SHARE THIS NEWS
Close
Font Size
  • AbcSmall
  • AbcNormal
  • AbcLarge
Close
News

As FAANG stocks outperform Indian stocks, here’s how to ride the tech wave

As FAANG stocks outperform Indian stocks, here’s how to ride the tech waveGetty Images

FAANG: Riding the FAANG wave: A guide for Indian investors to tap into tech giants' growth in 2025.

Synopsis
FAANG: In 2024, FAANG stocks (Meta, Apple, Amazon, Netflix, Alphabet) saw strong growth, driven by innovation in AI, cloud, and emerging tech sectors. Indian investors can gain exposure through direct investments, ETFs, and leveraged products like the Mirae Asset NYSE FANG+ ETF. Despite risks, FAANG stocks remain attractive for 2025, with diversification key for a balanced portfolio.
By Viram ShahFollow us whatsapp icon
ET CONTRIBUTORS
SHARE THIS NEWS
Close
Font Size
  • AbcSmall
  • AbcNormal
  • AbcLarge
Close
The best-performing fund in India in 2024 wasn’t one with exposure to Indian stocks. In fact, it was the Mirae Asset NYSE FANG+ ETF Fund of Fund (FoF), which delivered an astonishing 88% return for the year, earning the top spot among mutual funds. This remarkable performance was driven primarily by the impressive growth of FAANG stocks—Meta, Apple, Amazon, Netflix, and Google.
Tired of too many ads? Remove Ads

However, in response to SEBI's recent directive, Mirae Asset has paused new investments into this fund, leaving many investors wondering how they can continue benefiting from the ongoing FAANG rally. So, what’s next? How can investors keep capturing the momentum of these tech giants?

The Continued Appeal of FAANG Stocks

When you think of global tech innovation, FAANG stocks are often the first to come to mind. These companies have consistently led the charge in shaping the digital and tech landscape. Despite market fluctuations, FAANG stocks have shown resilience, strong growth, and an uncanny ability to adapt to new trends. Here’s a quick snapshot of their recent performance:

Meta (formerly Facebook): In 2024, Meta’s stock surged by an impressive 72%. The company’s investments in artificial intelligence (AI) and the metaverse via its Reality Labs division have paid off, boosting investor confidence and positioning Meta as a leading player in the future of tech.

Apple: Apple’s stock rose by 36% in 2024, buoyed by the successful launch of the iPhone 15 and its expansion into emerging markets. With a market cap nearing $4 trillion and innovations like the M4 chip in MacBook Airs, Apple shows no signs of slowing down.
Tired of too many ads? Remove Ads

Amazon: Amazon’s 48% stock surge in 2024 highlights its continued dominance in e-commerce and cloud computing. The company’s AI-driven services and expansion into international markets have solidified its position as a tech powerhouse.

Netflix: With a 92% jump in stock value in 2024, Netflix continues to thrive, largely due to its ad-supported subscription model and rising active users. The company’s moves into live sports and gaming content are expected to fuel further growth in 2025.

Alphabet: As the parent company of Google, Alphabet continues to lead in digital advertising and AI. Its Google Cloud division has expanded significantly, and its AI advancements keep it at the forefront of the tech sector.

These companies are not just household names; they are integral to the digital infrastructure that powers global economies. As long as they remain leaders in their respective fields, FAANG stocks are likely to continue attracting investor attention.

Leveraging FAANG Stocks: Insights for Indian Investors in 2025

The Mirae Asset NYSE FANG+ ETF Fund of Fund (FoF) gained popularity by offering Indian investors exposure to the NYSE FANG+ Index, which tracks 10 major technology and consumer companies, including the FAANG stocks. The fund’s concentrated exposure to these global tech giants, along with the depreciation of the rupee, contributed significantly to its exceptional performance in 2024.

What is the FANG+? Index?

