FANG is a acronym for four companies, including Facebook, META Amazon.com, AMZN Netflix, and Alphabet Inc. GOOGL. Those companies are grouped together because they have historically been among the fastest-growing, most innovative, and most successful corporations in the world.
A FANG-themed ETF is the best option for investors seeking exposure to the FANG group without having to concentrate a portfolio in a few volatile stocks. The companies have drew in substantial investment from investors, as technology has driven their growth in areas such as e-commerce, mobile devices, cloud computing, and streaming entertainment.
Despite its popularity and widespread use among investors, the acronym FANG has since changed itself to Alphabet and Facebook has renamed itself Meta. There have also been several changes in the way things have been arranged. FAANG is a five-stock group known as Apple Inc. AAPL. And some investors and analysts have even added Microsoft Corp. MSFT to make a six-stock company called FAAMNG or the FAAMNGs. In this story, use the original FANG acronym for simplicity.
The sectors of each of these firms provide a critical benchmark for comparison to the broader U.S. market while demonstrating their distinct characteristics. In the communication services sector, Facebook Meta Netflix, Google Alphabet, and Google Alphabet are among the companies in the communication services industry. The S&P 500 Communication Services sector has seen a - 36.9% one-year trailing total return, as measured by the performance of the S&P 500 communication services index. The consumer discretionary sector, on the other hand, is in the consumer discretionary sector, with a one-year trailing total return of 17.8% based on the S&P 500 Consumer Discretionary sector index. Apple and Microsoft are also in the tech sector, which posted a one-year trailing total gain of 16.8%, as measured by the S&P 500 Information Technology sector index.
In the past year, all three of these benchmark indexes have underperformed the broader market as represented by the S&P 500. The S&P 500 had a trailing total return of 13.2% for the year to date.
There are 22 FANG stock ETFs trading in the United States, excluding leveraged and inverse funds as well as those with less than $50 million in assets under management AUM. These funds have good exposure to the FANGs and other companies, even though they don't have specific strategies to hold FANG stocks. The best-performing FANG stock ETF, based on performance over the past year, is the Pacer Trendpilot 100 ETF PTNQ. All benchmark figures above and those below are as of Sept. 28, 2022. To focus on the funds' investment strategies, the top holdings listed for each ETF include cash holdings and holdings purchased with securities lending proceeds, except under unusual circumstances, such as when the cash portion is exceptionally large.
PTNQ monitors the Pacer NASDAQ 100 Trendpilot Index, a combination of NASDAQ-100 securities and 3-month U.S. T-Bills based on momentum. PTNQ provides 100% exposure to the NASDAQ-100 index when it closes higher than its 200-day simple moving average SMA for five days in a row. PTNQ's portfolio adjusts to 50 % exposure to that benchmark and 50 % T-Bill allocation when the NASDAQ - 100 Total Return benchmark closes below that average for five straight days. And when the NASDAQ - 100 benchmark's 200-day SMA closes lower than its value compared to five days earlier, PTNQ provides 100% T-Bill exposure.
PTNQ currently holds a significant T-Bill position and NASDAQ 100 securities. The three stock holdings of the venture are Apple Inc. AAPL, a tech firm that sells mobile devices, software, and video game products and cloud services and Amazon.com, Inc. AMZN, an e-commerce, cloud services, and streaming entertainment.
XLG tracks the S&P 500 Top 50 Index, which is composed of the 50 largest securities in the S&P 500 Index by market capitalization. The ETF is largely directed toward fast-growth companies, but many of the mega-cap stocks in this fund may not have substantial growth, but the ETF is heavily reliant on fast-growth companies. In the information technology sector, 37.1% of the company's holdings are concentrated in healthcare, consumer discretionary, and communication services.
XLG's top holdings include Apple, Microsoft, and Amazon, all described above.
Cboe Nasdaq - 100 BuyWrite V 2 Index is a large-cap growth fund that seeks to provide investment results corresponding to QYLD. The fund utilizes a covered call strategy in which it buys the stocks on the Nasdaq 100 index and then sells corresponding call options on the same index. The fund's managers say that this strategy has historically resulted in higher yields in periods of volatility. For eight straight years, the fund has made monthly distributions. Investors who want added yield may find this venture attractive, as they may not have to devote the time to getting into options trading.
The top holdings of QYLD are Apple, Microsoft, and Amazon, all of which are mentioned above.
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