- BMO to redeem MicroSectors™ FANG+™ Index 3× Leveraged ETNs (FNGA) on May 15, 2025.
- New replacement, FNGB ETNs, available with a reduced initial fee of 0.35% until August 19, 2025.
- FNGB ETNs continue to offer 3x leveraged exposure to the NYSE FANG+® Index.
Bank of Montreal (BMO, Financial) has announced it will redeem all outstanding MicroSectors™ FANG+™ Index 3× Leveraged ETNs (FNGA) on May 15, 2025. The redemption is a strategic decision due to increased costs associated with maintaining the leverage, rendering current fees inconsistent with market conditions. The FNGA ETNs, which have been operational since January 2018, will have their last trading day on May 14, 2025.
In response to market dynamics, BMO has introduced a new product, the MicroSectors™ FANG+™ 3× Leveraged ETNs (FNGB). Trading under ticker 'FNGB' since February 20, 2025, these ETNs offer similar 3x leveraged exposure linked to the NYSE FANG+® Index. The FNGB ETNs benefit from a reduced Daily Investor Fee of 0.35% per annum until August 19, 2025, at which point the fee will increase to 0.95% per annum.
Investors currently holding FNGA ETNs may choose to retain them until the Call Settlement Date or opt for an early redemption. BMO has waived the minimum early redemption size requirement, providing additional flexibility to FNGA holders.
The FNGB ETNs are designed for sophisticated traders as a daily trading instrument, not for long-term holding. They are subject to daily resets and high volatility that could result in significant losses, even if the NYSE FANG+® Index performs well over the long term.
