The market’s “Fab Five” technology stocks—Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google (GOOGL and/or GOOG)—often called by their acronym FAANG, had a bad day on Friday after research notes from Goldman Sachs, Deutsche Asset Management and others warned that these stocks were too expensive. Owning these five stocks, which together accounted for more than 40% of the S&P 500’s gains this year before Friday’s selloff according to an article in this weekend’s edition of Barron’s, are an extremely crowded trade.
As these stocks’ market caps grew, so too did their weight in most of the ETFs that hold them. We used our Stock Locator tool to find which ETFs hold each of those stocks and their weights in the ETF, and then combined the lists to determine which ETFs have the most overall exposure to FAANG stocks.
Here are the top 10. Note that the weights shown are post-Friday’s decline. If the selloff in FAANG stocks continues these funds are likely to be hit hard.
Table 1: 10 ETFs Most Exposed to FAANG Stocks
|Price % Chng. 6/9/17|
|IYW||iShares US Technology||38.0||-3.1|
|QYLD||Horizons NASDAQ-100 Covered Call||34.2||-0.5|
|FDN||First Trust DJ Internet||32.7||-3.0|
|XLK||Technology Select Sector SPDR||32.4||-2.5|
|PNQI||PowerShares Nasdaq Internet||32.2||-3.3|
|IGM||iShares S&P N. American Technology||31.8||-2.7|
|FTEC||Fidelity Info Technology||30.9||-2.7|
|VGT||Vanguard Info Tech ETF||30.9||-2.8|
|IXN||iShares S&P Global Technology||27.6||-2.8|
Source: ETF Research Center and FactSet