Inside the BITA AI Leaders Select Index

The benchmark powering the new MicroSectors 3X Long and -3X Short AI Exchange-Traded Notes (ETNs). 

MICROSECTORS |  INDEX EXPLAINER |  AI 

Artificial intelligence is no longer a sub-theme of tech. It has its own capex cycle, its own leaders, and its own price action. The BITA AI Leaders Select Index is the basket built to capture it: a rules-based, U.S.-listed index of 25 AI leaders, split 60/40 between AI pure-plays and the picks and shovels enablers powering the build-out. It’s the benchmark behind two new MicroSectors AI ETNs: AIQU, the MicroSectors™ 3× Long Artificial Intelligence (AI) ETNs, and AIQD, the MicroSectors™ -3× Short Artificial Intelligence (AI) ETNs. Both are built for traders who want pinpoint, daily exposure to the AI sector. 

This explainer walks through:  

  • How the index is built. 
  • What’s in it today. 
  • How it’s maintained. 
  • Why MicroSectors chose it as the underlying for AIQU and AIQD. 

Why an AI sector ETN now? 

Three reasons AI now stands on its own as a tradable sector: 

  • Spending. Hyperscaler capex tied to AI has reset the baseline for semiconductors, networking, and power. The numbers no longer fit inside a generic tech basket. 
  • Concentration. A small group of U.S.-listed names is capturing most of the AI earnings tape. Sector-targeted exposure is sharper than broad-tech exposure. 
  • Volatility. AI names move. That is the kind of price action a daily 3X or -3X tool is built to capture. 

A 3X Long ETN gives traders a way to lean in on the long side for a single trading day. A -3X short version gives the same toolkit for the short side. Same MicroSectors playbook you already use for Big Oil, Big Tech, and Big Banks. 

The BITA AI Leaders Select Index at a glance 

The BITA AI Leaders Select Index (ticker: TBD) is a rules-based composite index built around U.S.-listed AI leaders. 

A few facts to anchor on: 

  • Constituents: 25 U.S.-listed companies driving the AI cycle. 
  • Rebalance cadence: monthly. 
  • Reconstitution cadence: quarterly. 

How the index is built 

The index splits the AI landscape into two buckets and resets the weights to a fixed 60/40 at every monthly rebalance. That split is what gives the basket a different shape than a generic tech benchmark, and it is the reason this index works as the underlying for a daily trading tool for AI. 

Key Enablers, weighted at 60% 

The picks and shovels of the AI economy. Semiconductors, networking, memory, and the platforms shipping AI to end users. Set at 60% so the basket leans on the proven, liquid names powering the AI build-out. 

Purity Leaders, weighted at 40% 

This bucket targets companies whose business is most directly tied to artificial intelligence. Think of it as the high-purity layer: firms whose revenue, R&D, and product roadmaps are oriented around AI as a core driver. By setting this group at a fixed 40% of the Index, the methodology ensures meaningful purity exposure without letting anyone narrow segment dominate. 

Net effect: sharp, sector-targeted AI exposure, balanced between pure plays and the names powering the build-out. The 60 / 40 ratio resets at every monthly rebalance. 

Rebalance and reconstitution 

Monthly rebalance: weights reset to the methodology each month. 

Quarterly reconstitution: the constituent list is refreshed each quarter. Names that no longer fit either bucket drop out. New AI leaders rotate in. 

For a daily-resetting ETN, cadence matters. Monthly weight resets keep the underlying basket aligned with the methodology, which is what traders rely on when they put on a 3X or -3X position. 

What is in the index today? 

As of 6/2/2026, the index is allocated to its fixed 60% Key Enablers / 40% Purity Leaders split, with the 20 Key Enablers equal-weighted and the 5 Purity Leaders weighted by liquidity.  

Key Enablers (60% of the index): 

Large companies that, while having more diversified business footprints, are direct enablers of AI development and deployment. 

  • Semiconductors and AI accelerators: AMD, Broadcom, Qualcomm, Micron, Intel. 
  • AI software, data, and security: Adobe, Palo Alto Networks. 
  • Compute and quantum / next-gen infrastructure: IonQ, Super Micro Computer, Arista Networks, Synopsys. 
  • Hyperscaler platforms and adjacent enablers: Apple, Alphabet, Amazon, Meta, Microsoft, IBM, Cisco, Salesforce, ServiceNow. 

Purity Leaders (40% of the index): 

Companies with 50%+ revenue from AI products, services, and activities. 

  • CrowdStrike  
  • NVIDIA  
  • Palantir 
  • Astera Labs 
  • Datadog 

Constituents and weights change at each reconstitution and rebalance. Selection above as of 6/2/2026. For the most current holdings list, refer to the BITA index page or the relevant fund factsheet. 

Why this index for 3X and -3X exposure? 

Three reasons the BITA AI Leaders Select Index is a good fit as an underlying for long and short ETNs: 

  1. Concentrated, liquid, U.S.-listed. Daily 3X and -3X work best when the underlying basket is deep enough to trade in size. The Index pulls from U.S.-listed names with liquid secondary markets.
  2. Rules-based and transparent. The60/40 Purity Leaders and Key Enablers split is published and applied the same way every month. You can model exactly what you own. 
  3. Built for active price action. AI leaders, especially the Purity Leaders bucket, move the way active traders need them to. That is the whole point of a 3X or -3X tool.

