Leveraged ‘FANG’ ETNs Debut

America’s favorite quartet of stocks gets amped-up exposures.

ETF.com
|
Reviewed by: etf.com Staff
,
Edited by: etf.com Staff

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]

etf.com is the single source for ETF intelligence. We provide real-time ETF news and analysis to educate investors and drive financial knowledge in the space. Our personalized and accurate information, alongside industry-leading financial tools, are depended upon to develop winning investment and financial decisions. At etf.com, we strive to serve both the individual investor as well as the professional financial advisor to educate and grow the ETF community.