FAAMG Portfolio
FAAMG portfolio consists of five top-performing tech stocks in the market, namely, Facebook, Amazon, Apple, Microsoft, and Google.
Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
AAPL Apple Inc | Technology | 20% |
AMZN Amazon.com, Inc. | Consumer Cyclical | 20% |
GOOG Alphabet Inc | Communication Services | 20% |
META Meta Platforms, Inc. | Communication Services | 20% |
MSFT Microsoft Corporation | Technology | 20% |
Performance
Performance Chart
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The earliest data available for this chart is Apr 3, 2014, corresponding to the inception date of GOOG
Returns By Period
As of May 14, 2025, the FAAMG Portfolio returned -3.22% Year-To-Date and 25.43% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | 0.08% | 9.75% | -1.63% | 12.74% | 15.66% | 10.77% |
| FAAMG Portfolio | -3.22% | 11.76% | 0.78% | 14.75% | 22.19% | 25.43% |
| Portfolio components: | ||||||
MSFT Microsoft Corporation | 6.77% | 15.62% | 6.60% | 9.39% | 21.14% | 26.92% |
GOOG Alphabet Inc | -15.42% | 0.93% | -12.04% | -5.41% | 19.06% | 19.79% |
AAPL Apple Inc | -14.77% | 7.60% | -4.81% | 14.84% | 23.24% | 22.20% |
META Meta Platforms, Inc. | 12.14% | 20.69% | 12.37% | 40.69% | 26.21% | 23.49% |
AMZN Amazon.com, Inc. | -3.66% | 14.33% | 1.18% | 13.29% | 12.14% | 25.88% |
Monthly Returns
The table below presents the monthly returns of FAAMG Portfolio, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 5.33% | -6.51% | -9.53% | -0.79% | 9.50% | -3.22% | |||||||
| 2024 | 2.89% | 8.48% | 1.30% | -2.85% | 6.92% | 8.02% | -3.12% | 0.76% | 4.13% | -1.23% | 4.14% | 4.96% | 39.22% |
| 2023 | 14.71% | 0.66% | 15.02% | 5.81% | 10.03% | 5.48% | 4.69% | -1.46% | -4.51% | 1.41% | 9.86% | 3.48% | 85.22% |
| 2022 | -6.48% | -7.91% | 4.74% | -14.19% | -2.98% | -9.22% | 12.09% | -4.13% | -12.40% | -6.43% | 5.77% | -8.52% | -41.91% |
| 2021 | 0.32% | 0.08% | 3.54% | 10.69% | -2.32% | 6.90% | 3.76% | 5.77% | -7.56% | 6.53% | 2.06% | 1.91% | 35.07% |
| 2020 | 5.53% | -6.73% | -6.30% | 18.96% | 5.10% | 7.55% | 9.71% | 13.48% | -9.38% | -0.54% | 6.79% | 3.14% | 53.27% |
| 2019 | 11.47% | 0.69% | 6.27% | 8.38% | -8.10% | 6.99% | 4.22% | -2.33% | 1.03% | 5.53% | 4.83% | 4.30% | 50.85% |
| 2018 | 10.35% | -0.02% | -5.72% | 3.10% | 8.34% | 1.47% | 2.60% | 8.37% | -1.46% | -9.47% | -3.16% | -8.56% | 3.56% |
| 2017 | 7.02% | 4.57% | 3.73% | 4.65% | 4.84% | -3.19% | 5.07% | 3.19% | -1.46% | 9.53% | 1.89% | 0.29% | 47.44% |
| 2016 | -3.24% | -4.79% | 8.41% | -3.32% | 6.20% | -3.51% | 9.08% | 1.45% | 3.69% | 0.36% | -3.74% | 1.45% | 11.27% |
| 2015 | 1.27% | 7.01% | -2.02% | 5.56% | 0.47% | -0.66% | 11.17% | -4.51% | -0.40% | 15.98% | 3.36% | -0.65% | 40.83% |
| 2014 | -1.58% | 5.06% | 3.49% | 2.01% | 4.98% | 0.46% | -1.01% | 4.98% | -4.31% | 14.48% |
Expense Ratio
FAAMG Portfolio has an expense ratio of 0.00%, meaning no management fees are charged. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of FAAMG Portfolio is 23, meaning it’s performing worse than 77% of other portfolios on our website when it comes to balancing risk and reward. Below is a breakdown of how it compares using common performance measures.
