FAANG

Facebook, Apple, Amazon, Netflix, and Google

The term “FAANG” is an acronym for 5 of the largest technology and communication companies in the world. These stocks are Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX); and Google (GOOG, which is now Alphabet). The five FAANG stocks have a combined market capitalization of over $7 trillion as of August 6, 2021.

All FAANG stocks trade on the Nasdaq stock exchange and are included in the S&P 500 Index. Movement in the price of the FAANG stocks has a substantial effect on the performance of the market in general. It is easy to see that the price change in the FAANG stocks can affect the movement of the stock market in general.

Since the FAANG stocks are not cheap, a small investor can take advantage of these big movers through mutual funds and ETFs. Any index fund that follows the S&P 500, large-cap stocks, technology/communications industries, or the broader stock market will most likely have FAANG stocks in their portfolio. With some brokers, you can buy fractional shares of companies listed in the S&P 500 for as little as $5.



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