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Sink your FANGs into
E-mini NASDAQ-100 Futures

Compare the cost differences between trading collectively the “FANG” stocks vs. CME Group E-mini NASDAQ-100 futures contract.

Facebook, Amazon, Netflix and Alphabet (Google), collectively the “FANG” stocks, have become the face of the technology rally that has propelled the Nasdaq index to record highs, as evidenced by the amount of coverage given to them in the major financial press outlets. In this paper, we examine the cost differences, for an individual trader trading through a large brokerage firm, of using CME Group E-mini NASDAQ-100 futures as a proxy to trading these individual names.

The paper includes information on:

  • Comparisons
    Comparison of YTD Market Value for FANG Basket & Nasdaq futures
  • Correlation
    A correlation study compares the FANG basket to the futures position using the Bloomberg comparison function
  • Execution Costs
    The tighter the bid/offer spread is, or closer that the offer is to the bid, determines how efficient the execution of the trade is
  • Commissions
    Commission costs incurred to execute both trades including both exchange and brokerage costs
  • Capital Costs
  • Interest Costs

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