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

KNOW THE STRUCTURE

The MicroSectors™ Communications Services ETNs are structured as short-term trading tools, not buy-and-hold investments. They are unsecured debt obligations of Bank of Montreal, designed with daily leverage resets. This means returns over periods 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. Repayment depends on the creditworthiness of the issuer. The inverse note carries additional risks, as it is designed to lose value when XLC rises, and 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 10/07/2026

Performance

The performance of MicroSectors™ Communications Services ETNs is subject to various factors, and past historical or hypothetical data is not a guarantee of future Index results. The ETNs are designed as short-term trading tools, with leverage resetting daily, meaning returns over periods longer than one day will differ from the stated multiple of the reference asset. Investors should be aware that leveraged and inverse products involve significant risk, including the potential loss of the entire investment. This section provides important disclaimers regarding performance data, including its hypothetical nature prior to July 13, 2026, and the roles of VettaFi and other entities. For complete information, investors should refer to the relevant prospectus and offering documents available at microsectors.com or the SEC website.

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.