Technology and you

Having a smartphone in hand, or being connected to the internet has never been more relevant than in the era we live in today.  The release of the latest smartphone, or the unveiling of the newest online retail platform has taken over the lustre of opening ceremonies of brick and mortar stores. Tech advancement have led to the mushrooming of companies, especially start-ups, looking to ease your routine life with online services, or mobile applications. 

 

These online applications, gadgets, and websites has weaved itself to become part of your everyday life, even if you don’t feel it. Imagine going through one day without looking for something using the Google search engine? Or checking your messages on your Apple iPhone? How about keeping up with what your friends and family were up to during the festive holidays on Facebook?  Especially with the recent Christmas festivities, only shopping platforms such as Amazon, and Alibaba has even made it more convenient to shop for your loved ones and having these items shipped directly to them.

 

It really has done well

Usage of technology has become so engrained in our lives that can now be considered a necessity. The NYSE FANG+ Index has gained 41.7% this year, up till 26 December.  Prices of stocks such as Apple, and Tesla have reached record high – with Apple recording a YTD gain of 83.8%, while Tesla rose 73.6% this quarter alone. Let’s take a look at how the individual names have performed this far.

Source: Bloomberg. Returns are based on total returns (in MYR terms) of the respective names up till 26 December 2019. 

 

Why just contribute, when you can also benefit?

But why stay a user when you can also be part of the growth story of these companies... growth that you had contributed to.  The NYSE FANG+ Index tracks the exposure of some of the largest tech-related names in the world.  The Index comprises 10 names with equal weight into each – a snapshot of which is provided below. 

No.

Company Name

Company Overview

Last Traded Price

1

Facebook Inc

Social media and networking platform
Owns Instagram, & Whatsapp
2018 revenue: USD 55.8 bil

USD 
207.79

2

Amazon Inc

World’s largest online market place
Focuses on e-commerce, with exposure to cloud computing, digital streaming, and artificial intelligence
Recently announced record breaking holiday sales
2018 revenue: USD 232.9 bil

USD
1,868.77

3

Apple Inc

Tech company – with launches such as the iPhone, Mac computers, Apple Watch, Apple TV, iPad, and iPod.
Sold USD6 bil of air pods in 2019 alone
2018 revenue: USD 265.6 bil

USD 
289.91

4

Netflix Inc

Media service provider, and production company
Has more than 148 million subscribers worldwide
2018 revenue: USD 15.8 bil

USD 
332.63

5

Google by 
Alphabet Inc

Focused on providing internet-related services including online advertising, search engine, and cloud computing
Google is the most visited website in the world
2018 revenue: USD 66.0 bil

USD

1,362.47

6

Nvidia Inc

Manufacturer of semiconductors
Expecting rise in demand for graphic cards as gaming segment recovers from cryptocurrency bust
2018 revenue: USD 11.7 bil

USD 
239.19

7

Tesla Inc

Electric car manufacturer
Already have pre-orders of 250,000 for its Cybertruck
Will ramp up production in their new China factory to meet soaring demand
2018 revenue: USD 21.5 bil

USD 
430.94

8

Twitter Inc

Social networking platform
Recorded 330 mil active users in the 1st quarter of 2019
An est. 134 mil users use the app daily
2018 revenue: USD 3.0 bil

USD 
32.63

9

Baidu Inc

Internet service provider – owns the largest search engine in China
Has recently partnered Samsung for AI chips
2018 revenue: USD 14.6 bil

USD 
127.58

10

Alibaba Group Holdings

Specialises in e-commerce, retail, internet, and technology
Recorded USD 38 bil in sales during the 2019 singles’ day sale – outpaces US’ Black Friday sale
2019 revenue: USD 56.1 bil (as at May 2019)

USD 
216.38

Source: Yahoo Finance. All prices are quoted in USD, based on the closing price of 26 December 2019. 

 

How to own a piece of the pie?

These FANG+ stocks are traded in the US market so you would need to watch over the stock market at night when the US market opens for trading.  Additionally, it is traded in US Dollars, and are priced relatively higher than the conventional names you see on the local stock exchange. Based on the closing price of the 26th of December, you would need to fork out USD 5,108 to purchase 1 unit of each of the 10 names. That’s more than MYR 20,000!

 

But fret not! Through an exchange-traded fund (ETF), you can gain access to a basket of all 10 stocks at a fraction of the price.  Readily available on Bursa’s main market, you can now trade these tech giants through the TradePlus NYSE FANG+ Daily (2x) Leveraged Tracker (stock code 0830EA), and TradePlus NYSE FANG+ Daily (-1x) Inverse Tracker (stock code 0831EA). The ETFs NAV as at 26th of December was MYR 4.6702, and MYR 3.6617 per unit respectively. 

 

These ETFs provide you an option to either gain approximately 2X the exposure into the performance of these FANG+ stocks, or the inverse performance of the FANG+ stocks.  All you would need to do is have access to a local brokerage firm, meet the requirements needed to trade Leveraged, and Inverse ETFs, and you’re on your way to own a piece of the FANG+ pie.

 

Interested?

Read more about our TradePlus NYSE FANG+ Leveraged and Inverse ETF series from our website at www.tradeplus.com.my. Alternatively, we can easily be reached via:

 

www.facebook.com/TradePlusbyAffinHwangAM

#tradeplusaham

customercare@affinhwangam.com

+6012 250 8002

+6012 250 8002

 

 


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