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The NYSE FANG+ Index
INDEX COMPOSITION: BENCHMARKING TODAY’S TECH GIANTS
The NYSE FANG+ index includes 10 highly liquid stocks that represent the top innovators across today’s tech and internet/media companies. The index’s underlying composition is equally weighted across all stocks, providing a unique performance benchmark that allows for a more value-driven approach to investing. While the performance of indices weighted by market capitalization can be dominated by a few of the largest stocks, an equal-weighting allows for a more diversified and represented portfolio. NYSE FANG+ is one of the most highly correlated indices to technology and related stocks.
UNDERLYING STOCKS IN NYSE FANG+*
Real-time index calculations are available to help you benchmark the core group of stocks included in the index, and official open and close prices are published daily on the NYSE Global Index Feed.
TRADING NYSE FANG+ INDEX FUTURES ON ICE: THE BENEFITS
NYSE FANG+ futures, which will begin trading on ICE Futures U.S. on November 8, 2017, subject to regulatory review, provide a concentrated hedging mechanism for asset managers, proprietary trading firms, institutional traders and retail investors with technology exposure. The contract features:
Low-cost exposure to tech sector
One of the most highly correlated indices to tech and related stocks
Hedging mechanism to quickly increase or decrease tech exposure in equities portfolios
A disciplined methodology that will dictate the evolution of underlying securities
NYSE FANG+ INDEX PERFORMANCE COMPARISON
(Hypothetical performance using backtested data)
Based on back-tested performance data, the combination of stocks in the NYSE FANG+ Index have returned a 28.44% annualized total return from September 19, 2014 to September 15, 2017, as compared to 14.89% for the NASDAQ 100®, 9.86% for the S&P 500® and 16.80% for the S&P 500® Information Technology Index.
Calculations are based on the price return of each index. NYSE FANG+ is an equal-weighted index, whereas the other indices represented in the chart above are weighted by market capitalization.
NYSE FANG+™ is a new index providing exposure to a select group of highly-traded growth stocks of next generation technology and tech-enabled companies. The futures contract on the index is designed to offer the ability to gain or reduce exposure to this key group of growth stocks in a capital efficient manner.
TRADING SCREEN PRODUCT NAME
FANG+ Index Futures
TRADING SCREEN HUB NAME
$50 times the NYSE FANG+ Index
4 contracts in the March, June, September and December cycle
Index points, to two decimal places
.10 Index points, equal to $5.00 per contract; calendar spread trades may be executed at .05 index point increments.
(Block Trades can be done at .01 Index points)
LAST TRADING DAY
Third Friday of the expiration month. Trading in the expiring contract ceases at 9:30 am NY time on Last Trading Day.
16:14 to 16:15 NY time
Cash settlement to a special calculation of the NYSE FANG+ Index (Price Return version) based on the opening prices of the component stocks on the Last Trading Day for the contract.
Position Accountability Level – 20,000 lots in any month.
Position Limit – 100,000 lots in all months combined.
DAILY PRICE LIMIT
Yes, 20 lot Block Minimum Quantity
EFPS AND EFSS
IPL Amount: 2000 Index Points
Recalc Time and Hold Period: 5 seconds
NCR AND RL
NCR 3.00; RL 7.50; CSLOR 2.00 Index Points
Screen Trades: $1.00 per side
Block and EFRP Trades: $1.50 per side
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. DAW Trading (“DAW”) uses various outside sources for research material regarding futures and options on futures trading therefore the views and opinions expressed in this letter may not necessarily reflect the view of DAW or its staff. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to DAW.