Everything you need to know about the Mirae Asset NYSE FANG+ ETF

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%.

Index constituents

Company Weight (in %)
Baidu 14.4
Twitter 12.1
Alphabet 11
Facebook 8.6
Amazon 8.9
Alibaba 8.3
Netflix 9.4
NVIDIA 9.3
Apple 9.1
Tesla 9.1

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.

Sector representation

Sector Weight (in %)
Interactive Media & Services 46.1
Internet & Direct Marketing Retail 17.1
Entertainment 9.4
Semiconductors & Semiconductor Equipment 9.3
Technology Hardware, Storage & Peripherals 9.1
Automobiles 9.1

GICS industry classification

Performance

Risk

This chart of historical drawdowns (falls from peak to trough) should give you an idea.

image

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

ETF: 0.33%
FOF: 0.50% for the direct plan including the underlying ETF.

Why invest internationally?

Indian markets always don’t go up.

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.


MSCI ACWI ETF - SPDR ETF

How to invest.

The NFO of the ETF will be available for subscription here when it opens:

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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!!

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@Bhuvan
What about the NFO of FOF, will that be on Coin? And will that be allowed as collateral at Zerodha?

Yes, here: coin.zerodha.com/nfo

Depends on whether the clearing corps accept it. But I doubt it.

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@Bhuvan can you please explain about the charges/costs associated with this ETF on redemption or purchases?

I didn’t get it clearly in the document.

No costs during the NFO. But once the ETF is listed, delivery based ETF trades are free.

Whats the difference between ETF and FoF, what should I consider if I plan to invest in this scheme?

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.

Hope this helps you in taking your decision.

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What is the expense ratio for this MF?

ETF: 0.33%
FOF: 0.50% for the direct plan including the underlying ETF.

How much would be the fee? So like when I buy or sell how will it work?

Typo, I meant free. No brokerage for delivery based ETF trades

How to invest in the ETF directly through zerodha?
Tried searching for the Mirae FANG+ ETF but couldn’t find it.

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The Mirae FANG+cETF is yet to be listed on the stock exchanges. The NFO of the ETF will close on April 30th and the NFO of the FOF will close on May 3rd. So, not before that.

It’s still in its NFO period. You can apply here: https://coin.zerodha.com/etf-sgb

@Bhuvan, the offer document says "…Offer for Sale of Units at 1/10,000th value of the NYSE FANG+ closing Index…

Can we know what could be the value of each ETF unit from this?

Index value/10000 adjusted for INR.

Thanks.

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?

Yep.