The NYSE? FANG+? Index includes 10 of the most influential technology and media companies, and it is equally weighted to prevent any single company from having too much influence. This structure provides balanced exposure, making it an attractive investment vehicle for those looking to tap into the future of technology.

unnamedETMarkets.com

Here are the components of the FANG+? Index (as of January 14, 2025):

-NVIDIA: 10.50%
-Meta: 10.35%
Tired of too many ads? Remove Ads
-Alphabet: 10.30%
-Broadcom: 10.24%
-Amazon: 10.06%
-Crowdstrike: 9.94%
-ServiceNow: 9.73%
-Microsoft: 9.69%
-Apple: 9.60%
-Netflix: 9.60%

This index offers a diverse selection of companies that are at the forefront of the tech revolution, making it a compelling choice for investors.

How Indians Can Invest in FAANG Stocks
Investing in FAANG stocks directly can be a bit tricky for Indian investors since these companies are listed on US stock exchanges. However, there are several ways to gain exposure to these stocks:

1. Direct Investment in US Stocks
Indian investors can directly purchase shares of FAANG companies listed on the NYSE and Nasdaq. This can be done through platforms like Vested, which facilitate international stock trading for Indian residents.

2. ETFs and Mutual Funds with Global Exposure
As demonstrated by Mirae Asset’s NYSE FANG+ ETF FoF, Indian investors can gain exposure to FAANG stocks through ETFs or mutual funds that track global tech stocks. These funds typically track indices like the NYSE FANG+ Index, offering an easy way to access FAANG stocks without needing to buy individual shares. The tracking error in US ETFs tracking these indices is also much lower compared to Indian FoFs investing in US ETFs.

While traditional ETFs offer exposure to the FANG+? Index, leveraged ETFs take things up a notch by amplifying returns (and risks). These ETFs use derivatives to multiply the returns of the underlying index by a set multiple, usually 2x or 3x. Leveraged ETFs are designed for experienced investors who are comfortable with higher volatility and the potential for greater rewards—or losses.

Here are some prominent leveraged ETFs that track the FANG+? Index:
- Direxion Daily NYSE FANG+ Bull 2X Shares (FNGU)
AUM: $6.60B
Expense Ratio: 0.95%
1-Year Return: 50.10%

What it is:
FNGU is a 2x leveraged ETF designed to double the performance of the FANG+? Index. If the index increases by 1%, FNGU aims for a 2% return. This product is ideal for traders looking to take advantage of short-term movements in the tech sector.

- MicroSectors FANG+? Index 3X Leveraged ETN (FNGO)
AUM: $417.18M
Expense Ratio: 0.95%
1-Year Return: 36.04%

What it is:

FNGO offers 3x leveraged exposure to the FANG+? Index, aiming to triple the index's daily performance. It is suited for those with a strong risk appetite who want to capitalize on high volatility.

- Direxion Daily NYSE FANG+ Bull 2X Shares (FNGG)
AUM: $62.17M
Expense Ratio: 0.98%
1-Year Return: 33.72%

What it is:
FNGG is another 2x leveraged ETF that tracks the FANG+? Index. It’s a smaller fund but still a powerful way to gain amplified exposure to the index.

- MicroSectors FANG+? Index 2X Leveraged ETN (FNGS)
AUM: $403.06M
Expense Ratio: 0.58%
1-Year Return: 17.70%

What it is:
FNGS offers 2x leverage but at a lower expense ratio, providing investors with a more cost-effective way to gain exposure to the FANG+? Index.

- MicroSectors FANG+? Index -3X Inverse Leveraged ETN (FNGD)
AUM: $82.29M
Expense Ratio: 0.95%
1-Year Return: -41.61%

What it is:
FNGD is an inverse leveraged product that gives you the opposite performance of the FANG+? Index. If the index falls, FNGD rises by three times that amount.

Other ETFs for FAANG Exposure

In addition to the leveraged ETFs specifically designed for the FANG+? Index, there are also other ETFs that provide exposure to FAANG stocks and the broader tech sector. These ETFs are more suitable for investors seeking diversified exposure to the tech sector without the amplified risk of leveraged products.

Here are some notable ETFs for Indian investors looking to gain exposure to FAANG stocks:

- MicroSectors FANG+? Index 3X Leveraged ETN (FNGU)
1-Year Return: A staggering 132.89%
3-Year CAGR: 17.80%
5-Year CAGR: 48.13%

What it is:
FNGU provides triple leveraged exposure to the FANG+? Index. It’s perfect for investors seeking high-reward potential but should be approached with caution due to its leveraged nature.

