Technology giants have been scrutinised in recent years over their dramatic increase in stock returns. Facebook, Amazon, Netflix, Microsoft, Apple, and Google (known as FANMAG) have outperformed the US market considerably since becoming publicly traded companies, while competitors have lagged.
However, while FANMAGs may be the current trend, history suggests fad-based investing is no substitute for broad diversification and a consistent approach.
Read more takeaways in this recent report from Dimensional, ‘FANMAG: Because FAANGs Are So Yesterday’.
