The Global X Fang+ ETF (ASX: FANG) is 0.71% higher on Tuesday at $32.43 apiece.
This ASX exchange-traded fund (ETF) is a bit different to the norm because it tracks only a small number of companies.
The FANG ETF has exposure to just 10 US shares via its tracking of the NYSE FANG+ Index, run by ICE Data Indices.
Six of them are the Magnificent Seven stocks: Apple, Amazon, Nvidia, Meta Platforms, Microsoft, and Alphabet.
Tesla shares are excluded, and you can read about why several ETFs are excluding Tesla for investment these days here.
The other US stocks in the ETF are cybersecurity business Crowdstrike, video streaming provider Netflix, semiconductor and infrastructure software company Broadcom, and enterprise IT services management firm ServiceNow Inc.
ICE Data Indices launched the NYSE FANG+ Index in 2017 to provide "exposure to a select group of highly-traded growth stocks of tech-enabled companies".
ETF provider Global X launched its ASX Fang+ ETF in 2020.
Since inception, the ETF's total returns have averaged 30.82% per annum.
No wonder it's popular with ASX investors.
So, how has the FANG ETF performed over the past 12 months?
If you had invested $10,000 in FANG ETF a year ago…
On 27 May last year, the FANG ETF closed at $25.94 apiece.
If you had put $10,000 into FANG then, it would have bought you 385 units (for $9,986.90).
There's been a capital gain of $6.49 per unit since then, which equates to $2,498.65 of capital growth.
Thus your portfolio is now worth $12,485.55.
In terms of dividends (called 'distributions' with ETFs), FANG usually pays two distributions per annum.
However, GlobalX decided not to pay a final dividend last year.
Therefore, the FANG ETF has only paid one distribution since your purchase on 27 May 2024.
Investors received 141.9 cents per unit on 16 July last year.
That totals $546.32 in annual income.
Total returns…
Your capital gain of $2,498.65 plus your $546.32 dividend gives you a total return in dollar terms of $3,044.97 over the past 12 months.
Now remember, you invested $9,986.90 buying your 385 units on 27 May.
This means you have received a total return, in percentage terms, of 30.49%.
That's right on trend with the ETF's 5-year average — and with only one dividend, too!
Before you buy this ASX ETF…
If you're interested in investing in the FANG ETF, be mindful that with only 10 stocks involved, there's some concentration risk.
This may be an advantage or disadvantage, depending on your risk tolerance.
The FANG ETF has a management expense ratio (MER) of 0.35%.
