2 months ago, for a fun social experiment, I created two indices to track Robinhood Traders performance. So far the performance of Robinhood has been disappointing. Let us see how the month of July has been.
The performance is lagging the broader market and it seems the Bros are losing their golden touch (if they ever had any)
While broad market (S&P 500) is up 2% from inception and 6% for the month;
VRPI - Popularity Index - was down 16% from inception and also down 1% for the month.
VRMI - Momentum Index - is the WOAT and is down whooping 56% from inception and down another 21% for the month. Naturally it is lagging far behind the broader market.
In short, both indices are down and lagging broader market. There is no outperformance in sight so far.
VRPI Rebalance
VRPI goes through quarterly rebalancing and therefore next rebalance will be on 30th September 2020. However, to note, popularity league table did not change this month.
VRMI Rebalance
VRMI goes through monthly rebalancing based on popularity change league table. At the end of 31st July 2020 the index has changed massively. All previous constituents were replaced (not surprising) considering the massive loss they were showing.
Out goes NKLA, GNUS, IDEX, AAL, and TOPS. Since all were showing loss, they were sold out to make way for new comers.
In comes some well recognised names this time. TSLA, AMZN, PFE, KODK, AAPL. It is the first time such mega cap names have appeared in this indices. KODK is a surprising entry considering the astonishing run up in the stock based on its transformation into a pharma company now. We certain live in a crazy markets.
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-VS