NEW YORK, Nov. 13, 2019 /PRNewswire/ - REX Shares, LLC
(REX) will add to the MicroSectors™ lineup with the launch of the
1x Exchange Traded Notes linked to the NYSE FANG+™ Index (the
Index), which will be issued by Bank of Montreal (TSX:BMO)(NYSE:BMO). The 1x exchange
traded note will complement the existing FANG+ ETNs, which
currently offer investors from +3x through ‐3x daily resetting
leveraged and inverse leveraged exposure. The 1x MicroSectors™
FANG+™ Exchange Traded Notes (symbol: FNGS) (the ETN), started
trading November 13, 2019 on NYSE
Arca.
The NYSE® FANG+™ Index includes 10 highly liquid stocks that
represent industry leaders across today's tech and internet/media
companies. The index's underlying composition is equally weighted
across all stocks, providing a unique performance benchmark that
allows for a value‐driven approach to investing. While the
performance of indices weighted by market capitalization can be
dominated by a few of the largest stocks, an equal‐weighting allows
for a more diversified portfolio.
REX views the FANG+ lineup as a pure way to trade and invest in
big tech. "We originally launched the 3x/‐3x FANG+ products (FNGU
& FNGD) as an alternative to current tech leveraged trading
products. As a result of their popularity, and with feedback
from clients, we decided to expand our FANG+ product offering to
include beta-1 or 1x products," said Scott
Acheychek, President of REX. "With the popularity of social
media and demand for more processing power, the demand for
pure‐tech investments has grown significantly. However, the tech
index landscape has changed dramatically in recent years. The
Nasdaq-100 has expanded beyond its traditional tech‐only approach
by including many companies that are not typically associated with
the technology industry. This expansion has altered the tech‐only
exposure that investors have come to expect from the popular QQQ
products. In addition, changes to the GICS sector classifications
have forced the five FAANG names to be included in three different
sector classifications. We brought this product because we kept
hearing from clients who wanted long‐only concentrated exposure to
innovative tech and tech‐enabled companies. This is precisely what
the NYSE FANG+ Index offers. We are excited to expand our offering
to now include 1x FANG+ and continue our partnership with BMO as
issuer, and ICE Data Indices, LLC."
The ETNs are senior, unsecured obligations of Bank of
Montreal.
Investment suitability must be determined individually for each
investor, and the ETNs may not be suitable for all investors. This
information is not intended to provide and should not be relied
upon as providing accounting, legal, regulatory or tax advice.
Investors should consult with their own financial advisors as to
these matters.
Bank of Montreal, the issuer of
the ETNs, has filed a registration statement (including certain
pricing supplements, and a product supplement, prospectus
supplement and prospectus) with the Securities and Exchange
Commission (the "SEC") about each of the offerings to which this
press release relates. Please read those documents and the other
documents relating to these offerings that Bank of Montreal has filed with the SEC for more
complete information about Bank of Montreal and these offerings. These documents
may be obtained without cost by visiting EDGAR on the SEC website
at www.sec.gov.
Alternatively, Bank of Montreal, any agent or any dealer
participating in these offerings will arrange to send the
applicable pricing supplement, product supplement the prospectus
supplement and the prospectus if so requested by calling toll‐free
at 1‐877‐369‐5412.
Follow us on Twitter @msectors
About REX
REX Shares is an independent provider of exchange‐traded
products (ETPs). As ETP architects, the REX team specializes in
creating investment vehicles that solve specific access or
efficiency challenges in investor portfolios. The firm is rooted
with decades of structuring and building innovative exchange-traded
product solutions.
For more information, please visit www.microsectors.com
Follow us on Twitter @msectors
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly
diversified financial services provider ‐ the 8th largest
bank, by assets, in North America.
With total assets of $839 billion as
of July 31, 2019, and a team of
diverse and highly engaged employees, BMO provides a broad range of
personal and commercial banking, wealth management and investment
banking products and services to more than 12 million customers and
conducts business through three operating groups: Personal and
Commercial Banking, BMO Wealth Management and BMO Capital
Markets.
Related Links www.bmo.com
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 licensed for use for
certain purposes by Bank of Montreal. The NYSE® FANG+™ Index is a product
of ICE Data, and has been licensed for use by Bank of Montreal. The ETNs are not sponsored or sold
by REX or any of its affiliates or third party licensors
(collectively, "REX Index Parties") or by ICE Data or any of its
affiliates or third party licensors (collectively, "ICE Data Index
Parties"). REX Index Parties and ICE Data Index Parties make no
representation or warranty, express or implied, to the owners of
the ETNs or any member of the public regarding the advisability of
investing in securities generally or in the ETNs particularly or
the ability of the NYSE® FANG+™ Index to track general market
performance. REX Index Parties and ICE Data Index Parties' only
relationship to Bank of Montreal
with respect to the Index is the licensing of the Index and certain
trademarks, service marks and/or trade names of REX Index Parties
and ICE Data Index Parties.
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SOURCE BMO Financial Group