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FBGX ETF — Holdings & Analysis

The UBS AG FI Enhanced Large Cap Growth ETN (FBGX) is an equity-focused exchange-traded note with $0.21 billion in assets under management. Launched in 2014, FBGX offers two times leveraged exposure to a large-cap growth index. Its expense ratio is 0.85%, and it does not currently offer a dividend yield. Due to its leveraged nature, investors should understand the risks associated with magnified gains and losses.

UBS AG FI Enhanced Large Cap Growth ETN (FBGX) ETF — Price, Holdings & Analysis

The UBS AG FI Enhanced Large Cap Growth ETN (FBGX) is an equity-focused exchange-traded note with $0.21 billion in assets under management. Launched in 2014, FBGX offers two times leveraged exposure to a large-cap growth index. Its expense ratio is 0.85%, and it does not currently offer a dividend yield. Due to its leveraged nature, investors should understand the risks associated with magnified gains and losses.

ETF Overview

The UBS AG FI Enhanced Large Cap Growth ETN due June 19, 2024 (the “Securities”) are a series of FI Enhanced ETNs. The level of the index reflects both the price performance of the index constituent Securities and the reinvestment of dividends on the index constituent securities. The Securities are two times leveraged with respect to the index and, as a result, may benefit from two times any positive, but will be exposed to two times any negative, quarterly performance of the index.
FBGX is designed for investors seeking amplified exposure to large-cap growth stocks. As an ETN, it's important to understand that the returns are linked to the performance of an underlying index, in this case, a large-cap growth index, with a 2x leverage factor. This means the ETN aims to deliver twice the daily percentage change of the index it tracks. While the specific holdings of the underlying index are not explicitly listed in the provided data, the fund's focus on large-cap growth suggests exposure to leading companies within sectors like technology, consumer discretionary, and healthcare. Investors should be aware that leveraged ETFs and ETNs are generally designed for short-term trading strategies rather than long-term investments due to the potential for compounding errors and increased volatility. The ETN structure also introduces credit risk, as the return is dependent on the issuer's ability to meet its obligations.

Risk Metrics

FBGX carries a higher risk profile than non-leveraged equity ETFs due to its 2x leverage, as evidenced by its beta of 2.30, indicating significantly higher volatility than the market. This means that while potential gains are magnified, so are potential losses. The 0.85% expense ratio also creates a drag on performance, especially noticeable in a volatile market. As an ETN, FBGX also carries issuer risk, meaning UBS's creditworthiness impacts the ETN's value. Investors should carefully consider their risk tolerance and investment horizon before investing in FBGX, understanding that it is designed for short-term tactical allocation rather than long-term buy-and-hold strategies. Past performance does not guarantee future results.

Expense Ratio

0.85%

Dividend Yield

0.00%

Risk Metrics

  • Beta: 2.30

Questions & Answers

What is FBGX and what does it track?

FBGX, the UBS AG FI Enhanced Large Cap Growth ETN, is an exchange-traded note that seeks to provide two times the daily performance of a large-cap growth index. This means that the ETN aims to deliver twice the percentage change of the underlying index on a daily basis. It is designed for investors who want to amplify their exposure to large-cap growth stocks, but it comes with increased risk due to the leverage. Investors should understand the risks associated with leveraged products before investing in FBGX.

What is the expense ratio for FBGX?

The expense ratio for FBGX is 0.85%. This means that for every $10,000 invested in the ETN, $85 is deducted annually to cover operating expenses. While it's difficult to provide a precise category average for leveraged ETNs, this expense ratio is generally higher than typical unleveraged equity ETFs, where expense ratios can range from 0.03% to 0.50%. the may be worth researching impact of the expense ratio on their overall returns, especially in the context of a leveraged product.

What are the top holdings in FBGX?

The specific holdings of the underlying index that FBGX tracks are not detailed in the provided data. However, as a large-cap growth-focused ETN, it is reasonable to assume that the underlying index likely includes prominent companies in sectors such as technology, consumer discretionary, and healthcare. These would typically be the largest and fastest-growing companies in the US equity market. Investors should consult the fund's prospectus or UBS's website for the most up-to-date information on the index's composition.

Is FBGX a good long-term investment?

Due to its leveraged nature, FBGX is generally not considered a suitable long-term investment. Leveraged ETFs and ETNs are designed for short-term tactical allocation, as the daily reset of the leverage can lead to compounding errors and significant deviations from the underlying index's long-term performance. With a beta of 2.30, FBGX exhibits significantly higher volatility than the broader market. Investors with a long-term investment horizon should carefully consider the risks associated with leverage and the potential for substantial losses. Past performance does not guarantee future results.

How does FBGX compare to similar ETFs?

FBGX differs from traditional, unleveraged large-cap growth ETFs due to its 2x leverage. This leverage amplifies both gains and losses, making it a higher-risk, higher-reward investment. While other leveraged ETFs and ETNs exist, FBGX's specific focus on large-cap growth provides a distinct exposure. Its expense ratio of 0.85% is higher than most unleveraged ETFs. With AUM of $0.21 billion, it is smaller than many of the popular unleveraged large-cap growth ETFs, which can have AUM in the tens or hundreds of billions of dollars. Investors should compare FBGX's risk-adjusted performance and expense ratio to those of other leveraged and unleveraged options before making an investment decision.

Does FBGX pay dividends?

According to the provided data, FBGX currently has a dividend yield of 0.00%. This indicates that the ETN does not currently distribute any dividend income to its holders. Investors seeking dividend income should consider alternative investments, such as dividend-focused ETFs or individual dividend-paying stocks. The lack of a dividend yield may be a factor for investors prioritizing income generation from their investments.