However, in response to Sebi’s recent directive, Mirae Asset has suspended new investments in the fund, questioning how many investors can continue to benefit from the ongoing Faang Rally. I think so. So, what’s next? How can investors continue to capture the momentum of these tech giants?
Continued appeal of fan stocks
When you think of global innovation, fan stocks are the first thing that comes to mind. These companies have consistently led rates in shaping digital and high-tech environments. Despite market fluctuations, Fan stocks show resilience, strong growth and a creepy ability to adapt to new trends. Here is a quick snapshot of their recent performance:
Meta (formerly Facebook): In 2024, Meta stocks surged at an impressive 72%. The investment in artificial intelligence (AI) and its real-world lab division paid off, boosting investors’ confidence, and Meta promoted positioning as a key player in the future of technology.
apple: Apple’s stock rose 36% in 2024, supported by the successful launch of the iPhone 15 and its expansion into emerging markets. Market capitalisation is nearing $4 trillion, with innovations like the MacBook Airs’ M4 chip showing no signs of slowing down.
Amazon: Amazon’s 48% stock rise in 2024 highlights the continued dominance in e-commerce and cloud computing. The company’s AI-driven services and expansion into international markets have solidified its position as a high-tech powerhouse.Netflix: With a 92% stock price jumping in 2024, Netflix continues to thrive, primarily due to an ad-supported subscription model and rising active users. The company’s move to live sports and gaming content is expected to drive further growth in 2025.alphabet: As Google’s parent company, Alphabet continues to lead digital advertising and AI. The Google Cloud Division has grown significantly, and advances in AI keep it at the forefront of the high-tech sector.
These companies are more than just famous. They are essential to the digital infrastructure that will strengthen the global economy. As long as they continue to be leaders in their respective fields, fan stocks could continue to attract investors’ attention.
Utilizing Faang Stocks: Indian Investor Insights in 2025
The Mirae Asset NYSE Fang+ ETF Fund of Fund (FOF) has gained popularity by providing exposure to the NYSE Fang+ Index to Indian investors. The fund’s intensive exposure to these global tech giants, along with depreciation of the rupee, has contributed significantly to exceptional performance in 2024.
What is a Fang+™ index?
The NYSE®Fang+™ index includes the 10 most influential technology and media companies, and is similarly weighted to ensure that a single company does not have too much influence. Masu. This structure provides a balanced exposure and is an attractive investment vehicle for those looking to capitalize on the future of technology.
The components of the Fang+™ index are as follows (as of January 14, 2025):
-nvidia: 10.50%
-meta: 10.35%
– Alphabet: 10.30%
-broadcom: 10.24%
-Amazon: 10.06%
-Crowdstrike: 9.94%
-ServiceNow: 9.73%
-Microsoft: 9.69%
– App: 9.60%
-netflix: 9.60%
The index offers a diverse selection of companies at the forefront of the high-tech revolution, making it a compelling option for investors.
How Indians invest in fan stocks
Investing directly into fan stocks can be a bit difficult for Indian investors as these companies are listed on US stock exchanges. However, there are several ways to be exposed to these strains.
1. Direct investment in US stocks
Indian investors can purchase stocks directly in Faang companies listed in the NYSE and NASDAQ. This can be done through platforms such as Vested, which promotes international stock trading among Indian residents.
2. ETFs and mutual funds with global exposure
As demonstrated by Mirae Asset’s NYSE Fang+ ETF FOF, Indian investors could be exposed to Faang stocks through ETFs or mutual funds tracking technology stocks around the world. These funds usually track indexes like the NYSE Fang+ Index, providing an easy way to access Faang stocks without the need to buy individual stocks. Tracking errors in US ETFs tracking these indexes are much lower than in India FOFs investing in US ETFs.
While traditional ETFs provide exposure to the Fang+™ index, leveraged ETFs notch things by amplifying returns (and risk). These ETFs use derivatives to multiply the returns of the underlying index by a set multiple of 2x or 3x. The leveraged ETFs are designed for experienced investors who are more volatile and satisfied with the potential for greater rewards or losses.
Below are some notable leveraged ETFs that track Fang+™ indexes:
-Direxion Daily Nyse Fang+ Bull 2x Shares (FNGU)
AUM: $66 billion
Expense ratio: 0.95%
1 year return: 50.10%
What is it:
FNGU is a double leveraged ETF designed to double the performance of Fang+™ indexes. If the index increases by 1%, FNGU aims for a 2% return. This product is perfect for traders looking to take advantage of the short-term movements of the high-tech sector.
