Intercontinental Exchange (NYSE:ICE), the operator of global exchanges and clearing houses and provider of data and listings services, informed that it has just launched the NYSE FANG+™ Index futures contract on ICE Futures U.S.(R) on November 8, 2017. The new contract had over 2,000 contracts trade in the first week.
NYSE FANG+ Index futures were designed to offer hedging and exposure to a select group of highly-traded growth stocks of tech-enabled companies. The NYSE FANG+ Index contract is a cash settled quarterly futures contract based on the NYSE FANG+ Index, and offers the capital efficiency of futures.
We’re pleased with the initial interest we’ve seen in this contract and are excited to be bringing more participation into the futures market,” said Trabue Bland, President of ICE Futures U.S. “This contract offers a cost-effective means of gaining or reducing exposure to a key basket of technology companies, and, by leveraging our product development, index solutions and global feeds, complements our equity index futures complex, and offers an innovative way to manage exposure to the equity markets.
The NYSE FANG+ Index is equally weighted and includes the five core FANG stocks – Facebook, Apple, Amazon, Netflix and Google (Alphabet) – plus another five actively-traded technology growth stocks – Alibaba, Baidu, NVIDIA, Tesla and Twitter. It is calculated and disseminated through the ICE Data Global Index Feed under the symbol NYFANG.
Based on back-tested performance data, the combination of stocks in the NYSE FANG+ Index have returned a 29.1% annualized total return from September 19, 2014 to November 14, 2017, as compared to 15.9% for the NASDAQ-100®, 10.5% for the S&P 500® and 19.1% for the S&P 500® Information Technology Index.