- (1:00) - Why Are The FANG Stocks So Captivating To Investors?
- (3:45) - Should Nvidia Replace Netflix?
- (5:25) - Will Alibaba Join The FANG Stocks?
- (7:15) - Rocky Trading: Is There A Bubble?
- (10:30) - Advisor Shares New Tech And Media ETF: FNG
- (14:00) - Stock Holdings and Sector Breakdown
- (19:00) - Technical Analysis Requirement of FNG
- (23:30) - Episode Roundup: Podcast@Zacks.com
If there is a group of companies that defines the current tech boom, it is certainly the ‘FANG’ members. These stocks, which include Facebook (FB - Free Report) , Amazon (AMZN - Free Report) , Netflix (NFLX - Free Report) , and Google/Alphabet (GOOGL - Free Report) , have not only been all-star performers, but they are revolutionizing our lives as well.
No wonder the quartet has captivated the interest of investors from across the spectrum, and why so much of the finance world has been centered on these four as of late. But with solid price moves in many of these over the past few years, and then the recent struggles of some members in the group, more than a few investors are wondering if the best days are behind the FANGs, and if others might be poised to take their place.
To get to the bottom of this important topic—as well as what makes the FANGs so special in the first place—I spoke with Scott Freeze, the CIO at Sabretooth Advisors, for more information in this week’s edition of the Dutram Report. Scott’s firm is responsible for a recently-launched ETF that tracks this space, the New Tech and Media ETF (FNG - Free Report) , so he is well-versed in the ins and outs of this corner of the market.
FANGs in Focus
To kick off the podcast, Scott and I discuss how these four seemingly different companies got lumped together, and what makes them so unique as well. We go over the basics of the Big Four, but we also discuss one that Scott believes should be in this group too; Alibaba (BABA - Free Report) . Scott believes in more of a FAANG group, and he lets us know why we can’t overlook this Chinese giant for tech exposure.
We also go over what has been happening to this group of stocks as of late, and discuss the recent ‘bubble’ talk too. Scott and I also talk about some historical parallels for this important group of companies, and how being a ‘FANG stock’ is more about a company’s focus and impact than anything else.
But of course, with an ETF like FNG, you are holding more than just a handful of companies. The fund actually has about two dozen players in the basket, so how does the team at Sabretooth decide on the rest of the securities?
First off, it is important to note that the investment team uses an actively-managed approach since this is a quick moving space where winners in one look could fall by the wayside in the next. The focus is generally on companies that are adaptable to rapid change, those that are driving economic growth, and those that are tapping into the newest technological advances as well. The idea is to find not only the FANGs, but ‘FANG-like’ companies that might be flying under the radar, but are still great investment candidates nonetheless.
This can include Chinese giants like Tencent, but also payment companies like Square, and semiconductor names like Skyworks Solutions. It is also worth noting that there are some technical analysis requirements too. Scott and I go over the main focus of FNG, and why they decided to include the technical side of the equation on top of the other parameters.
But make sure to check out the podcast for your guide to FANG stocks, Scott’s favorites in this market, and additional information about what is going on in the tech and media world as well!
But what do you think about FANG stocks right now? Do you have a favorite of the group? Make sure to write us in at podcast @ zacks.com or find me on Twitter @EricDutram to give us your thoughts on this, or anything else in the fund market.
But for more news and discussion regarding the world of investing, make sure to be on the lookout for the next edition of the Dutram Report (each and every Thursday!) and check out the many other great Zacks podcasts as well!
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