Are you bullish on large U.S. banks? Or do you hate them . . . as in really, really hate them.
Either way, REX Shares LLC has covered the bases with its suite of five exchange-traded notes linked to the same equal-weighted index composed of 10 large U.S. banking companies. These are leveraged and inverse ETNs providing a range of exposures to the index from 2x and 3x bullish to 1x, 2x and 3x bearish.
This suite of products launched on Wednesday on the NYSE Arca exchange and comprises the following:
• MicroSectors U.S. Big Banks Index 3X Leveraged ETNs (BNKU)
• MicroSectors U.S. Big Banks Index 2X Leveraged ETNs (BNKO)
• MicroSectors U.S. Big Banks Index Inverse ETNs (KNAB)
• MicroSectors U.S. Big Banks Index -2X Inverse Leveraged ETNs (BNKZ)
• MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETNs (BNKD)
All five products have an expense ratio of 0.95 percent. The underlying Solactive MicroSectors U.S. Big Banks Index takes a 10 percent stake in the following 10 companies: Bank of America, BB&T, Citi, Goldman Sachs, JPMorgan, Morgan Stanley, PNC, Charles Schwab, U.S. Bancorp and Wells Fargo.
These five new ETNs expand REX Shares’ existing MicroSectors concept that includes the FANG+ series of five ETNs that range from three times bullish to three times bearish leveraged and inverse exposure to an index that tracks the four FANG stocks of Facebook, Amazon, Netflix and Google (i.e., its parent company, Alphabet), plus six other widely held technology stocks—Alibaba, Apple, Baidu, Nvidia, Tesla and Twitter.