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.
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.
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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. 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. Sebastian Bowen owns shares of Facebook, Magellan Flagship Fund Ltd, and National Australia Bank Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, and Netflix. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has the following options: short January 2020 $155 calls on Apple, long January 2020 $150 calls on Apple, short January 2020 $155 calls on Apple, and long January 2020 $150 calls on Apple. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, and Netflix. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.