Technology has started to play an even bigger role in our daily lives as we venture into a new normal.  The recent pandemic have thought us that we can remain connected with each other despite being apart as social distancing takes priority in the quest of human survival. 

 

Remaining Connected

The rapid spread of the Covid-19 pandemic virus had led to economies putting in place lockdown measures to safeguard their citizens. Being confined at home have led many (if not most) to turn toward technology to remain connected.

Companies have increased the usage of virtual meeting rooms to conduct business, on top of staying connected with their employees. After office hours, these virtual meeting rooms have also been used by many for social gatherings. The increasing demand saw companies like Google, and Facebook putting in place platforms to cater to users’ needs through Google Meet, and Messenger Room respectively.  

With the global video conferencing market expected to be worth an estimated USD 6.3 billion by 2026, providers are in a race to grab market share, and users have been enjoying the competitive market as providers push out additional services to attract users.  

 

All Work and No Play Makes Life Boring..

And entertainment has definitely been an avenue that has done well during the lockdown period as well. Netflix Inc saw its subscriber base double in 1Q2020 as people confined to their homes turn to streaming platforms for entertainment.

Similarly, Apple Inc also saw exponential growth for its streaming services, as well as sales on its online store. Additionally, services by Apple saw a 17% jump in growth as the lockdown measure spurred users’ spending on the App Sore, which included both Apple Music, and Arcade.

 

No Tech Companies Were Left Behind

Electric car maker, Tesla Inc, has also been hogging the headlines as the eccentric actions of its founder, Elon Musk, continue to create buzz. Nevertheless, the increased capacity from its Shanghai Gigafactory, along with the spike in sales demand had pushed the company’s stock price to above USD1,000 per share this week – a fresh record high. Analysts have remained optimistic over the outlook for the company, believing that it will continue to receive the support of China’s retail market.

 

Performance

The tech sector has remained resilient – as gauged by the NYSE FANG+ Index which has returned an impressive 36.8% on a YTD basis in MYR terms as at 9 June.  While performance may have slowed in recent weeks on the back of the return of risk appetite by investors which pushed prices of the broader equity markets, tech remains resilient.  Its YTD performance remains well ahead of the of other major indices, and is already close to the total returns it saw for the full 2019.

The NYSE FANG+ Index tracks the performance of 10 major tech giants listed on the US stock exchange – namely Facebook, Apple, Amazon, Netflix, Google, Alibaba, Baidu, Nvidia, Tesla, and Twitter.  Besides the China-based Alibaba, and Baidu, all components within the Index have recorded double digit YTD returns, whilst Tesla has seen its share price leap 135.0% higher.

 

Performance Table: Major Indices as at 9 June 2020

 

Performance Table: NYSE FANG+ Index Component Stocks as at 9 June 2020

 

How to gain effective exposure efficiently

  • TradePlus by Affin Hwang Asset Management offers investors an avenue to gain access to the NYSE FANG+ Index through 2 of its ETFs; the TradePlus NYSE FANG+ Daily (2x) Leveraged Tracker, and the TradePlus NYSE FANG+ Daily (-1x) Inverse Tracker
  • For the optimist: 
    • The TradePlus NYSE FANG+ Daily (2x) Leveraged Tracker (Bursa stock code: 0830EA) aims to provide 2X the daily returns of the NYSE FANG+ Index.
    • In this instance, if the Index rises by 2%, the ETF would then see its NAV rise by approximately 4%. 
    • Conversely, if the Index drops by 2%, the ETF would then see its NAV drop by approximately 4%.
  • For the pessimist:
    • The TradePlus NYSE FANG+ Daily (-1x) Inverse Tracker (Bursa stock code 0831EA) aims to provide -1X the daily returns of the NYSE FANG+ Index.
    • In this instance, if the Index drops by 2%, the ETF would then see its NAV rise by approximately 2%. 
    • Conversely, if the Index rises by 2%, the ETF would then see its NAV drop by approximately 2%.
  • The ETF provides investors easy access to gain exposure into the NYSE FANG+ underlying names, and an opportunity to partake in the performance irrespective whether you hold an optimistic view, or a pessimistic view on the market.
  • Trading on Bursa:
    • The 0830EA’s NAV was at RM5.5411. Traded at a minimum board lot size of 100 units, you will be able to gain exposure with less than RM600.
    • The 0831EA’s NAV was at RM2.4688. Traded at a minimum board lot size of 100 units, you will be able to gain exposure with less than RM300. 
  • Easily tradeable on the Bursa Main Market at a minimum board lot size of 100 units, you can invest into these ETFs during Malaysian trading hours, and in Malaysian Ringgit through your preferred security broker.
  • Trading of the ETF enables you to gain access to a wider number of companies at a fraction of its cost given the high trading price of the individual companies.

