REX Shares Lists ETNs Including the Largest US Tech Companies in Two Easily Investable Products – The ETNs Track Solactive Indices
Changing the life of billions of people for the better is an accomplishment that is reserved only for few companies. In the past decade, four technology giants created a supergroup of companies that goes by the acronym FANG standing for Facebook, Amazon, Netflix, and Alphabet (formerly acknowledged as Google). Undeniably, these four companies deserve the top spot, but other tech companies like Nvidia or Tesla hold a candle to these big four. US-based financial company REX Shares released two ETNs, the MicroSectors Solactive FANG & Innovation 3x Leveraged ETN (BULZ) and MicroSectors Solactive FANG & Innovation -3x Inverse Leveraged ETN (BERZ), tracking the Solactive FANG Innovation Index and including the largest thirty US-based technology stocks.
Not only are FANG companies enormous market drivers, but their performances are regarded by many as a proxy for the entire US economy. Their products and services are visible in every household allowing them to dominate their respective market segment. Investing in tech – and especially FANG companies – can sometimes be very tricky for investors since they have to reach deep into their pockets to acquire, for example, just one Amazon stock. With REX Shares’ new ETNs, investors can participate in the performance of large US technology stocks for a fraction of the cost.
The Solactive FANG Innovation Index
The Solactive GBS United States Large & Mid Cap Index serves as the index’s universe. Eligible companies must be headquartered in the United States and listed on a US stock exchange. According to a common industry classification, companies with business operations in the following sectors are potentially included: Semiconductors, Electronic Components, Electronic Equipment/Instruments, Telecommunications Equipment, Computer Processing Hardware, Computer Peripherals, Computer Communications, Electronic Production Equipment, Data Processing Services, Information Technology Services, Packaged Software, and Internet Software/Services. Finally, companies with a free-float market capitalization of less than USD 10 billion are excluded from the index. Thirty companies make up the final index composition.
“Indisputably, large US Tech companies transformed the practice of how we communicate, work, and entertain ourselves,” comments Timo Pfeiffer, Chief Markets Officer at Solactive. “The market barriers constructed by large tech companies are, in many cases, insurmountable, which allows them to solidify their dominant role in the markets, potentially presenting a positive outlook for their performance.”
Scott Acheychek, President of REX, comments: “We are thrilled to partner with Solactive and BMO for another product suite offering. We believe the Solactive MicroSectors FANG & Innovation Index will provide sophisticated investors access to a true U.S.-specific big tech barometer. MicroSectors focuses on innovating the ETP landscape with targeted investment trading vehicles across popular market segments like U.S. energy, U.S. large cap banks, and now U.S. big tech.”
BULZ and BERZ started trading on August 18th, 2021, on the NYSE.