Quick Read Philip Morris International (PM) generated $17B in smoke-free revenue in 2025. This represents 41.5% of total revenue. Walmart represents 9.94% of KXI’s portfolio. Q4 revenue reached $190.7B with eCommerce growing 24%. Coca-Cola increased its dividend for the 63rd consecutive year. The company paid $8.78B in dividends during 2025. The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE. Consumer staples stocks generate reliable income, hold up during ...

— income generation, dividend longevity, and resilience under economic pressure. From Philip Morris's smoke-free transformation and 40%+ operating margins, to Walmart's eCommerce momentum and $30 billion buyback, to Coca-Cola's 63-year dividend streak, these businesses are built to generate income and withstand economic pressure. KXI holds these businesses within a single fund structure, charging a 0.39% expense ratio, with consumer sentiment at recessionary levels and inflation running at 2.16% year-over-y ...

Core Viewpoint - The article discusses five stocks and ETFs that may be attractive to investors seeking defensive positions amid ongoing market volatility, emphasizing sectors that historically perform well during downturns [1][30]. Group 1: Market Conditions - Lingering tariff concerns, a weakening U.S. dollar, and a significant correction in cryptocurrency markets have contributed to risk-off behavior among investors, with Bitcoin falling nearly 40% from last year's highs [2]. - The tech sector has been a major driver of market turbulence, with tech stocks, particularly software, facing challenges due to stretched valuations and heavy capital spending related to AI, leading to a nearly 22% decline in the iShares Expanded Tech-Software Sector ETF (BATS: IGV) year-to-date [3][6]. Group 2: Defensive Sectors and ETFs - Defensive sectors such as healthcare and consumer staples are attracting capital as investors seek stability amid tech-led weakness and rising volatility [6][30]. - The Health Care Select Sector SPDR Fund (NYSEARCA: XLV) is highlighted for its defensive characteristics, offering exposure to essential healthcare services and a 1.6% dividend yield, with strong liquidity and institutional interest [7][9][11]. - The Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) provides exposure to companies producing everyday necessities, maintaining stable demand even during recessions, and has surged over 13% year-to-date [17][19]. Group 3: Individual Stocks - Johnson & Johnson (NYSE: JNJ) is noted for its stability, with shares up almost 16% year-to-date and a diversified business model that ensures consistent demand across pharmaceuticals, medical devices, and consumer health products [13][15][16]. - Coca-Cola (NYSE: KO) is recognized for its defensive nature and strong performance, with a dividend yield of approximately 2.6% and a favorable analyst consensus rating, benefiting from consistent consumer demand for its products [20][23][24]. Group 4: Dividend-Focused Strategies - The Vanguard High Dividend Yield ETF (NYSEARCA: VYM) is presented as a strong option for investors seeking diversification and income, yielding 2.25% and outperforming the broader market with an 8% increase year-to-date [25][27][28]. - Dividend-focused strategies, including ETFs and individual stocks like JNJ and KO, are emphasized as effective ways to maintain equity exposure while providing downside protection during market volatility [30].

Key Takeaways FXG reaches a new 52-week high as defensive sectors gain traction in volatile markets.Investor rotation from tech into consumer staples boosts demand for safe-haven ETFs.First Trust Consumer Staples AlphaDEX ETF (FXG) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 12.2% from its 52-week low price of $59.67/share.Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better i ...

Core Insights - The article compares two ETFs: First Trust Nasdaq Food & Beverage ETF (FTXG) and iShares Global Consumer Staples ETF (KXI), highlighting their differences in focus, cost, performance, and sector concentration. Group 1: ETF Characteristics - FTXG is concentrated with only 31 holdings, primarily in the U.S. consumer defensive sector, particularly food and beverage companies like Archer-Daniels-Midland, PepsiCo, and Mondelez [1] - KXI has a broader scope with 96 holdings, including global consumer staples such as Walmart, Costco, and Philip Morris, and maintains a 97% focus on consumer defensive stocks [2][4] - KXI is significantly larger with over $930 million in assets under management (AUM) compared to FTXG's $17 million, providing greater liquidity for investors [8] Group 2: Cost and Performance - KXI has a lower expense ratio of 0.39% compared to FTXG's 0.60%, making it more affordable for investors [3][8] - FTXG offers a higher dividend yield of 2.8% versus KXI's 2.2%, appealing to income-focused investors [9] - KXI's broader global exposure may help mitigate regional risks and sector-specific shocks, while FTXG's narrower focus may attract those seeking targeted investments [5][6] Group 3: Investment Considerations - Both ETFs target defensive stocks, but FTXG focuses on U.S. food and beverage companies, while KXI offers a global perspective across the entire consumer staples sector [4][7] - Investors may choose between the two based on their goals for income generation, diversification, and sector exposure [10]

Group 1: Lockheed Martin Corporation - Lockheed Martin Corporation is a key player in the defense sector, focusing on advanced technology and innovation to maintain its competitive edge [1] - The company has reported strong financial performance, with significant revenue growth driven by increased defense spending [1] - Lockheed Martin's strategic partnerships and contracts with government agencies are expected to bolster its market position in the coming years [1] Group 2: Waste Management Inc - Waste Management Inc continues to lead the waste management industry, emphasizing sustainability and environmental responsibility [1] - The company has seen an increase in demand for its services, resulting in improved revenue and profitability metrics [1] - Waste Management's investments in technology and infrastructure are aimed at enhancing operational efficiency and customer service [1] Group 3: Capital One Financial Corporation - Capital One Financial Corporation is experiencing growth in its financial services sector, particularly in credit card offerings and digital banking solutions [1] - The company has reported a rise in customer acquisition and retention, contributing to its overall financial health [1] - Capital One's focus on innovation and technology integration is expected to drive future growth and market share [1] Group 4: SPDR® Gold Shares - SPDR® Gold Shares serves as a popular investment vehicle for those looking to gain exposure to gold prices [1] - The demand for gold as a safe-haven asset has increased amid economic uncertainties, positively impacting SPDR® Gold Shares' performance [1] - The fund's structure allows investors to easily access gold without the complexities of physical ownership [1]

