(FNGO) MicroSectors FANG+ Index 2X - Ratings and Ratios

The MicroSectors FANG+ Index 2X Leveraged ETN (NYSE ARCA:FNGO) is a senior unsecured medium-term note issued by BMO that delivers twice the daily return of the equal-dollar-weighted FANG+ index, minus a daily investor fee, financing charge, and any applicable redemption fee. The index tracks highly-traded growth stocks in the technology and consumer-discretionary sectors, effectively a “FAANG-plus” basket.

Key mechanics: the 2× leverage is compounded daily, which means returns are path-dependent and subject to volatility drag in choppy markets. As of the latest prospectus, the Daily Investor Fee is 0.02 % and the Daily Financing Charge averages 0.01 % (≈ 0.36 % annualized). The ETN carries BMO’s credit risk rather than asset-backed holdings, so investors should monitor the issuer’s credit rating (currently A-). The expense ratio is roughly 0.95 % p.a., higher than unleveraged ETFs but typical for leveraged products.

Sector drivers: the underlying index is heavily weighted toward large-cap tech names (e.g., Apple, Microsoft, Nvidia) and consumer-discretionary platforms (e.g., Amazon, Tesla). Consequently, earnings season, semiconductor supply-chain dynamics, and discretionary spending trends-especially those tied to U.S. consumer confidence and interest-rate outlook-are primary catalysts. Recent data show the index’s 30-day implied volatility around 45 %, indicating elevated price swings that can amplify both gains and losses under leverage.

For a deeper, data-driven assessment of how FNGO’s risk-return profile fits your strategy, you might explore the back-tested performance metrics and credit-risk analytics available on ValueRay.