$10,000 in FNGU Became $8,392 in One Session as Tech Leverage Cut Both Ways

$10,000 in FNGU Became $8,392 in One Session as Tech Leverage Cut Both Ways Michael Williams Sun, June 7, 2026 at 4:15 AM GMT+7 7 min read AVGO GOOGL MSFT META FNGU Quick Read FNGU shed 16% in a single session on June 5, turning a $10,000 position into roughly $8,400, yet still holds a 28% one-year return. NVIDIA fell 6% and Broadcom cratered 19% over two days after its $16 billion AI semiconductor guide fell short of whisper expectations. Friday s 172,000 payrolls print spiked the 2-year Treasury to a 16-month high, reviving rate-hike fears that punish long-duration growth stocks. It sounds nuts, but SoFi is giving new active invest users up to $1,000 in stock for a limited time, and all it takes is a $50 deposit to get started. See for yourself (Sponsor) A $10,000 position in the MicroSectors FANG+ 3X Leveraged ETN (NYSEARCA:FNGU) at Thursday s $32.16 close was worth about $8,392 by Friday s $26.99 close, a 16% single-session drop on June 5, 2026. Stretch the window back one week and the damage gets uglier. FNGU went from $34.76 on May 29 to $26.99 on June 5, a 22% slide in five trading days. The note is still up 28.1% over twelve months and up 6.85% year to date, which tells you exactly the kind of instrument FNGU is. It pays you to be right about direction, and only on the days you actually hold it. FNGU is a 3x daily leveraged exchange-traded note issued by Bank of Montreal, tracking the NYSE FANG+ Index, an equal-weighted basket of ten mega-cap technology and internet names. When that basket falls roughly 5% in a session, FNGU is engineered to fall about 15%. On Friday it fell a little more than that, because the index was top-heavy in the names doing the most damage. NVIDIA (NASDAQ:NVDA) fell 6% on June 5, closing at $205.10, a single-day market cap loss the custom data pegs at roughly $279 billion. Broadcom (NASDAQ:AVGO) dropped 8% to $385.73, capping a 19.5% two-day collapse from $479.23 on June 3. Meta Platforms (NASDAQ:META) fell 6% to $593. Microsoft (NASDAQ:MSFT) gave up 3% to $416.67, and Alphabet (NASDAQ:GOOGL) was the calm one at down 1%, closing $368.53. Equal-weight on paper, concentration in practice when the weakest names happen to be the largest line items by absolute dollar moves. Two catalysts stacked on top of each other. The first was Broadcom. The company reported Q2 FY26 results Tuesday evening with non-GAAP EPS of $2.44 against a $2.3972 consensus and revenue of $22.19 billion, then guided Q3 to approximately $29.4 billion in revenue with AI semiconductor revenue of $16.0 billion, more than 200% growth year over year. On absolute terms, that is an extraordinary number. On the implied trajectory the market had baked in, with AI semis having compounded from $5.20 billion to $8.40 billion to $10.80 billion in the prior three quarters, $16.0 billion fell short of the whispered bogey. The stock did the thing whisper numbers do to stocks. Then came payrolls. Friday s jobs report printed 172,000 against an 80,000 estimate, sending the 2-year Treasury yield to 4.16%, a 16-month high, and revived the rate-hike conversation the market had stopped having. The 10Y-2Y spread compressed to 0.38% on June 5, the lowest reading in the trailing twelve months, down from 0.49% on May 5. Short rates ripping while long rates barely budge is exactly the cocktail that punishes growth stocks priced on long-duration cash flows. FANG+ is nothing but long-duration cash flows wearing trench coats. Three things about the structure are worth saying out loud. The first is daily reset compounding. A 3x note tracks the daily move of its index, not the cumulative move. In a sustained directional trend, that compounding works in your favor. In a chop tape, it bleeds value even when the underlying ends up flat. The math is unforgiving and it does not care about your conviction. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. The second is concentration. FANG+ holds ten names. When NVIDIA and Broadcom together represent a quarter of the move on any given day, you are buying a concentrated AI semiconductor bet with some social media and search bolted on, dressed up as a diversified tech basket. The third is that FNGU is an ETN, not an ETF, which means it is unsecured senior debt of Bank of Montreal. The credit risk is small in practice and large in theory, and it is real, even if nobody talks about it on the way up. The fundamental backdrop the bulls keep pointing to has not changed in any material sense. NVIDIA s Q1 FY27 print on May 20 showed Data Center revenue of $75.246 billion up 92% year over year, with networking up 199%, and CEO Jensen Huang calling the buildout "the largest infrastructure expansion in human history." Broadcom s $16.0 billion AI semi guide is a disappointment only in the sense that it is not a bigger disap

$10,000 in FNGU Became $8,392 in One Session as Tech Leverage Cut Both Ways

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