Intercontinental Exchange (ICE) has developed a new index which ICE Futures US will provide quarterly contracts for as of this November.
The NYSE FANG+ index is aimed at providing exposure to a select group of high-traded next generation technology and technology-enabled companies.
It is equally weighted and will initially consist of the five core FANG stocks, including Facebook, Apple, Amazon, Netflix and Alphabet’s Google, plus another five actively traded technology growth stocks Alibaba, Baidu, NVIDIA, Tesla and Twitter.
ICE Futures US will offer contracts designed to offer hedging of and exposure to the NYSE FANG+ index as of 8 November.
Trabue Bland, president of ICE Futures US, explained the FANG stocks are among the most widely traded stocks and the contracts offer a “capital efficient means of accessing and hedging these growth stocks in a cost-effective way”.
ICE added based on back-tested performance data, the combination of stocks on the index have returned a 28.44% annualised total return from September 2014 to September 2017.