Pinindices - Checking small-cap trends against the FAANGMs

Pinindices, a feature of pininvest.com, facilitates analysis of market trends on US exchanges

Share prices of market index constituents are updated every night, after market closure, and indices are adjusted accordingly

To gain insights, assess trends over a range of selected timeframes - from 1 month to a full year - Check the options on the top-right menu

The Pinindices interface charts Total US Market 1200, an index of US companies listed on NYSE and NASDAQ either by market cap (size) or by identical cap weight

For contrast, the index is broken down by market cap ranked sub-indices

3 sub-indices of 400 assets (large - medium - small)
4 sub-indices of 300 assets
5 sub-indices of 240 assets (from very large to smallest market caps in the index)
Ex-FAANG sub-indices (excluding the mega market caps)

The index also highlights trends by sector

US small caps have been on a tear

A direct comparison between the largest 240 stocks and the smallest, market cap weighted, tells the story

A widening gap

A full year visual

Diverging trends over 12 months - Pinindices

Narrowing down to a 3-months period - a widening spread between the largest and smallest market caps

A focus on the past 3-months - Pinindices

A price worth paying ? just slightly higher risk exposure (annualized volatility)...

A focus on risk exposure over 3 months (annualized volatility) - Pinindices

Visit Pinindices at any time - the charts are updated daily for performance (cumulative returns over selected period) and volatility (on the basis of Exponential Weighted Moving Average)

Seeking explanations

Controlling for the trend of the largest US companies is a feature of Pinindices

Setting FAANGM mega-caps apart goes a long way to explain the large-cap negative trend - setting Facebook, Apple, Amazon, Netflix, Google and Microsoft apart

Apple , included in the group, is still saving the day and Netflix starts to recover

Meta-Facebook , Amazon , Google and Microsoft are not....

The bottom falling out (of the FAANGM) - Pinindices

...with performance of the smallest 400 companies (by market share) surprisingly correlated with the Total Market ex-FAANGM

Going forward

No large-cap market index makes sense without clear understanding of the impact of mega-caps on the trend

Pinindices charts the Total Market - with and without the dominant FAANGM - as well as the mega group in a separate category

Bookmark the stocks of special interest in the FAANGM group for direct access - on PC and on mobile