Direxion has launched a new ETF providing magnified exposure to a basket of popular US technology and technology-enabled stocks.
David Mazza, Managing Director, Head of Product at Direxion.
The Direxion Daily Select Large Caps & FANGs Bull 2X Shares (FNGG US) has been listed on NYSE Arca with an expense ratio of 1.07%.
The fund delivers twice (+200%) the daily performance of the ICE FANG 20 Index which consists of 20 highly traded growth stocks listed on US exchanges, including American Depository Receipts.
To be eligible for inclusion, a stock must have a market capitalization of at least $5 billion and an average daily trading volume greater than $50 million.
An index advisory committee selects the relevant constituents. Qualifying companies derive significant revenue from advanced technologies such as social networking, autonomous driving, electric vehicles, smartphones, mobile payments, e-commerce, online games, streaming media, online entertainment, cryptocurrencies, blockchain, big data, artificial intelligence, machine learning, digital advertising, and cloud services.
Constituents are equally weighted. Reconstitution and rebalancing occur on a quarterly basis.
The index currently contains all ‘FAANGM’ stocks – Facebook, Apple, Amazon, Netflix, Alphabet (formerly Google), and Microsoft – as well as other well-known names including Tesla, Nvidia, Crowdstrike, Sea, Palantir Technologies, and Snowflake.
Stocks officially classified to the information technology sector account for 45.2% of the total weight with communication services and consumer discretionary making up the remainder of the allocation at 35.3% and 19.5%, respectively.
David Mazza, Managing Director, Head of Product at Direxion, said: “The ICE FANG 20 Index includes FAANGM stocks, along with 14 others carrying similar characteristics, including high average daily volume, high sales growth, and the premium that market is placing on the businesses. FNGG allows traders to take a bold position in a basket of 20 well-known, highly-traded growth stocks across the technology, media and communications, and consumer discretionary sectors.”