Today, Bank of Montreal launched five new ETNS to join its growing lineup of investment strategies. Each of these ETNS offers either a leveraged or inverse strategy to achieve its results.
Engaged in Innovative Tech
First on the list is the MicroSectors FANG+ Index 3X Leveraged ETNs (FNGB). FNGB offers investors leveraged returns based on the daily performance of the NYSE FANG+ Index.
This index tracks some of the most highly sought-after growth stocks in the tech field. These stocks include Broadcom, CrowdStrike, Meta, ServiceNow, Apple, Amazon, Alphabet, Nvidia, Netflix, and Microsoft. As a leveraged strategy, FNBG looks to generate three times the daily price performance of this index.
Drilling Down on Oil & Energy
The next two ETNs focus their results on the Solactive MicroSectors U.S. Big Oil Index. In particular, this index tracks some of the largest players in the oil and energy industry. Constituents in the index include Exxon Mobil, Valero Energy, Phillips 66, Occidental Petroleum, Hess, Marathon Petroleum, Diamondback Energy, EOD Resources, ConocoPhillips, and Chevron.
One strategy, the MicroSectors U.S. Big Oil 3X Leveraged ETNs (NRGU), seeks results corresponding to three times the index’s daily performance. Meanwhile, the MicroSectors U.S. Big Oil -3X Inverse Leveraged ETNs (NRGD) seeks the exact opposite. This leveraged strategy looks to provide negative three times the daily results of the index.
Focused on Big Banks
Last but certainly not least, the remaining two ETNs focus on some of the biggest banks in the United States. These ETNs are driven by the Solactive MicroSectors U.S. Big Banks Index.
True to its name, the index looks at some of the largest companies within the banking and investment services space. On this list are Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, PNC Financial Services, Charles Schwab, Truist Financial. U.S. Bancorp, and Wells Fargo.
Much like the other new ETNs, the big bank ETNs look to provide results tied to the daily performance of the index. The Microsectors U.S. Big Banks 3X Leveraged ETNs (BNKU) offer three times the daily returns for the index. Alternatively, the MicroSectors U.S. Big Banks -3X Inverse Leveraged ETNs (BNKD) instead offers results tied to negative three times of the index’s daily performance.
These leveraged and inverse ETNs give investors new vehicles to make daily calls on some of the most sought-after investment sectors. As such, investors may wish to engage with these ETNs during particular moments where broad sectors are expected to experience sharp change.
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