TOYOF - FNGU: Betting Big On Just 10 FANG+ Stocks
2024-03-12 03:34:23 ET
Summary
- The MicroSectors FANG+ Index 3X Leveraged ETN is a concentrated bet on the 10 largest U.S. technology stocks.
- Over the past year, FNGU has outperformed the Invesco Nasdaq-100 Trust QQQ's by 7x over the past year and the Vanguard S&P 500 ETF by 11x.
- However, there are risks associated with FNGU's strategy, and some of the top holdings in the FANG+ Index (the so-called "Fab-7") have underperformed and are no longer quite so "fabulous".
The MicroSectors FANG+ Index 3X Leveraged ETN ( FNGU ) is a concentrated bet on the 10 largest technology stocks. This was exactly the kind of fund I was looking for at the end of the 2022 tech bear market but did not know existed. And FNGU has certainly done well over the past year - returning 7x that of the Invesco QQQ ETF ( QQQ ) and more than 11x the returns of the Vanguard S&P 500 ETF ( VOO ) - see chart below. But what about now? Does this fund still make sense with the S&P 500 and Nasdaq-100 near all-time highs? Today, I'll take a close look at FNGU ETN ("exchange-traded notes") and the "FANG+ Index" it tracks to see if it is worthy of allocation within your portfolio....
FNGU: Betting Big On Just 10 FANG+ Stocks