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%.
|Company||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.
|Sector||Weight (in %)|
|Interactive Media & Services||46.1|
|Internet & Direct Marketing Retail||17.1|
|Semiconductors & Semiconductor Equipment||9.3|
|Technology Hardware, Storage & Peripherals||9.1|
GICS industry classification
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.
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: