REX Shares, LLC along with the Bank of Montreal (BMO), begun trading 2 new Leveraged Long-Short ‘FANG’ ETNs , the BMO REX MicroSectors FANG+ Index 3X Leveraged ETNs(NyseArca: FNGU) and the BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETNs (NyseArca: FNGD), on Tuesday, January 23, 2018. Here is a synopsis of the new ETFs:
1.
FUND INFORMATION:
| Symbol: FNGU | Exchange: NYSE ARCA |
| Name: BMO REX MicroSectors FANG+ Index 3X Leveraged ETNs | Net Expense Ratio: 0.95% |
FUND OBJECTIVE:
The return on the BMO REX MicroSectors FANG+ Index 3X Leveraged Exchange Traded Notes (ETNs) is linked to a three times (+3x) leveraged participation in the performance of the NYSE FANG+ Index, compounded daily, minus the applicable fees.
The notes are unsecured and unsubordinated obligations of Bank of Montreal. The notes do not guarantee any return of principal at maturity, call or upon early redemption, and do not pay interest.
2.
FUND INFORMATION:
| Symbol: FNGD | Exchange: NYSE ARCA |
| Name: BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETNs | Net Expense Ratio: 0.95% |
FUND OBJECTIVE:
The BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETN is linked to the performance of the NYSE FANG+ Index. The ETN offers investors the total return of the NYSE FANG+ Index on a daily compounded -3x inverse leveraged basis, before taking into account fees.
The notes are unsecured and unsubordinated obligations of Bank of Montreal. The notes do not guarantee any return of principal at maturity, call or upon early redemption, and do not pay interest.
REFERENCE INDEX:
The NYSE FANG+ index includes 10 highly liquid stocks that represent a segment of the technology and consumer discretionary sectors consisting of highly-traded growth stocks of technology and tech-enabled companies.
The NYSE FANG+TM Index (NYFANG) was created by ICE Data Services, which is part of Intercontinental Exchange, in 2017 to provide exposure to a select group of highly-traded growth stocks of next generation technology and tech-enabled companies.
This includes the five core “FANG” stocks: Facebook, Apple, Amazon, Netflix and Alphabet’s Google, plus another 5 actively-traded technology growth stocks: Alibaba, Baidu, NVIDIA, Tesla and Twitter.
The index’s underlying composition is equally weighted across all stocks, providing a performance benchmark that allows for a more value-driven approach to investing. While the performance of indices weighted by market capitalization can be dominated by a few of the largest stocks, an equal-weighting allows for a more representative portfolio.
Index Constituents:
| Facebook (FB) | 10% |
| Apple (AAPL) | 10% |
| Amazon (AMZN) | 10% |
| Netflix (NFLX) | 10% |
| Google (GOOGL) | 10% |
| Alibaba (BABA) | 10% |
| Baidu (BIDU) | 10% |
| NVIDIA (NVDA) | 10% |
| Tesla (TSLA) | 10% |
| Twitter (TWTR) | 10% |
Useful Links:
FNGU Home Page
FNGD Home Page
ETFtrack comment:
Here is a comment from Laurence Kaplan, MD & Head, US Notes, BMO Capital Markets:
“We are looking forward to working with REX Shares and the NYSE on these new exchange traded notes which offer investors a strategic way to enhance their exposure to highly traded technology companies. Through this collaboration, we are able to build and offer novel products that give investors the ability to increase or decrease their exposure depending on their needs.”