Up 80% since January, guess which ASX ETF just hit an all-time high

How has this ASX ETF banked an 80% return this year so far?

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) has had a solid, if not spectacular, year so far in 2023. Since January, the ASX 200 has risen by 3.3%. Nothing to shoot the lights out, but a decent return nonetheless.

So that's why it's so startling to see an ASX exchange-traded fund (ETF) record a year-to-date gain of 80% on the markets today.

Yes, the Global X FANG+ ETF (ASX: FANG) started the year with a unit price of $10.70. But today, those same units are asking $19.15 each at the time of writing. That is indeed a gain of around 79%:

In fact, just this morning, this ETF hit another new all-time high of $19.21 per unit.

If you're wondering how an ASX ETF can record a gain that is so excessive of the broader ASX 200, I wouldn't blame you. But this is the case because the Global X FANG ETF doesn't track any ASX shares whatsoever.

This ETF is a rather unique one on the ASX. It is a highly concentrated fund that only gives investors exposure to 10 companies. These 10 companies are all tech giants that are listed in the United States of America.

ASX FANG ETF shoots the 2023 lights out

You may have heard the term 'FANG' before. It is an acronym that refers to the US tech giants 'Facebook, AppleNetflix and Google. Since the term was coined, Facebook has changed its name to Meta Platforms, and Google has become Alphabet. But the FANG moniker has stuck. I suppose it rolls off the tongue better than 'MANA'.

So unsurprisingly, the FANG ETF holds all four of these companies. It also includes Tesla, Microsoft, Amazon.comNVIDIASnowflake and Advanced Micro Devices (AMD) – the '+' in FANG+. These are effectively the biggest names in the US tech space. So this ETF is a very sector-specific, concentrated fund.

A bet on this fund has certainly paid off for ASX investors this year so far.

Looking at the performance of its underlying holdings, it's easy to see why.

Take Apple stock. It's currently up almost 53% in 2023 so far. Microsoft has gained just over 41%

Meta is up a whopping 136%, while Amazon has gained just under 52%. Earlier this week, we looked at Tesla's eye-watering gains this year too, which now stand at 161%.

Snowflake shares have put on just over 27%, and AMD stock is up 78%. But it's Nvidia's returns that really shine. This semiconductor share has gained a jaw-dropping 195.6% since January.

So considering these truly massive returns from every single share in this ETF's portfolio, it's no real surprise to see the fund itself record such a healthy gain. It will be interesting to see how the rest of 2023 treats this star-studded ASX ETF.

The Global X FANG+ ETF charges a management fee of 0.35% per annum.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Netflix, Nvidia, Snowflake, and Tesla. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, Meta Platforms, Netflix, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.
ETFs

Invest $10,000 in these ASX ETFs this month

Here's why these funds could be great options for Aussie investors with money to put into the market.

Read more »

Kid putting a coin in a piggy bank.
ETFs

Why this could be a great time to buy this high-performing ASX ETF

In my view, this is one of the most compelling ETFs Aussies can buy.

Read more »

Cubes placed on a Notebook with the letters "ETF" which stands for "Exchange traded funds".
ETFs

Up 32%: Can the BetaShares Nasdaq 100 ETF (NDQ) do it again in 2025?

It would take a lot for this extraordinary ETF to pull another stunner out of its hat next year.

Read more »

A beautiful ocean vista is shown with a woman whose back is to the camera holding her arms up in triumph as she stands at the top of a rock feeling thrilled that ASX 200 shares are reaching multi-year high prices today
ETFs

3 unstoppable ASX ETFs smashing new record highs today

Index-based ASX ETFs tracking the Australian and overseas markets are having an exceptional run in 2024.

Read more »

ETF written in yellow gold.
ETFs

3 quality ASX ETFs for Aussie investors in December

Here's why these funds could be great options for investors this month and beyond.

Read more »

Two people comparing and analysing material.
ETFs

Should I invest in the Vanguard Australian Shares Index ETF (VAS) or a term deposit?

Is the ASX share market or a term deposit a better buy for Aussies?

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
ETFs

Vanguard Australian Shares Index ETF has lifted 20% in a year. Which stocks have contributed most to its rise?

This popular ASX ETF seeks to track the performance of the S&P/ASX 300 Index before fees.

Read more »

The letters ETF sit in orange on top of a chart with a magnifying glass held over the top of it
Technology Shares

What happened to Betashares Nasdaq 100 ETF (NDQ) in November?

One big factor led to a 7.35% run for this popular US tech-heavy exchange-traded fund during the month.

Read more »