“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.

Read DFA’s article in full here.

Source and Author: Dimensional Fund Advisors

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