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REX Shares launches FANG+ ETN

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REX Shares, via their MicroSectors brand and BMO, has launched what it calls the first and only FANG+ linked Beta ETNs. Based on the NYSE FANG+ index, the ETN has the 10 biggest innovators in world, equally weighted, including next generation tech/tech enable firms. 

The firms represented within FNGS are FAANG plus five others: Facebook; Apple; Amazon; Netflix; Google; Baidu; Alibaba; Twitter; Tesla; and Nvidia, with 10 per cent weighting each and the goal is to provide a better barometer of tech, says Scott Acheycheck (pictured), President of REX Shares.

“The two largest ‘tech’ ETFs aren’t what people think they are. Tech investing, specifically tech index investing has changed dramatically in last couple years,” he says, pointing out that the Nasdaq 100, QQQ represents the biggest 100 names listed on Nasdaq exchange.
 
“The problem from a tech investing point of view is that this exchange has matured. It is no longer just tech. Names like Pepsi, Costco, Starbuck, Charter and Comcast are the top 25 holdings in Nasdaq 100 (and related products like QQQ). Even Hasbro, the toy company, which has been beaten down recently, is a Nasdaq listed company and in the Nasdaq 100 index.”
 
 He also notes that the Tech Select and related ETF, XLK, has been transformed by the GICs classifications which pushed the five names in FAANG into three different classifications. Tech Select holds Apple along with IT related firms like Visa and Mastercard in their top five holdings.
 
“For investors this means that your tech holdings aren’t what many think they are,” Acheychek warns. “We have heard from many ETF investors who complain that they want simple access to FANG/FAANG or Big Tech.  If you invest in technology indices or their related ETFs, you have to ask yourself if you are getting the exposure you desire. I personally want my tech investments to contain tech not beverage, toy, and credit card stocks.” 
 
 

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