“Interested in the latest FANMAG trend? Our researchers at DFA take a deep dive into their performance history and why we continue to believe that fad-based investing is no substitute for a broadly diversified portfolio.” ~ Shelly Braden, CFP
FANMAG: Because FAANGs Are So Yesterday
- FANMAG returns have been extreme relative to their contemporaries, but not their predecessors—their performance has been in line with the average top performers throughout US stock market history.
- The FANMAGs were the big winners from a broader group of large tech companies, most of whom have lagged the market.
- Following the popularity of the FAANG stocks, FANMAGs are the current fad. But history suggests fad-based investing is no substitute for broad diversification and a consistent approach.
Source and Author: Dimensional Fund Advisors