Is FANG a good ETF?
FANG is the Global X FANG+ ETF from Global X. It tracks the NYSE FANG+ Index. We classify it under US, Tech, Growth, and Thematic. With about $1.58 billion in assets it is a large, highly liquid fund. Listed on the ASX since 2020-02-11 (over 6 years ago).
On a total-return basis, FANG has delivered 20.27% a year over 5 years (ranked 3rd of 188 ETFs we track), 27.08% a year over 3 years (ranked 8th of 226 ETFs we track), and 3.85% a year over 1 year (ranked 201st of 308 ETFs we track). Its strongest showing is over 5 years, where it sits in the top 2% of all ETFs we track.
The management fee of 0.35% is reasonable. That's cheaper than the typical 0.48% for similar ETFs. It pays a high 7.01% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 5 years its volatility has been high (annualised standard deviation around 24.62%), meaning a bumpy ride with deep drawdowns. Its 5-year Sharpe ratio of 0.75 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is moderate at about 30% a year — a fair chunk of the portfolio is bought and sold each year, so expect a little more in the way of realised capital gains and trading costs than a plain index fund.
Strengths
- Top-2% returns over 5 years (3rd of 188 ETFs we track).
- Low-cost: a 0.35% management fee keeps more of the return in your pocket.
- High 7.01% income yield — good for investors who want regular cash flow.
Things to watch
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
- High volatility (24.62% over 5 years) — expect deep drawdowns.
- Highly concentrated single-theme bet — keep the position size small.
What FANG's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
US-listed companies — the world's deepest, most innovation-heavy market and home to the mega-cap tech names. Has led global returns for over a decade.
- Market regime
- Strong leadership has left valuations high and the index heavily concentrated in a handful of tech giants. Unhedged funds also rise and fall with the AUD/USD exchange rate.
- In a portfolio
- A legitimate core holding for global exposure, but be aware you are buying after a long run of outperformance and at elevated valuations.
Concentrated in technology and high-growth innovation. The highest long-run growth potential on offer, paired with the deepest drawdowns.
- Market regime
- Very sensitive to interest rates and sentiment: powers ahead when money is cheap and optimism is high, and falls hardest when rates rise or risk appetite sours. Low dividends, high volatility.
- In a portfolio
- A long-horizon, high-conviction holding for investors with a strong stomach. Size the position so a 40-50% drawdown wouldn't derail your plan.
Companies expected to grow earnings quickly, which typically reinvest profits rather than pay dividends. Low yield, higher volatility, valuation-driven.
- Market regime
- Shines when interest rates are low or falling and risk appetite is high. Hit hardest when rates rise, because more of their value sits in distant future earnings.
- In a portfolio
- Long-horizon growth engine for investors who can stomach deeper drawdowns and little income along the way.
A concentrated bet on a single trend — AI, battery tech, cybersecurity, robotics and the like. High conviction, high concentration, and often high fees.
- Market regime
- Frequently launched after a theme is already hot, which has historically been a poor entry point. Expect very large swings in both directions.
- In a portfolio
- A small satellite position at most. Treat it as a speculative tilt, never as a core holding.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.