Morningstar highlights five equity funds heavily invested in consumer defensive stocks for resilience.

From Morningstar: 2024-07-10 06:49:00

The booming artificial intelligence market has led to record highs in equity markets, but concerns persist about concentration in a few stocks. Diversification is key for resilience. Consumer defensive stocks, which include food, beverages, and personal products, offer stable cash flows. Morningstar highlights five funds with high exposure to this sector.

Barings Global Agriculture fund is heavily invested in the agricultural sector, with 41.55% allocated to consumer defensive stocks. The fund is actively managed and has seen a 10.90% decline over the past year.

Trojan Global Income has 35.91% exposure to consumer defensive stocks, significantly higher than the category average. The fund has risen 4.80% over the past year, underperforming the category.

Lindsell Train UK Equity allocates 35.14% to consumer defensive stocks, with its largest holding being Unilever. The fund has climbed 2.50% over the past year, underperforming the average UK large-cap equity fund.

Fundsmith Equity, the UK’s largest fund, has 31.16% exposure to consumer defensive stocks. The fund aims for long-term growth and has seen a 14.21% increase over the past year.

IFSL Evenlode Income invests in UK companies with 26.87% allocated to consumer defensive stocks. The fund has risen 8.16% over the past year, underperforming the category.



Read more at Morningstar: Five Equity Funds That Play Defensive