SEMICONDUCTOR
EXCHANGE TRADED NOTES
The MicroSectors™ Semiconductor lineup of exchange traded notes provides 3x long exposure and -3x short exposure to the performance of the VanEck Semiconductor ETF. Daily-resetting trading tools built for sophisticated investors.
TWO WAYS TO TRADE THE SECTOR
Long or short, at 3x. Each ETN seeks a daily return of 3x, or -3x, the daily share price performance of SMH, the VanEck Semiconductor ETF, before fees and expenses, resetting each trading day.
WHAT IS THE MVIS US LISTED SEMICONDUCTOR 25 INDEX?
The largest and most liquid US exchange-listed semiconductor companies
Every component generates at least 50% of revenue from semiconductors or semiconductor equipment
Float-adjusted component weights are capped to reduce single-stock concentration
The MVIS® US Listed Semiconductor 25 Index (MVSMH) tracks the performance of the 25 largest and most liquid US exchange-listed companies in the semiconductor industry. This is a modified market cap-weighted index, and only includes companies that generate at least 50% of their revenue from semiconductors or semiconductor equipment.
The Index takes a pure-play approach to the sector: the 50% revenue requirement is designed to keep the benchmark focused on companies whose businesses are primarily driven by semiconductors and semiconductor equipment, rather than diversified technology conglomerates. Component weights are float-adjusted and capped at a maximum of 20% per company, reducing single-stock concentration at the top of the Index.
The Index is rebalanced quarterly and reconstituted on a semi-annual basis in March and September.
LEARN MORE ABOUT THE MVIS® US Listed Semiconductor 25 Index
TWO WAYS TO DEFINE THE SECTOR
Before the wrapper matters, the index matters. SOXX tracks the NYSE Semiconductor Index (formerly the ICE Semiconductor Index). SMH tracks the MVIS US Listed Semiconductor 25 Index. Same sector, different blueprints, and the notes on this page reference the SMH side of that ledger.
| SOXX: NYSE Semiconductor Index | SMH: MVIS US Listed Semiconductor 25 Index | |
|---|---|---|
| Index provider | ICE Data Indices, LLC | MarketVector Indexes GmbH |
| Constituents | 30 | 25 |
| Selection | The 30 largest U.S.-listed semiconductor companies (U.S. listings and ADRs) | The 25 largest, most liquid U.S.-listed semiconductor names; at least 50% of revenue from semiconductors or semiconductor equipment |
| Weighting | Modified float-adjusted market cap | Modified float-adjusted market cap |
| Largest single-name cap at rebalance | 8% (4% for names outside the top five) | 20% |
| Review frequency | Quarterly rebalance, annual reconstitution | Semi-annual reconstitution (March and September), quarterly rebalances |
Both indexes hold similar names; where they truly diverge is design intent. ICE builds for breadth: tight weighting caps (8%, and 4% outside the top five) deliberately flatten the industry leaders and spread exposure across the ecosystem. MVIS builds for concentration: a 50% revenue screen keeps the list pure-play, and a 20% ceiling lets the largest, most liquid names carry weight that reflects their actual market footprint. In short: ICE dilutes the leaders by design; MVIS lets them lead.
Both indexes use modified market-cap weighting, but the smaller MVIS universe generally produces heavier concentration at the top. With only 25 names and a 20% single-name cap, a larger share of the MVIS index typically sits in a handful of mega-caps, so performance becomes more dependent on how those leaders trade. The ICE index spreads the weight: 30 names and tighter caps mute single-stock impact and give second-tier chip and equipment companies more representation. Neither approach is inherently better. A leader-heavy index concentrates both the gains and the drawdowns of its largest names; a broader index seeks to reflect the sector beyond its largest names.
