BMO Provides a Reminder of the Upcoming Redemption of MicroSectors™ FANG+™ Index 3× Leveraged ETNs (Ticker: FNGA) and the Availability of MicroSectors™ FANG+™ 3× Leveraged ETNs (Ticker: FNGB)
BMO has announced the redemption of its MicroSectors™ FANG+™ Index 3× Leveraged ETNs (FNGA) and reminded investors about the availability of its replacement product, the FNGB ETNs.
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.
BMO ha annunciato il rimborso dei suoi MicroSectors™ FANG+™ Index 3× Leveraged ETN (FNGA) e ha ricordato agli investitori la disponibilità del prodotto sostitutivo, gli ETN FNGB.
Gli ETN FNGA saranno rimborsati il 15 maggio 2025, con l'ultimo giorno di contrattazione previsto per il 14 maggio 2025. BMO esercita questo diritto di richiamo a causa dei costi crescenti legati al mantenimento della leva finanziaria, che rendono le commissioni attuali non più rappresentative delle condizioni di mercato.
I nuovi ETN FNGB, negoziati con il ticker 'FNGB' dal 20 febbraio 2025, offrono un'esposizione simile a leva 3x sull'indice NYSE FANG+®. Presentano una commissione giornaliera per gli investitori scontata dello 0,35% annuo fino al 19 agosto 2025, dopodiché aumenterà allo 0,95% annuo.
BMO ha anunciado el reembolso de sus MicroSectors™ FANG+™ Index 3× Leveraged ETNs (FNGA) y ha recordado a los inversores la disponibilidad de su producto sustituto, los ETNs FNGB.
Los ETNs FNGA serán reembolsados el 15 de mayo de 2025, siendo el último día de negociación el 14 de mayo de 2025. BMO ejerce este derecho de rescate debido a los mayores costos asociados con el mantenimiento del apalancamiento, lo que hace que las tarifas actuales ya no reflejen las condiciones del mercado.
Los nuevos ETNs FNGB, que cotizan bajo el símbolo 'FNGB' desde el 20 de febrero de 2025, ofrecen una exposición apalancada similar de 3x al índice NYSE FANG+®. Presentan una tarifa diaria para inversores descontada del 0,35% anual hasta el 19 de agosto de 2025, fecha tras la cual aumentará al 0,95% anual.
BMO는 MicroSectors™ FANG+™ Index 3× 레버리지 ETN(FNGA)의 상환을 발표하고, 대체 상품인 FNGB ETN의 이용 가능성을 투자자들에게 알렸습니다.
FNGA ETN은 2025년 5월 15일 상환될 예정이며, 마지막 거래일은 2025년 5월 14일로 예상됩니다. BMO는 레버리지 유지와 관련된 비용 증가로 인해 현재 수수료가 시장 상황을 반영하지 못하게 되어 이 콜 권리를 행사합니다.
신규 FNGB ETN은 2025년 2월 20일부터 'FNGB' 티커로 거래되며, NYSE FANG+® 지수에 대해 유사한 3배 레버리지 노출을 제공합니다. 2025년 8월 19일까지 연 0.35%의 할인된 일일 투자자 수수료가 적용되며, 이후에는 연 0.95%로 인상됩니다.
BMO a annoncé le remboursement de ses MicroSectors™ FANG+™ Index 3× Leveraged ETNs (FNGA) et a rappelé aux investisseurs la disponibilité de son produit de remplacement, les ETNs FNGB.
Les ETNs FNGA seront remboursés le 15 mai 2025, le dernier jour de négociation étant prévu pour le 14 mai 2025. BMO exerce ce droit de rachat en raison des coûts accrus liés au maintien de l'effet de levier, rendant les frais actuels non représentatifs des conditions du marché.
Les nouveaux ETNs FNGB, cotés sous le symbole 'FNGB' depuis le 20 février 2025, offrent une exposition similaire à effet de levier 3x sur l'indice NYSE FANG+®. Ils bénéficient d'une commission d'investisseur quotidienne réduite de 0,35 % par an jusqu'au 19 août 2025, après quoi elle passera à 0,95 % par an.
BMO hat die Rückzahlung seiner MicroSectors™ FANG+™ Index 3× Leveraged ETNs (FNGA) angekündigt und die Anleger auf das Ersatzprodukt, die FNGB ETNs, hingewiesen.
Die FNGA ETNs werden am 15. Mai 2025 zurückgezahlt, der letzte Handelstag wird voraussichtlich der 14. Mai 2025 sein. BMO übt dieses Rückrufrecht aufgrund gestiegener Kosten für die Hebelunterstützung aus, wodurch die aktuellen Gebühren nicht mehr die Marktbedingungen widerspiegeln.
