Are you evaluating investing in MILLENNIALS THEME? Avoid as it has destroyed investor wealth

Millennials Fab has destroyed investor wealth on Tuesday. It grew by +0.94% to close at 1309.42. It is currently trading -14% below it's 52 week high of 1523.08.

[Theme constituents]

~MILLENNIALS showed a strong down trend over the last 3 months. During this period ~MILLENNIALS lost -12.9% and saw a maximum drawdown of -14.3%. There was a short signal during this period which returned +9.3%.

Trend

Monthly Performance

Alpha (outperformance)

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Volatility

Return distribution

~MILLENNIALS has been outperforming the SP500 index in recent time. Over the last 1 year and 10 months, ~MILLENNIALS outperformed the SP500 index on 55% days.

During the last three months ~MILLENNIALS was mostly loss making and delivered on average -0.21% per day. It's best return during this period (of +2.76%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -4.43%) was on Monday, 17 Dec, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -7.47% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +7.6% to investors.

~MILLENNIALS had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of ~MILLENNIALS and SP500 index were the same. ~MILLENNIALS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -9.34% compared to -7.75% returned by SP500 index in Dec 2018. ~MILLENNIALS and SP500 index, both had periods of 6 consecutive profitable months.

Anyone who thinks there's safety in numbers hasn't looked at the stock market pages.
-- Irene Peter

~MILLENNIALS is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ~MILLENNIALS's volatility from 9 Oct, 2018 to 1 Nov, 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 ~MILLENNIALS has significant positive skewness in it's return distribution. This indicates that investors can expect ~MILLENNIALS to recover from drawdowns quickly. Which makes ~MILLENNIALS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~MILLENNIALS), two small cap instruments that deserve special mention are BURL and ZBRA. They have significantly outperformed the overall market.