Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
GOOG Alphabet Inc | Communication Services | 20% |
AAPL Apple Inc | Technology | 20% |
AMZN Amazon.com, Inc | Consumer Cyclical | 20% |
NFLX Netflix, Inc. | Communication Services | 20% |
META Meta Platforms, Inc. | Communication Services | 20% |
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Performance Chart
The chart shows the growth of an initial investment of $10,000 in FAANG Portfolio, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Every 3 months.
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Returns By Period
As of Jun 26, 2026, the FAANG Portfolio returned -5.98% Year-To-Date and 26.69% of annualized return in the last 10 years.
| Position | 1D | 1M | YTD | 6M | 1Y | 3Y* | 5Y* | 10Y* |
|---|---|---|---|---|---|---|---|---|
Benchmark S&P 500 Index | -0.01% | -2.15% | 7.48% | 6.14% | 20.77% | 19.34% | 11.44% | 13.91% |
Portfolio FAANG Portfolio | -2.89% | -13.02% | -5.98% | -6.56% | 9.37% | 27.68% | 15.68% | 26.69% |
| Portfolio components: | ||||||||
AAPL Apple Inc | -6.12% | -10.76% | 1.40% | 0.68% | 37.05% | 14.62% | 16.22% | 29.37% |
AMZN Amazon.com, Inc | -3.10% | -14.43% | -1.65% | -2.31% | 7.09% | 21.26% | 5.95% | 20.71% |
GOOG Alphabet Inc | -0.83% | -11.03% | 9.19% | 8.54% | 100.11% | 42.58% | 22.14% | 26.30% |
META Meta Platforms, Inc. | -2.65% | -11.26% | -17.61% | -18.53% | -23.15% | 25.29% | 9.91% | 17.52% |
NFLX Netflix, Inc. | -1.31% | -19.14% | -24.38% | -24.28% | -44.40% | 19.46% | 6.11% | 23.58% |
Monthly Returns
Based on dividend-adjusted daily data since Apr 3, 2014, FAANG Portfolio's average daily return is +0.11%, while the average monthly return is +2.18%. At this rate, an investment would double in approximately 2.7 years.
Historically, 65% of months were positive and 35% were negative. The best month was Apr 2020 with a return of +18.6%, while the worst month was Apr 2022 at -22.1%. The longest winning streak lasted 8 consecutive months, and the longest losing streak was 4 months.
On a daily basis, FAANG Portfolio closed higher 56% of trading days. The best single day was Apr 9, 2025 with a return of +12.0%, while the worst single day was Mar 16, 2020 at -10.9%.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 0.90% | -3.20% | -4.82% | 14.35% | 2.19% | -13.46% | -5.98% | ||||||
| 2025 | 7.56% | -5.54% | -9.28% | 2.42% | 7.47% | 7.72% | 1.53% | 4.05% | 4.23% | 2.97% | 2.06% | -3.08% | 22.57% |
| 2024 | 4.91% | 8.99% | 1.10% | -3.21% | 8.73% | 7.51% | -3.22% | 3.03% | 3.69% | 1.19% | 6.85% | 4.92% | 53.42% |
| 2023 | 18.04% | -1.36% | 13.46% | 3.59% | 12.44% | 7.00% | 4.88% | -1.27% | -6.28% | 1.80% | 10.47% | 4.23% | 87.27% |
| 2022 | -10.78% | -8.74% | 3.52% | -22.05% | -2.38% | -10.36% | 15.96% | -2.86% | -8.64% | -1.57% | 4.59% | -7.88% | -43.89% |
| 2021 | -0.86% | 0.24% | 2.60% | 8.98% | -2.58% | 6.23% | 2.33% | 6.49% | -4.88% | 5.67% | 0.56% | 0.32% | 27.07% |
Benchmark Metrics
FAANG Portfolio has an annualized alpha of 12.55%, beta of 1.18, and R2 of 0.61 versus S&P 500 Index. Calculated based on daily prices since April 03, 2014.
- This portfolio captured 164.15% of S&P 500 Index gains and 101.63% of its losses - amplifying both gains and losses, but participating more in upside than downside.
- This portfolio generated an annualized alpha of 12.55% versus S&P 500 Index - delivering returns beyond what market exposure alone would predict.
- Alpha
- 12.55%
- Beta
- 1.18
- R²
- 0.61
- Upside Capture
- 164.15%
- Downside Capture
- 101.63%
Expense Ratio
FAANG 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.
Return for Risk
Risk / Return Rank
FAANG Portfolio ranks 10 for risk / return — in the bottom 10% of Portfolios on our site. This means you're taking on significantly more risk than the returns justify. Consider whether the potential upside is worth the volatility, or explore alternatives with better risk / return profiles.