- Granite Shares 2x Long META Daily ETF (FBL)
1-Year Return: 101.06%

What it is:

Focused exclusively on Meta, this ETF offers twice the daily performance of Meta's stock. While it offers high growth potential, investors should be mindful of the concentration risk involved.

- ProShares UltraPro QQQ (TQQQ)
1-Year Return: 52.60%
5-Year CAGR: 26.54%

What it is:
TQQQ offers 3x leveraged exposure to the Nasdaq-100 Index, which includes many tech leaders like Amazon, Apple, and Microsoft. It’s a popular choice for investors looking for diversified tech exposure with higher risk.

- ProShares Ultra QQQ (QLD)
1-Year Return: 39.36%
5-Year CAGR: 26.48%

What it is:
Offering 2x leverage on the Nasdaq-100, QLD is a slightly less aggressive alternative to TQQQ, making it more suitable for investors who want high exposure to the tech sector but with slightly lower volatility.

- First Trust Cloud Computing ETF (SKYY)
1-Year Return: 35.53%
5-Year CAGR: 13.33%

What it is:
SKYY focuses on cloud computing companies such as Amazon, Microsoft, and Alphabet, making it an excellent choice for investors seeking exposure to the growing cloud sector.

- iShares Expanded Tech Sector ETF (IGM)
1-Year Return: 34.10%
5-Year CAGR: 19.41%

What it is:
IGM provides exposure to the broader tech sector, including FAANG stocks and other major tech leaders. It’s ideal for investors looking to diversify within the tech space.

If you're looking to invest in FAANG stocks or ETFs tracking the FANG+? Index, buying them directly through a US broker can help reduce tracking error and lower the expense ratio compared to investing through Indian mutual funds. With SEBI restricting fresh inflows into certain international mutual funds, direct investments provide a more efficient way to gain exposure to global tech without the added costs of intermediaries.

Key Takeaways

Investing in FAANG-focused ETFs provides a straightforward way to ride the tech wave. However, these investments come with varying levels of risk depending on their leverage and focus. Leveraged ETFs like FNGU and TQQQ can deliver extraordinary returns, but they also amplify losses during downturns. More diversified options like SKYY and IGM offer steadier growth, though they may lag during bull markets.

Diversification is Crucial

While FAANG stocks and related ETFs are attractive for their growth potential, they should be part of a diversified portfolio. Over-concentration in tech stocks can expose investors to heightened risks, particularly during market corrections. Diversifying across sectors, geographies, and asset classes can help mitigate these risks and ensure sustainable portfolio growth.

In conclusion, FAANG stocks and their corresponding ETFs remain a compelling investment avenue for 2025. By understanding the nuances of these funds and aligning them with your risk tolerance and financial goals, you can make the most of this ongoing growth story.

(Viram Shah is Founder & CEO of Vested Finance)



(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
Continue Reading

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

More

print edition
print edition title
Tuesday, 18 March, 2025
  • Digital View
  • Print View
  • Wealth Edition

