Mirae Asset is launching the Mirae Asset NYSE FANG+ ETF and the 1. Mirae Asset NYSE FANG+ fund of fund (FOF) that will track the NYSE FANG+ ETF index. The NFO of the ETF will close on April 30th and the NFO of the FOF will close on May 3rd.
About the index
The NYSE FANG+ index is an equal-weighted index that consists of 10 stocks across technology, media & communications and consumer discretionary sectors. The weight of each stock is set at 10%.
Weight (in %)
Data as of March
Note: The weight of each stock is set at 10% on the date of rebalancing. But the weights will differ as stock prices move up and down. The index is rebalanced quarterly and the weights are reset.
This chart of historical drawdowns (falls from peak to trough) should give you an idea.
This index doesn’t yet have extensive historical data. The inception year is 2014, so it’s premature to make assumptions. Though if you look at how the index performed during the COVID crash it held up well because the FANG+ stocks performed phenomenally. This means, in a scenario where tech underperforms, the index and Mirae Asset NYSE FANG+ ETF will do terribly like Dec 18.
Moreover, this is a concentrated index, so when things are good, you’ll see good returns. But when things are bad, this index will in all probabilities fall more than broad-market indices like the S&P 500, Russel 2000 etc.
Expense ratio of Mirae Asset NYSE FANG+ ETF and FOF
FOF: 0.50% for the direct plan including the underlying ETF.
India is a tiny part of the global market cap. The tendency to invest 100% in our home markets is called home-country bias. The case for international diversification is - access to innovative companies, emerging economies and as a hedge against domestic troubles.
Yeah…Nowadays every other fund house is coming with its NFO. They were sleeping for the past 5 years when people were desperate to invest in US markets. Now when the US market has shown vertical rally they want people to invest ‘Internationally’. Right!!
ETF will be listed on stock exchange and traded. You need demat account to invest in it.
FOF will be fund which will invest in the listed ETF. Acts like a normal MF.
ETF expenses will be slightly low compared to FOF and you can buy or sell it anytime during market hours. Liquidity might vary and availability of buyer/ seller might be problem some time.
FOF can be bought / redeemed through AMC only, and you will get day end / next day NAV.
Index today is around 6878 points. And USD is around 75 rupees.
If this ETF were listed in exchanges today, then would it be right to say that the Mirae FANG+ ETF would probably be trading on NSE at about price of approximately 51.85 rupees? Is it a right interpretation?