FANG Stocks
What Are FANG Stocks?
FANG is an acronym that describes the four most popular tech stocks whose parent companies have come to dominate our lives and the market: Facebook, Amazon, Netflix, and Google (now called Alphabet).
The four stocks all trade on the NASDAQ, where more than 3,300 corporations list their shares. They are also in the S&P 500, a list of the 500 largest publicly traded corporations.
Why Are FANG Stocks so Popular?
The FANG stock grouping represents a barometer of the investment health of the tech sector heavyweights.
Because of their relatively large market cap or value and because tech is seen as a cutting-edge sector for economic growth, the FANG stocks have an outsized influence on the NASDAQ index and the S&P 500, and are seen as an indicator of the health of the stock market and the economy. And, their products are widely used and popular, so more people are familiar with the companies.
Difference Between FAANG, FANG, and FAAMG
Is There a FANG ETF?
Lots of exchange-traded funds (ETFs) offer exposure to some or all of the FANG stocks, but there is just one specific FANG ETF: the AdvisorShares New Tech and Media ETF.
It is actively managed and its holdings expand beyond Facebook, Amazon, Netflix and Alphabet’s Google. The ETF holds just over 25 stocks and can also be said to be a FAANG and FAAMG ETF because it holds shares of Apple and Microsoft.
Where Did the FANG Acronym Come From?
CNBC's "Mad Money" host Jim Cramer coined the acronym FANG in 2013 to collectively refer to the four high-growth internet stocks Facebook, Amazon, Netflix, and Alphabet’s Google.
How to Invest in FANG Stocks
Just like any other stock you’d like to purchase, you may purchase one or all of the FANG stocks through a brokerage or dealer platform. (Click here for the best online broker rates.) Online investment tools allow you to purchase fractional shares of each with a very low minimum purchase. To ensure exposure to all the FANG stocks, you may also invest in a FANG ETF.