Core Insights - Income-generating ETFs are positioned as a strong defensive choice for investors in 2026 due to inflation, changing interest rates, and market instability [3] - The income-generating ETF sector has seen rapid growth, with older funds demonstrating stability and low costs for investors [4] Fund Analysis - The iShares Broad USD High Yield Corporate Bond ETF (BATS: USHY) has over $25.6 billion in assets under management and focuses on high-yield corporate bonds, primarily BB or B rated [4] - USHY offers a dividend yield of 6.68%, appealing to investors willing to accept higher risk for greater returns [5] - Other notable funds include BNDX, which targets international investment-grade bonds, and VEA, which covers a broad range of international equities [6]

Core Insights - Investors are encouraged to consider rebalancing their portfolios as the fiscal year ends, particularly for tax loss harvesting and positioning for the upcoming year [1] - A diversified investment approach is recommended, incorporating various types of securities for better long-term risk-adjusted returns [2] Company Analysis Alphabet (GOOG) - Alphabet is highlighted as a top investment choice due to its strong growth profile, driven by investments in its AI LLM platform (Gemini) [3][4] - The company achieved over $100 billion in quarterly revenue for the first time in Q3, with a year-over-year revenue growth of 16% and earnings surging by 33% [4] - Alphabet's core search and media businesses are expected to become increasingly profitable, particularly with the rising demand for cloud storage, search, and AI efficiency [5] Restaurant Brands (QSR) - Restaurant Brands is positioned as a defensive investment, benefiting from its portfolio of quick-service restaurants, including Burger King and Tim Hortons [6][7] - The company reported a revenue increase of approximately 7% year-over-year, with earnings also rising by a similar amount, indicating strong performance [9] - The anticipated economic conditions in 2026 suggest a consumer trend towards seeking value in dining out, which could favor Restaurant Brands [8] iShares 20+ Year Treasury ETF (TLT) - TLT is presented as a defensive investment option for cautious investors, providing exposure to U.S. Treasurys [11][12] - This ETF is seen as a protective measure against potential market drawdowns, with the possibility of gaining value if interest rates decrease or economic growth expectations slow [14]

Group 1: Canadian Energy Sector Overview - The Canadian energy sector, particularly oil and gas stocks, has reached a new all-time high, including dividends, reflecting strong performance [2][4] - The investment thesis for Canadian oil and gas stocks has proven successful, with the index (XEG-T) increasing by 410% since October 2020, as companies have heavily invested in their projects and are well-positioned for lower price environments [4][8] - Canadian pipeline companies are also increasing their volumes, with TC Energy and Enbridge being highlighted as strong performers in the sector [6][8] Group 2: Key Companies in the Sector - Major companies such as Canadian Natural Resources (CNQ), Imperial Oil (IMO), Suncor Energy (SU), and Tourmaline Oil (TOU) are favored investments, with many accounts holding these stocks [5] - Fortis Inc. reported net earnings of CAD 409 million for Q3 2025 and increased its dividend by 4.1%, with a capital plan of CAD 28.8 billion for 2026-2030 [17] - Brookfield Infrastructure Partners operates in various sectors, including utilities, and has a valuation that is 7.9% higher than its current price [19] Group 3: Performance and Future Outlook - The performance of Canadian energy holdings is beneficial for Canadian investors and indices, with materials being a significant driver of stock outperformance compared to the U.S. [8][12] - Analysts have noted the durability of earnings in Canadian regulated utilities, with companies like Fortis and Hydro One showing strong growth trajectories [11][12] - The long-term outlook for the utility sector suggests a reliable total return in the high-single to low-double digits, driven by sustainable dividend growth [12]

Market Sentiment and Economic Indicators - The market is showing a defensive trend, with consumer discretionary sectors weakening relative to defensive sectors like healthcare and utilities [1][2] - There has been a notable change in market character over the past two to three months, indicating a shift towards more defensive investments [2] Federal Reserve and Interest Rates - The current 2-year yield is around 3.55% to 3.60%, which is still below the policy rate, suggesting that the Federal Reserve may need to adjust its stance in response to economic signals [3] - The 30-year yields have modestly increased since the last Fed meeting, with expectations that the 10-year yield will not exceed 4.30% to 4.35% in the current environment [4] Market Dynamics and Investment Strategies - The market is caught between a potential flush of weak hands in crowded AI positions and a fundamental reassessment of the economy's shape [5] - There is a belief that the market remains in an uptrend, but a significant oversold condition may be necessary to prompt action from the Fed before the December meeting [6] Sector Performance and Stock Analysis - Concerns are raised about certain technology stocks, particularly those showing distributive top formations, such as Salesforce and Workday, which may indicate underlying weakness [8][10] - Financials have performed well, but if banks begin to falter, it could negatively impact alternative asset managers like Apollo and Blackstone, which are already experiencing declines [10][11]