BMO upsizes MicroSectors ‐3x FANG+ Index Inverse Leveraged ETN by USD100m
REX Shares has announced that Bank of Montreal (BMO) has increased the aggregate principal amount of MicroSectors FANG+ Index ‐3X Inverse Leveraged Exchange Traded Notes (FNGD) by USD100 million to a new total of USD325 million.
The ETNs offer investors ‐3X daily resetting inverse leveraged exposure linked to the NYSE FANG+ Index. The ETNs, listed on NYSE Arca, were issued by BMO and launched on 22 January 2, 2018, and have been upsized on five previous occasions.
The NYSE FANG+TM Index includes 10 highly liquid stocks that represent industry leaders across today’s tech and internet/media companies. The index is equally weighted, providing a unique performance benchmark that offers investors a value‐driven approach to technology investing. Unlike market capitalisation weighted indices, which can be dominated by a few large stocks, an equal‐weighted index offers for a more diversified portfolio.
“Traditional benchmark indices like the Nasdaq‐100 Index (SQQQ) and Technology Select Sector Index (TECS) provide limited exposure to FAANG stocks. Unlike the traditional benchmark indices, the NYSE FANG+ Index offers an investment solution for direct FAANG exposure. Prior to the launch of FNGD, the opportunity to access inverse daily resetting leverage on FAANG stocks was limited. Now, with FNGD, investors can access inverse daily resetting leverage on some of the most innovative names in technology and tech‐enabled companies,” says Scott Acheychek, President of REX Shares. “Despite a strong tech‐led rally to start 2020, we’ve seen a considerable pullback in the equity markets. Investors, seeking a hedge against the recent volatility, have turned to the short ‐3X FANG ETN (FNGD). The increase in demand for FNGD has led to another upsizing event – marking the sixth time our partners at BMO have increased the number of notes outstanding since launch.”