FNGDBMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETN
FNGD Fund Description
FNGD is an exchange traded note that tracks 3x inverse the daily price movements of an index of highly concentrated and equally weighted US-listed technology and consumer discretionary companies. The note uses derivatives to achieve its -3x exposure.
FNGD Factset Analytics Insight
FNGD offers -3x exposure to an index of “FANG” companies (Facebook, Apple, Amazon, Netflix, and Alphabet [formerly Google]), and other companies that exhibit similar characteristics. Presumably, the index will always include these five companies; an index committee is responsible for selecting the additional names. Eligible stocks must be listed on a US exchange (although ADRs are acceptable), classified in either the technology or consumer discretionary sectors, and exhibit similar traits to other technology and internet companies. At least ten stocks must be included in the indexthe number it held when the note launchedso investors can expect a high level of concentration. All holdings are equally weighted.
As a geared product, FNGD is designed as a short-term trading tool and not a long-term investment vehicle. The note tracks three times the inverse of the daily price movements of the index, so long-term returns could materially differ from those of the underlying index. Although FNGDs fee may seem expensive, holding costs shouldnt be a priority for short-term positions.
FNGD CHARTS AND PERFORMANCE
FNGD Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of FNGD. FNGD is rated a N/A out of 5.
Options Strategies for Outcome Investing
A collar strategy is a protective option strategy constructed by writing a call and buying a put with the same expiration date while being long the underlying security.
A covered call is an income strategy constructed by writing a call option against a holding of the underlying security.