The S&P/ASX 200 Index (ASX: XJO) has had a solid, if not spectacular, year so far in 2023. Since January, the ASX 200 has risen by 3.3%. Nothing to shoot the lights out, but a decent return nonetheless.
So that's why it's so startling to see an ASX exchange-traded fund (ETF) record a year-to-date gain of 80% on the markets today.
Yes, the Global X FANG+ ETF (ASX: FANG) started the year with a unit price of $10.70. But today, those same units are asking $19.15 each at the time of writing. That is indeed a gain of around 79%:
In fact, just this morning, this ETF hit another new all-time high of $19.21 per unit.
If you're wondering how an ASX ETF can record a gain that is so excessive of the broader ASX 200, I wouldn't blame you. But this is the case because the Global X FANG ETF doesn't track any ASX shares whatsoever.
This ETF is a rather unique one on the ASX. It is a highly concentrated fund that only gives investors exposure to 10 companies. These 10 companies are all tech giants that are listed in the United States of America.
ASX FANG ETF shoots the 2023 lights out
You may have heard the term 'FANG' before. It is an acronym that refers to the US tech giants 'Facebook, Apple, Netflix and Google. Since the term was coined, Facebook has changed its name to Meta Platforms, and Google has become Alphabet. But the FANG moniker has stuck. I suppose it rolls off the tongue better than 'MANA'.
So unsurprisingly, the FANG ETF holds all four of these companies. It also includes Tesla, Microsoft, Amazon.com, NVIDIA, Snowflake and Advanced Micro Devices (AMD) – the '+' in FANG+. These are effectively the biggest names in the US tech space. So this ETF is a very sector-specific, concentrated fund.
A bet on this fund has certainly paid off for ASX investors this year so far.
Looking at the performance of its underlying holdings, it's easy to see why.
Take Apple stock. It's currently up almost 53% in 2023 so far. Microsoft has gained just over 41%
Meta is up a whopping 136%, while Amazon has gained just under 52%. Earlier this week, we looked at Tesla's eye-watering gains this year too, which now stand at 161%.
Snowflake shares have put on just over 27%, and AMD stock is up 78%. But it's Nvidia's returns that really shine. This semiconductor share has gained a jaw-dropping 195.6% since January.
So considering these truly massive returns from every single share in this ETF's portfolio, it's no real surprise to see the fund itself record such a healthy gain. It will be interesting to see how the rest of 2023 treats this star-studded ASX ETF.
The Global X FANG+ ETF charges a management fee of 0.35% per annum.