The best way to trade the market's hottest stocks

At this point, everyone knows FANG stocks are the place to be.

A market cap-weighted index of Facebook, Amazon, Netflix and Google has surged 31% this year, more than triple the S&P 500, and 11 percentage points more than the already tech-heavy Nasdaq 100. And that dominance looks poised to continue, with tech companies expected to be among the champions of earnings seasons through year-end.

But with no investment vehicle dedicated solely to FANG, the next step is where it gets tricky. In the end, your best bet is to buy shares of the ETF most heavily exposed to the four mega-cap tech juggernauts.

That would be the First Trust Dow Jones Internet Index Fund (FDN). FANG stocks make up roughly one-third of the 42-company ETF, and have accounted for half of its return during the past five years, according to data compiled by Bloomberg Intelligence.

For proof, look no further than the fund's recent outperformance. The ETF has surged 189% over the past five years, through Tuesday. That far outpaces the 122% increase in the PowerShares QQQ Trust Series ETF, the biggest tech-focused fund, as well as the 79% gain enjoyed by the benchmark S&P 500 over the same period.

It already appears as if traders have caught on to some degree, with FDN swelling in size to become the third-largest tech ETF.

And it won't break the bank. FDN has the lowest fees out of all ETFs providing a good chunk of FANG exposure, according to Bloomberg Intelligence. The research outfit also found the ETF is the most liquid on a volume basis, with $25 million changing hands each day.