A core part of the investment thesis for the FAANG stocks (Facebook, Amazon, Apple, Netflix and Google) is their ubiquity in our everyday lives. Conversely, a key reason for not owning them is simply that they are arguably too expensive and undeniably very volatile.

Olivia Engel, CIO – Active Quantitative Equity, State Street Global Advisors, says that if investors are seeking both strong and smooth risk-adjusted returns, better value can be found among more "boring" tech names, without the risks carried by the FAANGs should they suddenly plunge. Olivia then went on to outline several scenarios in which these stocks could take a hit.

Watch the exclusive video below to find out why the FAANGs could come back to bite investors.

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