FNGUBMO REX MicroSectors FANG+ Index 3X Leveraged ETN
FNGU Fund Description
FNGU is an exchange traded note that tracks 3x the daily price movements of an index of US-listed technology and consumer discretionary companies. The index is highly concentrated and equally weighted
FNGU Factset Analytics Insight
FNGU offers 3x leveraged 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, FNGU is designed as a short-term trading tool and not a long-term investment vehicle. The note tracks three times the daily price movements of the index, so long-term returns could materially differ from those of the underlying index. Although FNGUs fee may seem expensive, holdings costs shouldnt be a priority for short-term positions.
FNGU CHARTS AND PERFORMANCE
FNGU Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of FNGU. FNGU 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.