The overlap between the two indexes is substantial. Both cover companies primarily involved in the design, manufacture, and distribution of semiconductors, both span logic, memory, analog, and equipment, and both can include non-U.S. issuers through U.S. listings and ADRs. The methodologies treat those listings differently, though: the ICE index caps the aggregate weight of depositary receipts, while the MVIS index applies only its 20% single-name cap. That is why a single ADR can carry a far larger weight on the MVIS side. The remaining differences live at the margins: distinct constituent lists and caps create small but real differences in exposure to themes like foundry versus equipment.
Source: VanEck and iShares published holdings as of July 31, 2026 (latest available from each issuer). Bar lengths are scaled for illustration. Weights are rounded, change daily, and are shown to illustrate index construction, not as a recommendation to buy or sell any security. The NYSE Semiconductor Index (formerly the ICE Semiconductor Index) is a product of ICE Data Indices, LLC. SOXX is not affiliated with REX Shares. SMH and VanEck are not affiliated with REX Shares or Bank of Montreal.
Benchmark for the MicroSectors™ Semiconductor ETNs*
- 100.00% VettaFi Semiconductor Fund - Tracking Index
*Components as of SOD 08/03/2026
Performance
Source: Bloomberg L.P. Index data prior to July 13, 2026 is hypothetical and reflects the application of the Index methodology in hindsight. The hypothetical data cannot completely account for the impact of financial risk in actual trading. Past historical or hypothetical data is not a guarantee of future Index results.
VettaFi is the licensor of the Index. The financial instruments that are based on the Index are not sponsored, endorsed, promoted or sold by VettaFi and VettaFi makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the financial instruments; (b) the quality, accuracy and/or completeness of the Index; and/or (c) the results obtained or to be obtained by any person or entity from the use of the Index. VettaFi does not guarantee the accuracy and/or the completeness of the Index and shall not have any liability for any errors or omissions with respect thereto.
Notwithstanding VettaFi’s obligations to its licensees, VettaFi reserves the right to change the methods of calculation or publication and VettaFi shall not be liable for any miscalculation of or any incorrect, delayed or interrupted publication with respect to the Index. VettaFi shall not be liable for any damages, including, without limitation, any loss of profits or business, or any special, incidental, punitive, indirect or consequential damages suffered or incurred as a result of the use (or inability to use) of the Index.
Index: An index is a collection of a group of assets such as stocks and bonds that’s used to track the performance of a specific sector or the broader market.
Leveraged and inverse products are intended for sophisticated investors and involve significant risk, including the potential loss of the entire investment. Leverage resets daily; returns over periods longer than one day will differ from the stated multiple of the return of the reference asset. Exchange-traded notes are senior unsecured debt obligations of the issuer and are subject to the creditworthiness of the issuer. Investors should consider the investment objectives, risks, charges, and expenses of any product carefully before investing. This and other information can be found in the relevant prospectus and offering documents, available at rexetns.com.
Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, product supplement, prospectus supplement and prospectus) with the SEC regarding each offering of the ETNs. Please read those documents and the other documents relating to the ETNs that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and the ETNs. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal, and any agent or dealer that participated in the offering of the ETNs, will arrange to send these documents if so requested by calling toll-free at 1-877-369-5412.
KNOW THE STRUCTURE
Both ETNs are designed as short-term trading tools, not buy-and-hold investments. Leverage resets daily, so returns over any period longer than one day will differ from three times, or three times the inverse of, the return of SMH, and losses compound the same way gains do. A flat or choppy market can produce losses due to the daily reset. Because the reference asset is an ETF, the ETNs’ returns also reflect SMH’s own fees and any tracking difference against the MVIS index. The notes reference the closing market price of SMH rather than its net asset value, so any premium or discount in the ETF passes through as well. Investors can lose their entire investment. The ETNs are unsecured debt obligations of Bank of Montreal and do not hold underlying assets, so repayment depends on the creditworthiness of the issuer.
The inverse note carries risks the long note does not. SMHD is designed to lose value when SMH rises, and because the exposure resets each day, a sustained rally compounds against the position. A single-day increase of approximately 33% in SMH would reduce the value of the note to zero, and investors would lose their entire investment.