- Date : 09/03/2022
- Read: 4 mins
FAANG (Facebook, Amazon, Apple, Netflix, and Google) stocks generate consistent revenue for their investors.
Some companies hold a special place in investors’ hearts because of the consistent returns they produce. There are stocks in different sectors that perform just like this, and FAANG stocks are the ones from the technology sector.
This article will focus on what FAANG stocks and ETFs are, and we will also cover how you can invest in FAANG companies. Let’s begin by knowing about FAANG stocks and ETFs.
What Are FAANG stocks and ETFs?
FAANG is a combined name given to Facebook, Amazon, Apple, Netflix, and Google. These are the best technology stocks on the New York Stock Exchange, and they represent the most advanced technology companies in the current era. Although these companies have been listed on the stock exchange at different times, many people collectively refer to them as FAANG stocks. If you like to diversify your portfolio throughout the tech sector, these stocks are considered the best option to generate consistent returns.
Also Read: Are Tech Stocks A Good Investment Option
What Are ETFs?
Exchange-Traded Funds, better known as ETFs, are a type of investment funds that are traded on the stock exchanges. These funds are similar to mutual funds, but ETFs can be sold and purchased during trading hours and they are more actively managed than mutual funds.
What Are FOFs?
Funds of Funds are a type of investment option where normal people invest in a fund, and the fund manager invests those funds into another fund. This investment option is less risky, and the returns are based on the performance of the funds where your fund manager invests the money.
Having known about the FAANG stocks, let’s explore the investment options in these stocks.
List Of FAANG ETFs
Invesco QQQ Trust
Assets under management $173,280 MM, with an asset class of equity. This ETF invests in the top companies in NYSE, including FAANG.
SPDR Portfolio S&P 500 Growth
Asset under management $14.2 Billion. This ETF tracks and invests in the S&P 500 growth index, and the ETF invests heavily in Apple, Amazon, and Microsoft.
Vanguard S&P 500 Growth ETF
Vanguard S&P 500 growth ETF is the best choice if you like to invest with the best. This ETF tracks the S&P index and allocates a large sum from its Asset Under Management to FAANG stocks.
Also Read: Best ETFs In India
Knowing about the investment options, you’d be excited to start investing today. So, understand how to invest in FAANG stocks and ETFs in the upcoming section.
How To Invest In FAANG Stocks & ETFs?
There are three ways to invest in FAANG stocks and ETFs. So let’s explore them.
1.Open A US Demat Account
The best way to invest in FAANG stocks on your own is to open a DEMAT account in the US. Doing this will open doors for all the companies you want to invest in in the US. Moreover, the RBI allows you to transfer up to $250,000 every year to the US, so for an average person, it is like there's no cap on the investments they can make because $250,000 is a considerable amount for any Indian working professional.
2.Invest In Indian Mutual Funds That Track US Markets
Currently, there is a huge demand for funds that track and invest in US markets, so you'll find plenty of options. Another way to invest your money in FAANG stocks is by choosing an Indian mutual fund that tracks us markets and invests in FAANG stocks. Go through the funds' asset allocation before you start investing so that you know that your money flows and flourishes in FAANG stocks.
3.Invest In US ETFs
Investing in ETFs is a safer way, and you can get consistent returns by doing so. To invest in US-based FAANG ETFs, you'll require a US Demat account. Just like in the first step, you can open a Demat account in the US from India and start investing. If you are a working professional that plans to grow their wealth by investing in FAANG stocks without taking risks, do checkout ETFs.
Now you know everything about FAANG stocks and ETFs, so start investing today and create generational wealth for your family.