FNGO Profile
The MicroSectors FANG+ Index 2X Leveraged ETN is a financial instrument issued by Bank of Montreal that offers investors leveraged exposure to a select index of high-growth technology and consumer discretionary stocks. The notes are structured as senior unsecured medium-term debt, providing investors with a return linked to a 2X leveraged participation in the performance of the FANG+ Index, which represents a segment of leading growth stocks in the technology and consumer discretionary sectors.
The FANG+ Index is specifically designed to track the performance of major technology and tech-enabled companies, as well as influential consumer discretionary firms. It features an equal-dollar weighting of its constituent stocks, which includes prominent names in the technology and digital sectors, often characterized by high trading volumes and significant market impact. This index focuses on capturing the performance of companies that are at the forefront of technological innovation and digital transformation.
The ETN aims to provide investors with a compounded daily return that is 2X the performance of the FANG+ Index. This leveraged exposure means that the ETN’s returns are magnified relative to the index’s performance, both positive and negative. However, the daily compounding effect, along with fees such as the Daily Investor Fee and Daily Financing Charge, can impact the actual return over time. Investors should be aware that these fees and any applicable Redemption Fee Amount will affect their net returns.
The product is geared towards investors seeking high-risk, high-reward opportunities in the technology and consumer discretionary sectors, reflecting the dynamic and often volatile nature of growth stocks in these industries. As a non-diversified financial instrument, the ETN may concentrate its exposure in a specific set of stocks, providing targeted leverage and potential for amplified returns based on the performance of the FANG+ Index.
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