-Microsectors Fang+™ Index 3X Leverage ETN (FNGO)
AUM: $417.18M
Expense ratio: 0.95%
1 year return: 36.04%
What is it:
FNGO offers 3x leveraged exposure to Fang+™ indexes, aimed at tripling the daily performance of your index. Suitable for people with a strong risk appetite that wants to take advantage of high volatility.
-Direxion Daily Nyse Fang+ Bull 2x Strains (FNGG)
AUM: $62.17M
Expense ratio: 0.98%
1 year return: 33.72%
What is it:
FNGG is an even twice as leveraged ETF that tracks Fang+™ indexes. It’s a small fund, but a powerful way to gain amplified exposure to the index.
-Microsectors Fang+™ Index 2x Leverage eTN (FNGS)
AUM: $403.06m
Expense ratio: 0.58%
1 year return: 17.70%
What is it:
FNGS offers double leverage, but at a lower cost ratio it offers investors a more cost-effective way to gain exposure to the Fang+™ index.
-Microsectors Fang+™ Index-3x Inverse Leveraged ETN (FNGD)
AUM: $82.29m
Expense ratio: 0.95%
1 year return: -41.61%
What is it:
FNGD is an inverse leveraged product that offers the opposite performance of the Fang+™ index. When the index drops, FNGD increases by 3 times that amount.
Other ETFs for fan exposure
In addition to leveraged ETFs designed specifically for the Fang+™ index, there are also other ETFs that offer exposure to Faang stock and the broader technology sector. These ETFs are more suitable for investors looking for diverse exposure to the high-tech sector without risk of amplifying the utilised products.
Here are some notable ETFs for Indian investors who are aiming to get exposed to fan stocks:
-Microsectors Fang+™ Index 3x Leverage eTN (FNGU)
1 year return: Amazing 132.89%
3-year CAGR: 17.80%
5-year CAGR: 48.13%
What is it:
FNGU provides triple leverage exposure to Fang+™ indexes. It is ideal for investors looking for high paying possibilities, but it must be approached with caution due to the utilised nature.
– Granite shares double length meta daily ETF (FBL)
1 year return: 101.06%
What is it:
Focusing solely on Meta, this ETF offers twice the performance of Meta’s stock. It offers high growth potential, but investors should be aware of the concentration risks involved.
-ProShares Ultrapro QQQ (TQQQ)
1 year return: 52.60%
5-year CAGR: 26.54%
What is it:
TQQQ offers triple-per-owned exposure to the NASDAQ-100 index, including many technology leaders such as Amazon, Apple, and Microsoft. This is a popular option for investors looking for a variety of high-risk technology exposures.
-ProShares Ultra QQQ (QLD)
1 year return: 39.36%
5-year CAGR: 26.48%
What is it:
Offering double leverage on the NASDAQ-100, QLD is a slightly less aggressive alternative to TQQQ, and is more suitable for investors who want high exposure to the high tech sector but have slightly lower volatility .
– First Trusted Cloud Computing ETF (Skyy)
1 year return: 35.53%
5-year CAGR: 13.33%
What is it:
Skyy focuses on cloud computing companies such as Amazon, Microsoft, and Alphabet, making it ideal for investors looking for exposure to the growing crowdsector.
-ishares Extended High Tech Sector ETF (IGM)
1 year return: 34.10%
5-year CAGR: 19.41%
What is it:
IGM offers exposure to a wider range of high-tech sectors, including Faang stocks and other leading technology leaders. It is ideal for investors looking to diversify within the technology sector.
If you want to invest in Faang stocks or ETFs that track FANG+™ indexes, buying directly through a US broker will help you reduce tracking errors and lower cost ratios compared to investments through Indian mutual funds. With SEBI limiting new inflows to certain international mutual funds, direct investment offers a more efficient way to gain exposure to global technology without the additional cost of intermediaries.
Key takeout
Investing in fan-centric ETFs offers an easy way to ride the wave of technology. However, these investments come with varying levels of risk depending on leverage and focus. Leveraged ETFs such as FNGU and TQQQ can provide exceptional returns, but also amplify losses during recession. More diverse options, such as Skyy and IGM, may be lagging behind in the bull market, but offer more stable growth.
Diversification is extremely important
Although Faang stocks and associated ETFs are attractive for growth potential, they must be part of a diverse portfolio. Overenriching of high-tech inventory allows investors to increase risk, especially during market corrections. Diversifying across sectors, regions, and asset classes can help mitigate these risks and ensure sustainable portfolio growth.
In conclusion, Faang stocks and their corresponding ETFs remain attractive investment vehicles for 2025. Understand the nuances of these funds and make the most of this ongoing growth narrative, tailoring risk tolerance and financial goals.
(Viram Shah is Founder and CEO of Vested Finance.)
