At a glance
Over the past year it returned +9.2% with distributions reinvested (S&P 500: +11.5%), 6th of those 8 funds; over three years it returned +36.7% a year. At its worst it fell 35.0% in the 2020 crash (S&P 500: 33.7%) and 41.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 8 months after the lows.
The short version
MicroSectors FANG+ ETN (FNGS) is an exchange-traded note: unsecured debt of BMO Financial Group that pays the return of an internet-themed stock index, the FANG+ of its name, minus fees. Unlike an ETF, it owns no shares for investors, so payment depends on BMO's ability to pay. It has swung far harder than broad stock funds, gaining 102% in 2020 and losing 40% in 2022.
Price history
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FNGS +9.2% 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 | |
|---|---|---|---|---|---|---|
| FNGS price data to Oct 27, 2026 | +16.4% | +9.2% | +36.7% | +18.9% | — | +30.6% |
- Over the year to Oct 27, 2026, FNGS returned +9.2%, 6th of 8 among similar funds.
- Its 5-year annualized return was +18.9%.
- In the 2020 COVID crash it fell 35% and regained its old high 2.5 months after the low.
- Its worst full calendar year was 2022 (-40.3%); its best was 2020 (+102.0%).
- The deepest fall in its price history was 49% (Nov 4, 2021 to Nov 9, 2022), recovered by Jul 17, 2023.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +16.4% |
| 2025 | +18.6% |
| 2024 | +52.0% |
| 2023 | +95.2% |
| 2022 | -40.3% |
| 2021 | +17.0% |
| 2020 | +102.0% |
| 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 | Lost 30.8% over that stretch · deepest drop along the way 35%, back to its old high 2.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 41.4% over that stretch · deepest drop along the way 41.6%, back to its old high 8 months after the low |
How it works
FNGS is not a fund. It is an exchange-traded note, or ETN: a debt security issued by BMO Financial Group that trades on an exchange like a stock. BMO promises to pay holders the return of the note's underlying index, minus fees. The debt is unsecured, meaning no specific assets back it, and the note owns no stocks on investors' behalf. Holders get paid only as long as BMO can pay. BMO can also redeem the notes early, which would end the investment.
The underlying index is the internet-themed FANG+ index named in the title. An ETN has no fund prospectus or holdings reports, so this page doesn't cover how the index picks, weights or rebalances its stocks, or the size of the note's fee. Those details appear in BMO's offering documents for the notes, which are worth reading before investing.
FNGS is not leveraged or inverse. It aims for the index's plain return, so there is no daily reset of the kind that makes leveraged products drift from a simple multiple of the index over time. It has recorded no distributions, so gains and losses show up only in the note's market price.
What it really costs
Structure and tax notes
- 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 gives concentrated, high-swing exposure to an internet-themed index through unsecured bank debt and has recorded no distributions, so it fits only as a small add-on to a broader core.
FNGS adds concentrated exposure to internet-themed stocks, but its falls have been steep. It dropped 35% in the 2020 COVID crash and regained its high by June 3, 2020. In the 2022 bear market it lost 41.6%. Its deepest drop, 49% from November 4, 2021 to November 9, 2022, wasn't recovered until July 17, 2023, and 2022 was its worst calendar year, at -40.3%. It launched in 2019, so it has no 2008 record. Drawing money from it in 2022 would have meant locking in large losses.
It has recorded no distributions, so it provides no income. Its fee isn't listed here; stock ETFs in its comparison group averaged 0.07% a year. Holders also carry BMO's credit risk, the chance the bank can't pay. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking a small, deliberate position in internet-themed stocks who can stomach drops like its 49% fall from November 2021 to November 2022.
- Long-horizon investors comfortable with above-market swings: over the year to October 27, 2026, it moved about 1.56 times as much as the market.
- Experienced investors who understand ETNs and accept that payment depends on BMO Financial Group, which can also redeem the notes early.
Look elsewhere if
- Retirees who need regular income: FNGS has recorded no distributions, so getting cash means cashing out part of the position.
- Investors who may need this money within a few years: its 41.6% drop in 2022 took until June 2023 to recover.
- Investors who prefer owning stocks through a fund rather than a single bank's unsecured note, such as VOO or VTI at 0.03% a year.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| FNGS this fund | — | — | +9.2% | +36.7% |
| VTI Vanguard Total Stock Market ETF | 0.03% | $1.70T | +12.5% | +23.4% |
| VOO Vanguard S&P 500 ETF | 0.03% | $1.30T | +12.4% | +23.6% |
| IVV iShares Core S&P 500 ETF | 0.03% | $579.90B | +11.5% | +22.0% |
| SPY SPDR S&P 500 ETF Trust | 0.0945% | $576.00B | +11.5% | +21.9% |
| QQQ Invesco QQQ Trust Series I | 0.2% | $297.50B | +8.8% | +24.0% |
| VUG Vanguard Growth ETF | 0.04% | $260.80B | +3.8% | +25.1% |
| VIG Vanguard Dividend Appreciation ETF | 0.05% | $102.30B | +15.6% | +19.8% |
Questions investors ask
Is FNGS an ETF or an ETN?
FNGS is an ETN, not an ETF. An exchange-traded note is unsecured debt of the issuing bank, here BMO Financial Group, which promises to pay the return of the note's internet-themed FANG+ index minus fees. Unlike an ETF, the note owns no stocks on investors' behalf, so if BMO couldn't pay its debts, holders could lose money even if the index rose. BMO can also redeem the notes early.
Does FNGS pay dividends?
No. FNGS has recorded no distributions since it launched on November 12, 2019. Its return shows up only in the note's price, which is tied to the index return minus fees. That makes it a poor fit for anyone who wants a holding to produce regular cash. Getting money out means cashing out part of the position, possibly at a loss after a fall like its 41.6% drop in 2022.
FNGS vs QQQ: what's the difference?
The biggest difference is structure. QQQ, the Invesco QQQ Trust, is a fund that owns its stocks; FNGS is BMO Financial Group's unsecured note tied to an internet-themed index. They share a broad category, but FNGS has no holdings reports to match them stock by stock. FNGS returned 36.7% a year over three years to October 27, 2026, versus 26.2% for QQQ to October 30, 2026. Over one year, QQQ led, 10.8% to 9.2%. QQQ charges 0.20% a year.
What is FNGS's 5-year return?
As of October 27, 2026, FNGS returned about 18.9% a year over five years, or 137% in total, based on market prices. Over three years it returned 36.7% a year (156% in total), and over one year 9.2%. Results swung widely: calendar years ranged from a 102% gain in 2020 to a 40.3% loss in 2022. For 2026 through October 27, it was up 16.4%.
Is FNGS good for retirement?
It may suit only a small, higher-risk slice of a retirement portfolio. FNGS is tied to a narrow internet-themed index, has recorded no distributions and carries BMO's credit risk. Its deepest drop was 49%, from November 4, 2021 to November 9, 2022, and it didn't regain that high until July 17, 2023. As of October 27, 2026, its one-year volatility, a measure of how widely returns swing, was 23.4%.