 

Learn more about TradePlus ETFs

www.tradeplus.com.my
www.facebook.com/TradePlusbyAffinHwangAM
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+(60) 12 250 8002
TradePlus ETF

 


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Warning Statement: A copy of the Master Prospectus for the TradePlus NYSE® FANG+ Daily (2x) Leveraged Tracker and TradePlus NYSE® FANG+ Daily (-1x) Inverse Tracker (collectively known as the “TradePlus L&I ETFs”) can be obtained at Affin Hwang Asset Management's (“Affin Hwang AM”) website at www.tradeplus.com.my. Investors are advised to read and understand the contents of the Master Prospectus dated 26 November 2019 (for the TradePlus L&I ETFs) before investing. There are fees and charges involved when investing in the funds stated herein. Investors are advised to consider and compare the fees and charges as well of the risks carefully before investing. Investors should make their own assessment of the risks involved in investing and should seek professional advice, where necessary. The price of units and distribution payable, if any, may go down as well as up and past performance of the funds should not be taken as indicative of their future performance. The Securities Commission Malaysia has not reviewed this material and takes no responsibility for the contents of this material and expressly disclaims all liability, however arising from this material.

Licensing Disclosure Statement & Conditions: Source ICE Data Indices, LLC (“ICE Data”), is used with permission. “NYSE® FANG+™” is a service/trade mark of ICE Data Indices, LLC or its affiliates and has been licensed, along with the NYSE® FANG+™ Daily 2X Leveraged Index and NYSE® FANG+™ Daily 1x Inverse Index (“Indices”) for use by Affin Hwang Asset Management Berhad in connection with the TradePlus NYSE® FANG+™ Daily (2x) Leveraged Tracker and the TradePlus NYSE® FANG+™ Daily (-1x) Inverse Tracker (the “Product”). Neither Affin Hwang Asset Management Berhad nor the Product, as applicable, is sponsored, endorsed, sold or promoted by ICE Data Indices, LLC, its affiliates or its Third Party Suppliers (“ICE Data and its Suppliers”). ICE Data and its Suppliers make no representations or warranties regarding the advisability of investing in securities generally, in the Product particularly, or the ability of the Index to track general stock market performance. ICE Data’s only relationship to Affin Hwang Asset Management Berhad (“Licensee”) is the licensing of certain trademarks and trade names and the Index or components thereof. The Index is determined, composed and calculated by ICE Data without regard to the Licensee or the Product or its holders. ICE Data has no obligation to take the needs of the Licensee or the holder of the Product into consideration in determining, composing or calculating the Index. ICE Data is not responsible for and has not participated in the determination of the timing of, prices of, or quantities of the Product to be issued or in the determination or calculation of the equation by which the Product is to be priced, sold, purchased, or redeemed. Except for certain custom index calculation services, all information provided by ICE Data is general in nature and not tailored to the needs of Licensee or any other person, entity or group of persons. ICE Data has no obligation or liability in connection with the administration, marketing, or trading of the Product. ICE Data is not an investment advisor. Inclusion of a security within an index is not a recommendation by ICE Data to buy, sell, or hold such security, nor is it considered to be investment advice. 

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