What does the FANG ETF do for a diversified portfolio?
The ETFS FANG ETF provides investors with exposure to the performance of the 10 most highly-traded next generation technology and tech-enabled companies listed on US stock markets. FANG adopts an equal weight strategy, meaning that it weights the shares within the portfolio equally – this differs from the more commonly used method of weighting by market capitalisation.
The FANG ETF could be used by investors to get exposure to the 10 most highly-traded (and likely most popular) growth stocks in the world. This provides Australian investors with the opportunity to access the world’s leading technology and tech-enabled companiess in a single trade.
How big is the Global X FANG ETF?
The Global X FANG ETF had $225.02 million of money invested when we last pulled the monthly numbers. Given FANG’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
FANG ETF fees reviewed
Global X charges investors a yearly management fee of 0.35% for the FANG ETF. This means that if you invested $2,000 in FANG for a full year, you could expect to pay management fees of around $7.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Next steps
Even if you like what you see, before diving straight into buying the FANG ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our Global X FANG report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
