NYSE FANG+™ is a new index that provides exposure to a select group of highly-traded growth stocks of next generation technology and tech-enabled companies.
Beginning on November 8, 2017, you’ll be able to access the index through a new futures contract designed to help you gain or reduce exposure to this key group of growth stocks in a capital efficient manner.
INDEX COMPOSITION: BENCHMARKING TODAY’S TECH GIANTS
The NYSE FANG+ index includes 10 highly liquid stocks that represent the top innovators across today’s tech and internet/media companies.
The index’s underlying composition is equally weighted across all stocks, providing a unique performance benchmark that allows for a more value-driven approach to investing. While the performance of indices weighted by market capitalization can be dominated by a few of the largest stocks, an equal-weighting allows for a more diversified and represented portfolio.
NYSE FANG+ is one of the most highly correlated indices to technology and related stocks.
Real-time index calculations are available to help you benchmark the core group of stocks included in the index, and official open and close prices are published daily on the NYSE Global Index Feed.
TRADING NYSE FANG+ INDEX FUTURES ON ICE: THE BENEFITS
NYSE FANG+ futures, which will begin trading on ICE Futures U.S. on November 8, 2017, subject to regulatory review, provide a concentrated hedging mechanism for asset managers, proprietary trading firms, institutional traders and retail investors with technology exposure. The contract features:
- Low-cost exposure to tech sector
- One of the most highly correlated indices to tech and related stocks
- Hedging mechanism to quickly increase or decrease tech exposure in equities portfolios
- A disciplined methodology that will dictate the evolution of underlying securities
NYSE FANG+ INDEX PERFORMANCE COMPARISON
(Hypothetical performance using backtested data)
Based on back-tested performance data, the combination of stocks in the NYSE FANG+ Index have returned a 28.44% annualized total return from September 19, 2014 to September 15, 2017, as compared to 14.89% for the NASDAQ 100®, 9.86% for the S&P 500® and 16.80% for the S&P 500® Information Technology Index.
The information presented in this blog is strictly for educational purposes only. Halifax America LLC doesn’t necessarily endorse the information provided. We present this information to our readers with the expectation that they will critically read and evaluate the information themselves. Halifax America LLC is NOT recommending trades or investments in relation to the information presented. The risk of loss in the trading of stocks, options, futures, forex, foreign equities, and bonds can be substantial and is not suitable for all investors. Trading on margin or the use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Supporting documentation is available upon request. Trading futures, options on futures, and forex involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.