MICROSECTORS™ COMMUNICATION SERVICES ETNs

MicroSectors™ 3x Long & Short Communication Services ETNs

EXCHANGE TRADED NOTES

The MicroSectors™ Communication Services lineup of exchange traded notes provides +3x long exposure and -3x short exposure to the daily share price performance of XLC, the Communication Services Select Sector SPDR Fund. Daily-resetting trading tools built for sophisticated investors.

EXPLORE THE ETNs THE REFERENCE ASSET
XLCU · +3X LONG XLCD · -3X SHORT

TWO WAYS TO TRADE COMMUNICATION SERVICES

Long or short, at 3x. Each ETN seeks a daily return of +3x, or -3x, the daily share price performance of XLC, the Communication Services Select Sector SPDR Fund, before fees and expenses, resetting each trading day.

+3X LONG
XLCU
MicroSectors™ 3× Long Communications Services (XLC) ETNs
+3X Long Exposure
DOCUMENTS
↓ Pricing Supplement
-3X SHORT
XLCD
MicroSectors™ −3× Short Communications Services (XLC) ETNs
-3X Short Exposure
DOCUMENTS
↓ Pricing Supplement

WHAT IS XLC?

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

XLC, the Communication Services Select Sector SPDR Fund, is the standard US-listed vehicle for the S&P 500’s communication services sector. It seeks to track the Communication Services Select Sector Index, spanning interactive media, entertainment, gaming, and telecommunications. The sector is heavily influenced by its largest constituents, led by Meta Platforms and Alphabet, which makes XLC’s daily share price one of the most watched expressions of mega-cap platform sentiment.
Because XLC concentrates that sector into a single instrument, its daily share price has become the standard sector-rotation expression for communication services. The ETNs on this page reference that daily share price directly: +3x long or -3x short, resetting each trading day.
LEARN MORE ABOUT XLC AT SECTORSPDRS.COM

XLCU · +3X LONGXLCD · -3X SHORTCOMMUNICATION SERVICES SELECT SECTOR INDEXDAILY-RESETTING TRADING TOOLSXLCU · +3X LONGXLCD · -3X SHORTCOMMUNICATION SERVICES SELECT SECTOR INDEXDAILY-RESETTING TRADING TOOLS

What is the structure of these ETNs?

The structure of these ETNs is designed as short-term trading tools, not buy-and-hold investments, with leverage resetting daily. Both ETNs are unsecured debt obligations of Bank of Montreal and do not hold underlying assets, meaning repayment depends on the creditworthiness of the issuer. 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 XLC, 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 XLC’s own fees and any tracking difference against its underlying index. The notes reference the closing market price of XLC 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 inverse note carries risks the long note does not. The -3x note is designed to lose value when XLC rises, and because the exposure resets each day, a sustained rally compounds against the position. A single-day increase of approximately 33% in XLC would reduce the value of the note to zero, and investors would lose their entire investment.

Benchmark for the MicroSectors™ Communications Services ETNs*

  • 100.00% SS COMM SELECT SECTOR SPDR

*Components as of SOD 10/29/2026

What is the performance of MicroSectors™ Communications Services ETNs?

The performance of MicroSectors™ Communications Services ETNs is subject to various factors and risks, as detailed below. 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. XLC is an exchange traded fund managed by State Street Global Advisors. The Communication Services Select Sector Index is a product of S&P Dow Jones Indices. XLC, SPDR, and State Street Global Advisors 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](https://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

The ETNs reference the VettaFi US Communications Fund-Tracking Index, published by VettaFi under the ticker VXLCF. That Index is a total return index whose sole constituent is XLC, the Communication Services Select Sector SPDR Fund, referred to in the offering documents as the Reference Fund. XLC in turn seeks to track the Communication Services Select Sector Index, which represents the communication services sector of the S&P 500 and spans interactive media, entertainment, gaming and telecommunications. Each ETN is designed to reflect three times, or three times the inverse of, the daily performance of the Index, before fees and charges. Two consequences follow from this structure. Because the Index is a total return index, dividends paid on the Reference Fund are included in the level of the Index. And because the Index tracks the market price of the Reference Fund rather than its net asset value, any premium or discount to net asset value, along with XLC’s own fees and any tracking difference against its target index, is magnified by the 3x leverage factor the notes apply.
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 XLC, 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. These ETNs are designed as short-term trading tools for sophisticated investors who actively monitor positions, not buy-and-hold investments.
XLC concentrates the S&P 500's communication services sector, one of the most widely used sector rotation 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.
XLCD is designed to lose value when XLC rises, and because the exposure resets each day, a sustained rally compounds against the position. A single-day increase of approximately 33% in XLC 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.
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.
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.