ETFS FANG+ ETF surpasses $100 million in funds under management


Kanish Chugh

The recently launched ETFS FANG+ ETF (ASX code FANG) from ETF Securities has grown to over $100 million in funds under management in just over seven months off the back of increased investor interest to gain exposure to the famous FAANG stocks through the NYSE FANG+™ Index. The fund has $128m in FUM as at the 19th Sept.

The NYSE FANG+™ Index has a proven track record of delivering above-average returns and enabling investors to take positions and manage risk in some of the best known and most actively traded technology stocks. It is equally weighted and includes the five core FAANG stocks – Facebook, Apple, Amazon, Netflix and Google (Alphabet) – plus another five actively-traded technology growth stocks – Alibaba, Baidu, NVIDIA, Tesla and Twitter.

Kanish Chugh, Head of Distribution at ETF Securities, said: “This year has been challenging for most sectors in terms of performance. We suspect the diminishing prospects of a quick recovery and increasing length of the current COVID-19 malaise globally have pushed investors to look for ‘safe haven’ options. Since tech stocks have been clear winners amid the coronavirus-led social distancing trend, FANG+ stocks are putting up stellar performances.

“The FANG+ ETF continues to deliver outstanding returns. Since inception in March this year, the Fund has returned 57.94% Total Return (as of 15 October).”

He added: “The recent pull back in US technology stocks over September was not unexpected, with the NYSE FANG+ Index plunging 6 per cent, and the share price of Apple and Tesla diving 8 and 6.5 per cent, respectively. Prices have since recovered, with many investors viewing the falls as a buying opportunity.

“This ETF continues to be ideally suited to investors seeking to build wealth over the medium to long term,” said Chugh.

The performance of tech stocks across the COVID-19 pandemic has also corresponded to increased interest in ETF Securities’ ETFS Morningstar Global Technology ETF (ASX code: TECH) which reached over $200 million in funds under management this month.

“We are pleased to see the TECH ETF continue to grow alongside investor interest in the technology industry. With greater scale, investors have access to improved liquidity and tighter spreads on pricing assisting them with better trading experiences and outcomes. Access to thematic and unique sector investments through ETFs is growing in Australia and we will continue to see investors benefit from greater scale in this area,” said Chugh.

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