The New Standard in Sector Specifc Trading Tools
Frequently Asked Questions
- 1 Who are MicroSectors leveraged and inverse ETNs designed for?
-
MicroSectors leveraged and inverse ETNs are intended as daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. They are designed to achieve their stated investment objectives on a daily basis and are not suitable for all investors.
- 2 What is the nature of MicroSectors ETNs as an investment?
-
MicroSectors ETNs are senior, unsecured debt obligations of Bank of Montreal, the issuer. As such, they are subject to Bank of Montreal’s credit risk and do not guarantee any return of your investment. Investors should be aware of the potential for significant loss.
- 3 What are the primary risks associated with investing in leveraged MicroSectors ETNs?
-
A primary risk is the potential to lose your entire investment, especially if the closing Indicative Note Value or Intraday Indicative Value is $0 or less. Leverage increases the sensitivity of your ETNs to changes in the level of the applicable index, magnifying potential losses.
- 4 Where can I find more complete information about MicroSectors ETNs and their offerings?
-
You can find more complete information by reviewing the registration statement, including pricing supplements, product supplements, and prospectuses, filed by Bank of Montreal with the SEC at www.sec.gov. Alternatively, you can request these documents by calling toll-free at 1-877-369-5412.