Growing Dividends THEME

1339.69 -7.72 (-0.58%) Sell

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GROWINGDIV THEME is a falling knife, continues to bleed every investor trying to catch it

14 min read

Growing Dividends significantly underperformed on Tuesday. It fell by -0.58% to close at 1339.69. On a day when the overall market breadth was 34%, it closed higher than 73% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

[Theme constituents]

~GROWINGDIV showed a strong bearish trend over the last 3 months. During this period ~GROWINGDIV fell by -10.07% and saw a maximum drawdown of -11.13%. There was a short signal during this period which returned +7.82%.


~GROWINGDIV has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 4 Jan, 2016 to 1 Dec, 2016. Over the last 2 years 11 months and 14 days, ~GROWINGDIV outperformed the SP500 index on 56% days.

During the last three months ~GROWINGDIV was mostly loss making and delivered on average -0.16% per day. It's best return during this period (of +1.97%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -2.52%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 5 losing days, which started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -4.28% of investor capital.

During the last year ~GROWINGDIV had 8 profitable months and 4 loss making months. Profitable number of months of ~GROWINGDIV and SP500 index were the same. ~GROWINGDIV was also a less risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -7.43% compared to -7.75% returned by SP500 index in Dec 2018. ~GROWINGDIV and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both ~GROWINGDIV and SP500 index significantly outperform during months when quarterly/annual results are announced.

Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
-- Ayn Rand

~GROWINGDIV is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ~GROWINGDIV's volatility from 19 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ~GROWINGDIV has significant positive skewness in it's return distribution. This indicates that investors can expect ~GROWINGDIV to recover from drawdowns quickly. Which makes ~GROWINGDIV a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

~GROWINGDIV has more chance of extreme outcomes than the SP500 index. Therefore, ~GROWINGDIV must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than ~GROWINGDIV.

Based on your interest in ~GROWINGDIV you may find it interesting to know that ~LARGECAP, ~SOCIALLYRESP and ~LOWBETA have all performed similar to ~GROWINGDIV and qualify as alternative investment candidates that must be evaluated for diversification.

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