MICROSECTORS™ BRAZIL ETNs

MicroSectors Brazil ETNs: 3X Long & -3X Short Trading Tools

EXCHANGE TRADED NOTES

The MicroSectors™ Brazil lineup of exchange traded notes provides 3x long exposure and -3x short exposure to the daily share price performance of EWZ, the iShares MSCI Brazil ETF. Daily-resetting trading tools built for sophisticated investors.

EXPLORE THE ETNs THE REFERENCE ASSET
BRZL · 3X LONG BRZD · -3X SHORT

What are the two ways to trade Brazil with MicroSectors ETNs?

Long or short, at 3x. Each ETN seeks a daily return of 3x, or -3x, the daily share price performance of EWZ, the iShares MSCI Brazil ETF, before fees and expenses, resetting each trading day.

3X LONG
BRZL
MicroSectors™ 3× Long Brazil ETNs
3X Long Exposure
DOCUMENTS
↓ Pricing Supplement
-3X SHORT
BRZD
MicroSectors™ -3× Short Brazil ETNs
-3X Short Exposure
DOCUMENTS
↓ Pricing Supplement

WHAT IS EWZ?

+3X
DAILY LONG
Seeks 3x the daily share price performance of EWZ
-3X
DAILY SHORT
Seeks -3x the daily share price performance of EWZ
1
DAY RESET
Leverage resets each trading day; multi-day returns differ from the stated multiple

EWZ, the iShares MSCI Brazil ETF, is the most widely traded US-listed vehicle for Brazilian equities and one of the most active emerging market funds in the world. It seeks to track the MSCI Brazil 25/50 Index, a rules-based benchmark of large- and mid-cap Brazilian companies weighted by float-adjusted market cap with 25/50 concentration constraints, spanning commodities and energy producers, financials, and consumer names.

Because EWZ concentrates that market into a single US-listed instrument trading in US hours, its daily share price has become the standard intraday expression of Brazil exposure for US traders. The ETNs on this page reference that daily share price directly: 3x long or -3x short, resetting each trading day.

LEARN MORE ABOUT EWZ AT ISHARES.COM

BRZL · 3X LONGBRZD · -3X SHORTMSCI BRAZIL 25/50 INDEXDAILY-RESETTING TRADING TOOLSBRZL · 3X LONGBRZD · -3X SHORTMSCI BRAZIL 25/50 INDEXDAILY-RESETTING TRADING TOOLS

What is the structure of MicroSectors Brazil ETNs?

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 EWZ, 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 EWZ’s own fees and any tracking difference against its underlying index. The notes reference the closing market price of EWZ 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 EWZ rises, and because the exposure resets each day, a sustained rally compounds against the position. A single-day increase of approximately 33% in EWZ would reduce the value of the note to zero, and investors would lose their entire investment.

Benchmark for the MicroSectors™ Brazil ETNs*

  • 100.00% ISHARES MSCI BRAZIL ETF

*Components as of SOD 10/15/2026

What is the performance of MicroSectors Brazil ETNs?

The performance of MicroSectors Brazil ETNs is subject to various factors and risks, as detailed in the full disclaimer below. 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. EWZ is an exchange traded fund managed by BlackRock. The MSCI Brazil 25/50 Index is a product of MSCI Inc. EWZ, iShares, and BlackRock are not affiliated with REX Shares or Bank of Montreal, and references to third-party funds and indexes are for identification of the reference asset and educational purposes only and do not constitute a recommendation to buy or sell any security. Past performance is not indicative of future results. Index performance does not reflect fund fees and expenses. It is not possible to invest directly in an index. 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.

FREQUENTLY ASKED QUESTIONS

What is the reference asset for these ETNs? The reference asset is EWZ, the iShares MSCI Brazil ETF, not the underlying bond index. Each ETN is designed to reflect three times, or three times the inverse of, the daily share price return of EWZ, which in turn tracks the MSCI Brazil 25/50 Index. Because the reference asset is an ETF, the notes also reflect EWZ's own fees, any tracking difference against its index, and any premium or discount between the ETF's market price and its net asset value. How does leverage reset? Leverage resets each trading day. Over any period longer than one day, returns will differ from three times, or three times the inverse of, the return of EWZ, and the difference can be significant. Losses compound the same way gains do, and a flat or choppy market that ends where it started can still produce losses in either note due to the daily reset. What is the intended use of these ETNs? These ETNs are designed as short-term trading tools for sophisticated investors who actively monitor positions, not buy-and-hold investments. Why is EWZ used as the reference asset? EWZ concentrates a broad basket of Brazilian equities, one of the most actively traded emerging market exposures, into a single US-listed instrument that trades intraday in US hours. The ETNs reference that single instrument's daily share price, giving short-term traders a magnified long or short expression of the same exposure in one listed security. The magnification applies to losses as well as gains. What are the risks of the inverse note (BRZD)? BRZD is designed to lose value when EWZ rises, and because the exposure resets each day, a sustained rally compounds against the position. A single-day increase of approximately 33% in EWZ would reduce the value of the note to zero, and investors would lose their entire investment. The structure section above and the offering documents describe these characteristics in full. How do ETNs differ from ETFs? An ETN is a debt obligation of the issuing bank and does not hold underlying assets, while an ETF holds a portfolio of securities. Repayment of these notes depends on the creditworthiness of Bank of Montreal, the issuer. That structural difference, along with the daily leverage reset, is described in the structure section above and in the offering documents at microsectors.com. Where can I find more information? Each note's pricing supplement is linked from the cards at the top of this page, and the full set of documents Bank of Montreal has filed with the SEC is available without cost on EDGAR at www.sec.gov, or by calling 1-877-369-5412. More information is available at microsectors.com.