MicroSectors U.S. Big Banks -3X Inverse Leveraged ETN

MicroSectors U.S. Big Banks -3X Inverse Leveraged ETN is an exchange-traded note that provides sophisticated investors with a highly targeted, inverse leveraged exposure to the U.S. banking sector. The primary function of this ETN is to deliver three times the inverse performance of the Solactive MicroSectors U.S. Big Banks Index on a daily basis, before accounting for fees and daily compounding effects. This index equally weights the ten largest U.S. banks and investment services providers by market capitalization, representing a concentrated view of the nation’s largest financial institutions. Structured as an exchange-traded note, this product is an unsecured debt instrument issued by Bank of Montreal, and does not pay interest or guarantee principal at maturity. Its role in the financial market is to serve as a short-term trading tool, allowing investors to hedge exposures or capitalize on anticipated declines in the banking sector with magnified effect. Due to its daily-resetting leverage and high volatility, this ETN is intended mainly for institutional or experienced investors who are actively managing risk, rather than for long-term holding strategies.