I’ve wanted to answer this question: “Could the Easy VIX algorithm, which ultimately is based on S&P implied volatility metrics, improve the performance of high-flying technology stocks?” Now I have the answer, and it is an emphatic ‘No’. I created a FAANG-specific index, starting in 2008 with AAPL, AMZN, and NFLX, then rolling in FB and GOOG as they began public trading.
Going into the analysis, my hope was that since the algorithm improved returns and drawdown performance of a broad-based ETF basket, it might do even better with a portfolio of high-flying tech stocks.