Market Cap of FAAANM vs. The World

Kevin T. Cooper, CFA

VICE PRESIDENT | HEAD OF INVESTMENT RESEARCH

Many investors are cautious of the “big getting bigger” as well as risk concentration and stretched valuations, especially against the backdrop of a global pandemic.

FAAANM refers to Facebook, Apple, Alphabet, Amazon, Netflix, and Microsoft. We put numbers behind the names and compared the market cap of these 6 stocks against indices representing economies and segments of the world. 

Float Adjusted Market Cap ($M)

Graph_Float_Adj_Market_Caps_103120_NT

Source: MSCI, Factset. As of 10/31/20.

There is growing acceptance that the U.S. stock market’s headline returns are being driven by too few names. We believe this chart is a great conversation starter for investors and advisors.

What do you think?

Diversification does not guarantee a profit or protect against a loss in declining markets.

Investments in international securities are subject to certain risks of overseas investing including currency fluctuations and changes in political and economic conditions, which could result in significant market fluctuations.

Any securities or indices depicted should not be perceived as investment recommendations.

The MSCI Emerging Markets EMEA Index captures large and mid cap representation across 11 Emerging Markets (EM) countries* in Europe, the Middle East and Africa (EMEA). With 158 constituents, the index covers approximately 85% of the free float adjusted market capitalization in each country.

The MSCI Emerging Markets (EM) Asia Index captures large and mid cap representation across 9 Emerging Markets countries.* With 1,120 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

The MSCI China Index captures large and mid cap representation across China A shares, H shares, B shares, Red chips, P chips and foreign listings (e.g. ADRs). With 711 constituents, the index covers about 85% of this China equity universe. Currently, the index includes Large Cap A and Mid Cap A shares represented at 20% of their free float adjusted market capitalization.

The MSCI Pacific Index captures large and mid cap representation across 5 Developed Markets (DM) countries in the Pacific region. With 454 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

The MSCI Emerging Markets (EM) Latin America Index captures large and mid cap representation across 6 Emerging Markets (EM) countries* in Latin America. With 107 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

The MSCI Europe and Middle East Index captures large and mid cap representation across 15 developed markets countries in Europe together with Israel in the Middle East.  Please go to msci.com for most current list of countries represented by the index.

The indices are unmanaged, are not available for investment, and do not incur expenses.

FAAANM refers to six stocks within the S&P 500 Index: Facebook, Apple, Alphabet, Amazon, Netflix, and Microsoft.

WRITTEN BY

Kevin T. Cooper, CFA

VICE PRESIDENT | HEAD OF INVESTMENT RESEARCH

PUBLISHED: November 16th, 2020
2 Min Read

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