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Defensives

Demand that does not care about the cycle: staples, household products, tobacco, regulated utilities, waste, telecom, and needs-based healthcare. The basket to watch when breadth narrows and the tape gets defensive.

24 stocks · S&P 500 universeEqual-weighted · monthly rebalance2026-09-04 · close
1 day-1.1%basket return
20 days-0.8%basket return
20 days vs S&P 500-0.5%relative return
Year to date+8.6%basket return

Performance

Follow the theme against the wider market.

-3.5%-0.6%+2.4%+5.3%+8.3%2026-06-102026-09-04
DefensivesS&P 500

Series before each basket's creation date are a backtest of the membership as of creation; live tracking starts at creation.

Return1 day5 days20 days60 daysMTDYTD1 year
Basket-1.1%-1.6%-0.8%+2.2%-0.7%+8.6%+3.9%
vs S&P 500-0.7%-1.8%-0.5%-3.8%-1.2%-4.1%-13.1%

Inside the basket · 24 stocks

Current members and the reasoning behind each inclusion. Returns are for individual stocks.

Why it’s includedAdded
TTelecom bond proxy — subscription cash flows-2.0%-1.3%+7.9%+7.0%2026-06-11
JNJDiversified healthcare, fortress rating-1.1%+2.7%+6.7%+35.1%2026-06-11
VZTelecom bond proxy — dividend anchor-0.9%+0.1%+6.5%+29.3%2026-06-11
RSGWaste collection annuity-1.1%+0.3%+3.8%+6.0%2026-06-11
GISPackaged food shelf staple-2.5%-7.8%+3.8%-13.6%2026-06-11
KOBeverage annuity, global distribution-0.8%-1.8%+1.2%+27.7%2026-06-11
MODomestic tobacco — yield anchor-0.9%+0.3%+0.8%+23.3%2026-06-11
ABTMed devices + nutrition, needs-based-0.4%-3.7%+0.5%-11.9%2026-06-11
PGHousehold staples pricing power-0.3%+1.8%+0.4%+4.4%2026-06-11
EDThe classic bond-proxy utility-1.3%-0.2%+0.2%+10.7%2026-06-11
PEPSnacks + beverages diversification-0.7%-1.4%+0.1%-1.2%2026-06-11
AEPRegulated transmission utility-0.2%+1.8%-0.2%+10.5%2026-06-11
WECRegulated Midwest utility-0.7%-0.3%-0.7%+3.1%2026-06-11
DUKRegulated utility scale-1.0%-0.0%-2.9%+5.2%2026-06-11
XELRegulated multi-state utility-0.8%-1.0%-3.0%+4.1%2026-06-11
KMBTissue/personal care non-discretionary-1.6%-3.0%-3.2%+8.1%2026-06-11
PMTobacco/nicotine pouches — pricing-power annuity-2.0%-4.9%-3.7%+15.8%2026-06-11
WMWaste collection: contractual, inflation-linked-1.2%-0.3%-3.8%+0.5%2026-06-11
SORegulated southeast utility-0.7%-0.2%-4.2%+3.5%2026-06-11
CHDHousehold staples compounder-0.0%-2.7%-4.3%+18.7%2026-06-11
CLOral/home care staples-1.5%-2.2%-4.8%+14.4%2026-06-11
SYYFood distribution scale-1.3%-2.3%-5.0%+11.0%2026-06-11
MCDFranchise royalty stream; value menu in downturns-1.5%-2.8%-6.2%-14.7%2026-06-11
CLXHousehold products-1.3%-9.2%-10.5%-4.4%2026-06-11

How this basket is built

Equal-weighted, monthly-rebalanced, buy-and-hold between rebalances; dated membership changes take effect same-day.

Tracked since 2026-06-11. Membership decisions are documented below.

Read the methodology →

Reading the returns

Basket returns include dividends. “vs S&P 500” compares the basket’s compounded growth with the benchmark’s. Green means positive; red means negative.

Cross-checked against 50/50 XLP+XLU. Daily return correlation: 0.94 across 1678 sessions. the healthcare, waste, and telecom sleeves sit outside the blend

Membership history & changes
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