Trade the FAANGs index

Take a position on FAANG stocks with City Index for exposure to some of the modern giants of commerce.

  • Ten equally weighted stocks
  • Margins as low as 10%
  • Go long or short
  • Spreads from 6 pts

Take a position on the key tech stocks

Major tech stocks have performed extremely well in recent years. Looking to the future, as the impact of the pandemic continues to wane, this trend could be set to continue.

Our FAANGs index features 10 stocks from the upper echelons of the Nasdaq 100 (traded as the US Tech 100). Alongside the traditional FAANG constituents – Meta (previously Facebook) Apple, Amazon, Netflix, and Google – it also features other major tech stocks like Tesla and Intel.

The aim is to capture the total return performance of the top 10 traded companies listed on the Nasdaq stock exchange. It’s a great index to trade if you have strong views on the direction of travel for the biggest tech stocks that shape consumer habits with their innovations.

Quick facts

Top 10 NASDAQ stocks equally weighted, and revised quarterly on the third Friday of every March, June, September and December after market close.

Number of constituents:
1
Market hours:
1.3 –06.00 AEST
Spread:
20 pts

Is the clock ticking on tech?

As with all stocks, balancing fundamental considerations is important when assessing whether big tech is headed upwards or downwards. In 2021, a seismic demand for tech and lockdown disruption led to a global shortage of semiconductor chips, with demand outstripping supply in hardware from iPhones to PCs.

The threat of inflationary pressures looms in 2022, not to mention the regulatory and reputational issues that can dominate headlines and impact price. Nonetheless, a return to supply chain functionality, a potential end to Covid, and a surge of innovative products have the potential to spark another sustained bull run.

Make sure you never miss the latest market-moving news by reading our expert analysts’ latest research.

How to trade the FAANGs

If you think big tech has become overvalued and is headed for a widespread market correction, then you could sell or short the FAANGs index.

If, on the other hand, you see tech continuing to be an intrinsic aspect of consumers’ lives, with the companies at the top remaining dominant, then you may want to buy or go long on FAANGs.

Remember, as with all our other trading instruments, our FAANGs charts are easily accessible on any device, and come with technical indicators and drawing tools as standard.