Risk-Adjusted Performance Indicators
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|
MSFT Microsoft Corporation | 0.37 | 0.73 | 1.10 | 0.41 | 0.91 |
GOOG Alphabet Inc | -0.18 | -0.05 | 0.99 | -0.20 | -0.43 |
AAPL Apple Inc | 0.45 | 0.91 | 1.13 | 0.48 | 1.62 |
META Meta Platforms, Inc. | 1.11 | 1.64 | 1.21 | 1.13 | 3.50 |
AMZN Amazon.com, Inc. | 0.39 | 0.71 | 1.09 | 0.37 | 1.00 |
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Dividends
Dividend yield
FAAMG Portfolio provided a 0.40% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 0.40% | 0.36% | 0.25% | 0.35% | 0.23% | 0.31% | 0.45% | 0.70% | 0.66% | 0.86% | 0.85% | 0.83% |
| Portfolio components: | ||||||||||||
MSFT Microsoft Corporation | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% | 2.48% |
GOOG Alphabet Inc | 0.50% | 0.32% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
AAPL Apple Inc | 0.47% | 0.40% | 0.49% | 0.70% | 0.49% | 0.61% | 1.04% | 1.79% | 1.45% | 1.93% | 1.93% | 1.67% |
META Meta Platforms, Inc. | 0.31% | 0.34% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
AMZN Amazon.com, Inc. | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
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Worst Drawdowns
The table below displays the maximum drawdowns of the FAAMG Portfolio. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the FAAMG Portfolio was 46.78%, occurring on Nov 3, 2022. Recovery took 256 trading sessions.
The current FAAMG Portfolio drawdown is 8.77%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -46.78% | Dec 28, 2021 | 216 | Nov 3, 2022 | 256 | Nov 10, 2023 | 472 |
| -27.28% | Feb 20, 2020 | 18 | Mar 16, 2020 | 46 | May 20, 2020 | 64 |
| -26.7% | Aug 31, 2018 | 79 | Dec 24, 2018 | 80 | Apr 22, 2019 | 159 |
| -25.44% | Feb 5, 2025 | 44 | Apr 8, 2025 | — | — | — |
| -16.65% | Sep 3, 2020 | 14 | Sep 23, 2020 | 84 | Jan 25, 2021 | 98 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
Diversification Metrics
Number of Effective Assets
The portfolio contains 5 assets, with an effective number of assets of 5.00, reflecting the diversification based on asset allocation. This number of effective assets indicates a moderate level of diversification, where some assets may have a more significant influence on overall performance.
Asset Correlations Table
| ^GSPC | AAPL | META | AMZN | MSFT | GOOG | Portfolio | |
|---|---|---|---|---|---|---|---|
| ^GSPC | 1.00 | 0.68 | 0.61 | 0.64 | 0.75 | 0.70 | 0.79 |
| AAPL | 0.68 | 1.00 | 0.50 | 0.55 | 0.61 | 0.57 | 0.75 |
| META | 0.61 | 0.50 | 1.00 | 0.61 | 0.58 | 0.65 | 0.81 |
| AMZN | 0.64 | 0.55 | 0.61 | 1.00 | 0.65 | 0.67 | 0.84 |
| MSFT | 0.75 | 0.61 | 0.58 | 0.65 | 1.00 | 0.68 | 0.82 |
| GOOG | 0.70 | 0.57 | 0.65 | 0.67 | 0.68 | 1.00 | 0.85 |
| Portfolio | 0.79 | 0.75 | 0.81 | 0.84 | 0.82 | 0.85 | 1.00 |
AI Insight on Diversification
The portfolio is moderately concentrated with limited diversification benefits due to the relatively high correlations among its constituent positions. The correlation matrix shows that all five stocks—AAPL, META, AMZN, MSFT, and GOOG—have correlations ranging from 0.5 to 0.68 with each other, indicating that these positions tend to move somewhat in tandem. This level of correlation suggests that the portfolio is exposed to similar market or sector risks, which reduces the effectiveness of diversification.
There are no pairs of stocks with very low correlations that would significantly enhance diversification. The lowest correlation is 0.5 between AAPL and META, which is still a moderate positive correlation, meaning that the stocks generally move in the same direction, albeit not perfectly aligned.
The portfolio’s correlation with individual positions is quite high, ranging from 0.75 (AAPL) up to 0.85 (GOOG). This indicates that the portfolio’s overall returns are strongly influenced by the performance of these individual stocks, especially GOOG, which has the highest correlation with the portfolio. Such high correlations imply that no single position is completely dominating the portfolio, but GOOG and AMZN (0.84 correlation) have slightly more influence compared to others.
Overall, the portfolio is concentrated within a specific segment of the market—large-cap technology stocks—which limits diversification. While this concentration may benefit from sector-specific growth, it also increases vulnerability to sector downturns. To improve diversification, the portfolio would benefit from including assets with lower correlations, such as stocks from different sectors or asset classes.