Bank of Montreal (BMO) has reiterated its plans to redeem all outstanding MicroSectors FANG+ Index 3× Leveraged ETNs, known by their ticker "FNGA". This follows announcements made earlier this year on February 19, 2025. The redemption is set to occur on the expected Call Settlement Date of May 15, 2025.
The FNGA ETNs, introduced in January 2018, originally included fees and charges reflective of the 2018 market. BMO stated its call right to redeem these securities is due to rising costs of maintaining the leverage within the ETNs, which no longer align with the current market.
BMO also launched a new ETN, the MicroSectors FANG+ 3× Leveraged ETNs, ticker "FNGB", on February 19, 2025. Trading began under this new ticker symbol on February 20, 2025, on the NYSE Arca. These ETNs, due in 2045, offer leveraged daily exposure to the NYSE FANG+ Index, incorporating three-times leverage daily. These investments are designed for sophisticated investors due to their complex leveraged structure and associated risks.
BMO has scheduled sending a call notice to FNGA ETN holders on May 1, 2025. The Call Measurement Period, contingent upon market conditions, is expected to be from May 2, 2025, to May 8, 2025. The delisting from NYSE is anticipated the following day, May 14, 2025.
Investors in the FNGA ETNs can hold until the settlement date or redeem beforehand, following BMO's decision to waive the minimum early redemption stipulation of 25,000 ETNs.
Potential investors are advised to thoroughly review the pricing supplement and related documentation provided on the SEC’s EDGAR system or via BMO’s dedicated ETN websites.
BMO Financial Group highlights that the FNGB ETNs are designed for daily trading rather than extended holding periods, presenting a high-risk profile requiring active monitoring.
Bank of Montreal remains the issuer of these senior, unsecured ETNs, with investment suitability to be assessed individually.
For more detailed information, investors are directed to BMO and REX’s online resources and contact points.
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