REX Shares, BMO Launch 3x Leveraged AI ETN MNGU

REX Shares has launched the MicroSectors 3× Long MANGOS+ ex Private Companies exchange-traded note (ETN), trading under the ticker MNGU on the NYSE, with issuance by the Bank of Montreal (BMO). The ETN offers sophisticated traders 3x leveraged exposure to the daily performance of the NYSE MaNGoS+ Index, a rules-based, equal-weighted benchmark of 10 U.S.-listed companies at the heart of the artificial intelligence economy. The product debuted in August and is designed as a daily trading tool, not a buy-and-hold investment, because leverage resets each day and returns over longer periods will differ significantly from three times the index return. Losses can compound just as gains do, and choppy markets may produce losses due to the daily reset mechanism, so active monitoring is essential.

The NYSE MaNGoS+ Index is concentrated, holding 10 constituents equally weighted at 10% each and reconstituted quarterly. Its six named anchors are major AI players; however, Anthropic PBC and OpenAI Group PBC are currently private and thus ineligible, though they seed the supply chain search and could be included after listing if they meet eligibility requirements. The lowercase letters in MaNGoS denote these private anchors. The index includes only common stocks, ADRs, and GDRs listed on major U.S. exchanges. To qualify, anchor companies must have a float-adjusted market cap of at least $5 billion, a six-month average daily traded value of $100 million or more, a free float of at least 5%, a positive trailing 12-month price-to-sales ratio, and sufficient trading history. Additional constituents are chosen from customers or suppliers of the anchors, ranked by AI-related revenue exposure, which includes sales from AI products, services, and infrastructure such as AI-optimized servers, GPUs, and cloud-based AI services. The highest-ranked companies fill the index to 10 names, each receiving equal 10% weighting at quarterly rebalancing; if too few qualify, the threshold can be lowered.

MNGU aims to provide a vehicle for traders with a short-term bullish view on the AI boom, grouping key AI-related businesses into one instrument. The 3x feature can magnify gains but also magnify losses, and the concentrated basket can be more volatile than a broad index. For sophisticated investors seeking leveraged exposure to AI trends through a basket of 10 key names, head over to the fund’s page to learn more. The content was originally published on Benzinga.