Start the conversation
Last week, I talked about the headline-grabbing FAANG stocks - Facebook Inc. (Nasdaq: FB), Apple Inc. (Nasdaq: AAPL), Amazon.com Inc. (Nasdaq: AMZN), Netflix Inc. (Nasdaq: NFLX) and the "new Google": Alphabet Inc. (Nasdaq: GOOG) - which comprise more than a third of the Nasdaq 100.
Of course, everyone is looking for the next new thing to play with. So why not capitalize on the biggest stock names out there to come up with a new tradable product?
That's exactly what the Intercontinental Exchange (ICE), the parent of the NYSE, did last September when it launched the FANG+ Index (NYFANG).
But there's a twist.
The index adds another five actively traded technology growth stocks (translation: popular in the financial media) to the mix. Besides the big five, FANG+ contains Nvidia Corp. (Nasdaq: NVDA), Baidu Inc. (Nasdaq: BIDU), Alibaba Group Holding Ltd. (NYSE: BABA), Tesla Inc. (Nasdaq: TSLA), and Twitter Inc. (NYSE: TWTR).
But that could change, depending on what's hot. ICE will review the fund's makeup every quarter to ensure it contains only the hottest of the hot names.
As I did last week, I'm going to dive into the "second five" of the index, using my Best in Breed (BiB) analysis.
Today we'll look at the best and worst of the lot, and we'll analyze the rest next week. Let's get started...
About the Author
Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Penny Hawk. He also contributes to Money Morning as the Quant Analysis Specialist.