Amid this tech sell-off, is this the right time to buy Global X Fang+ ETF?

Should investors now be looking at this ETF to invest in?

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Key points

  • The Global X Fang+ ETF offers exposure to top US tech firms but has seen minimal decline amid recent tech stock drops.
  • Despite a 5.5% decline this month, the ETF remains up over 20% for the year, making it less of a bargain compared to other options.
  • While Global X FANG+ ETF includes strong AI and tech firms, greater value may lie in ASX shares like Xero, TechnologyOne, and REA Group, which have fallen more significantly.

The Global X Fang+ ETF (ASX: FANG) is considered one of the most effective ways to gain exposure to US tech giants. But, it has recently been a rough period for technology stocks. This is a good time to consider whether the exchange-traded fund (ETF) is a buy.

As a reminder, there are a total of ten businesses inside the portfolio. While they are all listed in the US, they are among the best technology businesses in the world, with significant international earnings (not just US-based profits).

There's been a huge increase of interest in AI, of both its usage and investment in it. But, after a period of share price excitement, many of these shares have recently weakened. For example, the Oracle share price has dropped by around 30% (at the time of writing) since 16 October 2025.

Let's consider whether the Global X Fang+ ETF is actually appealing today or not.

Tech-focused fund

The ETF owns great businesses including Crowdstrike, Alphabet, Apple, Nvidia, Amazon.com, Microsoft, Broadcom, Netflix, ServiceNow and Meta Platforms.

I'd view these businesses as some of the strongest in the world, with exceptional products and services, very strong competitive advantages, impressive balance sheets and a pleasing outlook.

Some of the Global X Fang+ ETF businesses are directly or indirectly key players in the AI industry, so it's not surprising that some of them have seen declines in recent times.

But, this fund hasn't actually declined very much. At the time of writing, it's only down by 5.5% this month to date. Other businesses in the tech space have declined much further.

Is this a good time to invest in Global X Fang+ ETF?

I always think it's a good idea to own high-quality businesses for the long-term.

But, the Global X Fang+ ETF really hasn't declined that far at this stage. It's still up more than 20% for the year. So, I wouldn't call it an opportunistic time to buy.

Instead, I'd think about two different aspects of the decision.

First, are these businesses good to own? These companies are largely at the leading edge of next-generation technology such as cloud computing, video gaming, automated driving, social media, online video, cybersecurity, smartphones, online shopping, online search and so on.

I believe this group of businesses are likely to continue growing earnings for years to come, even with the significant investments into AI and other technology-related areas.

While this group of businesses isn't significantly cheaper, a 5.5% decline can still be seen as an appealing reduction.

Second, we should think about opportunity cost. In other words, are there better opportunities out there that have fallen much further.

Some of the ASX's best ASX growth shares have fallen much further than the Global X Fang+ ETF, such as Xero Ltd (ASX: XRO), TechnologyOne Ltd (ASX: TNE) and REA Group Ltd (ASX: REA) have all dropped more than 20% in the last few weeks/months. For now, I'd be looking at the ASX shares as even better beaten-up opportunities because of the scale of the decline.

I'd be happy to buy a few units of Global X Fang+ ETF, but there are better buys around, in my view.

Motley Fool contributor Tristan Harrison has positions in Technology One. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, CrowdStrike, Meta Platforms, Microsoft, Netflix, Nvidia, ServiceNow, Technology One, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, CrowdStrike, Meta Platforms, Microsoft, Netflix, Nvidia, ServiceNow, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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