Rydex Consumer Products Fund (RYCIX) lives up to its name as it has a 100% allocation to the consumer-products sector. It has had a great long-term record, with a five-year average annual return of 7.9%. It is down 2.5% over the past month, but up 9.6% over the past three months, and up 9.8% this year.
The fund holds 63 stocks and its portfolio is a veritable laundry list of the leading consumer-products companies.Its top holdings are: household-goods maker Procter & Gamble (PG), at 6%; Coca-Cola (KO), 5.6%; cigarette maker Philip Morris (PM), 5%; beverage and snack maker Pepsi (PEP), 4.6%; processed-food giant Kraft Foods (KFT), 3.4%; cigarette maker Altria (MO), 3.4%; and personal-care products maker Colgate-Palmolive (CL), 2.9%.
The aptly named Vice Fund (VICEX) is proof of that. Although it is down 2.6% this month, it is up 10.4% this year which puts it in the top 1% of top-performing funds of the 1,970 funds in the large-blend stock fund category for that period. It also has a five-year average annualized return of 3.3%. The fund's 30-stock portfolio is 57% consumer-defensive stocks, compared to 12% for its category average. The next-largest allocation is to industrials, at 25% of the fund, about double its category average, and consumer cyclical, a 14% weighting, versus the 8% average of other funds in its category. The Vice Fund's top-five picks are: cigarette makers Philip Morris International (PM) at 12.7% of the fund; Lorillard (LO), 10%; Altria (MO), 6%; and adult-beverage makers Carlsberg (AS), at 6.3%, and Diageo (DEO), 4.1%. The industrial weighting includes a handful of defense-industry stocks, including: Northrop Grumman (NOC), General Dynamics (GD) and Raytheon (RTN). For those with no moral qualms about what they invest in, booze and butts do well in any investing environment.
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