Morningstar Minute - Fund picks bullish on the FAAANs

Facebook, Amazon, Apple, Alphabet and Netflix now make up about 10% of the S&P 500 index, but these Morningstar medallists want more.

Jeffrey Bunce, CFA 26 July, 2017 | 5:00PM

 

 

Facebook, Amazon, Apple, Alphabet and Netflix are five stocks that have been powering the U.S. equity market for some time. Year to date through July 18, the FAAANs, as they are affectionately known, have risen an average of 36% in U.S. dollar terms, while the S&P 500 has increased 11%. These stocks now make up about 10% of the index and account for about a quarter of the index's 2017 year-to-date return. One way to avoid missing out is by simply owning a cheap S&P 500 index ETF. However, if you're particularly bullish on these stocks or want an active manager's expertise to negotiate these high-growth, high-valuation names, then a couple of funds on offer, with Morningstar analyst medalist ratings, may be the worth a closer look.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alphabet Inc A1,212.16 USD2.45
Amazon.com Inc2,019.16 USD1.08
Apple Inc269.39 USD2.64
Facebook Inc A171.58 USD3.64
Netflix Inc377.00 USD-0.78

About Author

Jeffrey Bunce, CFA

Jeffrey Bunce, CFA  Jeffrey Bunce, CFA, is a senior investment analyst for Morningstar’s Investment Management group.