XTB introduces the index of technology companies FANG + to the offer

From today customers XTB gain access to the FANG + index, which brings together the 10 most important technology companies in the world. The name FANG is an acronym for the names of the leaders, i.e. Facebook, Amazone, Netflix and Google. The index also includes Apple, nVidia, Tesla and Chinese Baidu and Alibaba.

Companies from the FANG + index

In less than 5 years, in the period from September 2014 to January 2019, the FANG + index recorded the average annual rate of return at 23,48% (check the details). They are responsible for 90% of the growth of the S & P500 index since the beginning of 2015. The total capitalization of the 4 largest companies in the FANG + index increased by USD 630 billion. At the same time, the remaining S & P500 companies increased their capitalization by just $ 45 billion. This shows their significant domination.

These corporations, despite the fact that they often operate in completely different segments, play a key role in the world in technological progress. This makes the interest in investing capital unusually large, also on the part of retail clients.

Przemysław Kwiecień, chief economist at XTB:

“This is not a random compilation. These companies have truly revolutionized the way we live. Many of us use every day, share news using Facebook, use Google search, watch movies on Netflix, and a graphics card from Nvidia works for him on the computer. FANG stands for snake poison in English, and although the abbreviation originally referred to four companies (Facebook, Apple, Netflix and Alphabet as Google), it is now referred to as the largest technology companies listed on the New York Stock Exchange. These companies have achieved enormous business success, and the prices of their shares have often risen several times in the last few years. Currently, they are among the largest corporations listed on Wall Street, but there is no shortage of opinions that their valuations are too high. It is therefore essential that traders are able to gain exposure to both the potential upside and downside, and the FANG + CFD offers this opportunity. "

Short sale available

Speculators, who say the end of the boom, also focus on large companies, waiting for spectacular drops and thus high rates of return in a short time. Such a gate gives them, among others FANG + index with the possibility of short sale.

Filip Kaczmarzyk, board member of XTB:

“We decided to make this instrument available to our clients because it gives access to an interesting market segment. Some specialists say that this segment will grow, others that the market is already overheated, so it is also interesting from a trading point of view and allows you to take both short and long positions. "

Trading on the FANG + index takes place in XTB on CFD instruments available on both the MT4 platform and the proprietary xStation. The trading hours are set at 15:30 - 22:00, which is the time of the US trading session in Polish time. The CFD instrument itself is not directly based on the quotation of the index, but on the futures contract on this index from the ICE exchange. The instrument designation on XTB platforms is USFANG.

Filip Kaczmarzyk, a board member of XTB, adds:

“We chose it because the index itself is not de facto an instrument that can be traded. For most indices, futures are the benchmark for our offer. This is the case, for example, with the German DAX index. There may be some differences between the quotes of contracts and the indices themselves, but they are not large. There is a strong correlation between the price of the index and the futures contracts that are based on it. "

The USFANG chart, W1 interval