New Leveraged, Inverse ETNs for Targeted FANG-Related Exposure

RexShares added three leveraged and inverse exchange traded notes under its MicroSectors suite to help traders better manage risk exposure to FAANG – or Facebook (NasdaqGS: FB), Amazon (NasdaqGS: AMZN), Apple (NasdaqGS: AAPL), Netflix (NasdaqGS: NFLX) and Alphabet’s Google (NasdaqGS: GOOGL) – and related stocks.

On Thursday, RexShares launched the MicroSectors FANG+ Index 2X Leveraged ETNs (NYSEArca: FNGO), MicroSectors FANG+ Index -2X Inverse Leveraged ETNs (NYSEArca: FNGZ) and MicroSectors FANG+ Index Inverse ETNs (NYSEArca: GNAF), which each come with a 0.95% expense ratio.

The NYSE FANG+ Index

The three new leveraged and inverse ETNs are based off the NYSE FANG+ Index, which was created to provide exposure to a select group of widely-held technology stocks. The stocks included in the FANG+ index are highly liquid and growth-oriented, including tech-enabled companies from the tech and consumer discretionary sectors. Specifically, the index includes exposure to the five core “FANG” stocks — Facebook, Apple, Amazon, Netflix and Alphabet’s Google, plus another five actively-traded technology growth stocks — Alibaba, Baidu, NVIDIA, Tesla and Twitter.

“FANG stocks have been actively traded this year,” Greg King, Founder and CEO of REX, said in a note. “Our MicroSectors suite gives sophisticated investors and traders the tools to express views on that large-cap part of the market.”

Unlike exchange traded funds, ETNs are a type of are type of senior, unsecured debt securities provided by an underwriting bank. In this case, the ETNs are obligations of the Bank of Montreal.

“We are pleased to further our partnership with REX Shares and the NYSE with the addition of these exchange-traded notes that complete our FANG+ family of ETNs. These trading products offer investors a strategic way to enhance their exposure to highly traded technology companies,” Laurence Kaplan, MD & Head, US Notes, BMO Capital Markets, said in a note. “We are pleased to be able to build and offer the full suite of these exchange-traded products that give investors the ability to increase or decrease their exposure to these technology companies, depending on their needs.”

For more information on new fund products, visit our new ETFs category.