What's all the hype about FAANG stocks? Read this blog to know more. Find out how you can invest in FAANG stocks from India for as low as $1 using Cube Wealth.
After a brief dip in April 2020, the post-pandemic market rally has allowed the S&P 500 to hit new highs. The lion's share of contributors to this growth includes the most coveted tech stocks collectively called FAANG stocks.
In this blog, we will take an in-depth look at FAANG stocks and evaluate whether you should include 1 or more FAANG stocks in your portfolio.
What Are FAANG Stocks?
FAANG is an acronym for 5 of the biggest tech stocks in the US market. FAANG Stocks include:
FAANG stocks make up approximately 15% of the S&P 500. While the S&P 500 has grown by 31% since October 2020, FAANG stocks have gained between 6% to 83% in the same period.
The combined market share of Facebook, A
After a brief dip in April 2020, the post-pandemic market rally has allowed the S&P 500 to hit new highs. The lion's share of contributors to this growth includes the most coveted tech stocks collectively called FAANG stocks.
In this blog, we will take an in-depth look at FAANG stocks and evaluate whether you should include 1 or more FAANG stocks in your portfolio.
What Are FAANG Stocks?
FAANG is an acronym for 5 of the biggest tech stocks in the US market. FAANG Stocks include:
FAANG stocks make up approximately 15% of the S&P 500. While the S&P 500 has grown by 31% since October 2020, FAANG stocks have gained between 6% to 83% in the same period.
The combined market share of Facebook, Amazon, Apple, Netflix, and Google, is approximately $6.7 trillion. This is more than the GDP of 186 countries.
Initially, the acronym was FANG and included Facebook, Amazon, Netflix and Google. But Apple was added to FANG stocks in 2017 owing to the huge growth in revenue. You can consult a Cube Wealth coach or Download the Cube Wealth app.
How should Indians invest in the US stock market?
FAANG Stocks Details At A Glance
Tech stocks are the go-to stocks for any investor. FAANG stocks overall make up 15% of the S&P 500 and share a market cap of $6.7 trillion. Let’s look at the current stock price, market capitalization, and growth vs. the S&P 500.
Stock Name
Stock Price in ₹
Market Cap
Growth Vs S&p 500
Facebook (FB)
₹25,565.77
$963.445 Billion
27.70% Vs 31.80%
Amazon (AMZN)
₹2,56,899.76
$1.63 Trillion
6.72% Vs 31.80%
Apple (AAPL)
₹11,194.709
$2.26 Trillion
27.32% Vs 31.80%
Netflix (NFLX)
₹47,271.26
$238.89 Billion
20.24% Vs 31.80%
Google (GOOGL)
₹2,12,770.446
$1.19 Trillion
83.33% Vs 31.80%
FAANG Stocks Vs S&P 500
Source: Google
FAANG Stocks Historical Growth
Stock Vs Growth
2012
2016
2020
Facebook (FB)
$38.23
$119.49
$279.70
Amazon (AMZN)
$212.89
$673.95
$3,162.58
Apple (AAPL)
$18.94
$23.81
$122.25
Netflix (NFLX)
$11.05
$87.88
$498.31
Google (GOOGL)
$300.20
$725.18
$1,823.76
How To Invest In FAANG Stocks From India?
You can invest in these ways once you know which FAANG stock to buy:
1. Indian Brokerage
Domestic brokerages have partnerships with US brokers. You can open an Overseas Trading Account and US brokers will execute trades on your behalf.
2. Foreign Brokerage
Few foreign brokerages have a direct presence in India. You can invest in US stocks by opening a brokerage account with these brokerage firms.
3. Investment Platforms
You can invest in US stocks through various investment platforms. Our recommendation would be the Cube Wealth app, the first investment platform to bring US stock advisory to India.
Want to know to buy US stocks on your own? Watch this video.
Should You Invest In FAANG Stocks?
Let’s look at the benefits and risks of FAANG stocks to know whether you should invest in FAANG stocks from India.
Benefits
Risks
Truly global reach
Regulatory risks
Solid historical performance
Stiff competition
Consistent user growth
Stock affordability
Each FAANG stock has its own benefits and risks. Whether or not you buy a FAANG stock would depend on your investment goals, risk appetite, age, financial health, and more. You can consult a Cube Wealth coach or Download the Cube Wealth app.
*Note: All facts & figures are as of 20-10-2021. Historical data does not imply future success. Always consult a wealth coach before investing.
FAQs Around FAANG Stocks
Q. What Does FAANG Stand For?
Ans. FAANG stands for 'Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), Google (GOOG)'. Initially, the acronym was FANG(Facebook, Amazon, Netflix, Google) but later on, Apple was added to the list because of its huge growth in terms of revenue.
Q. What's The N In FAANG?
Ans. The N in FAANG stands for 'Netflix (NFLX)'. The popular acronym in full means Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), Google (GOOG).
Q. Can You Invest In FAANG Stocks From India?
Ans. Yes, you can invest in FAANG stocks from India using a reliable app like Cube Wealth. Cube lets you invest in US stocks on your own or with advice from RIA, Rick Holbrook. The best part is that you can invest in US stocks for as low as $1 using Cube Wealth.
Q. What Makes FAANG Stocks So Popular?
Ans. FAANG stocks make up approximately 15% of the S&P 500. While the S&P 500 has gained 31% since October 2020, FAANG stocks have gained between 6% and 83%.The combined market share of Facebook, Amazon, Apple, Netflix, and Google is approximately $6.7 trillion. This is more than the GDP of 186 countries.
Q. Do FAANG Stocks Belong in Your Portfolio?
Ans. FAANG stocks deserve a place in your portfolio as they are an important part of our economy. The combined market share of FAANG is approximately $6.7 trillion, more than the GDP of 186 countries. However, don't rely solely on these stocks to build your portfolio. It is recommended by financial advisors to regularly re-balance your portfolio.
Conclusion
In conclusion, purchasing FAANG (Facebook, Apple, Amazon, Netflix, Google/Alphabet) stocks can be an attractive investment opportunity, given the strong market presence and growth potential of these technology giants. To buy FAANG stocks, investors should follow a straightforward process that involves opening a brokerage account, conducting thorough research, considering their investment goals and risk tolerance, and placing orders through the brokerage platform.
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