Return / Risk — by metrics
The table below presents risk-adjusted performance metrics for FAANG Portfolio and compares them with S&P 500 Index.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| Portfolio | Benchmark | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | 0.48 | 1.67 | -1.19 |
| Sortino ratioReturn per unit of downside risk | 0.81 | 2.29 | -1.48 |
| Omega ratioGain probability vs. loss probability | 1.10 | 1.30 | -0.21 |
| Calmar ratioReturn relative to maximum drawdown | 0.66 | 2.29 | -1.64 |
| Martin ratioReturn relative to average drawdown | 1.94 | 10.09 | -8.15 |
How much return does each position deliver for the risk it carries? Higher values mean better reward for the risk taken.
| Position | Risk / Return Rank | Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio |
|---|---|---|---|---|---|---|
AAPL Apple Inc | 83 | 1.59 | 2.26 | 1.30 | 2.70 | 6.54 |
AMZN Amazon.com, Inc | 49 | 0.23 | 0.54 | 1.07 | 0.33 | 0.75 |
GOOG Alphabet Inc | 96 | 3.47 | 4.72 | 1.57 | 4.85 | 16.31 |
META Meta Platforms, Inc. | 15 | -0.64 | -0.77 | 0.90 | -0.70 | -1.38 |
NFLX Netflix, Inc. | 3 | -1.32 | -2.06 | 0.74 | -0.95 | -1.69 |
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Dividends
Dividend yield
FAANG Portfolio provided a 0.20% dividend yield over the last twelve months.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 0.20% | 0.19% | 0.21% | 0.10% | 0.14% | 0.10% | 0.12% | 0.21% | 0.36% | 0.29% | 0.39% | 0.39% |
| Portfolio components: | ||||||||||||
AAPL Apple Inc | 0.38% | 0.38% | 0.40% | 0.49% | 0.70% | 0.49% | 0.61% | 1.04% | 1.79% | 1.45% | 1.93% | 1.93% |
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% |
GOOG Alphabet Inc | 0.25% | 0.26% | 0.32% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
META Meta Platforms, Inc. | 0.39% | 0.32% | 0.34% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
NFLX Netflix, 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 FAANG 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 FAANG Portfolio was 48.98%, occurring on Nov 3, 2022. Recovery took 281 trading sessions.
The current FAANG Portfolio drawdown is 14.34%.
Related event | Drawdown | Fall | Recovery | Underwater |
|---|---|---|---|---|
Bear market2022 | -48.98%Nov 2022 | 11mo 16d | 1y 1mo | 2y 26dNov 2021 - Dec 2023 |
Rate-hike selloffLate 2018 | -30.93%Dec 2018 | 3mo 25d | 4mo | 7mo 25dAug 2018 - Apr 2019 |
COVID crash2020 | -26.21%Mar 2020 | 25d | 1mo 22d | 2mo 17dFeb 2020 - May 2020 |
2025 selloff2025 | -25.07%Apr 2025 | 1mo 19d | 2mo 23d | 4mo 12dFeb 2025 - Jun 2025 |
2016 bear market2016 | -20.04%Feb 2016 | 2mo 3d | 5mo 29d | 8mo 2dDec 2015 - Aug 2016 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
AI Analysis
The gist
The portfolio is a concentrated bet on the large-cap U.S. internet and platform economy, with Apple (AAPL) as the one hardware-adjacent note in a largely software, ads, cloud, and streaming chorus. It is diversified in the narrow arithmetic sense, but the correlations say the portfolio mostly owns the same macro narrative five times.
The numbers
- The diversification ratio is 1.56 over 1Y, then 1.39, 1.30, 1.27, and 1.28 over longer windows; that is modest to meaningful diversification, with the recent window looking better than the history.
- The effective number of assets is 5.0 out of 5, so the weights are perfectly spread; concentration is not the problem, correlation is.
- Pairwise correlations average 0.53, with META, Google (GOOG), and Amazon (AMZN) forming the tightest cluster; the portfolio behaves like a small basket of one trade.
The good
- The equal weights avoid a single-name accident, which matters because the portfolio is otherwise already making a clear sector-and-factor statement.
- Netflix (NFLX) sits a little apart from the GOOG/AMZN/META cluster, which gives the portfolio some internal texture.
- To be fair, the 1Y diversification ratio is stronger than the longer-run numbers, so the positions have not all been moving in lockstep at once.
The bad
- Three holdings, GOOG, AMZN, and META, sit in the same cluster, and all five names have high portfolio correlations, so the portfolio’s real risk is common factor exposure.
- The portfolio is heavily exposed to advertising, platform monetization, and consumer internet sentiment, which are different businesses and also annoyingly similar when risk gets repriced.
The ugly
- If ad budgets slow, cloud margins compress, or large-cap growth de-rates together, the correlation structure can tighten fast and the diversification ratio can look much smaller than it does in calm periods.
Next steps
- Portfolios with this correlation profile are often paired with exposures whose earnings drivers sit outside digital advertising and consumer internet.
- The cluster data suggests the portfolio is more coherent as a single thematic sleeve than as a broad market diversifier.
- The recent 1Y improvement hints that short-window relationships can differ meaningfully from the long-run pattern.
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. Your capital is spread almost evenly across your holdings, indicating a well-balanced allocation. Note that true diversification also depends on the correlations between assets — check the diversification ratio below.
Diversification Ratio
1Y | 3Y | 5Y | 10Y | All Time | |
|---|---|---|---|---|---|
Diversification Ratio | 1.56 | 1.39 | 1.30 | 1.27 | 1.28 |
The portfolio has a diversification ratio of 1.28, in line with the typical range across portfolios. There's room to improve by adding less correlated assets.
FAANG Portfolio correlation to the S&P 500 Index
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.69 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.75 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.80 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.75 |
Correlation (All Time) Calculated using the full available price history since Apr 3, 2014 | 0.74 |
Benchmark Correlations
Correlation vs. S&P 500 Index. GOOG has the highest benchmark correlation at 0.69, while NFLX has the lowest at 0.48.
Asset Correlations Table
Find what FAANG Portfolio is missing
See which holdings overlap, where FAANG Portfolio is concentrated, and which low-correlation assets could fill the gaps.
Analyze Diversification