Microsectors FANG+ 3× Leveraged ETNs Stock Price, News & Analysis

The ticker symbol FNGB refers to the MicroSectors™ FANG+™ 3× Leveraged Exchange Traded Notes (ETNs) due February 17, 2045, issued by Bank of Montreal (BMO). According to BMO’s disclosures, these ETNs are linked to the gross total return version of the NYSE FANG+® Index and are listed on NYSE Arca under the symbol FNGB. The NYSE FANG+® Index is described as an equally weighted equity index that tracks the performance of 10 highly traded growth stocks of technology and tech‑enabled companies in the technology, media & communications and consumer discretionary sectors, and is calculated on a total return basis where dividends are included in the index level.

BMO states that the FNGB ETNs are designed to provide three times leveraged long exposure to the daily performance of the NYSE FANG+® Index, before fees, charges and the effects of daily leverage resetting. The ETNs are characterized as senior, unsecured obligations of Bank of Montreal and are therefore subject to BMO’s credit risk. BMO also notes that the FNGB ETNs are intended for sophisticated investors who understand leveraged daily resetting products and can tolerate the potential for significant losses, including the possibility of losing the entire amount invested over a short period of time.

In BMO’s description, the FNGB ETNs are not intended to be buy‑and‑hold investments or to be held to maturity. Instead, they are presented as daily trading tools that offer leveraged exposure to the NYSE FANG+® Index on a one‑day basis. Because of the daily resetting of leverage, BMO explains that returns on the ETNs over periods longer than one day can differ, and often differ significantly, from three times the return of a direct long investment in the index over the same period. The issuer highlights that the ETNs are very sensitive to changes in the level and volatility of the index on both a daily and intraday basis.

BMO has also indicated that the FNGB ETNs were launched to replace an earlier series of MicroSectors™ FANG+™ Index 3× Leveraged ETNs with the ticker FNGA. The FNGB ETNs are described as providing continued access to three times leveraged, daily resetting exposure to the same NYSE FANG+® Index, but with fees and charges that BMO states are more aligned with the then‑current market environment. The issuer has outlined that the FNGA ETNs are being redeemed pursuant to its call right, while the FNGB ETNs remain available on NYSE Arca.

In a later announcement, BMO stated that it plans to change the ticker symbol for the MicroSectors™ FANG+™ 3× Leveraged ETNs due February 17, 2045, CUSIP 063679385, from FNGB to FNGU. According to that disclosure, the ETNs are listed on NYSE Arca under the current symbol FNGB, and the new symbol FNGU is expected to become effective at the open of trading on June 24, 2025, following a cooling‑off period required under NYSE Arca guidelines. This means that FNGB functions as a historical symbol for the same ETNs that are expected to trade under FNGU after that date.

Because FNGB represents an ETN rather than a traditional operating company, there is no separate corporate headquarters or operating business associated with the ticker beyond its connection to Bank of Montreal as issuer. Information about terms, fees, risks, index methodology and redemption procedures is described in the ETN prospectus and related offering documents that BMO has filed with the U.S. Securities and Exchange Commission (SEC), as referenced in the issuer’s public news releases.

Key characteristics of FNGB ETNs

• Issuer: Bank of Montreal, described as a large North American bank providing personal and commercial banking, wealth management, global markets and investment banking products and services.
• Product type: MicroSectors™ FANG+™ 3× Leveraged Exchange Traded Notes due February 17, 2045.
• Reference index: Gross total return version of the NYSE FANG+® Index, an equally weighted index of 10 highly traded growth stocks in technology, media & communications and consumer discretionary sectors.
• Exposure profile: Intended to provide three times leveraged long exposure to the daily performance of the index, before fees, charges and the effects of daily leverage resetting.
• Risk profile: Characterized by BMO as considerably riskier than securities with intermediate‑ or long‑term investment objectives, with the potential for significant losses, including the entire investment, over short periods.
• Trading venue: Listed on NYSE Arca under the ticker FNGB, with BMO announcing an expected symbol change to FNGU effective at a specified future trading date.

How FNGB is positioned within leveraged ETNs

Within BMO’s MicroSectors™ product line, FNGB is described as an ETN that offers leveraged exposure to a concentrated index of technology‑related growth stocks. The issuer’s communications emphasize that the product is intended for sophisticated investors who use leveraged ETNs as tools for short‑term trading or risk management, rather than for long‑term investment strategies. BMO highlights that the daily resetting of leverage can cause the ETN’s performance over multi‑day periods to diverge from a simple three‑times multiple of the index’s cumulative return.

The ETN’s link to the NYSE FANG+® Index means that its performance is tied to the price movements and dividend treatment of the 10 index constituents as defined by ICE Data Indices, LLC. BMO’s disclosures reference that the index provider and related parties do not sponsor, endorse, sell or promote the ETNs and accept no liability in connection with their use, directing investors instead to the ETN prospectus for full disclaimers.

Use of FNGB by investors

According to BMO’s descriptions, FNGB is designed for investors who actively monitor their positions on an intraday basis and make frequent decisions about whether to remain invested for the next one‑day period. The issuer notes that any decision to hold the ETNs for more than one day should be made with great care and only as the result of a series of daily or more frequent investment decisions. BMO also states that investment suitability must be determined individually for each investor and that the ETNs are not suitable for all investors.

Because FNGB is an ETN, investors who hold the notes are exposed both to the leveraged index performance described in the offering documents and to the credit risk of Bank of Montreal as issuer. The issuer’s public communications direct prospective investors to review the pricing supplement, prospectus supplement, prospectus and related documents that have been filed with the SEC for detailed information on terms, fees, risks, redemption features and index methodology.