Remember The ‘FAANG’ ETF? Yeah, Well…

We summed up our feeling on that as follows:

 

Ok, so we thought given last week’s market turmoil we’d check in on Noah’s ETF to see if “the actively managed aspect of FNG” had indeed allowed the vehicle to “evolve” with the rapidly shifting investment landscape.

Unsurprisingly, the answer is definitively “no.”

Here’s how FNG has performed relative to QQQ since it was launched last month (do note the difference in the scales in the bottom panes):

FNGQQQ

So for only four times the cost, you too could be underperforming the QQQ.

Do note that FNG did not hold up very well under pressure last week.

So in answer to the question implicit in Noah’s tweet to us:

UGG

It’s not so much that investors shouldn’t buy any ETF, it’s that they shouldn’t buy this ETF.

But like Hamman said when FNG debuted, you can always short it.

And happily, you can buy puts now too.

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