Global X’s FANG+ ETF (FANG) has now surpassed $1 billion in size.
Taking to LinkedIn to celebrate the “mammoth milestone” on Friday, Global X said that FANG is the only passive ETF of its kind in Australia, offering exposure to some of the world’s most successful stocks.
“It is a testament to the fund’s outstanding performance since its inception four years ago.”
FANG, which aims to invest in 10 companies at the leading edge of next-generation technology, has been one of the company’s and the broader ETF market’s leading funds in terms of performance, according to Global X’s market monitor.
Namely, for the week ending 6 December, FANG had come in seventh overall for year-to-date return, at 60.7 per cent. Within its own network of Global X funds, it came in third.
This comes as the earnings of mega caps like Nvidia highlight their growing importance in the next generation of tech.
In the case of Nvidia, the company reported $35 billion in quarterly revenue, a 94 per cent year-on-year increase, driven by strong demand for AI applications and infrastructure.
In a recent market note, Global X investment strategist Billy Leung underscored that, while concerns around big-tech valuations persist, many of these stocks are more reasonably priced than they may appear.
“After a period of heightened valuations, the market has reset, offering investors an opportunity to reconsider these companies as more attractively valued. Despite some moderation in growth, many of these businesses remain well-positioned for potential long-term gains,” Leung said.
Investors drawn to US tech theme
The ETF provider revealed in September that it had surpassed $8 billion in assets under management, only five months after announcing it had grown to $7 billion in size.
In conversation with InvestorDaily at the time, Global X head of sales Manny Damianakis cited FANG as one of the company’s standout funds.
“Obviously our FANG ETF has been one of the main, probably the largest, products in terms of net flows this year,” Damianakis said.
“That’s just a popular way to access the bigger cap US tech stocks. So, investors have done really well there.
“That theme of big tech growth stocks, that’s definitely been where a lot of our local investors are looking to.”
Global X has since launched a currency version of the product – the Global X FANG+ (Currency Hedged) ETF (ASX: FHNG) – offering Australian investors exposure to companies at the forefront of “next-generation” technology with minimised exchange rate risk.
Commenting on the launch at the time, former chief executive Evan Metcalf similarly described FHNG as a “core building block” for growth-oriented portfolios, highlighting its unconstrained approach that incorporates next-generation technology companies across various segments and sectors.
“The Australian dollar has softened considerably over the past two years, and given this fluctuation, our clients are seeking to include AUD-hedged products in their portfolios,” Metcalf said.
“Given FANG is entirely exposed to the USD, FHNG presents a strategic way to achieve this minimised currency risk, while still offering a high growth opportunity.”
