London South East interviewed GraniteShares CEO Will Rhind from New York, soon after they launched a suite of ETP's which allow you to invest in three different baskets of giant US tech stocks.
FAANG: Facebook, Amazon, Apple, Netflix and Google
GAFAM: Google, Apple, Facebook, Amazon and Microsoft
FATANG: Facebook, Amazon, Tesla, Apple, Netflix and Google
"Those familiar with us know we have a huge platform of single and leveraged ETP stocks, and the natural extension to that is providing exposure to indices or baskets of stocks, and we have launched our FAANG suite as we call them, large pure play baskets for these tech mega-companies [see above]. The reason for doing it is simple: you can't get exposure through an ETF in the FAANG stocks, and it's a world first for us, being able to access these baskets of stocks in ETP form" explained Will.
"There is a school of thought that says these companies are not part of the market, they are the market. If you look at what has happened in the US stock market in 2020. The S&P finished up because these companies represent about 25% of the index. If you had just invested in these five companies, you would have outperformed the market by about 50% last year. So it makes a huge difference if you are invested in these companies or not."
"FAANG is the original acronym and stands for Facebook, Apple, Amazon, Netflix and Google (with Alphabet the holding company stock). The other two baskets are similar tech stock permutations - whether you include Microsoft in the mix - GAFAM. Or whether you include Tesla in there - and that's FATANG." said Will.
GraniteShares specialise in Exchange Traded Products, which are fairly interchangeable with Exchange Traded Funds or ETF's.
"The main difference between the two is that ETP's allow you to do things ETF's can't do" said CEO Will Rhind. "For example, single stock exposure or leveraged single stocks that we have, or whether its targeted indexes or targeted baskets that just allow you a bit more flexibility in terms of being able to deliver a product you can't get with an ETF structure."
For more information on the FAANG suite of ETP's see www.graniteshares.com.
Disclaimer: Your capital is at risk.