More than 2,000 NYSE FANG+ Index Futures contracts were traded in the first week on ICE.
Intercontinental Exchange (ICE) successfully launched the NYSE FANG+ Index futures contract on ICE Futures US(R) on 8 November, 2017, with over 2,000 contracts traded in the first week.
NYSE FANG+ Index futures were designed to offer hedging and exposure to a select group of highly-traded growth stocks of tech-enabled companies. The NYSE FANG+ Index contract is a cash settled quarterly futures contract based on the NYSE FANG+ Index, and offers the capital efficiency of futures.
“We’re pleased with the initial interest we’ve seen in this contract and are excited to be bringing more participation into the futures market,” says Trabue Bland (pictured), President of ICE Futures US. “This contract offers a cost-effective means of gaining or reducing exposure to a key basket of technology companies, and, by leveraging our product development, index solutions and global feeds, complements our equity index futures complex, and offers an innovative way to manage exposure to the equity markets.”
The NYSE FANG+ Index is equally weighted and includes the five core FANG stocks – Facebook, Apple, Amazon, Netflix and Google (Alphabet) – plus another five actively-traded technology growth stocks – Alibaba, Baidu, NVIDIA, Tesla and Twitter. It is calculated and disseminated through the ICE Data Global Index Feed under the symbol “NYFANG.”
Based on back-tested performance data, the combination of stocks in the NYSE FANG+ Index have returned a 29.1 per cent annualised total return from 19 September, 2014 to 14 November, 2017, as compared to 15.9 per cent for the NASDAQ-100, 10.5 per cent for the S&P 500 and 19.1 per cent for the S&P 500 Information Technology Index.
