{"id":2009981,"date":"2014-12-06T12:35:25","date_gmt":"2014-12-06T07:05:25","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=2009981"},"modified":"2014-12-06T12:35:25","modified_gmt":"2014-12-06T07:05:25","slug":"re-factored-indices-momentum","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2014\/12\/06\/re-factored-indices-momentum\/","title":{"rendered":"Re-factored Indices and Momentum"},"content":{"rendered":"

We have created a whole bunch of Themes<\/a> based on indices published by the NSE. We call them Re-factored Indices because they use a weighting that is different from NSE’s. We currently have free-float cap weighted and equal weighted themes. Investors can now invest in standard indices directly, without having to go through an index fund.<\/p>\n

\n
\n\n\n\n\n<\/thead>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Recent one-week returns<\/th>\n
CNX FMCG Cap-Weighted<\/a><\/td>\n+5.95%<\/span><\/td>\n<\/tr>\n
CNX MNC Equally Weighted<\/a><\/td>\n+5.06%<\/span><\/td>\n<\/tr>\n
CNX MEDIA Equally Weighted<\/a><\/td>\n+4.86%<\/span><\/td>\n<\/tr>\n
CNX MNC Cap-Weighted<\/a><\/td>\n+4.38%<\/span><\/td>\n<\/tr>\n
CNX PSU BANK Equally Weighted<\/a><\/td>\n+3.71%<\/span><\/td>\n<\/tr>\n
CNX CONSUMPTION Cap-Weighted<\/a><\/td>\n+2.87%<\/span><\/td>\n<\/tr>\n
CNX CONSUMPTION Equally Weighted<\/a><\/td>\n+2.84%<\/span><\/td>\n<\/tr>\n
CNX FMCG Equally Weighted<\/a><\/td>\n+2.43%<\/span><\/td>\n<\/tr>\n
CNX AUTO Equally Weighted<\/a><\/td>\n+2.11%<\/span><\/td>\n<\/tr>\n
CNX BANK Equally Weighted<\/a><\/td>\n+2.09%<\/span><\/td>\n<\/tr>\n
CNX FINANCE Equally Weighted<\/a><\/td>\n+2.08%<\/span><\/td>\n<\/tr>\n
CNX REALTY Cap-Weighted<\/a><\/td>\n+1.79%<\/span><\/td>\n<\/tr>\n
CNX MEDIA Cap-Weighted<\/a><\/td>\n+1.62%<\/span><\/td>\n<\/tr>\n
CNX BANK Cap-Weighted<\/a><\/td>\n+1.33%<\/span><\/td>\n<\/tr>\n
CPSE INDEX Equally Weighted<\/a><\/td>\n+1.07%<\/span><\/td>\n<\/tr>\n
CNX REALTY Equally Weighted<\/a><\/td>\n+0.99%<\/span><\/td>\n<\/tr>\n
CNX PHARMA Equally Weighted<\/a><\/td>\n+0.80%<\/span><\/td>\n<\/tr>\n
CNX PSU BANK Cap-Weighted<\/a><\/td>\n+0.80%<\/span><\/td>\n<\/tr>\n
CNX AUTO Cap-Weighted<\/a><\/td>\n+0.52%<\/span><\/td>\n<\/tr>\n
NI15 Equally Weighted<\/a><\/td>\n+0.28%<\/span><\/td>\n<\/tr>\n
CNX FINANCE Cap-Weighted<\/a><\/td>\n+0.27%<\/span><\/td>\n<\/tr>\n
CNX IT Equally Weighted<\/a><\/td>\n+0.17%<\/span><\/td>\n<\/tr>\n
NI15 Cap-Weighted<\/a><\/td>\n+0.05%<\/span><\/td>\n<\/tr>\n
LIX 15 Equally Weighted<\/a><\/td>\n-0.02%<\/span><\/td>\n<\/tr>\n
LIX 15 Cap-Weighted<\/a><\/td>\n-0.35%<\/span><\/td>\n<\/tr>\n
CNX SERVICE Equally Weighted<\/a><\/td>\n-0.36%<\/span><\/td>\n<\/tr>\n
CNX METAL Equally Weighted<\/a><\/td>\n-0.48%<\/span><\/td>\n<\/tr>\n
LIX15 Midcap Equally Weighted<\/a><\/td>\n-0.63%<\/span><\/td>\n<\/tr>\n
LIX15 Midcap Cap-Weighted<\/a><\/td>\n-0.64%<\/span><\/td>\n<\/tr>\n
NV20 Equally Weighted<\/a><\/td>\n-0.77%<\/span><\/td>\n<\/tr>\n
CNX METAL Cap-Weighted<\/a><\/td>\n-0.97%<\/span><\/td>\n<\/tr>\n
CNX PSE Equally Weighted<\/a><\/td>\n-1.10%<\/span><\/td>\n<\/tr>\n
CNX COMMODITIES Equally Weighted<\/a><\/td>\n-1.13%<\/span><\/td>\n<\/tr>\n
CNX SERVICE Cap-Weighted<\/a><\/td>\n-1.15%<\/span><\/td>\n<\/tr>\n
CNX PHARMA Cap-Weighted<\/a><\/td>\n-1.16%<\/span><\/td>\n<\/tr>\n
NV20 Cap-Weighted<\/a><\/td>\n-1.25%<\/span><\/td>\n<\/tr>\n
CNX INFRA Equally Weighted<\/a><\/td>\n-1.37%<\/span><\/td>\n<\/tr>\n
CNX INFRA Cap-Weighted<\/a><\/td>\n-1.84%<\/span><\/td>\n<\/tr>\n
CPSE INDEX Cap-Weighted<\/a><\/td>\n-1.86%<\/span><\/td>\n<\/tr>\n
CNX COMMODITIES Cap-Weighted<\/a><\/td>\n-2.03%<\/span><\/td>\n<\/tr>\n
CNX PSE Cap-Weighted<\/a><\/td>\n-2.52%<\/span><\/td>\n<\/tr>\n
CNX IT Cap-Weighted<\/a><\/td>\n-3.03%<\/span><\/td>\n<\/tr>\n
CNX ENERGY Equally Weighted<\/a><\/td>\n-3.33%<\/span><\/td>\n<\/tr>\n
CNX ENERGY Cap-Weighted<\/a><\/td>\n-3.41%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\nThese Themes are automatically re-balanced once a month. There is no discretion on what goes into them, the portfolio is decided by the NSE\/IISL. Investors can use these to “set it and forget it.”\n<\/div>\n<\/div>\n

