Overall trends in volatility indicate that the market tends to be around 7-9 times more volatile than the FAANG+. The lowest point is the 6 times level seen this past quarter while the highest is at the 10-20 times level seen from Q2 through Q4 of this past calendar year. In terms of price changes, the rate of price change for the FAANG+ theme has tended to be less extreme and (generally) more bullish than that in the market.

An Opportunity Over the Market?

With further contractions expected in the market as calls for a recession becomes increasingly more strident, it should be evident that trends impute a higher level of survivability for these highly-recognizable technology-driven companies over other companies, be they large-, mid- or small-cap. This can also be the attribution for the continuing price ratio overvaluation of these companies.

As the market twists and turns over the next few prospectively-tumultuous quarters, it can be expected that FAANG+ will continue to receive disproportionate attention. To capitalise on this opportunity, Leverage Shares has launched the FAANG+ ETP that holds these ten stocks in equal weights. With wide access across the Continent and affordable pricing, tactical trading strategies based around the FAANG+ will provide an extra edge for sophisticated investors.