FAANG is the nickname given to a group of 5 of the world's leading tech stocks - Facebook (Meta), Apple, Amazon, Netflix, and Google (Alphabet).
The 5 FAANG companies are some of the biggest in the world and have a combined market capitalisation of almost US$10 trillion,1 and have become popular with investors due to their performance, influence and market position.
The good news is that it's relatively easy to buy the FAANG stocks directly from Australia. It's possible to get started with just a few dollars and all you'll need is a share trading account.
There are two main ways you can invest in FAANG from Australia:
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No, you cannot directly buy the likes of Netflix, Google, Amazon or Facebook shares on the Australian Securities Exchange (ASX).
All 5 of the FAANG companies actually trade on the Nasdaq exchange in the US, which is the home of many of the biggest tech stocks.
In order to buy FAANG stocks from Australia, you'll need to have an account with a trading platform that offers access to the US stock market. These days, most online trading platforms lets you trade at least some US stocks (including FAANG), so the way to differentiate is by checking how much each will cost you to buy US stocks.
When you buy US shares, you'll normally need to pay both a brokerage fee and a currency conversion fee.
While some platforms actually offer $0 brokerage when trading US stocks, they might not be the cheapest option once you factor in the currency conversion fee.
If you're ready to invest in FAANG, you can follow the steps below to get started:
Important: Share trading can be financially risky and the value of your investment can go down as well as up. “Standard brokerage” fee is the cost to trade $1,000 or less of ASX-listed shares and ETFs without any qualifications or special eligibility. If ASX shares aren’t available, the fee shown is for US shares. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Exchange-traded funds (ETFs) are a convenient, cost-effective way of investing in a range of stocks, such as FAANG.
ETFs are passively-managed funds that invest in a group of different stocks but can be bought and sold on a stock exchange like a normal share.
However, unlike regular managed funds that are chosen and managed by an investment manager, ETFs track the returns of a specific index or market sector, that is, they mirror the movements and returns of a particular market.
If you are looking to invest in an ETF that just features the FAANG stocks, you can't – but you can get pretty close.
The Global X FANG+ ETF (ASX: FANG) gives you exposure to the 5 FAANG companies as well as another 5 tech stocks - NVIDIA, Crowdstrike, Broadcom, ServiceNow and Microsoft.2
The FANG+ ETF is traded on the ASX, which means you should be able to buy it via any Australian share trading platform or broker.
If you want general exposure to FAANG, you can also invest in index funds that track either the Nasdaq-100 or S&P 500 indices.
The Nasdaq-100 tracks the 100 largest stocks on the tech-dominated Nasdaq exchange, while the S&P 500 tracks 500 of the largest companies on the US stock market.
Most ETFs that track the Nasdaq-100 or S&P 500 use a weighted average, meaning the bigger companies (like those that make up FAANG) make up a larger proportion of the index. So while you'll technically be getting exposure to 100 or 250 companies if you invest in these ETFs, you'll be getting greater exposure to FAANG stocks.
As we mentioned above, the Global X FANG+ ETF (ASX: FANG) is the closest you can get to a dedicated FAANG ETF on the ASX.
Otherwise, here are some of the most popular ASX ETFs that offer exposure to FAANG:
Despite many of the FAANG stocks growing into more mature businesses, they are still showing impressive growth.
In fact, as of 27 August 2022, the FAANG stocks combined have an annualised return of 23.08% in the last 10 years. This is even with a 33.49% drop in 2022.
The best performing of the FAANG stocks is Apple, which over the last decade has given investors 30.88% returns.
This strong performance is from mature businesses that have a strong, established market share, meaning returns could be more reliable.
Due to the sheer size of these stocks, market position and impressive growth, FAANG stocks are a great way for new investors to get into the market.
With their larger size, not only can they be safer investments, but they could continue to outperform the US market.
If you are an Australian resident for tax purposes, you must declare income from overseas investments in your tax return, including from international shares.
If you have already paid foreign tax on your international investments, you may be entitled to an Australian foreign income tax offset. Check out our guide on share trading and the ATO for more information on the tax treatment of investments and always seek professional financial advice before investing in international shares.
DISCLAIMER: This guide contains only general advice and has been written without taking your personal circumstances into consideration. You should consider the applicability of the advice to your financial goals and objectives.
CHESS sponsorship allows you to directly own ASX listed shares in your own name, but it comes with some drawbacks. Find out if it's right for you.
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How and where can I check my Google shares?
Hi Craig,
Thanks for getting in touch with finder. I hope all is well with you. :)
The how and where you can check your Google share would depend on how you made the investment. There are three main ways you can buy Google shares; using a broker or online broking platform, through a managed fund, or through an exchange traded fund (ETF).
For this reason, to check your Google share, you need to directly check with your provider. Typically, they have a platform that you can access where you can check your investments.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua