ETF Securities has launched Australia’s first exchange-traded fund (ETF) aimed at tracking the New York Stock Exchange’s (NYSE) FANG+ Index.
The new FANG+ ETF is intended to provide Australians with the opportunity to invest in the 10 most highly traded growth stocks in the world: Facebook, Apple, Amazon, Netflix, Google (Alphabet), Alibaba, Baidu, Nvidia, Tesla and Twitter.
ETF Securities chief executive Kris Walesby said: “The NYSE FANG+ Index and the FANG ETF launched today provides exposure to megatrend themes such as online trade, entertainment and storage via these 10 stocks in the consumer discretionary and technology sectors on the major US stock exchanges.”
The 10 NYSE FANG+ companies account for a total market capitalisation of US$4.7 trillion, equal to more than three times the ASX 200.
“As per the structure of the FANG+ Index, each company will be equally weighted in the FANG+ ETF providing a unique performance benchmark that allows for a more value-driven approach to investing,” Walesby noted.
“While the performance of indices weighted by market capitalisation can be dominated by a few of the largest stocks, an equal weighting allows for a more diversified and represented portfolio.”
He also pointed out the downturn in global markets sparked by the recent Covid-19 coronavirus outbreak had led to lower entry levels to the NYSE FANG+ Index.
“Some investors may see this as a buying opportunity; others may wish to wait to see how far markets are impacted. Either way, we designed this product to provide easy and inexpensive access to 10 of the world’s leading growth stocks and believe that this ETF is ideally suited to investors seeking to build wealth over the medium to long term,” he said.
The management costs of the new ETF would be 0.35 per cent, with income distributions to be made semi-annually, he added.
Recently, BetaShares launched the first ETF focused on providing access to Australia’s technology sector.