At a glance
Over the past year it returned −5.6% with distributions reinvested (S&P 500: +11.5%), 2nd of those 7 funds.
The short version
MicroSectors FANG+ 3 Leveraged ETNs (FNGU) is an exchange-traded note from BMO Financial Group offering 3x leveraged exposure to a FANG+ index of internet stocks. Unlike the internet ETFs it is grouped with, it is unsecured bank debt, not a fund: it owns no stocks, has paid no distributions and relies on the bank's ability to pay. Leverage cuts both ways; it fell 59.5% from October 29, 2025, to March 30, 2026.
Price history
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FNGU -5.6% 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 | |
|---|---|---|---|---|---|---|
| FNGU price data to Oct 27, 2026 | +19.1% | -5.6% | — | — | — | +18.2% |
- Over the year to Oct 27, 2026, FNGU returned -5.6%, 2nd of 7 among similar funds.
- The deepest fall in its price history was 59.5% (Oct 29, 2025 to Mar 30, 2026), recovered by May 29, 2026.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +19.1% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
How it works
FNGU is an exchange-traded note (ETN): a debt security that BMO Financial Group issues and that trades on an exchange like a stock. Unlike an ETF, it does not hold a basket of shares for investors. Instead, the bank promises to pay a return linked to a FANG+ index of internet stocks, with 3x leverage, minus fees. There is no fund prospectus or holdings report. The index rules, how member companies are picked and weighted, and the fee rate are set out in the issuer's own offering documents.
Leverage multiplies the index's moves, up and down. Many leveraged products reset that multiple daily. Over weeks or months, their returns can drift well away from three times the index's return, especially when prices zigzag. FNGU's one-year beta was 4.54 as of October 27, 2026. That means it tended to move about 4.5 times as much as the broad stock market, which shows how magnified the swings were.
The note is unsecured, meaning no collateral stands behind it. Payment depends on BMO's ability to pay, so holders could lose money if the bank ran into trouble, even if the index rose. The issuer can also redeem the notes early, which could end a position at an awkward time.
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
FNGU is a 3x leveraged note backed only by BMO's promise to pay, and it lost 59.5% between October 29, 2025, and March 30, 2026.
FNGU launched on February 19, 2025, so it has no record in the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Even so, it fell 59.5% from October 29, 2025, to March 30, 2026. It then regained its old high by May 29, 2026, about two months later. Its one-year volatility, a measure of how widely returns swing, was 68.4% as of October 27, 2026. Anyone who needed to take money out near the low would have locked in a deep loss.
Beyond short-term, magnified exposure to FANG+ stocks, it adds little: it has paid no distributions. Its fee comes out of the index return, at a rate set in the issuer's offering documents. Unleveraged internet ETFs in the same category charge 0.66% a year on average. Past results don't predict future ones, and a retirement plan needs to weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Experienced traders seeking short-term, 3x leveraged exposure to a FANG+ index of internet stocks who can monitor positions closely.
- Investors who accept BMO Financial Group's credit risk, since an ETN is unsecured bank debt that BMO can also redeem early.
- Traders who can absorb swings like the 59.5% drop from October 29, 2025, to March 30, 2026, without needing the money.
Look elsewhere if
- Retirees needing income or stable value: FNGU has paid no distributions, and its one-year volatility was 68.4% as of October 27, 2026.
- Long-term holders wanting unleveraged internet stocks may compare FDN, an ETF charging 0.51% that returned 23.7% a year over three years to October 27, 2026.
- Investors wanting a long track record: FNGU launched on February 19, 2025, and has no history in the 2008, 2020 or 2022 downturns.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| FNGU this fund | — | — | -5.6% | — |
| KWEB KraneShares CSI China Internet ETF | 0.7% | $8.00B | -40.7% | -0.9% |
| FDN First Trust Dow Jones Internet Index Fund | 0.51% | $6.30B | -1.2% | +23.7% |
| ARKW ARK Next Generation Internet ETF | 0.82% | $1.50B | -11.7% | +47.2% |
| PNQI Invesco NASDAQ Internet ETF | 0.6% | $789.2M | -10.9% | +20.2% |
| EMQQ EMQQ The Emerging Markets Internet ETF | 0.86% | $357.4M | -33.9% | +3.2% |
| OGIG ALPS | O’Shares Global Internet Giants ETF | 0.48% | $128.7M | -14.6% | +19.6% |
Questions investors ask
Is FNGU an ETF or an ETN?
FNGU is an ETN, or exchange-traded note, not an ETF. It is unsecured debt (not backed by collateral) issued by BMO Financial Group. It trades on an exchange like a stock, but it owns no stocks on investors' behalf. Instead, the bank promises a return tied to a FANG+ index, with 3x leverage, minus fees. That makes BMO's credit important: if the bank couldn't pay, holders could lose money even if the index rose. BMO can also redeem the notes early.
Is FNGU good for retirement?
It is generally seen as a short-term trading tool, not a retirement holding. FNGU is a 3x leveraged note, so losses are magnified along with gains. Many leveraged products reset daily, which can make long-term returns drift away from three times the index's return. FNGU fell 59.5% between October 29, 2025, and March 30, 2026, and has paid no distributions. It launched on February 19, 2025, so it has no record in the 2008 or 2022 downturns.
Does FNGU pay a dividend?
No. FNGU has no recorded distributions. As an exchange-traded note, it is a bank's promise to pay an index-linked return, not a fund holding shares, so there are no stock dividends to pass through to holders. Any gain or loss shows up only in the note's price. That makes it a poor fit for anyone who relies on regular income from their investments.
How risky is FNGU?
Very risky. As of October 27, 2026, its one-year volatility, a measure of how widely returns swing, was 68.4%. Its beta was 4.54, meaning it tended to move about 4.5 times as much as the broad stock market. Its deepest drop was 59.5%, from October 29, 2025, to March 30, 2026, though it regained that ground by May 29, 2026. Because it is a note, it also carries BMO's credit risk and the chance of early redemption.
What's the difference between FNGU and FDN?
They work very differently. FDN, the First Trust Dow Jones Internet Index Fund, is an unleveraged ETF that holds internet stocks and charges a 0.51% expense ratio, or annual fee. FNGU is a 3x leveraged note from BMO Financial Group that owns nothing on investors' behalf and depends on the bank's credit. In the year to October 27, 2026, FDN lost 1.2% and FNGU lost 5.6%. FDN also has a longer record: it returned 23.7% a year over three years.