3 FANG Related ETNs Debut

Today RexShares launched three ETNs offering different exposures to a highly concentrated basket of 10 FANG-related stocks. The products are as follows:

• MicroSectors FANG+ Index 2X Leveraged ETNs (FNGO)
• MicroSectors FANG+ Index -2X Inverse Leveraged ETNs (FNGZ)
• MicroSectors FANG+ Index Inverse ETNs (GNAF)

Each one comes with an expense ratio of 0.95% and lists on the NYSE Arca.

FNGO offers investors twice the performance of the underlying NYSE FANG+ Index, while FNGZ provides the exact opposite: -200% of the index’s performance. GNAF, with its clever backward ticker, provides simple inverse exposure to the associated benchmark.

The underlying index includes the following securities, which are equal-weighted:

• Facebook (FB)
• Apple (AAPL)
• Amazon (AMZN)
• Netflix (NFLX)
• Google (GOOGL)
• Alibaba (BABA)
• Baidu (BIDU)
• NVIDIA (NVDA)
• Tesla (TSLA)
• Twitter (TWTR)

The FANG stocks have traditionally included Facebook, Apple, Netflix and Google, but that’s ridiculously narrow for a portfolio, and many people group in other stocks with those four originals. A 10-stock index, however, is still highly concentrated. According to the documents for the ETNs, the stocks included in the FANG+ index are all highly liquid and growth-oriented, representing “tech-enabled” companies from the technology and consumer discretionary sectors.

The leveraged and inverse exposures offered by the three new ETNs will offer investors with strong opinions on the FANG trend to express their opinions, as many of the companies included on the list have also recently stumbled in the markets.

Contact Heather Bell at [email protected]