Intercontinental Exchange (ICE) has launched the NYSE FANG+ Index, an index that provides exposure to a select group of highly-traded growth stocks of next generation technology and tech-enabled companies. On 8 November, 2017, ICE Futures US plans to launch a quarterly futures contract based on the new Index, subject to regulatory review.
The NYSE FANG+ Index is equal-weighted and will initially consist of the five core FANG stocks, including Facebook, Apple, Amazon, Netflix and Alphabet’s Google, plus another five actively-traded technology growth stocks – Alibaba, Baidu, NVIDIA, Tesla and Twitter. Starting today, the real-time NYSE FANG+ Index will be calculated and disseminated through the NYSE Global Index Feed under the symbol “NYFANG.”
The launch of the futures contract on ICE Futures US is designed to offer hedging of and exposure to the NYSE FANG+ Index with the capital efficiency of futures, and will complement the exchange’s equity index futures complex.
“Given their size, performance and innovation, the FANG stocks are among the most widely traded stocks and we’re pleased to offer a capital efficient means of accessing and hedging these growth stocks in a cost-effective way,” says Trabue Bland (pictured), President of ICE Futures US. “We are leveraging our product development, index solutions and global feeds to develop, distribute and trade this new index future.”
Based on back-tested performance data, the combination of stocks in the NYSE FANG+ Index have returned a 28.44 per cent annualised total return from 19 September, 2014 to 15 September, 2017, as compared to 14.89 per cent for the NASDAQ-100, 9.86 per cent for the S&P 500 and 16.80 per cent for the S&P 500 Information Technology Index.
