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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 quant - he's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.
Chris also contributes to Money Morning as the Quant Analysis Specialist.