Index Performance

The Sabrient Defensive Equity Index is comprised of approximately 100 stocks selected from a broad universe of U.S.-traded stocks and American Depositary Receipts (ADRs ), based on investment and other criteria. These companies selected have potentially superior risk-return profiles during periods of stock market weakness, but still offer the potential for gains during periods of market strength. The universe of companies includes approximately 1,000 listed companies, generally with market capitalizations in excess of $1 billion.

The Index does not take the traditional approach to defensive portfolios by focusing solely upon low-beta, non-cyclical, 'steady-Eddy' stocks. Instead, using a rules-based quantitative approach, the Index selects stocks that reflect qualities such as a strong balance sheet, dividend payments, conservative accounting practices, and a recent history of out-performance during weak market days.

Sabrient believes that this creates a more intriguing version of a defensive portfolio with the potential to outperform on a risk-adjusted basis the S&P 500 Index and other broad market benchmarks under most market conditions.

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This index is tracked by the Guggenheim Defensive Equity ETF (NYSE Arca: DEF). DEF is rated 5 STARs by Morningstar. More information, including ETF components, can be found at the Guggenheim website.