MicroSectors U.S. Big Banks 3X Leveraged ETNs

MicroSectors U.S. Big Banks 3X Leveraged ETNs are exchange-traded notes that provide leveraged exposure to the performance of ten of the largest publicly traded U.S. banking and investment services companies. Structured as a 3x leveraged product, the ETNs aim to deliver three times the daily return of the Solactive MicroSectors U.S. Big Banks Index, which is equally weighted and designed to capture both growth and value stocks within the sector. This means the ETN resets leverage each day, multiplying the daily index movement—both gains and losses—by three, making it suitable primarily for experienced investors seeking tactical, short-term sector plays. The underlying index focuses on the financials sector, specifically large-cap institutions classified by FactSet RBICS, and incorporates dividends from component stocks for a total return calculation. Issued by Bank of Montreal, the ETN has a designated maturity date and does not pay dividends, with all returns being reflected in the price movement. Its concentrated sector exposure and daily compounding leverage make it a high-beta, high-volatility vehicle for expressing directional views on U.S. banking giants or implementing sophisticated portfolio strategies.