Long-term out performance<\/h3>\n

Some indices show persistent long-term out-performance. For example, MNCs have beaten PSEs (StockViz<\/a>) and have shown to have lower draw-downs. Investors can map the MNC Theme<\/a> and let NSE\/IISL figure out what stocks should be part of that index.<\/p>\n

Momentum<\/h3>\n

Short-term investors can use momentum effects to their advantage and implement a switching strategy. For example, CNX BANK shows greater momentum than CNX ENERGY:<\/p>\n

\"CNX<\/a><\/p>\n

\"CNX<\/a><\/p>\n

And over the last week, momentum in CNX REALTY has improved drastically whereas CNX IT has decreased:<\/p>\n

\"CNX<\/a><\/p>\n

\"CNX<\/a><\/p>\n

Conclusion<\/h3>\n

Re-factored Indices can act as ETF-proxies for long-term, passive investors and opens up interesting momentum strategies for short-term investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

We have created a whole bunch of Themes based on indices published by the NSE. We call them Re-factored Indices because they use a weighting that is different from NSE’s. We currently have free-float cap weighted and equal weighted themes. Investors can now invest in standard indices directly, without having to go through an index … <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3471,9],"tags":[2541],"class_list":["post-2009981","post","type-post","status-publish","format-standard","hentry","category-investing-insight","category-your-money","tag-theme","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2009981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=2009981"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2009981\/revisions"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=2009981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=2009981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=2009981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}