Although FAANG might be an acronym only investors are familiar with, the reality is that Facebook, Inc. (NASDASQ: FB), Apple Inc. (NASDASQ: AAPL), Amazon.com Inc. (NASDASQ: AMZN), Netflix (NASDAQ: NFLX) and Google, aka Alphabet Inc. (NASDAQ: GOOG)(NASDAQ: GOOGL) would play a role in the daily lives of most Australians.
Everyone would also probably guess that these companies have been doing pretty well for their shareholders over the past decade, but as they are listed over on the US stock exchanges, many Aussies probably rule them out as investments. But maybe you shouldn't. These 5 US companies dominate our daily lives, so why not consider them for your portfolio?
In our modern times, major broking platforms like Commonwealth Bank of Australia (ASX: CBA)'s Commsec or National Australia Bank Ltd (ASX: NAB)'s NABtrade now offer the ability to buy US shares directly (for a fee, of course).
But if that's not your flavour, then there are some alternatives out there on the ASX
Probably the most comprehensive is the BetaShares Nasdaq 100 ETF (ASX: NDQ). This exchange traded fund (ETF) tracks the top 100 companies over on the US-based Nasdaq exchange. Its current top five holdings are Microsoft (11.5%), Apple (10.8%), Amazon (9.3%), Facebook (4.7%) and Alphabet (4.7%) (Netflix [1.4%] is there as well at number 14).
You are of course getting a lot of other companies like Starbucks, Monster Beverage and eBay, but the FAANGs make up the lion's share of this ETF.
Listed investment companies (LICs) and trusts (LITs) are also an area you can explore if you're after the FAANGs.
Magellan Global Trust (ASX: MGG) is one, with current (as of 30 August) exposure to Alphabet, Apple and Facebook. MGG is run by Magellan Financial Group Ltd (ASX: MFG) and attempts to pick the highest performing stocks in the world.
Another option is MFF Capital Investments Ltd (ASX: MFF), an LIC that has stakes in Alphabet and Facebook.
Foolish takeaway
I personally think at least considering an investment in some of the FAANGs would be a wise move, considering how much they all dominate their respective industries. As mentioned above, times have changed and there are now plenty of avenues to explore if you want to add any of these high-profile US tech giants to your portfolio.
