Introducing pinindices

Introducing pinindices

by Pininvest Analysis

pinindices - blog on

  • constituents
  • 0.0% 1y performance
  • 0.0% volatility
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With the launch of pinindices, the latest addition to the pininvest family, the private investor is provided with powerful tools of top-down analysis

While performance and average volatility history of the total market charts well-known global statistics, comparisons by sector or between size-based sub-indices brings less well publicized trends into focus

Overlooked by stock pickers and by global index tracking funds, well-thought comparisons between sub-indices may uncover investment opportunities

Strategies will be discussed in our follow-up notes, such as, to give a few examples

  • the sharp performance differential between market cap weighted and equal weighted indices of various sectors is worth considering – in energy, healthcare or consumer non-durables for instance
Consumer Non-Durables Cap-Weighted 
Consumer Non-Durables Equal-Weighted
  • the FAANGs, an acronym for Facebook, Apple, Amazon and Google, outliers par excellence with seemingly unstoppable performance growth, unsurprisingly stand out with oversized risk exposure
Comparing FAANGs with a small cap sub-index (equal weighted)
  • relative outperformance of the more risky small cap stocks is still another trend worth tracking as actual risk, measured by average volatility, fluctuates over time
Comparing small cap stocks with total market  (cap weighted)