FAANG is the acronym referring to the stocks of Tech giants—Facebook, Amazon, Apple, Netflix and Google. These five companies are considered to be the greatest and best-performing tech companies in the market. Check out more to know 10 things about FAANG – World famous tech companies.
What Is FAANG?
FAANG refers to the stocks of the most prominent companies in the stock market. The five FAANG stocks have a combined market capitalization of nearly $7.1 trillion as of August 2021. This remarkable growth of these companies is due to its influential investors such as Berkshire Hathaway, Renaissance Technologies and other big-shot investors.
When was Netflix Launched?
- A. 1990
- B. 1999
- C. 1997
- D. 2002
Origin of FAANG
The acronym of FAANG (earlier addressed as FANG) has been attributed to Jim Cramer, a financial TV host and co-founder of The Street.com. Cramer coined the term in 2013.
What is Special About FAANG?
FAANG’s performance in the stock market is very important to be noted as it can sway the entire market with its stock level – it comprises 15% of the Standard & Poor’s 500. (an index used by US’s largest public companies)
How to invest in FAANG stocks?
One can invest in FAANG in several ways. Investment can be done through Individual Stocks, Tech Funds and Index Funds.
- Individual Stocks – Facebook, Apple, Amazon, Netflix, and Google can be traded individually on Nasdaq. One can buy the stocks individually or can buy all five, creating a FAANG portfolio. It is important to remember that FAANG stocks are quite expensive – with a share costing up to hundreds and even thousands.
- Tech Funds – It is advisable to look for funds that invest at least 80% of their assets in stocks. Some of the top returning ETFs (Exchange-Traded Funds) include:
- iShares Expanded Tech Sector ETF (IGM)
- NYSE Technology ETF (XNTK)
- Invesco QQQ Trust (QQQ)
FANG+ exchange-traded note (FNGS) by BMO Capital Markets, tracks an index of FAANG, along with five other tech stocks like Alibaba and Twitter.
- Index Funds – FAANG’s financial significance is considered heavily in many broad-based market index funds – including the First Trust Dow Jones Internet Fund (FDN) and the Nasdaq Composite Index (IXIC).
Check out the exclusive quiz to learn more about the market’s most significant FAANG.