Over the 10 years from September 2010 to August 2020, a portfolio of the so-called FAANG stocks-Facebook, Amazon, Apple, Netflix, and Google’s parent company, Alphabet-held in proportion to their market caps would have delivered an average annual return of 34.25% per year. That means on average, the value of the portfolio doubled about every 2.5 years.
Given their great returns over the last 10 years, what is our best guess of how the FAANG stocks will do over the next decade?
Read Dimensional’s Kenneth French, PhD’s essay, “Investing in FAANG Stocks: Should You Expect Unexpected Returns?,” HERE.
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Ken French is a member of the Board of Directors of the general partner of, and provides consulting services to, Dimensional Fund Advisors LP.
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RISKS
Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful.