So for some, the FNG ticker is misleading.
“Tickers matter and this would probably lead any normal person to believe it holds Facebook. F is the first letter,” Bloomberg Intelligence analyst Eric Balchunas said. “What if Facebook surged 20 percent, and you bought this, and realized it didn’t hold Facebook? You’d likely get pretty upset about it.”
Better Off?
Longer term, deviations like this have hurt more than helped. FNG has returned about 4.6 percent in the past year, significantly lower than both the NYSE FANG Index’s 44 percent rally, and Facebook’s 5.9 percent climb.
Another test is coming soon. As of today, the ETF has a chunky 7 percent weight in Amazon shares, making the e-commerce giant its second-largest holding. With the company reporting earnings after the market close today, FNG’s portfolio manager Freeze wouldn’t reveal exactly how that Amazon exposure may be fine-tuned today.
But he did say, “I wholly expect a huge beat and for Amazon to be trading at $2,000 per share tomorrow morning.”
You do the math.
This article was provided by Bloomberg News.