At a glance
It has $218.9M in assets. Over the past year it returned −39.2% with distributions reinvested (S&P 500: +11.5%); over three years it returned −70.5% a year. At its worst it fell 19.5% in the 2020 crash (S&P 500: 33.7%) and 58.7% in the 2022 bear market (S&P 500: 24.5%).
The short version
MicroSectors FANG+™ Index -3X Inverse Leveraged ETN (FNGD) is an exchange-traded note from BMO Financial Group. It aims to deliver three times the opposite of the FANG+ Index's daily move. Because it is a note, it is the bank's unsecured debt and owns no stocks. Its exposure resets every day, which makes it a short-term trading tool. It lost 99% in total over the five years to October 27, 2026.
Price history
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FNGD -39.2% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FNGD price data to Oct 27, 2026 | -48.3% | -39.2% | -70.5% | -63.0% | — | -69.6% |
- Over the year to Oct 27, 2026, FNGD returned -39.2%.
- Its 5-year annualized return was -63.0%.
- In the 2020 COVID crash, while stocks fell, it gained 110.5%.
- Its worst full calendar year was 2020 (-95.6%); its best was 2022 (+52.2%).
- The deepest fall in its price history was 100% (Feb 8, 2018 to Oct 7, 2026), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -48.4% |
| 2025 | -61.4% |
| 2024 | -76.6% |
| 2023 | -90.1% |
| 2022 | +52.2% |
| 2021 | -60.0% |
| 2020 | -95.6% |
| 2019 | -72.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Gained 110.5% over that stretch · deepest drop along the way 19.5%, back to its old high 0.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 102.9% over that stretch · deepest drop along the way 58.7%, not recovered by the end of the data |
How it works
FNGD does not hold any stocks. It is an exchange-traded note (ETN): a promise from BMO Financial Group to pay a return linked to the FANG+ Index, a group of internet-focused stocks, minus fees. The target is -3 times the index's return for a single day. If the index falls on a given day, the note aims to rise about three times as much in percentage terms. If the index rises, the note aims to fall about three times as much.
The exposure resets every day. Over longer periods, those daily results compound. Returns can then differ sharply from -3 times the index's move, and they usually come out worse when prices swing up and down. This helps explain the uneven record: the note gained 52.2% in 2022, then lost 90.1% in 2023 and 76.6% in 2024.
Because FNGD is debt, not a fund, the bank holds no portfolio on investors' behalf. Payment depends on BMO's ability to pay, so the bank's credit matters. BMO can also redeem the notes early. ETNs also don't publish the fund prospectus and holdings reports that ETFs do.
What it really costs
Structure and tax notes
- Resets its inverse exposure every day. Over periods longer than a day, compounding means returns can differ sharply from -3× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
- An exchange-traded note: unsecured debt of the issuing bank, not a fund. It owns no assets on investors’ behalf; it pays the index return minus fees only as long as the issuer can pay, so the bank’s credit matters, and the issuer can redeem the notes early.
In a retirement portfolio
It resets its -3x exposure daily, pays no income and lost 99% in total over the five years to October 27, 2026, so it does not fit a buy-and-hold plan.
FNGD did what an inverse note is built to do in sharp sell-offs. It gained 110.5% during the 2020 COVID crash (February 19 to March 23, 2020) and 102.9% during the 2022 bear market (January 3 to October 12, 2022). Even then the ride was rough: it fell 58.7% between May 24 and August 15, 2022. It launched in 2018, so it has no 2008 record. Its worst calendar year was 2020, when it lost 95.6%. Its deepest drop came close to 100%, from February 8, 2018, to October 7, 2026, with no recovery. Anyone who needed to cash out in a bad year would likely have taken steep losses. It has paid no distributions, and no expense ratio figure was available. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders who want a one-day bet against the FANG+ Index and can watch their positions every day.
- Experienced traders looking for short-term protection against sharp drops in internet stocks, like its 110.5% gain during the 2020 COVID crash.
- Traders who accept BMO Financial Group's credit risk and the chance that the notes are redeemed early.
Look elsewhere if
- Buy-and-hold and retirement investors: the note lost 97% over three years and 99% over five years through October 27, 2026.
- Anyone seeking income, since FNGD has recorded no distributions.
- Investors who want to own actual shares in a regulated fund with holdings reports, rather than unsecured bank debt with 77.5% three-year volatility.
Close alternatives
Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).
No close alternatives found.
Questions investors ask
Is FNGD an ETF or an ETN?
FNGD is an ETN, not an ETF. An exchange-traded note is unsecured debt issued by a bank, in this case BMO Financial Group. It trades on an exchange like a stock but owns no assets on investors' behalf. It pays a return tied to -3 times the daily move of the FANG+ Index, minus fees, but only as long as BMO can pay. The bank can also redeem the notes early.
Can you hold FNGD long term?
You can, but the note is built for short-term trading. Its -3x exposure resets daily, and compounding can push longer-term results far away from -3 times the index's move. As of October 27, 2026, FNGD had lost 97% over three years and 99% over five years in total. It lost money in every full calendar year from 2020 through 2025 except 2022.
Does FNGD pay dividends?
No. FNGD has recorded no distributions. As a note, it holds no stocks that could pass dividends along. Any return comes only from changes in the note's price, which aims to follow -3 times the FANG+ Index's daily move. Investors who want regular income would need to look at other types of investments.
Does FNGD go up when FANG stocks fall?
Usually, from one day to the next. It aims for -3 times the FANG+ Index's daily return, so a down day for the index should mean a gain for the note. It rose 110.5% during the 2020 COVID crash and 52.2% in calendar 2022. Timing still matters, though. In 2022 it also fell 58.7% between May 24 and August 15, and choppy markets can wipe out gains.
What happens to FNGD if BMO has financial trouble?
Holders could lose money no matter what the index does. FNGD is unsecured debt of BMO Financial Group, so payments depend on the bank's ability to pay. Unlike a fund, the note owns no assets on investors' behalf. BMO can also redeem the notes early, which could force holders out at a bad time.