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Aug. 5, 2020, 12:52 p.m. EDT

FANG Stocks Continue To Rise

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By Benzinga.com

Eight of the ten stocks in the NYSE® FANG+™ Index hit an all-time high in July. Those stocks include Facebook, Inc. /zigman2/quotes/205064656/composite FB -0.90% , Amazon.com, Inc. /zigman2/quotes/210331248/composite AMZN -1.79% , Apple Inc. /zigman2/quotes/202934861/composite AAPL -3.17% , Netflix Inc. /zigman2/quotes/202353025/composite NFLX -0.05% , Google-parent Alphabet Inc. /zigman2/quotes/205453964/composite GOOG -2.38% /zigman2/quotes/202490156/composite GOOGL -2.42% , Alibaba Group Holding Limited /zigman2/quotes/201948298/composite BABA -1.20% , NVIDIA Corporation /zigman2/quotes/200467500/composite NVDA -2.20% , and Tesla Inc. /zigman2/quotes/203558040/composite TSLA +4.42% .

The only two stocks in the index that didn’t hit all-time highs were Baidu, Inc. /zigman2/quotes/209050136/composite BIDU -0.0080% and Twitter, Inc. /zigman2/quotes/203180645/composite TWTR +2.03% .

Despite a recent pullback, the NYSE® FANG+™ Index continues to outperform broad market and technology indices in 2020. 

The NYSE FANG+ Index, an equal-weighted index of 10 liquid large-cap tech stocks, has gained 46% year-to-date as of July 24, compared to a 20.7% gain by the Nasdaq 100 Stock Index (NDX) and 18% gain by the S&P North American Technology Sector Index (SPGSTI). 

The limited number of stocks included in the NYSE FANG+ Index may be a factor that helped its outperformance this year. By limiting the index to only 10 stocks, the index is able to offer concentrated exposure to stocks representing some of the largest technology and tech-enabled companies, from cloud services, graphics processors and artificial intelligence to online shopping, online entertainment, and social media. 

For traders looking to express a bullish point of view on the FANG trade, there are three exchange traded notes that offer direct exposure. 

The MicroSectors FANG+ Index ETN /zigman2/quotes/215083383/composite FNGS -0.02% offers non-leveraged exposure to the index, while the MicroSectors FANG+ Index 3X Leveraged ETN /zigman2/quotes/203857810/composite FNGU -0.30% delivers 300% of the daily return of the NYSE FANG+ Index, and the MicroSectors FANG+ Index 2X Leveraged ETN /zigman2/quotes/206547405/composite FNGO +0.15% delivers 200% of the daily return of the index. 

On the bearish side, the MicroSectors FANG+ Index -1X Inverse Leveraged ETN /zigman2/quotes/208613427/composite GNAF -0.01% , MicroSectors FANG+ Index -2X Inverse Leveraged ETN /zigman2/quotes/205391211/composite FNGZ -2.11% , and MicroSectors FANG+ Index -3X Inverse Leveraged ETN /zigman2/quotes/209848629/composite FNGD +0.48% deliver inverse 100%, 200%, and 300% to the daily return, respectively, of the NYSE FANG+ Index. 

Keep in mind that leveraged securities are meant to be used by active traders to gain short-term leveraged exposure, and that exchange traded notes are subject to the credit risk of Bank of Montreal, the issuer of the ETNs. The ETNs are also subject to the issuer’s credit ratings, and the issuer’s credit spreads may adversely affect the market value of the notes. 

*All data as of July 24, 2020

The exchange traded notes are subject to the credit risk of Bank of Montreal, the issuer of the ETNs. The ETNs are also subject to the issuer’s credit ratings, and the issuer’s credit spreads may adversely affect the market value of the notes.

Please note that leveraged, inverse and inverse leveraged ETNs seek a return on the underlying index for a single day. Those investments are not “buy and hold” investments, and should not be expected to provide the respective return of the underlying index’s cumulative return for periods greater than a day. The investments are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. They are designed to achieve their stated investment objectives only on a daily basis. Leveraged investments include risk and are not suitable for all investors. For each ETN, please read the disclosure documents, including the relevant pricing supplements, for additional information, including the relevant risk factors.

Bank of Montreal, the issuer of the ETNs, has participated in the preparation of this article in connection with its offering of the ETNs. Bank of Montreal has filed a registration statement (including pricing supplements, a prospectus supplement and a prospectus) with the Securities and Exchange Commission (the "SEC") about the ETNs that are being offered by this free writing prospectus. 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 documents if so requested by calling toll-free at 1-877-369-5412.  