Die neuen FNGB ETNs, die seit dem 20. Februar 2025 unter dem Ticker 'FNGB' gehandelt werden, bieten eine ähnliche 3-fache Hebelwirkung auf den NYSE FANG+® Index. Sie verfügen über eine vergünstigte tägliche Anlegergebühr von 0,35 % pro Jahr bis zum 19. August 2025, danach steigt sie auf 0,95 % pro Jahr.
- 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
- 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
Filed Pursuant to Rule 433
Registration Statement No. 333-285508
April 24, 2025
Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the applicable ETN Prospectus (as defined below) for the relevant ETNs.
Reminder of the Redemption of FNGA ETNs
BMO would like to remind investors that it intends to exercise its call right and redeem all of the outstanding FNGA ETNs on the Call Settlement Date, which is expected to be May 15, 2025.
The FNGA ETNs were launched in January 2018 with fees and charges that reflected the then-current market environment. BMO is exercising its call right because the costs associated with supporting the leverage embedded in the FNGA ETNs have increased and, therefore, the existing fees and charges applicable to the FNGA ETNs no longer reflect the current market environment.
Further details regarding the redemption of the FNGA ETNs are provided below.
Reminder of the Availability of FNGB ETNs
On February 19, 2025, BMO launched a new MicroSectors™ ETN linked to the gross total return version of the NYSE FANG+® Index (the "Index"). Since February 20, 2025, the FNGB ETNs have been trading on the NYSE Arca, Inc. (the "NYSE") under the ticker symbol "FNGB." The FNGB ETNs are intended to offer sophisticated investors three times leveraged participation in the daily performance of the Index, before taking into account fees, charges and the decay effect caused by the daily resetting of the leverage.
The FNGB ETNs are meant to replace the FNGA ETNs and provide investors continued access to an ETN with three times leveraged, daily resetting, exposure to the Index, but with fees and charges that reflect the current market environment.
The Index, which is the same index that the FNGA ETNs are linked to, is an equally-weighted equity index that tracks the performance of 10 highly-traded growth stocks of technology and tech-enabled companies in the technology, media & communications and consumer discretionary sectors. The Index is a total return index, in which dividends paid on the applicable securities are included in the level of the Index. The ticker symbol of the Index is "NYFANGT".
Since the Initial Trade Date to, and including, August 19, 2025, the Daily Investor Fee for the FNGB ETNs will be discounted, based on a rate of
Additional Information Related to the Redemption of the FNGA ETNs
As announced on February 19, 2025, BMO intends to send a call notice to holders of the FNGA ETNs on May 1, 2025. The Call Calculation Date will be the Index Business Day after the call notice is issued, which is expected to be May 2, 2025. The Call Measurement Period will be the five Index Business Days from and including the Call Calculation Date, which are expected to be May 2, 2025, May 5, 2025, May 6, 2025, May 7, 2025 and May 8, 2025. The Call Measurement Period is subject to postponement in the event of a market disruption event as described in the ETN Prospectus for the FNGA ETNs. The Call Settlement Date will be the fifth Business Day following the last Index Business Day in the Call Measurement Period, which is expected to be May 15, 2025.
On the Call Settlement Date, holders of the FNGA ETNs will receive a cash payment equal to the Call Settlement Amount. The Call Settlement Amount will be determined in accordance with the terms of the FNGA ETNs and will be equal to the arithmetic mean of the closing Indicative Note Values on each Index Business Day in the Call Measurement Period. BMO will pay the applicable Call Settlement Amount to investors holding the FNGA ETNs on the applicable Call Settlement Date. Please refer to the ETN Prospectus for the FNGA ETNs for the additional information on the calculation of the Call Settlement Amount and the closing Indicative Note Values.
The FNGA ETNs will be delisted from the NYSE prior to the open of trading on the Call Settlement Date. Accordingly, the last day of trading for the FNGA ETNs is expected to be May 14, 2025.
Holders of the FNGA ETNs may choose to continue to hold their securities until the Call Settlement Date, or may choose to elect to require us to redeem their securities on or prior to May 1, 2025, in accordance with the terms of the FNGA ETNs, or sell their securities in the secondary market. BMO has announced the waiver of the minimum early redemption size for the FNGA ETNs. Prior to the waiver, holders of the FNGA ETNs were required to elect to redeem at least 25,000 ETNs at one time in order to exercise their right to redeem them.
