ROBINHOOD Tracking : June Rebalance Results

In June 2020, for a fun social experiment, I created two indices to track Robinhood Traders performance. This is time for first rebalance and report card. Let us see how they performed compared to broader market.

..... drumrollll .....

Straight off the bat, it seems RobinHood disappointed on the first report card. 

VRPI - Popularity Index - was down 15.4% from inception at 845.81 and also lagged broader market S&P 500 which closed down 4.37% at 955.63 (indexed from 1000)

VRMI - Momentum Index - was down whooping 35% at 649.58 not surprisingly given the constituents in the index, and also lagged the broader market. 

In short, both indices show massive drawdown. 

Buck up your game Robinhood it seems you are slacking after all the attention you got. Or may be ol'man Warren is right. When the tide recedes you come to know who was swimming naked!

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 30th June 2020, the following changes were made in the index. 

Out goes HTZ. It is about time that this volatile bankrupt company was dropped however surprisingly the company still has 155,073 holders. Rumours of buyout or other miracles keep the hope alive for some it seems. Since the holding was showing a loss, the entire component was sold for $1.46 raising $83.41.

In comes IDEX at number 3, with 111,905 new owners. It is another volatile stock mentioned frequently on DDTG. Let us see next month if this can provide the necessary oomph.