Dona Ferentes
beware the aedes of marsh
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Dang... you rang that bell
... daily market making is very much determined by the earlier closing US prices, and toss in a bit of AUD/ USD
FANG - ETFs FANG+ ETF
- Thread starter Faramir
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... daily market making is very much determined by the earlier closing US prices, and toss in a bit of AUD/ USD
Dona Ferentes
beware the aedes of marsh
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Since the start of the year, America’s seven biggest corporate behemoths – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla – have left the rest of the stock market in the dust.
Investors have raised these firms’ combined value by 69 per cent, a much larger increase than that seen in broader indices. The “magnificent seven” now account for 29 per cent of the market value of the S&P 500, and 61 per cent of the Nasdaq 100, up from 20 per cent and 53 per cent, respectively, at the start of the year.
...so this is putting pressure on indexes, against which most things are compared.
It has been noted this leaves index investors in a tight spot. On the one hand, owning shares that have done so well that they dominate your portfolio is a nice problem to have. On the other, it is somewhat awkward.
Now, buying the Nasdaq 100 appears less like spreading your bets and more like placing them on a few hot companies whose prices have already soared. A supposedly passive investment strategy has come to feel uncomfortably similar to stock-picking.
Nasdaq is therefore stepping in to alleviate the discomfort. The Nasdaq 100 is a “modified market-capitalisation weighted” measure. This means the weights assigned to firms’ shares are usually in proportion to each company’s total market value, but that those of the biggest firms can be scaled back if they come to represent too much of the index.
In particular, if the combined weight of shares that each account for more than 4.5per cent of the index exceeds 48 per cent, as is now the case, Nasdaq’s methodology prescribes a “special rebalance” to cut this to 40 per cent. This is designed to ensure funds tracking the index comply with regulatory diversification rules. And so on July 24, Nasdaq will reduce the sway of its seven biggest firms (and, conversely, increase that of the other 93 constituents).
The result will be a more balanced index, but also some difficult questions about just how passive “passive investing” really is.
Following the rebalancing, index ETFs will need to quickly sell large volumes of shares in its biggest holdings and buy more in its smaller ones.
Investors have raised these firms’ combined value by 69 per cent, a much larger increase than that seen in broader indices. The “magnificent seven” now account for 29 per cent of the market value of the S&P 500, and 61 per cent of the Nasdaq 100, up from 20 per cent and 53 per cent, respectively, at the start of the year.
...so this is putting pressure on indexes, against which most things are compared.
It has been noted this leaves index investors in a tight spot. On the one hand, owning shares that have done so well that they dominate your portfolio is a nice problem to have. On the other, it is somewhat awkward.
Now, buying the Nasdaq 100 appears less like spreading your bets and more like placing them on a few hot companies whose prices have already soared. A supposedly passive investment strategy has come to feel uncomfortably similar to stock-picking.
Nasdaq is therefore stepping in to alleviate the discomfort. The Nasdaq 100 is a “modified market-capitalisation weighted” measure. This means the weights assigned to firms’ shares are usually in proportion to each company’s total market value, but that those of the biggest firms can be scaled back if they come to represent too much of the index.
In particular, if the combined weight of shares that each account for more than 4.5per cent of the index exceeds 48 per cent, as is now the case, Nasdaq’s methodology prescribes a “special rebalance” to cut this to 40 per cent. This is designed to ensure funds tracking the index comply with regulatory diversification rules. And so on July 24, Nasdaq will reduce the sway of its seven biggest firms (and, conversely, increase that of the other 93 constituents).
The result will be a more balanced index, but also some difficult questions about just how passive “passive investing” really is.
Following the rebalancing, index ETFs will need to quickly sell large volumes of shares in its biggest holdings and buy more in its smaller ones.
Dona Ferentes
beware the aedes of marsh
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YTD performance:
S&P 500: +11.3%
Magnificent 7: +81%
S&P 500 Equal Weight : -0.20%
10:52 PM · Sep 27, 2023
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One of my oicks for the 2024 comp. FANG has had a great year being up around 100%, and with AI driving much of the growth, I see this trend continuing over the year
Iggy
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A tipster picked FANG in the 2023 Yearly Comp. By the end of the year it had gained 96.17%, so it has now been tagged as one of the 4 Best in 2023 Comp.
So we'll keep an eye on it this year and see how it goes. Since the start of this year 2024 it's off to a great start, up 9.05% so far.
So we'll keep an eye on it this year and see how it goes. Since the start of this year 2024 it's off to a great start, up 9.05% so far.
Sean K
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Looks to have started poorly. Is it going to be a correction year?
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Started poorly? I'll be interested in what information @Iggy_Pop has dug up for this month's update.
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January update for 2024 stock tipping comp. FANG is up 8.9% so far for January, continuing it performance from last year. AI is one of the key drivers for this ETF to increase in value and some good results from Netflix heps things along as well. My best performer from the 4 stock tips
Iggy
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Report on Fang might be a bit premature with Tesla getting some negative issues and stock price dropping 8% in pre trading tonight. Still is only one of ten stocks in FANG, but will have an impact
Iggy
Iggy
Dona Ferentes
beware the aedes of marsh
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and, next week, Apple, Microsoft, Amazon, Alphabet and Meta Platforms are each set to report quarterly results.
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yes but the 'Left agenda' are trying to cancel Elon
i see Elon becoming the US version of Gerry Harvey , they would love to cancel him , but is too smart and wealthy to give a rat's about their 'media power ' , both probably confuse them with the whine of buzzing mosquitoes ( ie background noise )
remember without ( and cash ) there is no Space X , Starlink , nor any real chance of EVs replacing the traditional family car
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Fang is going well this calendar year with Meta and NVIDIA both having great results during reporting driving the share price up for FANG. Looking good for a great return this year.
Iggy
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One of The Best 4 (up 96.17%) in the 2023 Comp.
FANG has continued it's merry dance, now up 20.15% for the year so far. What a great run!
FANG has continued it's merry dance, now up 20.15% for the year so far. What a great run!
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FANG continues to rise nicely over this calendar year. A good pick for the yearly stock tipping comp. AI definitely a good long term investment, which FANG covers very well.
Iggy
Iggy
Sean K
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I'm fearing I have some FOMO and want to buy this. Someone beat some sense into me.
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Value Collector
Have courage, and be kind.
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VGS has all the FANGS in it.
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FANG has dropped a bit this month in line with the US market but still up 15% for the 2024 calendar year. Some mixed outcomes with the 10 stocks held by FANG with NVDIA still going very well, but Tesla dropping a bit in the last month. Still a good pick for the yearly stock tipping comp.
Iggy
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Missed the news, NVDIA dropped 10% in one session, so plenty of volatility in the US at the moment
Iggy
