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REX Shares and Bank of Montreal launch 3x leveraged FANG+ ETNs on NYSE Arca


REX Shares has partnered with Bank of Montreal to launch a pair of exchange traded notes under the name REX MicroSectors.

The BMO REX MicroSectors FANG+ Index 3X Leveraged ETNs and the BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETNs are based on the NYSE FANG+ Index, and are now trading on the NYSE Arca under the tickers FNGU and FNGD.
The NYSE FANG+ Index (NYFANG) was created by ICE Data Services, which is part of Intercontinental Exchange (NYSE: ICE), 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 five actively-traded technology growth stocks – Alibaba, Baidu, NVIDIA, Tesla and Twitter. On 8 November, 2017, ICE Futures US launched a series of quarterly futures contracts based on the NYSE FANG+ Index in order to offer hedging of and exposure to these companies.
REX, a provider of alternative investment products, sees large demand for hedging and trading vehicles based on targeted segments of the market such as FANG stocks.
“We created the MicroSectors concept in order to address what we see as a gap in the marketplace for leveraged and inverse thematic sector products. We are thrilled to be working with BMO and ICE Data Services for our first two MicroSectorsTM products,” says Greg King, Founder and CEO of REX. BMO worked with REX on certain elements of product design and REX acts as Structuring Agent for the ETNs.
“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,” says Laurence Kaplan, MD & Head, US Notes, BMO Capital Markets. “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.”
The ETNs are senior, unsecured obligations of Bank of Montreal.

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