MicroSectors FANG+ 3 Leveraged ETNs

Frequently Asked Questions About FNGU

What does FNGU invest in?

FNGU offers 3x exposure to an index of FANG companies (Facebook, Apple, Amazon, Netflix, and Google), and other similar companies. Presumably, the index will always include these five companies, an index committee is responsible for selecting the additional names. At least ten stocks must be included in the index, the number it held when the note launched so investors can expect a high level of concentration. All holdings are equally weighted. As a geared product with daily resets of exposure, FNGU is designed as a short-term trading tool and not a long-term investment vehicle. Long-term returns could materially differ from those of the underlying index due to daily compounding. Prior to June 24, 2025, the fund utilizes the ticker FNGB.

What is the expense ratio of FNGU?

MicroSectors FANG+ 3 Leveraged ETNs (FNGU) charges an expense ratio of 2.60%. This is the annual fee deducted from fund assets to cover management and operations.

Is FNGU a good long-term hold?

FNGU is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple — typically negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does FNGU's daily reset work?

FNGU rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level — so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is FNGU?

MicroSectors FANG+ 3 Leveraged ETNs (FNGU) manages $2.66B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is FNGU actively managed or an index fund?

FNGU's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.