BMO and REX Shares Introduce New ETNs for Investors Seeking AI Exposure

BMO and REX Shares Announce Launch of Innovative ETNs

On August 26, 2026, Bank of Montreal (BMO) and REX Shares, LLC made headlines with the launch of their new investment product: the MicroSectors™ 3× Long MANGOS+ ex Private Companies ETNs, trading under the ticker symbol "MNGU" on the NYSE Arca. This exchange-traded note (ETN) offers sophisticated investors a unique opportunity to tap into the fast-evolving landscape of artificial intelligence (AI) companies.

Purpose of the ETNs

The newly introduced ETNs are designed to provide investors with leveraged exposure—three times the daily performance—of the NYSE® MaNGoS+ Index, a specially created benchmark focused on AI-focused companies. Scott Acheychek, COO of REX Shares, emphasized that a select group of AI firms has played a pivotal role in economic growth and technological advancement over the last decade. The MNGU ETNs aim to deliver focused, leveraged access to these significant market players while retaining the transparency and convenience associated with the ETN format.

Trading and Fees

Trading for the ETNs will commence on August 27, 2026. Notably, investors can benefit from a waived Daily Investor Fee until January 31, 2027, after which a competitive rate of 0.95% per annum will apply. This fee structure positions the MNGU ETNs as an appealing choice for active traders looking for exposure to market-leading companies in the AI sector.

Composition of the Index

At the core of the MNGU ETNs is the NYSE® MaNGoS+ Index, an equally-weighted index tracking ten publicly listed companies that are integral to the burgeoning AI economy. Initially, the index comprises notable names like Meta Platforms, Inc., NVIDIA Corporation, and Alphabet Inc. The methodology behind the index outlines that in instances where qualifying private companies—such as Anthropic and OpenAI—go public, they could potentially be added, further diversifying the investment landscape.

An Intelligent Investment

Saurabh Kushwaha, Director at BMO Capital Markets, highlighted the relevance of AI in shaping economic dynamics today. He pointed out that the ETNs help traders engage in the ongoing development of AI technologies and frameworks. This opportunity is particularly significant as AI increasingly influences various industries, thereby encouraging investors to align themselves with pivotal market trends.

Understanding the Risks

While the MNGU ETNs offer attractive leveraged exposure, they come with notable risks. The ETNs are not meant for long-term holding; rather, they function as daily trading instruments for experienced investors. As such, fluctuations in the index value may lead to returns that differ markedly from the expected multiplier effect over extended periods. Investors are advised to actively monitor their investments to navigate the inherent volatility.

Conclusion

As financial markets evolve, innovative products like the MicroSectors™ 3× Long MANGOS+ ex Private Companies ETNs exemplify how investors can seize opportunities driven by technological advancements. BMO and REX Shares’ collaboration underscores their commitment to providing cutting-edge investment options tailored to the needs of today’s savvy investors. The launch of MNGU represents a significant step forward in making AI investment accessible and attractive, all while adhering to the principles of smart and informed trading.

For further information, investors are encouraged to review the ETN Prospectus, which details the associated risks and profiles of the underlying assets. This important due diligence can be crucial in making informed choices in a rapidly changing investment environment.