A FANG ETF That Doesn't Hold Many of Those Stocks Scoops Up Beyond Meat Shares

The AdisorShares New Tech and Media ETF FNG, an actively managed exchange traded fund, created just over two years as a play on the famous FANG stocks is surprisingly light on those names, but allocated to another high-flying name.

What Happened

FNG recently bought 3,100 shares of Beyond Meat, Inc. BYND, giving the stock a weight of nearly 5% in the portfolio and making FNG the ETF with the largest weight to shares of the plant-based meat producer, according to Bloomberg.

FNG holds just one of the four FANG stocks: Amazon.com Inc. AMZN, shares of which account for 6.1% of the fund's weight, according to issuer data.

Why It's Important

FNG has some indirect exposure to two of the other FANG stocks: Alphabet Inc. GOOG and Facebook Inc. FB. BKCH, run by the same managers as FNG, is FNG's largest holding at a weight of 12.50%.

There are advantages to active management, including being able to buy a stock that may seem unlikely appear to in a certain fund, as FNG has done with Beyond Meat. Plus, FNG's managers may have gotten some good pricing as shares of Beyond Meat are down 21% this week. Still, Beyond Meat seems like an odd fit for this ETF.

“FNG’s investment thesis believes that high-performing technology and media leaders, popularly characterized as 'FANG,' will continue to provide superior long-term performance,” according to Maryland-based AdvisorShares.

Beyond Meat is classified neither as a media stock nor as a technology stock. On the other hand, FNG deviating from tech and media investments isn't unusual. At the end of May, FNG allocated about 23.50% of its combined weight to the consumer staples and health care sectors.

What's Next

FNG is certainly positioned to benefit of the recent 21% decline in Beyond Shares is a blip and the stock resumes its previously breathtaking ascent. Just 23 ETFs hold shares of the faux meat maker and the next closest one in percentage terms to FNG is the Renaissance IPO ETF IPO, which allocates just 1% to Beyond Meat.

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