REX Shares has launched a new exchange-traded note designed to give sophisticated traders leveraged, short-term exposure to the companies at the center of the artificial intelligence economy. The MicroSectors 3x Long MANGOS+ ex Private Companies ETN (NYSE: MNGU), issued by the Bank of Montreal, began trading in August and provides three times the daily performance of the New York Stock Exchange MaNGoS+ Index, according to a release distributed via NEWMEDIAWIRE.
The product matters because AI news arrives at a high frequency, creating repeated potential catalysts that active traders may want to act on. Rather than betting on a single company, MNGU bundles 10 U.S.-listed AI-related businesses into one trading vehicle, with each constituent equally weighted at 10% and rebalanced quarterly.
That concentration cuts both ways. A basket of just 10 names can be more volatile than a broadly diversified index, and the performance of any single constituent has a material effect on the index level. The three-times leverage factor amplifies that concentration, magnifying gains when the index moves in a trader's favor and losses when it does not.
The structure carries a critical caveat: MNGU is a daily trading tool, not a buy-and-hold investment. Because leverage resets daily, returns over any period longer than one day will differ from three times the index return. Losses compound the same way gains do, and a choppy, sideways market can produce losses through the daily reset mechanism. The effect increases with index volatility and with the length of the holding period, so the instrument must be tracked over the trading day.
The index's six named anchors are heavy hitters, and every anchor meeting the qualification requirements is selected. Anthropic PBC and OpenAI Group PBC were private as of the index launch date and are therefore ineligible for inclusion, though they seed the supply-chain search and could be added after listing if they satisfy eligibility requirements. The lowercase letters in MaNGoS denote these two private anchors. The ETN includes only common stocks, ADRs and GDRs listed on the New York Stock Exchange, Nasdaq, NYSE American, NYSE Arca or Cboe BZX.
Eligibility rules are strict. Each anchor must carry a float-adjusted market capitalization of at least $5 billion, a six-month average daily traded value of at least $100 million, a free float of 5% or more, a positive trailing 12-month price-to-sales ratio and at least 60 calendar days of active trading, with shorter thresholds for qualifying ADRs and MaNGoS+ securities. The index then looks at customers or suppliers of its major AI anchors, ranking candidates by AI-related revenue exposure, which includes money made from AI-optimized servers, accelerated-compute systems, GPUs, networking gear, cloud-based AI services and machine learning platforms. The highest-ranked companies are selected to bring the index to 10 constituents, and the threshold can be lowered if too few companies qualify.
For traders weighing the instrument, the fund's structure and risks are detailed on the fund's page. The release was originally published on Benzinga and contains sponsored content created with a third-party partner; Benzinga states it does not provide personalized investment advice or act as a broker or dealer, and the material is for informational purposes only and is not an offer or solicitation to buy or sell any security.
