Once thought of as nothing more than risky high growth tech stocks, FAANG stocks (Facebook, Apple, Amazon, Netflix and Google) have turned into the modern day consumer staples complex amidst the COVID-19 pandemic.
The NYSE FANG+ Index (^NYFANG)— comprised of 10 top names in tech such as the aforementioned Facebook, Apple, Amazon, Netflix and Google — has climbed to within 3% of its record high of 3,905 hit on Feb. 19. For good measure, the Consumer Staples Select Sector SPDR (XLP) remains 11% shy of its Feb. 14 all-time high.
Year-to-date, the NYSE FANG+ Index is up nearly 20%. The Dow Jones Industrial Average (^DJI) and S&P 500 (^GSPC) are down 14% and 9%, respectively, this year. The Nasdaq Composite is up 3%.
“With this unprecedented COVID-19 pandemic causing a near-term consumer/enterprise spending abyss and the markets under major pressure, the FAANG names have been viewed as relative safety blankets