REXShares, the issuer of exchange traded products behind a nifty lineup of leveraged exchange traded notes is adding to that roster today with a new FANG-focused ETN.
The MicroSectors FANG+ ETN (NYSE:FNGS) debuts today as the first ETN addressing the popular quintet of FANG stocks along with some related growth names. FANG is comprised of Facebook (NASDAQ: FB), Amazon.com (NASDAQ: AMZN), Netflix (NASDAQ: NFLX) and Google parent Alphabet (NASDAQ: GOOG).
Under the MicroSectors brand, REX Shares currently offers an extensive lineup of leveraged FANG + products, including the MicroSectors FANG plus Index -3X Inverse Leveraged ETN (NYSE: FNGD) and the REX MicroSectors FANG plus Index 3X Leveraged ETN (NYSE: FNGU).
Why It's Important
The new FNGS offers investors arguably a more representative angle on the large- and mega-cap technology investing that's more relevant for today's market environment. Many traditional technology sector ETFs are heavy on Apple Inc. (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT), stocks that have performed well in their own right, but those funds may also lack adequate FANG + exposure.
“Your tech holdings aren’t what many think they are. Current example. Tech is clearly leading the equity rally in q4 so all “tech indices” should be rallying equally, right?,” according to REX Shares. “FANG+ is outperforming 'tech indices' by 3.8%+ and outperforming SPX by almost 7%.”
FANG+ is defined as Facebook, Amazon, Apple, Netflix, Alphabet, Tesla (NASDAQ: TSLA), Nvidia (NASDAQ: NVDA), Alibaba (NYSE: BABA) and Baidu (NASDAQ: BIDU). The new FNGS will have weights of 10% to each of those names.
For investors looking to focus on the growth opportunities offered by the FANG + group while not being bogged down by some of slower growth fare featured in the S&P 500 Technology and Nasdaq-100 indexes, the new FNGS could be a valid alternative.
“The two largest 'tech' ETFs aren’t what people think they are,” said REX Shares. “Tech investing, specifically tech index investing has changed dramatically in last couple years.”