ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. REX Shares & BMO Launches First FANG+ Linked ETNs
News
Share

REX Shares & BMO Launches First FANG+ Linked ETNs

Aaron NeuwirthNov 13, 2019
2019-11-13

BMO and REX Shares via MicroSectors today launched the MicroSectors FANG+ Exchange Traded Note (FNGS), the first and only FANG+ linked ETN. The NYSE® FANG+™ Index includes 10 highly liquid stocks that represent industry leaders across today’s tech and internet/media companies, including Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Google (GOOGL), at 10% each. The goal is to provide a better barometer of tech.

The index’s underlying composition is equally weighted across all stocks, providing a unique performance benchmark allowing for a value-driven approach to investing. While a few of the largest stocks can dominate the performance of indices weighted by market capitalization, equal-weighting provides for a more diversified portfolio.

NYSE FANG+ Index
Source: Bloomberg, index data as of 11/08/2019. The NYSE FANG+ Index has outperformed its competitor benchmarks since the beginning of Q4 2019. Past performance is not indicative of future results.

Content continues below advertisement

Expanding on how FNGS fits into a portfolio, Scott Acheychek, President of REX, explained, “I see FNGS as an alternative for tech sector investors and traders that utilize products linked to Tech Select and Nasdaq 100. Bigger picture, Tech index investing (related ETFs (QQQ B+) & (XLK A)), has dramatically changed in recent years. The Nasdaq 100 index historically has been very tech-focused but has evolved to now include stocks like Pepsi, Starbucks, and Costco, which are top 25 holdings in the Nasdaq-100 Index (related ETF: QQQ).”

“In addition, GICS classifications has altered the tech sector investing by segmenting FAANG stocks to three different sectors. While Technology Select Sector Index (related ETF: XLK) has “tech” in its title, the only FAANG stock included in the index is Apple. The index contains Information Technology stocks, so it has top 5 holdings of Visa & MasterCard. I personally do not want soda, coffee, or credit card companies in my tech allocations.”

Invest In Big Tech

The current view sees the FANG+ lineup as a pure way to trade and invest in big tech. “We originally launched the 3x/-3x FANG+ products (FNGU & FNGD) as an alternative to current tech leveraged trading products. As a result of their popularity, and with feedback from clients, we decided to expand our FANG+ product offering to include beta-1 or 1x products,” said Acheychek.

Acheychek would go on to explain how the popularity of social media and demand for more processing power, essentially the demand for pure-tech investments, has grown significantly. However, the tech index landscape has changed dramatically in recent years, as well. As a result, the Nasdaq-100 has expanded beyond its traditional tech-only approach by including many companies not typically associated with the tech industry.

“This expansion has altered the tech-only exposure that investors have come to expect from the popular QQQ products,” Acheychek notes. “In addition, changes to the GICS sector classifications have forced the five FAANG names to be included in three different sector classifications.”

“We brought this product because we kept hearing from clients who wanted long-only concentrated exposure to innovative tech and tech-enabled companies. This is precisely what the NYSE FANG+ Index offers. We are excited to expand our offering to now include 1x FANG+ and continue our partnership with BMO as issuer, and ICE Data Indices, LLC.”

Index TR vs Benchmark

Related: Apple And Microsoft Power This Big Tech ETF

“Recently, the equity market has been heading higher helped by strong earnings from global tech leaders,” Acheychek adds in regards to thoughts on the current marketplace. “NYSE FANG+ is outperforming Tech Select and Nasdaq by 4% each during Q4 as the biggest tech names in the world have been rallying significantly.”

“If you invest in technology indices or their related ETFs, you have to ask yourself if you are getting the exposure you desire. I want my tech index and related products to contain all tech not beverage, toy, and credit card stocks.”

This article originally appeared on ETFTrends.com.

» Popular Pages

  • Tickers
  • Articles

Jun 09

How Advisors Use the Small-Cap ETF 'QWST' in Portfolios

Jun 09

S&P 500: The Battle on Two Fronts

Jun 09

This Is How New Bulls Are Born

Jun 09

Main Management Market Note: June 9, 2023

Jun 09

European Carbon Allowances Up 10%: The Summer Guide

Jun 09

A Complete Comparison of Top U.S. Real Estate ETFs

Jun 09

Could Now Be a Good Time for Value ETFs?

Jun 09

Fine Tuning Your Index Exposure With Direct Indexing

Jun 09

BNDI Generates Better Returns, Yields in Core Bond Allocations

Jun 09

Issuer League: WisdomTree and Dimensional Are Up

QQQM

Invesco NASDAQ 100 ETF

VGT

Vanguard Information...

SPY

SPDR S&P 500 ETF Trust

FNGU

MicroSectors FANG+ Index 3X...

IWM

iShares Russell 2000 ETF

VUG

Vanguard Growth ETF

IYW

iShares U.S. Technology ETF

XLK

Technology Select Sector SPDR...

BOTZ

Global X Robotics &...

IVV

iShares Core S&P 500 ETF


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X