The term FANG, coined in 2013 refers to the acronym that originally included four of the most known high-growth stocks in the market (Facebook, Amazon, Google, and Netflix). The later inclusion of Apple transformed the acronym into “FAANG”, making the definition broader to refer to technology-focused stocks.
Having this as a base at BITA, we have developed the BITA FAANGs 10 Equally Weighted Index which is composed of the top ten traded companies listed at the Nasdaq Stock Exchange. Other notable companies that currently make up the index and that are well-positioned to weather the current pandemic crisis are Nvidia and AMD. Their businesses are not expected to slow down due to lockdowns and economic deceleration becoming interesting investment targets for retail and institutional investors alike.
Following this trend, in the first four months of the year, the BITA FAANGS 10 Equally Weighted Index has outperformed the S&P 500 by an estimated of 23.6%. This outperformance can be largely explained by the resilience of the FAANGs specific business models to the effect of the current pandemic.
If you would like to learn more about our thematic indexes, please visit us at http://www.bitadata.com or contact us via info@bitadata.com.
In the meantime, enjoy this interesting piece on the topic by Forbes about Netflix’s reinforced company position thanks to the Coronavirus crisis: https://www.forbes.com/sites/bethkindig/2020/04/25/netflix-coronavirus-cements-the-company-as-untouchable/#4a529f17d94c