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Sign in & Access ET Prime
universo-virtual.com
buytrendz.net
thisforall.net
benchpressgains.com
qthzb.com
mindhunter9.com
dwjqp1.com
secure-signup.net
ahaayy.com
soxtry.com
tressesindia.com
puresybian.com
krpano-chs.com
cre8workshop.com
hdkino.org
peixun021.com
qz786.com
utahperformingartscenter.org
maw-pr.com
zaaksen.com
ypxsptbfd7.com
worldqrmconference.com
shangyuwh.com
eejssdfsdfdfjsd.com
playminecraftfreeonline.com
trekvietnamtour.com
your-business-articles.com
essaywritingservice10.com
hindusamaaj.com
joggingvideo.com
wandercoups.com
onlinenewsofindia.com
worldgraphic-team.com
bnsrz.com
wormblaster.net
tongchengchuyange0004.com
internetknowing.com
breachurch.com
peachesnginburlesque.com
dataarchitectoo.com
clientfunnelformula.com
30pps.com
cherylroll.com
ks2252.com
webmanicura.com
osostore.com
softsmob.com
sofietsshotel.com
facetorch.com
nylawyerreview.com
apapromotions.com
shareparelli.com
goeaglepointe.com
thegreenmanpubphuket.com
karotorossian.com
publicsensor.com
taiwandefence.com
epcsur.com
odskc.com
inzziln.info
leaiiln.info
cq-oa.com
dqtianshun.com
southstills.com
tvtv98.com
thewellington-hotel.com
bccaipiao.com
colectoresindustrialesgs.com
shenanddcg.com
capriartfilmfestival.com
replicabreitlingsale.com
thaiamarinnewtoncorner.com
gkmcww.com
mbnkbj.com
andrewbrennandesign.com
cod54.com
luobinzhang.com
bartoysdirect.com
taquerialoscompadresdc.com
aaoodln.info
amcckln.info
drvrnln.info
dwabmln.info
fcsjoln.info
hlonxln.info
kcmeiln.info
kplrrln.info
fatcatoons.com
91guoys.com
signupforfreehosting.com
faithfirst.net
zjyc28.com
tongchengjinyeyouyue0004.com
nhuan6.com
oldgardensflowers.com
lightupthefloor.com
bahamamamas-stjohns.com
ly2818.com
905onthebay.com
fonemenu.com
notanothermovie.com
ukrainehighclassescort.com
meincmagazine.com
av-5858.com
yallerdawg.com
donkeythemovie.com
corporatehospitalitygroup.com
boboyy88.com
miteinander-lernen.com
dannayconsulting.com
officialtomsshoesoutletstore.com
forsale-amoxil-amoxicillin.net
generictadalafil-canada.net
guitarlessonseastlondon.com
lesliesrestaurants.com
mattyno9.com
nri-homeloans.com
rtgvisas-qatar.com
salbutamolventolinonline.net
sportsinjuries.info
topsedu.xyz
xmxm7.com
x332.xyz
sportstrainingblog.com
autopartspares.com
readguy.net
soniasegreto.com
bobbygdavis.com
wedsna.com
rgkntk.com
bkkmarketplace.com
zxqcwx.com
breakupprogram.com
boxcardc.com
unblockyoutubeindonesia.com
fabulousbookmark.com
beat-the.com
guatemala-sailfishing-vacations-charters.com
magie-marketing.com
kingstonliteracy.com
guitaraffinity.com
eurelookinggoodapparel.com
howtolosecheekfat.net
marioncma.org
oliviadavismusic.com
shantelcampbellrealestate.com
shopleborn13.com
topindiafree.com
v-visitors.net
qazwsxedcokmijn.com
parabis.net
terriesandelin.com
luxuryhomme.com
studyexpanse.com
ronoom.com
djjky.com
053hh.com
originbluei.com
baucishotel.com
33kkn.com
intrinsiqresearch.com
mariaescort-kiev.com
mymaguk.com
sponsored4u.com
crimsonclass.com
bataillenavale.com
searchtile.com
ze-stribrnych-struh.com
zenithalhype.com
modalpkv.com
bouisset-lafforgue.com
useupload.com
37r.net
autoankauf-muenster.com
bantinbongda.net
bilgius.com
brabustermagazine.com
indigrow.org
miicrosofts.net
mysmiletravel.com
selinasims.com
spellcubesapp.com
usa-faction.com
snn01.com
hope-kelley.com
bancodeprofissionais.com
zjccp99.com
liturgycreator.com
weedsmj.com
majorelenco.com
colcollect.com
androidnews-jp.com
hypoallergenicdogsnames.com
dailyupdatez.com
foodphotographyreviews.com
