September 11, 2020 – REX Shares, LLC (REX) is proud to announce that Bank of Montreal (BMO) has increased the aggregate principal amount of the MicroSectors ™ FANG + ™ Index (“FNGU”) Leveraged Exchange Traded Notes (“FNGU”) and Index MicroSectors ™ FANG + ™ – 3X Inverse Leveraged Exchange Traded Notes (“FNGD”) at $ 200 million and $ 5 billion respectively. FNGU and FNGD (the “ETNs”), listed on NYSE Arca, were issued by BMO and launched on January 22, 2018.
ETNs offer investors + 3x leveraged exposure and -3x inverse leveraged exposure to the NYSE® FANG + ™ index on a daily basis. The NYSE® FANG + ™ Index consists of 10 highly liquid stocks that represent industry leaders in today’s technology and Internet / media companies. The index is equally weighted, providing a unique performance benchmark that offers investors a value-driven approach to technology investing. Unlike market capitalization weighted indices, which may be dominated by a few large stocks, an equal weight index offers a more diversified portfolio.
Exchange Traded Notes linked to NYSE FANG +:
Components of the NYSE® FANG + ™ index *:
* As of 06/22/2020. The weightings and constituents of the index are subject to change.
Please contact us with any questions.
President, REX Actions
Director, BMO Capital Markets
ETNs are senior unsecured obligations of Bank of Montreal.
The suitability of investments should be determined individually for each investor, and ETNs may not be suitable for all investors. This information is not intended to provide and should not be construed as providing accounting, legal, regulatory or tax advice. Investors should consult their own financial advisers on these matters.
The Exchange Traded Notes are subject to the credit risk of Bank of Montreal, the issuer of the ETNs. ETNs are also subject to the credit ratings of the issuer, and credit spreads of the issuer may adversely affect the market value of the Notes.
Please note that Leveraged, Reverse Leveraged and Reverse ETNs seek a return on the Underlying Index for a single day. These investments are not “buy and hold” investments and should not be expected to provide the respective return of the cumulative return of the Underlying Index for periods longer than one day. Investments are intended to be daily trading tools for sophisticated investors to manage day to day trading risks as part of an overall diversified portfolio. They are designed to meet their stated investment goals only on a daily basis. Leveraged investments involve risk and are not suitable for all investors. For each ETN, please read the disclosure documents, including relevant pricing supplements, for additional information, including relevant risk factors.
Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, prospectus supplement and prospectus) with the Securities and Exchange Commission (the “SEC”) relating to the offers to which this press release relates. Please read these documents and other documents relating to these offers that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and these offers. These documents can be obtained free of charge by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, Bank of Montreal, any agent or broker participating in this offering will make the necessary arrangements to send the applicable pricing supplement, prospectus supplement and prospectus on request by calling toll-free at 1-877-369-5412 .
REX Shares is an independent provider of Exchange Traded Products (ETP). As ETP architects, the REX team specializes in creating investment vehicles that solve specific access or efficiency issues in investor portfolios. The company is rooted with decades of structuring and building innovative solutions to exchange traded products.
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About BMO Financial Group
Serving clients for 200+ years, BMO is a highly diversified financial services provider – the 8th largest bank in North America by assets. With total assets of $ 987 billion as of April 30, 2020 and a diverse and highly engaged team of employees, BMO offers a broad range of personal and commercial banking, wealth management and investment banking products and services to more than of 12 million clients and leads through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
MicroSectors ™ and REX ™ are registered trademarks of REX Shares, LLC (“REX”). FANG + is a registered trademark of ICE Data Indices, LLC (“ICE Data”). The trademarks have been used under license for certain purposes by Bank of Montreal. The NYSE® FANG + ™ Index is a product of ICE Data and has been used under license by Bank of Montreal. ETNs are not sponsored or sold by REX or any of its affiliates or third party licensors (collectively, the “REX Index Parties”) or by ICE Data or any of its affiliates or Third Party Licensors (collectively, the “ICE Data Index Parties”). The REX Index Parties and the ICE Data Index Parties make no representations or warranties, express or implied, to the owners of ETNs or to any member of the public regarding the advisability of investing in securities in general. or in ETNs in particular or the ability of the NYSE® FANG + ™ Index to track general market performance. The only relationship of the REX Index Parts and the ICE Data Index Parts with Bank of Montreal with respect to the Index is the licensing of the Index and certain trademarks, service marks and / or trade names of the parts of the REX index and of the parts of the ICE data index.
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