World’s first FAANGs ETP

I am wondering, what is the quarterly rebalancing?
How does the quarterly rebalancing work considering that they are equally weighted?
I thought that the ETPs rebalanced daily, hence the recommended time-frame.

I must admit that I don’t really use leverage, mainly just curious. :slight_smile:

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Leveraged and Short ETP are daily rebalanced (because of the leverage).
Unleveraged ETP like FAANG or FATANG are quarterly rebalanced.

Let’s take an easy example, FAANG ETP price is 5$… and equally weighted mean that the exposure is 1$ on each of the underlying stocks.
But, over the time, the performance of Apple maybe be higher than the performance of Amazon. To ensure your investment/exposure stay equally weighted over the time, we will do quarterly rebalancing to keep the same exposure on each of the 5 stocks that FAANG ETP track.

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Thanks JackersEdit Trades for his video explaining FAANGs ETPs

Okay, so leveraged ETPs rebalance daily and unleveraged ETPs (pretty much an ETF of the handful of companies, I guess) rebalance quarterly.
Thanks for the explanation.

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@RLX you mentioned on another topic of the forum that you had issues for executing orders on GAFAM ETP. Can you tell us if it was limit orders or a market order? was it round amount or fractional?

I personally placed several orders on FAANGs products with Trading212 and with other brokers … I had no execution problems (except during the first week after the listing, during which there were indeed some problems that have been solved so far).

Hi Marc,

I suppose you are talking about this post:

I did a test buy some days ago, it was a limit order with full shares.

I also bought other GS ETPs, and it never happened, that why I was surprised. The first time it was rejected, I was thinking there was some technical error or I made myself something wrong. So I tried again, same result. Only in my 3rd attempt, I managed to buy (because I’m persistent, others could give up and didn’t bought).

Print screen of the 2 rejected orders:

image

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thanks for all the details and explanations, I will explore it to identify from where can come this issue.

I think that this GS line of ETPs is interesting, as it’s a basket of stocks, it helps mitigate the risks (and returns).

The non-leverage versions are almost as an ETF, a “mini-ETF”. Or speaking the T212 lingo, a “Pie” (with several slices). :slight_smile:

Bottom-line: Nice innovation. Congrats. Keep innovating.

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Thanks a lot!!!
Yes the idea is to have (as you said) a mini-ETF or a kind of high conviction ETF.

The difference with the pie that you can do with T212 is the quarterly rebalancing that ensure equally weighted exposure over the time.

We have many others ideas like this in the pipeline :wink:

Yes, ideal for passive investors, as a true “Lazy Portfolio”.

Have you made some graphs showing the historical performance of that non-leverage basket ETPs against S&P 500? :wink:

I know that they are new, but you can simulate them using the quotes of the underlying stocks adjusted to the weight of each within each ETPs or if the Solactive indexes used have already a relevant historical data.

Thanks, I already called Mario: :slight_smile:

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here you have the comparison with S&P500

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For example, GAFAM, using his benchmark index, Solactive GAFAM Equal Weight Index (PR):

Since Inception (01/12/2015): +302.65%!

And this is the ETP with less return of the 3.

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true, you can have the historical performance from Solactive :wink:

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We discussed with different 3rd party provider about the rejected orders.
Nothing have been identified so far, but please let us know if you experiment again this.

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I do not know yet if it is possible, for now it is only at the request level… but, I asked T212 if they can do a CFD version of FAANG, FATANG and GAFAM to add it on their CFD offer.

is this something you think would be cool?

Out of Leveraged and Short version of the Stock Basket ETP,
we have 3 main ETP:
-FAANG
-FATANG
-GAFAM

Try to guess which one has been the best performer over the last 30 days (without looking on the T212 platform)… I was personally wrong … and surprised :thinking:

Is it FATANG as be best performer ?

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Tesla had taken a beat in the last month (Nio was/is even worst :wink:), recovering on the last days. So I will exclude the FATANG.

Between the FAANG and GAFAM, I imagine that Netflix volatility could had taken a toll on the FAANG vs. Microsoft mature performance on GAFAM. So I will go for GAFAM.

DISCLAIMER: I’m Long GAFAM.

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thanks guys for playing the game :innocent:
between 13th of March and 13th of April (checking from the T212 platform, last 30 days performance):

1- GAFAM 11,5%
2- FAANG 10,5%
3- FATANG 9,8%

Performances are very close but it is interesting to see that there is a real difference.
This is only during 30 days.
These products are recommanded for long term, holding perdiod 3 years.
We will see over the time :wink:

I am myself invested on GAFAM & FAANG
and currently 3x FAANG & 3x FATANG

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I am very happy to announce that from today, the FAANG - GAFAM and FATANG of GraniteShares are available in CFDs on the Trading212 platform.