Klevah™

US Top 10 Tech Shares

ASX Code: FHNG
Index: NYSE FANG+ Index

This is about the FHNG – Global X FANG+ (Currency Hedged) ETF

In recent years, extreme returns have been possible by investing in just the biggest US technology companies. The Global X FHNG ETF invests equally across 10 companies including Nvidia, Microsoft, Apple, Alphabet (Google), Amazon and Meta. Returns in the last 8 years have been around 28% p.a.! These companies have been the reason behind the outperformance of the US stock market in recent decades. This is not a traditional Index Fund that spreads its investments widely and weighted by size. You can quickly see exactly what you would own by reading the list of the ten shares held at 10% each. There is a subjective judgement by a panel about which companies to include in the Index at any one time. Most of them can be expected to remain in the Index and fund for a very long time. The names of the companies above attest to that. This fund is the easiest way to bet on these winners if you believe their ultra-successful trend can continue. It is considered a more aggressive investment to be held in small amounts, or to play a small part relatively in a large portfolio. There is an option to leave more money in cash and put a smaller investment into FHNG that could give a large return for its size.

FHNG is the version of the fund that is currency hedged. It will perform according to the share price swings of the companies it is invested in without being affected by movements in the exchange rate. This investment could be used to put smaller amounts of money into the belief that the US tech titans can deliver exceptional growth for shareholders. It is a very volatile investment. This particular hedged investment product is relatively new but there is an unhedged version with the ASX code FANG that is older. For a better guide to returns of the companies within the FHNG ETF, it is best to look at the Index that it follows. Google ‘NYSE FANG+ Index’ to see its returns since inception. In 2022 it fell in value by 40% in the absence of any major crisis or recession. It rose 250% between the start of 2023 and 2026 for returns of 52% p.a. That is why this investment requires discipline to hold, or a smaller holding to cope with the swings.

Visit the FHNG website Click here to inform yourself about this ETF.

Note that despite the volatility of this fund its performance will come down to the success or otherwise of those ten companies. What does the future hold for them? What will happen in future decades if you hold these companies for the long term?

Other ETFs are available that invest in the largest technology companies.

Click here to see a basic strategy for investing with ETFs

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