FYI: Last week, a client was curious about the impact of the FAANG stocks (Facebook, Apple, Amazon, Netflix, and Alphabet, née Google). These tech high-fliers have seized the conversation in equity markets over the last few years, and rightfully so given their strong performance, huge market caps, and torrid growth. As shown in the chart below, their aggregate weight in the S&P has increased from about 7.5% to over 12% in the last three years. It hasn’t been entirely smooth sailing the whole way – notably Apple had a period of declining weight which it has since shaken off. It’s also worth pointing out that Netflix is much smaller, and despite growing share of market cap strongly, it’s still very low-weighted in the index.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/sp-de-faanged/
