McDonald's Corp. MCD NYSE Services Hotels, Restaurants, Fast-Food & Resorts USD 168.13 125 B -8.9% 36%   5% -38%
Moody's Corp. MCO NYSE Finance Financial Database Services USD 222.22 42 B 23.9% 45%   9% -42%
NextEra Energy NEE NYSE Utilities Renewable Energy Generation USD 246.01 120 B 29.9% 34%   7% -36%
Northrop Grumman NOC NYSE Industrial Goods Aerospace/Defense - Engineered Systems USD 313.72 53 B 18.3% 36%   6% -30%
Raytheon Company RTN NYSE Industrial Goods Aerospace/Defense - Engineered Systems USD 141.21 39 B -20.4% 41%   5% -52%
Roper Industries ROP NYSE Industrial Goods Engines, Industrial Equipt & Cpts USD 317.46 34 B -6.6% 36%   6% -35%
Torchmark Corp. TMK NYSE Finance Life Insurance USD 88.10 10 B 7.9% 10%   0% -9%
Visa Inc. V NYSE Finance Financial Transaction Services USD 165.57 325 B 6.7% 36%   7% -36%
Waste Management WM NYSE Utilities Environmental Services & Waste Mngt USD 94.60 40 B -7.0% 30%   4% -30%