2011 European Markets: Stock Performance Demonstrated Defensive Investing Benefits
The Russell Europe Defensive Index reflected an annual return of +0.5% in 2011, outperforming both its dynamic counterpart, the Russell Europe Dynamic Index, which posted a loss of (-22.2%) for 2011, and the broad Russell Europe Index, which lost (-9.6%) in 2011.
The healthcare and consumer staples sectors were the top performers among constituents within the Russell Europe Defensive Index, with returns of +14.8% and +9.3%, respectively, in 2011.
The materials and processing and financial services sectors were the bottom performers among constituents within the Russell Europe Dynamic Index, with returns of (-26.3%) and (-27.5%), respectively, in 2011.
“In these volatile markets where investment performance can be driven by portfolio positioning, investors can benefit from benchmarks that provide a more nuanced look at the markets,” said Gareth Parker, director of research, innovation and product development for Russell Indexes in Europe. “The Russell Global Stability Indexes illustrate that understanding the impact of defensive and dynamic factors is important to understanding differential performance within markets and sectors, and to selecting stocks to hold within those markets and sectors.”