Cycle Trading

[Duma]

Bank of Montreal (BMO) owns FNGU and its successors, FNGA and also FNGB that I was unaware of until today. But here is the catch, all of these are ETN's and not ETF's. ETN's are bonds issued by a bank and have unlimited risk. Clearly there is something going on with BMO, so I think I will pass on trading FNGB and just trade the individual stocks.

************************************************************************************************************************

The FNGA ETNs will be redeemed on May 15, 2025, with the last trading day expected to be May 14, 2025. BMO is exercising this call right due to increased costs associated with supporting the leverage, making current fees no longer reflective of market conditions.

The new FNGB ETNs, trading under ticker 'FNGB' since February 20, 2025, offers similar 3x leveraged exposure to the NYSE FANG+® Index. It features a discounted Daily Investor Fee of 0.35% per annum until August 19, 2025, after which it will increase to 0.95% per annum.
Positive
? Introduction of FNGB ETNs with competitive initial fee structure (0.35% until August 19, 2025)
? Waiver of minimum early redemption size requirement for FNGA ETNs
? Continued market access to 3x leveraged exposure to NYSE FANG+® Index through new product
Negative
? Forced redemption of FNGA ETNs due to increased costs
? FNGB ETN fees will increase to 0.95% after August 19, 2025
? Potential losses for FNGA holders who purchased above Call Settlement Amount BMO has announced the redemption of it
**************************************************************************************************************************************************
MicroSectors™ FANG+™ Index 3×Exchange-traded funds (ETFs) have been around since 1993, and there's no doubt that they are popular with investors. Exchange-traded notes (ETNs) may have a similar sounding name, but ETNs are not the same as ETFs, and they carry some important risks to be aware of.

ETF, ETN, ETP—what does it all mean?
While ETNs are sometimes grouped alongside ETFs, the big umbrella term that covers both of them is ETP: exchange-traded product.

An exchange-traded fund (ETF) is a basket of securities such as stocks, bonds or commodities. It's similar in many ways to a mutual fund, but it trades on an exchange like a stock. An important characteristic of ETFs and mutual funds is that they're legally separate from the company that manages them. They're structured as separate "investment companies," "limited partnerships" or "trusts." This matters because even if the parent company behind the ETF goes out of the business, the assets of the ETF itself are completely separate and investors will still own the assets held by the fund.

Exchange-traded notes (ETNs) are different. Instead of being an independent pool of securities, an ETN is a bond issued by a large bank or other financial institution. That company promises to pay ETN holders the return on an index over a certain period of time and return the principal of the investment at maturity. However, if something happens to that company (such as bankruptcy) and it's unable to make good on its promise to pay, ETN holders could be left with a worthless investment or an investment that is worth much less (just like anyone who had lent the company money).

Another important difference between ETFs and ETNs is that ETNs (unlike ETFs) are not overseen by a board of directors who are tasked with looking out for investors. Instead, decisions about the management of an ETN are determined solely by the issuer based on the rules they've laid out in the ETN's prospectus and pricing supplements. In some cases, the issuers of ETNs may engage in proprietary trading or hedging activities in their own accounts that are contrary to the interests of ETN investors.