HIGH YIELD
EXCHANGE TRADED NOTES
The MicroSectors™ High Yield Bond lineup of exchange traded notes provides 3x long exposure and -3x short exposure to the daily share price performance of HYG, the iShares iBoxx $ High Yield Corporate Bond ETF. Daily-resetting trading tools built for sophisticated investors.
TWO WAYS TO TRADE HIGH YIELD CREDIT
Long or short, at 3x. Each ETN seeks a daily return of 3x, or -3x, the daily share price performance of HYG, the iShares iBoxx $ High Yield Corporate Bond ETF, before fees and expenses, resetting each trading day.
WHAT IS HYG?
Seeks 3x the daily share price performance of HYG
Seeks -3x the daily share price performance of HYG
Leverage resets each trading day; multi-day returns differ from the stated multiple
HYG, the iShares iBoxx $ High Yield Corporate Bond ETF, is one of the largest and most actively traded high yield bond ETFs in the world. It seeks to track the iBoxx USD Liquid High Yield Index, a market-value weighted benchmark, subject to a 3% cap on each issuer, designed to reflect the performance of US dollar-denominated high yield corporate debt. High yield means the bonds are rated below investment grade.
Because HYG concentrates a broad basket of high yield corporate bonds into a single exchange-listed instrument, its daily share price has become a standard intraday expression of high yield credit. The ETNs on this page reference that daily share price directly: 3x long or -3x short, resetting each trading day.
LEARN MORE ABOUT HYG AT ISHARES.COM
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 HYG, 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 HYG’s own fees and any tracking difference against its underlying index. The notes reference the closing market price of HYG 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. The -3x note is designed to lose value when HYG rises, and because the exposure resets each day, a sustained rally compounds against the position. A single-day increase of approximately 33.33% in the level of the Index would reduce the value of the note to zero, leaving aside the effects of the applicable fees, and investors would lose their entire investment.
Benchmark for the MicroSectors™ High Yield ETNs*
- 100.00% ISHR IBX USD HIYLD CB ETF-UI
*Components as of SOD 08/11/2026
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 microsectors.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.