Bearish on Big Tech? There's an ETF for That

The video tutorial discusses Rex Shares' micro sectors products, focusing on exchange-traded notes (ETNs) that provide exposure to the NYSE Fang Plus index. It covers leveraged and inverse notes tied to ten major tech companies, including Facebook, Amazon, and Tesla. The tutorial highlights the three times inverse leveraged ETN, known as EFFED, which uses derivatives to achieve its performance. Despite trailing the index since its launch in 2018, the ETN is not recommended for buy-and-hold strategies due to its high expense ratio and daily resetting. Bloomberg Intelligence advises caution due to the heavy leverage involved.

What does Rex Shares offer through its micro sectors products?

• Direct stock investments in tech companies

• Exchange-traded notes covering the NYSE Fang Plus index

• Cryptocurrency trading options

• Mutual funds for the NYSE Fang Plus index

Which of the following is NOT one of the original Fang companies?

• Amazon

• Tesla

• Netflix

• Facebook

What is the primary goal of the three times inverse leveraged ETN known as 'fanged'?

• To match the performance of the Fang Plus index

• To achieve three times the performance of the Fang Plus index

• To achieve three times the opposite of the Fang Plus index

• To provide a stable investment option

Since its launch in January 2018, how has the performance of 'fanged' compared to the Fang Plus index?

• It has been highly volatile

• It has matched the index performance

• It has trailed the index

• It has consistently outperformed the index

Why does Bloomberg Intelligence give a red light warning to the 'fanged' ETN?

• Due to heavy leverage and daily resetting

• Because it is a buy-and-hold investment

• Because it has a high asset value

• Due to its low expense ratio