cricutcom-setup.com
chprowebdesign.com
katyrealty-kanepa.com
tasramar.com
bilgipinari.org
four-am.com
indiarepublicday.com
inquick-enbooks.com
iracmpi.com
kakaschoenen.com
lsm99flash.com
nana1255.com
ngen-niagara.com
technwzs.com
virtualonlinecasino1345.com
wallpapertop.net
nova-click.com
abeautifulcrazylife.com
diggmobile.com
denochemexicana.com
eventhalfkg.com
medcon-taiwan.com
life-himawari.com
myriamshomes.com
nightmarevue.com
allstarsru.com
bestofthebuckeyestate.com
bestofthefirststate.com
bestwireless7.com
declarationintermittent.com
findhereall.com
jingyou888.com
lsm99deal.com
lsm99galaxy.com
moozatech.com
nuagh.com
patliyo.com
philomenamagikz.net
rckouba.net
saturnunipessoallda.com
tallahasseefrolics.com
thematurehardcore.net
totalenvironment-inthatquietearth.com
velislavakaymakanova.com
vermontenergetic.com
sizam-design.com
kakakpintar.com
begorgeouslady.com
1800birks4u.com
2wheelstogo.com
6strip4you.com
bigdata-world.net
emailandco.net
gacapal.com
jharpost.com
krishnaastro.com
lsm99credit.com
mascalzonicampani.com
sitemapxml.org
thecityslums.net
topagh.com
flairnetwebdesign.com
bangkaeair.com
beneventocoupon.com
noternet.org
oqtive.com
smilebrightrx.com
decollage-etiquette.com
1millionbestdownloads.com
7658.info
bidbass.com
devlopworldtech.com
digitalmarketingrajkot.com
fluginfo.net
naqlafshk.com
passion-decouverte.com
playsirius.com
spacceleratorintl.com
stikyballs.com
top10way.com
yokidsyogurt.com
zszyhl.com
16firthcrescent.com
abogadolaboralistamd.com
apk2wap.com
aromacremeria.com
banparacard.com
bosmanraws.com
businessproviderblog.com
caltonosa.com
calvaryrevivalchurch.org
chastenedsoulwithabrokenheart.com
cheminotsgardcevennes.com
cooksspot.com
cqxzpt.com
deesywig.com
deltacartoonmaps.com
despixelsetdeshommes.com
duocoracaobrasileiro.com
fareshopbd.com
goodpainspills.com
kobisitecdn.com
makaigoods.com
mgs1454.com
piccadillyresidences.com
radiolaondafresca.com
rubendorf.com
searchengineimprov.com
sellmyhrvahome.com
shugahouseessentials.com
sonihullquad.com
subtractkilos.com
valeriekelmansky.com
vipasdigitalmarketing.com
voolivrerj.com
zeelonggroup.com
1015southrockhill.com
10x10b.com
111-online-casinos.com
191cb.com
3665arpentunitd.com
aitesonics.com
bag-shokunin.com
brightotech.com
communication-digitale-services.com
covoakland.org
dariaprimapack.com
freefortniteaccountss.com
gatebizglobal.com
global1entertainmentnews.com
greatytene.com
hiroshiwakita.com
iktodaypk.com
jahatsakong.com
meadowbrookgolfgroup.com
newsbharati.net
platinumstudiosdesign.com
slotxogamesplay.com
strikestaruk.com
trucosdefortnite.com
ufabetrune.com
weddedtowhitmore.com
12940brycecanyonunitb.com
1311dietrichoaks.com
2monarchtraceunit303.com
601legendhill.com
850elaine.com
adieusolasomade.com
andora-ke.com
bestslotxogames.com
cannagomcallen.com
endlesslyhot.com
iestpjva.com
ouqprint.com
pwmaplefest.com
qtylmr.com
rb88betting.com
buscadogues.com
1007macfm.com
born-wild.com
growthinvests.com
promocode-casino.com
proyectogalgoargentina.com
wbthompson-art.com
whitemountainwheels.com
7thavehvl.com
developmethis.com
funkydogbowties.com
travelodgegrandjunction.com
gao-town.com
globalmarketsuite.com
blogshippo.com
hdbka.com
proboards67.com
outletonline-michaelkors.com
kalkis-research.com
thuthuatit.net
buckcash.com
hollistercanada.com
docterror.com
asadart.com
vmayke.org
erwincomputers.com
dirimart.org
okkii.com
loteriasdecehegin.com
mountanalog.com
healingtaobritain.com
ttxmonitor.com
bamthemes.com
nwordpress.com
11bolabonanza.com
avgo.top