BMO and REX Shares Team Up on MNGU to Offer 3x Leveraged AI Infrastructure Exposure

MNGU is an ETN, Not an ETF

MNGU is an exchange-traded note, or ETN.

Unlike an ETF, an ETN does not hold a portfolio of the underlying stocks.

Instead, it is an unsecured debt security issued by a financial institution, with returns linked to the performance of a specified index.

In this case, investors are taking exposure to the MANGOS+ Index through a note issued by Bank of Montreal.

That means MNGU carries issuer credit risk in addition to the market and leverage risks of the strategy.

The distinction matters.

Investors are not directly owning shares of NVIDIA, Microsoft, Meta or the other companies in the basket.

So, What Is MANGOS+?

The NYSE® MaNGoS+ Index is an equally weighted basket of 10 U.S.-listed companies positioned at the center of the AI economy.

Its starting point is six named anchor companies: Meta, Anthropic, NVIDIA, Google, OpenAI and SpaceX.

Any publicly listed MaNGoS company that meets the index’s eligibility requirements is included.

The remaining positions are then filled by publicly traded companies with a disclosed supply-chain relationship to at least one of those six anchor names.

That is why the portfolio extends beyond the headline AI companies to names such as Microsoft, TSMC, AMD, Broadcom, Micron and Palantir.

IPO-bound Anthropic and OpenAI are currently private and therefore cannot qualify for inclusion.

If either eventually goes public and satisfies the index requirements, the methodology allows it to be added to the portfolio.

As of August 25, 2026, the index held:

The index is rebalanced quarterly toward an equal 10% allocation per constituent.

That gives MANGOS+ exposure across several parts of the AI value chain rather than concentrating solely on software or mega-cap technology.

A Cross-Section of the AI Buildout

The current basket covers much of the infrastructure behind the AI boom.

NVIDIA, AMD and Broadcom provide semiconductor exposure.

TSMC represents advanced chip manufacturing.

Micron adds memory.

Microsoft, Alphabet and Meta bring cloud, platform and AI development exposure.

Palantir adds enterprise software, while SpaceX introduces a different layer of technology infrastructure.

That makes the index less of a single-segment AI bet and more of a concentrated snapshot of companies positioned across the broader ecosystem.

"A small group of AI companies have delivered an outsized impact on economic growth, technological advancement, and equity market performance over the past decade," said Scott Acheychek, COO of REX Shares. "The MNGU ETNs seek to provide investors with focused leveraged exposure to these market leaders while offering the convenience and transparency of the ETN structure."

"AI is quickly becoming one of the defining themes of this generation," said Saurabh Kushwaha, Director, BMO Capital Markets. "By bringing together companies at the forefront of AI infrastructure, foundational models, and digital platforms, the 3× Long MANGOS+ ETNs seek to offer traders a targeted way to participate in the continued evolution of the artificial intelligence ecosystem."

The 3x Leverage Mechanics

MNGU targets 300% of the index’s daily return.

If the index gains 2% in one trading session, MNGU would theoretically target a gain of roughly 6% before fees and other adjustments.

If the index falls 2%, the downside is magnified in the same way.

Over longer periods, the relationship becomes less predictable.

Because leverage resets every day, compounding can cause MNGU’s performance to differ significantly from three times the index’s cumulative return.

That effect can become more pronounced during volatile markets.

For that reason, MNGU is better viewed as a tactical trading vehicle than a conventional long-term AI holding.

The Fee Is Waived at Launch

BMO is waiving the product’s Daily Investor Fee through January 31, 2027.

After that, the fee will be calculated using an annual rate of 0.95%.

For a leveraged ETN, however, the stated fee is only one consideration.

Compounding, financing effects, volatility and the path of daily returns can all influence what investors ultimately earn or lose.

About BMO

A Leading, Full-service Financial Services Provider - As a member of BMO Financial Group (NYSE, TSX: BMO), we’re part of one of the largest diversified financial services providers in North America with C$1.5 trillion total assets and approximately 53,000 employees as of April 30, 2026. BMO Financial Group is the 8th largest bank in North America as measured by assets (Bloomberg, as of April 30, 2026)

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.