Trade the FAANGs index

Take a position on major US tech stocks:

  • Trade the NASDAQ heavyweights
  • Ten equally weighted stocks
  • Margins as low as 5%
  • Go long or short
  • Spreads from 6 pts

Take a view on the key tech stocks

Tech stocks enjoyed a wildly impressive 2020. Amazon rebounded from March lows to end the year up 74%. And while some commentators felt the economic impact of coronavirus might hurt a luxury brand like Apple, its shares rose 80%.

What about the future, though? Our FAANGs index features 10 equally weighted stocks from the upper echelons of the NASDAQ 100. Alongside the traditional FAANGs constituents (Facebook, Apple, Amazon, Netflix and Google) it also features other major stocks like Tesla and Intel.

The index is equally weighted and is rebalanced on a quarterly basis. The aim is to capture the total return performance of the top 10 traded companies listed on the NASDAQ stock exchange. It’s a great index to trade if you have strong views on the likely direction of travel for the biggest tech stocks.

Trade the FAANGs

Quick facts

Top 10 NASDAQ stocks equally weighted, and revised quarterly on the third Friday of every March, June, September and December after market close.

  • Number of constituents: 10
  • Market hours: 23:30 – 06:00 AEST
  • Spread: Fixed (6 points)

Is the clock ticking on tech?

Balancing various considerations is the way forward when assessing whether big tech is headed upwards or downwards. Traders must consider the widespread rollout of vaccines as evidence that the FAANGs index may no longer be a good bet for a stock portfolio. On the other hand, the threat of virus mutations and further lockdowns linger. Make sure you never miss out on the latest market-moving news by reading our expert analysts’ latest research.

NEWS & ANALYSIS

How to trade the FAANGs

If you think big tech has become overvalued and is headed for a widespread market correction, then you could sell or short the FAANGs index.

If, on the other hand, you only see tech becoming an ever-important intrinsic aspect of our life, with the companies at the top remaining dominant, then you may want to buy or go long in FAANGs.

Remember, as with all our other trading instruments, our FAANGs charts are easily accessible on any device, and come with technical indicators and drawing tools as standard.

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