There are six stocks that everyone in the world should know. From the first-day investor to the most experienced institutional investors, many people will end up owning some of these stocks at one point. They are the FAMANG stocks: Facebook, Amazon, Microsoft, Apple, Netflix, and Google (Alphabet). You may see other variations of this group on the internet, such as FANG, FAANG, and FAAMG.
Why is this big news?
While all six companies are some of the most well-known and respected companies in the world, very few people will ever own all of them. The biggest reason for this is how much they cost. For example, one share of Amazon costs about US$3,300. The other stocks all trade from about US$180 to US$500. So, while a lot of investors would eventually like to own these stocks, the ones that do manage to buy them can often only buy them later on.
Fortunately, Canadians can now buy all six of these stocks via a new ETF from Evolve ETFs. The company’s Evolve FANGMA Index ETF (TSX:TECH) was released last week at a very affordable price of $10. This is the first ETF of its kind, as no other active ETF currently holds only these six stocks. The fund is split fairly evenly between the six stocks. Its largest holding is Facebook, accounting for 17.63% of the total portfolio as of this writing. Meanwhile, its smallest holding is Netflix at 15.45%.
It’s important to note that this fund is also Canadian dollar hedged. This means investors will also not be subjected to the volatility of the exchange rate. In other words, the value of this fund will only go up or down based on the performance of its holdings. This can be very attractive to a wide range of investors as the FAMANG group has managed to put up returns of 475% (Apple), 473% (Netflix), 394% (Microsoft), 364% (Amazon), 224% (Alphabet), and 166% (Facebook), respectively, over the past five years.
Who are Evolve ETFs?
Evolve ETFs is a fairly new ETF provider, first launching in September 2017. Since then, it has grown to manage more than $1.6 billion in assets. Through its suite of ETFs, investors are exposed to long-term investment themes, index-based income strategies, and the world’s leading investment managers. Currently, Evolve ETFs offers eight disruptive technology ETFs, five equity income funds, and four fixed income portfolios.
In 2021, the company released its Bitcoin ETF and Ethereum ETF, taking advantage of the current bullishness of the cryptocurrency market. The company’s E-Gaming Index ETF has been one of its most popular funds, featuring market favourites such as Sea Limited, Activision Blizzard, Nintendo, Electronic Arts, and Roblox.
Evolve ETFs released its FANGMA Index ETF. This is the first active ETF to offer a portfolio tracking only the top six American big tech companies. Since Canadians aren’t allowed to invest in fractional shares, like investors are able to do in the U.S., this is an opportunity to own the entire group of market leaders.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of Apple, Microsoft, and Sea Limited. David Gardner owns shares of Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, and Netflix. Tom Gardner owns shares of Alphabet (A shares), Alphabet (C shares), Facebook, and Netflix. The Motley Fool owns shares of and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Microsoft, Netflix, and Sea Limited. The Motley Fool recommends Electronic Arts and Nintendo and recommends the following options: long January 2022 $1920 calls on Amazon, short March 2023 $130 calls on Apple, short January 2022 $1940 calls on Amazon, and long March 2023 $120 calls on Apple.