Is Big Tech stocks' super power a myth?

A recent study from SMU argued that the super power of the Faang cohort is exaggerated. The bulk of their gains since 2013 came thanks to a broader market appetite for large companies and those with strong earnings growth, according to SMU Associate Professor of Finance Roger Loh who studied how investment factors influence returns. In the paper, Assoc Prof Loh also examined whether the Faangs themselves have become a factor to separate winners from losers in the rest of the market. He found no reliable spread between the extreme Faang beta quintiles, and that investors do not treat covariation with Faang stocks as a type of risk that deserves compensation.