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Tech's Deep Roots and Opportunities in FAN1

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

Websim is the retail division of Intermonte, the primary intermediary of the Italian stock exchange for institutional investors. Leverage Shares often features in its speculative analysis based on macros/fundamentals. However, the information is published in Italian. To provide better information for our non-Italian investors, we bring to you a quick translation of the analysis they present to Italian retail investors. To ensure rapid delivery, text in the charts will not be translated. The views expressed here are of Websim. Leverage Shares in no way endorses these views. If you are unsure about the suitability of an investment, please seek financial advice. View the original at

Over the past one year, the tech-heavy Nasdaq-100 has risen by 21.64%. Of the 100 constituents of this index, the vast proportion of the index’s rise has been attributed to the “Magnificent Seven”: Nvidia (NVDA), Meta Platforms (META), Amazon.com (AMZN), Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL) and Tesla (TSLA). The reasons behind this are two-fold:

  1. Since a massive proportion of America’s mass manufacturing departed from its shores in increasing numbers after the end of the Cold War, “dot-com” companies predominantly focused on the then-nascent internet – captured the imaginations of both institutional and retail investors. As technology became more trenchant, the interest in “dot com” essentially morphed into interest in “tech”. The Magnificent Seven lie at the epicentre of this interest.

  2. As the American economy became ever-more entrenched in an affordability crisis manifesting into the current economic turbulence, a survivability bias was imprinted into these companies that had long outgrown their “startup” phase to become sprawling enterprises.

Interest in tech remains high and volatile. For instance, in Week 37 of this year (ending September 16), the S&P 500 Top 25 list by momentum (-1.14%) underperformed the S&P 500 index (-0.16%). The Nasdaq-100 Top 25 list (-1.33%) underperformed the Nasdaq -100 index (-0.51%). In both cases, the lead causes of market decline were “tech” stocks. In Week 36, the S&P 500 Top 25 list (-1.03%) outperformed the S&P 500 index (-1.29%) while the Nasdaq-100 Top 25 list (-0.54%) outperformed the Nasdaq-100 index (-1.36%). The lead causes of a reduced decline were also tech stocks.

Capitalising on this deep-set interest is Leverage Shares’ recently-launched FAANG+ ETP “FAN1” that is built on seven “core” tickers – Meta Platforms, Microsoft, Apple, Amazon.com, Alphabet (Class A), Netflix and Tesla – as well as three additional stocks – NVIDIA, Salesforce.com and Advanced Micro Devices. Unlike many of Leverage Shares’ other products, FAN1 doesn’t have a leverage factor to amplify daily performance. Instead, the constituents are rebalanced on a daily basis such that the constituents are held in equal proportion.

The value of FAN1 in a market inclined towards tech cannot be overstated: over the past one year (which includes both a backtested period as well as the period since the product went live) until the 15th of September, FAN1 has delivered 55.11% returns while the Nasdaq-100 and S&P 500 have delivered 19.74% and 14.9% respectively.

A general trend observed (and which bears keeping in mind) is that FAN1 outperforms the market when the latter is rising and falls harder than the market when the latter is bearish. Hence a tactical strategy that takes cues from market directionality can also be executed using FAN1 in bullish market trends.

All in all, FAN1 offers professional investors immense potential to use in both a long-term context for exposure to a resilient and survivable segment of the tech sector and in a short-term/tactical context that takes cues from market directionality. Click here to learn about this instrument.

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

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Sandeep Rao

Research

Sandeep joined Leverage Shares in September 2020. He leads research on existing and new product lines, asset classes, and strategies, with special emphasis on analysis of recent events and developments.

Sandeep has longstanding experience with financial markets. Starting with a Chicago-based hedge fund as a financial engineer, his career has spanned a variety of domains and organizations over a course of 8 years – from Barclays Capital’s Prime Services Division to (most recently) Nasdaq’s Index Research Team.

Sandeep holds an M.S. in Finance as well as an MBA from Illinois Institute of Technology Chicago.

Julian Manoilov

Marketing Lead

Julian joined Leverage Shares in 2018 as part of the company’s primary expansion in Eastern Europe. He is responsible for web content and raising brand awareness.

Julian has been academically involved with economics, psychology, sociology, European politics & linguistics. He has experience in business development and marketing through business ventures of his own.

For Julian, Leverage Shares is an innovator in the field of finance & fintech, and he always looks forward with excitement to share the next big news with investors in the UK & Europe.

Violeta Todorova

Senior Research

Violeta joined Leverage Shares in September 2022. She is responsible for conducting technical analysis, macro and equity research, providing valuable insights to help shape investment strategies for clients.

Prior to joining LS, Violeta worked at several high-profile investment firms in Australia, such as Tollhurst and Morgans Financial where she spent the past 12 years of her career.

Violeta is a certified market technician from the Australian Technical Analysts Association and holds a Post Graduate Diploma of Applied Finance and Investment from Kaplan Professional (FINSIA), Australia, where she was a lecturer for a number of years.

Oktay Kavrak

Head of Communications and Strategy

Oktay joined Leverage Shares in late 2019. He is responsible for driving business growth by maintaining key relationships and developing sales activity across English-speaking markets.

He joined Leverage Shares from UniCredit, where he was a corporate relationship manager for multinationals. His previous experience is in corporate finance and fund administration at firms like IBM Bulgaria and DeGiro / FundShare.

Oktay holds a BA in Finance & Accounting and a post-graduate certificate in Entrepreneurship from Babson College. He is also a CFA charterholder.

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