Leveraged ‘FANG’ ETNs Debut

January 23, 2018

The Bank of Montreal (BMO) has teamed up with REX Shares to launch a pair of ETNs that offer leveraged and inverse exposure to some of the top U.S. stocks. The BMO REX MicroSectors FANG+ Index 3X Leveraged ETNs (FNGU) and the BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETNs (FNGD) are tied to a highly concentrated index that targets technology and consumer discretionary stocks.

Both products come with an expense ratio of 0.95% and list on the NYSE Arca.

Their underlying index is equal weighted and covers just 10 “highly traded growth stocks,” according to the prospectus. The ETNs offer 300% and -300% exposure to their benchmarks.

Presumably, the index includes the “FANG” stocks—Facebook, Apple, Netflix and Google—in addition to a handful of others. However, these are not the first FANG-focused exchange-traded products. In July 2017, AdvisorShares rolled out the actively managed AdvisorShares New Tech and Media ETF (FNG), which is now a nearly $47 million fund.

Contact Heather Bell at [email protected]

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