The Global X Fang+ ETF (ASX: FANG) is 3.65% lower at $35.90 apiece on Friday.
FANG+ is an unusual ASX exchange-traded fund (ETF) in that it provides highly concentrated exposure to just a few companies.
The FANG ETF invests in just 10 US shares. It tracks the performance of the NYSE FANG+ Index, run by ICE Data Indices.
Six stocks are from the Magnificent Seven: Apple, Amazon, Nvidia, Meta Platforms, Microsoft, and Alphabet.
The other stocks are video streaming provider Netflix, semiconductor and infrastructure software company Broadcom, cybersecurity business CrowdStrike, and enterprise IT services management firm ServiceNow.
There is a 62% allocation to the tech sector, a 28% allocation to communications services, and a 10% allocation to the consumer discretionary sector.
Here is how FANG+ ETF distributes its investment funds across the 10 individual US shares.
Image source: Getty Images
FANG+ ETF's composition
| Share | Percentage |
| Alphabet | 11.7% |
| Crowdstrike | 11.7% |
| Apple | 11.2% |
| Nvidia | 10.9% |
| Broadcom | 10.2% |
| Amazon | 9.6% |
| Microsoft | 9.5% |
| Netflix | 8.9% |
| Servicenow | 8.6% |
| Meta Platforms | 7.6% |
ICE Data Indices launched the NYSE FANG+ Index in 2017.
The aim was to provide "exposure to a select group of highly-traded growth stocks of tech-enabled companies".
Global X launched the ASX Fang+ ETF in February 2020.
Since inception, this ASX ETF's total returns have averaged 31.95% per annum.
So, how does this translate for a $10,000 investment in the FANG ETF three years ago?
What is a $10,000 investment in FANG ETF now worth?
On 21 November 2022, the FANG ETF closed at $11.26 apiece.
If you had invested $10,000 in FANG then, it would have bought you 888 units (for $9,998.88).
There's been a capital gain of $24.64 per unit since then, which equates to $21,880 of capital growth.
Therefore, your portfolio is now worth $31,879.
What about dividends?
FANG usually pays two distributions (dividends) per annum.
Over the past three years, the FANG ETF has paid a total of 390.17 cents per unit in distributions, providing you with $3,464 of income.
Total returns…
Your capital gain of $21,880 plus your income of $3,464 gives you a total return in dollar terms of $25,344 over the past three years.
Now remember, you invested $9,998.88 buying your 888 units on 22 November 2022.
This means you have received a total return, in percentage terms, of 253%.
The FANG ETF has more than $1 billion in funds under management and charges a 0.35% annual fee.
