Bank of Montreal (BMO) is targeting US investors with a new tracker offering triple leverage exposure to the BMO REX MicroSector Fang+ Index, an index comprised of so-called Fang stocks including Facebook, Amazon.com, Netflix and Google parent Alphabet, among others. Apple, Alibaba Group Holding, Baidu, Nvidia Corp, Tesla and Twitter round out the other holdings in the index.

The Canadian bank which is seeking to raise US$50m launched the BMO REX MicroSectors FANG+ Index 3X Leveraged Exchange Traded Note (ETN) on Tuesday under the ticker FNGU. The notes should trade up 30% if the target stocks gain 10%. The new leverage ETNs were launched alongside an inverse strategy, the BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETN, which will trade under the ticker FNGD, and aims to let investors triple the inverse exposure of the same index. Both ETNs are due for maturity on January 8, 2038.

Fang stocks have increased their value significantly during the US bull market following the 2007-2009 global financial crisis. The index which was developed by the Intercontinental Exchange (ICE.N) and the notes are listed on the NYSE Arca exchange.

Bitcoin bonanza triggers first blockchain trackers

The surge in the price of bitcoin has triggered an increasing demand for investments around the technology supporting the new cryptocurrency which has been responded with the launch of the first two blockchain exchange-traded funds (ETFs). ETF issuer and index provider Reality Shares has launched the Reality Shares Nasdaq NexGen Economy ETF (Nasdaq: BLCN), a tracker fund that tracks the Reality Shares Nasdaq Blockchain Economy Index, which is comprised of companies committing material resources to developing, researching, supporting, innovating or utilizing blockchain technology for their proprietary use or for use by others. The index will hold between 50 and 100 constituents at any given time and is rebalanced semi-annually,

In order to qualify for inclusion in the underlying index and BLCN, companies must receive a high Blockchain score based on the following characteristics: role in blockchain ecosystem, blockchain product stage, blockchain economic impact, Blockchain Institute membership, research and development expenditure, company filings and innovation.

ETF provider Amplify has also rolled out the Amplify Transformational Data Sharing ETF (NYSE Arca: BLOK), an actively-managed ETF which invests in publicly-traded global companies leading the research, uses an actively-managed approach to investing in the fast developing world of blockchain-based technology, allowing the fund's portfolio managers to respond in real-time to valuations, company fundamentals and announcements that may impact the blockchain marketplace.

BLOK will be co-managed by the fund's sub-advisers, Toroso Investments and CSAT Investments Advisory.

Amundi's smart beta AUM up by 21.5% in 2017

The past year has allowed Amundi to significantly grow on the ETF and indexing market and to consolidate its position on the smart beta and factor investing universe, stated the asset manager in its annual report. The ETF, Indexing and Smart Beta business ended 2017 with a net increase in assets under management of €84m as of end of September in comparison with €69.1m in assets under management (AUM) in 2016.

According to Amundi, this trend kept going for the last three months of the year. Overall, the firm saw record inflows of €10.2bn AUM; twice the size of the managed assets in 2016. With about €38m of AUM, Amundi ETF maintains its position as a key player in Europe and Asia.

Fannie Wurtz, managing director at Amundi ETF, Indexing & Smart Beta, there are several reasons explaining the success of Amundi ETF in 2017 including its 'capacity to offer exposures driven by cost-competitiveness replying to investors' demands (emerging and European equities, etc.); a well-designed and innovative fixed income solutions adapted to the construction of portfolio in line with new challenges; and a range of innovative products.'

Cboe adds Barclays to ETF Marketplace

Cboe Global Markets has added Barclays as a new issuer to the Cboe ETF Marketplace, following the launch of two exchange-traded notes (ETNs).

The iPath Series B S&P 500 VIX Mid-Term Futures ETN (Cboe: VXZB) is designed to provide investors with exposure to the performance of the S&P 500 VIX Mid-Term Futures Index TR, which is designed to measure the return from a daily rolling long position in the fourth, fifth, sixth and seventh month futures contracts on the Vix Index.

The New ETNs are launched in advance of the upcoming scheduled maturity of the iPath S&P 500 VIX Short-Term Futures ETNs (Ticker: VXX) and the iPath S&P 500 Vix Mid-Term Futures ETNs (Ticker: VXZ) which are due to reach their maturity date on January 30, 2019.

The New ETNs and the maturing ETNs are expected to trade in parallel until the final redemption date of the maturing ETNs. Cboe is the home of the Cboe Volatility Index (Vix Index), which is considered by many to be the world's premier barometer of equity market volatility. The Vix Index is based on real-time prices of options on the S&P 500 Index (SPXSM) and is designed to reflect investors' consensus view of future (30-day) expected stock market volatility.

On January 2, 2018, Cboe launched a new microsite designed to educate and inform investors about exchange-traded volatility products (ETPs). At the end of 2017, Cboe had 250 ETPs listed on its U.S. market from 47 issuers. The firm won 62% of new transfers and 32% of listings over the year.

Fidelity Investments Launches 2 International Factor-Based ETFs

Fidelity Investments has expanded its factor-based ETF offering with the launch of two international factor-based ETFs. The Boston-based investment firm, which has more than $300 billion in ETF assets under management, has launched of the Fidelity International High Dividend ETF (FIDI) and the Fidelity International Value Factor ETF (FIVA).

The two ETFs started trading as of January 18, and have an expense ratio of 0.39%. The factor-based ETFs are available to both individual investors and financial advisors.

"Many investors have expressed strong interest in international dividend and value factor strategies," said Greg Friedman, head of ETF management and strategy at Fidelity, in a press release announcing the launch of the two ETFs. "These new ETFs, which will help us address that demand, benefit from our powerful research capabilities and decades of investing experience and expertise and provide great value to investors." Including the two new ETFs, investors at Fidelity now have access to 93 ETFs that are commission free.

The Fidelity International High Dividend ETF is to provide investment results that correspond with the total return of dividend-paying stocks listed in its Fidelity International High Dividend index, according to Fidelity. The index is made of international stocks that are expected to continue to pay a high dividend and grow their dividends.

The Fidelity International Value Factor ETF is aiming to replicate the total return of the Fidelity International Value Factor Index, which comprises international stocks that have what Fidelity deems attractive valuations. To be included in the index, the stock must have high free-cash-flow yields, low enterprise value to EBITDA, low price to tangible book value and low price to future earnings, Fidelity said in the release.

BinckBank and Flow Traders offload Think ETF Asset Management

BinckBank (60%), Flow Traders (24%) and Think ETF's management (16%) together have announced the sale of their stakes in Think ETF Asset Management to Van Eck Associates Corporation.

With the sale of the Dutch ETF-company, Van Eck will receive almost full ownership of Think ETF's, only management of Think ETF's will retain a small stake. The financial details of the transaction are not disclosed at this stage. Think ETF's' management has committed itself to the strategy of Van Eck on the basis of 'increased growth potential'.

Following this sale, BinckBank's Vincent Germyns and Flow Traders' Dennis Dijkstra will step down from Think ETF's' Supervisory Board. The transaction is subject to approval from the Dutch Central Bank (DNB) and is expected to be closed by 1Q 2018. Berkshire Capital and Loyens Loeff advised the sellers in this transaction.