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Intercontinental Exchange Announces Quarterly Rebalance of the NYSE FANG+ Index

Strategic Insights

— 1 min read

The Intercontinental Exchange, a leading global provider of data, technology, and market infrastructure, has announced the quarterly rebalance of the NYSE FANG+ Index, effective before the open of trading on December 20, 2021. The NYSE FANG+ Index aims to track the performance of highly traded growth stocks in the technology, media, and communications sectors, and has historically included companies like Facebook, Apple, Amazon, Netflix, and Google. As part of the rebalance, Microsoft Corporation will replace Twitter, Inc., maintaining the index at 10 constituents.

Key Takeaways:

  • The NYSE FANG+ Index is an equal-dollar weighted index that tracks the performance of highly traded growth stocks in the technology, media, and communications sectors.
  • The index has consistently outperformed many other indices, producing an annualized total return of 32.96% from September 19, 2014 to November 30, 2021.
  • Microsoft Corporation will replace Twitter, Inc. as a constituent of the NYSE FANG+ Index, effective with the December 2021 quarterly rebalancing.
  • The index serves as the basis for the MICRO NYSE FANG+ Index Futures, which provides market participants with exposure to these 10 highly traded technology and tech-related companies.
  • ICE reduced the notional value of the NYSE FANG+ Index futures contract in September 2020 by one tenth to a notional value of approximately $35,000.
  • The NYSE FANG+ Index has experienced steady growth in market participation in the contract throughout 2021.

Statistics:

  • Annualized total return of the NYSE FANG+ Index: 32.96% (September 19, 2014 to November 30, 2021)
  • Notional value of the NYSE FANG+ Index futures contract: approximately $35,000 (effective since September 2020)
  • Number of constituents in the NYSE FANG+ Index: 10 (including Microsoft Corporation and Twitter, Inc.)
  • Time period of the index's existence: Since its launch on September 26, 2017, with prior performance (September 19, 2014 to September 25, 2017) based on back-tested index calculations.

Sources:

  • Intercontinental Exchange, "Intercontinental Exchange Announces Quarterly Rebalance of the NYSE FANG+ Index" (Press Release, December 16, 2021)
  • Intercontinental Exchange, NYSE FANG+ Index
  • Business Wire, "Intercontinental Exchange Announces Quarterly Rebalance of the NYSE FANG+ Index" (Press Release, December 16, 2021)

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