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 252.53
-2.29 -0.90%
Volume: 28.13M
Sept. 18, 2020 4:00p
P/E Ratio
30.85
Dividend Yield
N/A
Market Cap
$719.41 billion
Rev. per Employee
$1.57M
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/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 2,954.91
-53.82 -1.79%
Volume: 8.89M
Sept. 18, 2020 4:00p
P/E Ratio
113.58
Dividend Yield
N/A
Market Cap
$1480.08 billion
Rev. per Employee
$359,671
loading...
/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 106.84
-3.50 -3.17%
Volume: 287.10M
Sept. 18, 2020 4:00p
P/E Ratio
32.48
Dividend Yield
0.77%
Market Cap
$1852.32 billion
Rev. per Employee
$1.98M
loading...
/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 469.96
-0.24 -0.05%
Volume: 6.72M
Sept. 18, 2020 4:00p
P/E Ratio
79.29
Dividend Yield
N/A
Market Cap
$207.26 billion
Rev. per Employee
$2.22M
loading...
/zigman2/quotes/205453964/composite
US : U.S.: Nasdaq
$ 1,459.99
-35.54 -2.38%
Volume: 3.10M
Sept. 18, 2020 4:00p
P/E Ratio
32.56
Dividend Yield
N/A
Market Cap
$989.95 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/202490156/composite
US : U.S.: Nasdaq
$ 1,451.09
-35.95 -2.42%
Volume: 3.15M
Sept. 18, 2020 4:00p
P/E Ratio
32.36
Dividend Yield
N/A
Market Cap
$989.95 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/201948298/composite
US : U.S.: NYSE
$ 272.41
-3.31 -1.20%
Volume: 11.75M
Sept. 18, 2020 4:00p
P/E Ratio
29.26
Dividend Yield
N/A
Market Cap
$752.97 billion
Rev. per Employee
$781,259
loading...
/zigman2/quotes/200467500/composite
US : U.S.: Nasdaq
$ 487.57
-10.97 -2.20%
Volume: 17.46M
Sept. 18, 2020 4:00p
P/E Ratio
89.42
Dividend Yield
0.13%
Market Cap
$301.18 billion
Rev. per Employee
$882,428
loading...
/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 442.15
+18.72 +4.42%
Volume: 86.41M
Sept. 18, 2020 4:00p
P/E Ratio
1,151
Dividend Yield
N/A
Market Cap
$412.00 billion
Rev. per Employee
$439,627
loading...
/zigman2/quotes/209050136/composite
US : U.S.: Nasdaq
$ 124.66
-0.01 -0.0080%
Volume: 3.24M
Sept. 18, 2020 4:00p
P/E Ratio
85.37
Dividend Yield
N/A
Market Cap
$42.97 billion
Rev. per Employee
$365,691
loading...
/zigman2/quotes/203180645/composite
US : U.S.: NYSE
$ 40.15
+0.80 +2.03%
Volume: 19.49M
Sept. 18, 2020 4:05p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$31.76 billion
Rev. per Employee
$776,112
loading...
/zigman2/quotes/215083383/composite
US : U.S.: NYSE Arca
$ 90.13
-0.02 -0.02%
Volume: 22,051
Sept. 18, 2020 3:52p
loading...
/zigman2/quotes/203857810/composite
US : U.S.: NYSE Arca
$ 165.49
-0.50 -0.30%
Volume: 731,498
Sept. 18, 2020 4:00p
loading...
/zigman2/quotes/206547405/composite
US : U.S.: NYSE Arca
$ 126.54
+0.19 +0.15%
Volume: 13,225
Sept. 18, 2020 3:21p
loading...
/zigman2/quotes/208613427/composite
US : U.S.: NYSE Arca
$ 21.09
-0.0025 -0.01%
Volume: 3,644
Sept. 18, 2020 3:16p
loading...
/zigman2/quotes/205391211/composite
US : U.S.: NYSE Arca
$ 6.97
-0.15 -2.11%
Volume: 10,857
Sept. 18, 2020 4:00p
loading...
/zigman2/quotes/209848629/composite
US : U.S.: NYSE Arca
$ 10.46
+0.05 +0.48%
Volume: 3.38M
Sept. 18, 2020 4:00p
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