Where I would invest R10 000 | IG's Shaun Murison opts for FANG+

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Shaun Murison.
Shaun Murison.
Photo: IG

News24 asked Shaun Murison, senior market analyst at IG, where he would invest R10 000, with a view to holding the investment at least for the next three years.


As monetary policy tightens around the world, equity markets (particularly growth stocks) have been discounting substantially.

The US technology sector has seen valuations normalising to some of the best levels seen over the last decade or more. While interest rates are likely to continue rising, the pace thereto is expected to slow, and we believe that we are now closer to the top of the cycle than to the bottom.

In turn, investors with a longer-term time horizon, may currently see an opportunity within the NYSE FANG+ Index.

The NYSE FANG+ provides investors with exposure to ten US listed technology giants.

The index includes shares like Meta (Facebook), Apple Inc., Amazon, Netflix, Alphabet (Google), Microsoft, Alibaba, Baidu, Nvidia and Tesla. This allows for diversification into the tech sector through some of the largest companies in the world, ranging from electric vehicle technologies, clouds services, streaming content, artificial intelligence and online retail.

While past performance does not guarantee future returns, it should be noted that the NYSE FANG Index has yielded a compound average return of more than 20% every year since September 2014.

This return is ahead of major benchmarks such as the US Nasdaq and S&P 500 indices, and despite a tough year in 2022.

Traders looking for exposure into the FANG Index can find access to this product as a derivative (from companies like IG), or similar styled products as an investment through companies like Sygnia (FAANG Plus Equity Fund).

Follow Shaun Murison on Twitter at @ShaunMurison_IG

Disclaimer: News24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, News24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

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