Disclosures
Our election to exercise our call right in whole may adversely impact your ability to sell the FNGA ETNs and/or the price at which you may be able to sell your FNGA ETNs prior to the Call Settlement Date. BMO does not intend to issue or register any additional FNGA ETNs on or after May 1, 2025. BMO and its affiliates also intend to suspend any further sales from inventory of the FNGA ETNs on May 1, 2025.
Investors who purchase the FNGA ETNs at any time prior to the Call Settlement Date for an amount that is greater than the applicable Call Settlement Amount that they will receive on the Call Settlement Date will suffer a loss on their investment. Furthermore, investors who sell the FNGA ETNs at any time prior to delisting for an amount that is less than the applicable Call Settlement Amount they would have received on the Call Settlement Date will also suffer a loss. In either case, such losses could be significant. Investors will not receive any other compensation or amount for the loss of the investment opportunity of holding the FNGA ETNs.
The FNGB ETNs are not intended to be "buy and hold" investments, and are not intended to be held to maturity. Instead, the FNGB ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. The FNGB ETNs are designed to reflect a 3× leveraged long exposure to the performance of the Index on a daily basis, before taking into account the negative effect of the fees and charges. However, due to the daily resetting leverage, the returns on the FNGB ETNs over different periods of time can, and most likely will, differ significantly from three times the return on a direct long investment in the Index. The FNGB ETNs are designed to achieve their stated investment objectives on a daily basis. The performance of the FNGB ETNs over different periods of time can differ significantly from their stated daily objectives. The FNGB ETNs are considerably riskier than securities that have intermediate- or long-term investment objectives, and are not suitable for investors who plan to hold them for a period of more than one day or who have a "buy and hold" strategy. Investors should actively and continuously monitor their investments in the FNGB ETNs on an intra-day basis, and any decision to hold the FNGB ETNs for more than one day should be made with great care and only as the result of a series of daily (or more frequent) investment decisions to remain invested in the FNGB ETNs for the next one-day period. The FNGB ETNs are very sensitive to changes in the level of the Index, and returns on the FNGB ETNs may be negatively impacted in complex ways by the volatility of the Index on a daily or intraday basis. It is possible that you will suffer significant losses in the FNGB ETNs even if the long-term performance of the Index is positive. Accordingly, the FNGB ETNs should be purchased only by sophisticated investors who understand and can bear the potential risks and consequences of the FNGB ETNs that are designed to provide exposure to the leveraged performance of the Index on a daily basis and that will be highly volatile and may experience significant losses, up to the entire amount invested, in a short period of time.
For additional information, including a discussion of the risks relating to an investment in the ETNs, please carefully read the applicable pricing supplement and related documents that we have filed with respect to the ETNs (each, an "ETN Prospectus"). Investors should review the relevant ETN Prospectus carefully prior to making an investment decision.
The ETN Prospectus relating to the each of the ETNs can be found on EDGAR, the Securities and Exchange Commission (the "SEC") website at: www.sec.gov, as well as on the product websites at the following links: www.bmoetns.com and www.microsectors.com
Bank of Montreal, the issuer of each series of the ETNs, has filed a registration statement (including a pricing supplement, product supplement (if applicable), prospectus supplement and prospectus) with the SEC regarding each of series of the ETNs. Please read those documents and the other documents relating to these securities that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and the applicable securities. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal, and any agent or dealer that participated in the offering of the ETNs, will arrange to send the applicable pricing supplement, the product supplement (if applicable), the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.
The ETNs are senior, unsecured obligations of BMO, and are subject to BMO's credit risk.
Investment suitability must be determined individually for each investor, and the ETNs are not suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own financial advisors as to these matters.
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The NYSE FANG+® Index is a product of ICE Data Indices, LLC ("ICE Data") and is used with permission. ICE® is a registered trademark of ICE Data or its affiliates. NYSE® is a registered trademark of NYSE Group, Inc., an affiliate of ICE Data and is used by ICE Data with permission and under a license. ICE Data and its Third Party Suppliers accept no liability in connection with the use of the NYSE FANG+® Index or marks. See the applicable ETN Prospectus for a full copy of the Disclaimer.
MicroSectors™ and REX™ are trademarks of REX. The trademarks have been licensed for use for certain purposes by REX. The indices have been licensed for use by REX. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third party licensors (collectively, "REX Index Parties"). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the indices to track general stock market performance.
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FAQ
When will BMO redeem the FNGA ETNs and what will holders receive?
What are the key differences between BMO's FNGA and FNGB ETNs?
What options do current FNGA ETN holders have before the redemption?
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