Important things to remember about long and short ETNs 

These are MicroSectors. Daily trading tools for sophisticated investors. A few mechanics to keep top of mind: 

  • Daily reset. The 3X and -3X exposures are calibrated to a single trading day. Multi-day returns will differ from a simple multiple of the index return because of compounding. 
  • Active monitoring required. These are tools for traders who watch their positions during market hours, not buy-and-hold. 
  • Issuer credit risk. The ETNs are senior, unsecured debt obligations of Bank of Montreal and are subject to BMO's credit risk. 

Bottom line 

The BITA AI Leaders Select Index gives the new MicroSectors AI ETNs a rules-based, U.S.-listed, liquid basket that splits AI exposure 60 / 40 between the infrastructure leaders powering the build-out and pure plays. For active traders who want pinpoint AI exposure for a single trading day, the 3X long ETN and the -3X short ETN are the tools. 

AIQU offers 3X daily long exposure. AIQD offers -3X daily short exposure. Both ETNs are now live. See fund page for fund details. 

 

Important Information

The MicroSectors product line is brought to you by REX Shares. The ETNs are senior, unsecured debt obligations of Bank of Montreal (BMO), the issuer of the ETNs, and are subject to BMO's credit risk. BMO has filed a registration statement (including pricing supplements, product supplements, a prospectus supplement and a prospectus) with the SEC about each of the offerings. Investors should read those documents for more complete information about Bank of Montreal and these offerings before investing. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov, or by calling toll-free 1-877-369-5412. 

The leveraged and inverse ETNs are intended to be 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. Their performance over longer periods of time can differ significantly from their stated daily objectives. These products should be purchased only by sophisticated investors who do not intend to hold the ETNs as a buy and hold investment, who are willing to actively and continuously monitor their investment, and who understand the consequences of seeking daily resetting investment results. Investors should proceed with extreme caution in considering an investment in these ETNs. 

The ETNs do not guarantee any return of principal at maturity. Investing in the ETNs involves significant risks, including loss of some or all of the investment. The ETNs are not suitable for all investors. Investment suitability must be determined individually for each investor. 

Investing in companies focused on artificial intelligence involves additional risks. AI-focused companies typically face intense competition, potential rapid product obsolescence, dependence on intellectual property rights, regulatory scrutiny, and the possibility of cybersecurity threats. There can be no assurance that AI-focused companies will be able to successfully maintain their competitive position. The MicroSectors AI ETNs concentrate exposure in a single sector and may be more volatile than more diversified investments. 

BITA AI Leaders Select Index is owned, calculated, and administered by BITA. BITA is not affiliated with REX Shares or with Bank of Montreal. The index methodology is published by BITA and is subject to change. Past performance of the index is not indicative of future performance of the index or of the ETNs. ETNs are not registered investment companies and are not subject to the same regulatory requirements as mutual funds or ETFs. 

BITA is the licensor of the Index. The financial instruments that are based on the Index are not sponsored, endorsed, promoted or sold by BITA and BITA 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. BITA 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 BITA’s obligations to its licensees, BITA reserves the right to change the methods of calculation or publication and BITA shall not be liable for any miscalculation of or any incorrect, delayed or interrupted publication with respect to the Index. BITA 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. 

BMO Capital Markets Corp., an affiliate of the issuer, acts as the underwriter for the offerings of the ETNs. 

This material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. Investors should consult their financial professional before investing. 

by Matt Hazen

Gold Miners Up 35% in 2025: What’s Fueling the Boom?

Gold Miners are soaring through the first few months of 2025, pushing the Gold Miners Index up over 35% on a year-to-date basis, leaving the S&P 500’s decline in the dust. So, what is fueling this rally? Let’s dive in.

New Policies

In 2025, the most notable difference in the macro environment for U.S. investors is the new administration. Donald Trump is back in office and markets have taken notice of his tariff policies. On his first day in office, Trump signed an executive order developing reports on trade practices and tariff recommendations. In February, the first tariffs on Canada, Mexico, and China went into effect, along with other targeted tariffs. These tariffs have rattled markets, and stoked inflation fears. As a result, a wave of uncertainty has swept over investors, pushing demand for Gold as a safe-haven asset higher.

Inflation and the Rate-Cutting Cycle

The Federal Reserve began raising rates in 2022 after keeping them at nearly 0% for a couple of years in response to the pandemic. By May 2023, rates reached 5.00%-5.25%, the highest in 16 years, to combat inflation. After hiking rates, the Federal Reserve kicked off its cutting cycle in mid-2024. With rates now at 4.25%-4.50%, markets expect two to three more cuts by the year-end 2025. Lower rates reduce the opportunity cost of holding Gold, a non-yielding asset—supercharging its appeal.

Central Bank Buying and AI Boost Demand

According to the World Gold Council, in 2024, Central Bank purchases of gold exceeded 1,000 tons for the third year in a row, signaling unwavering demand and pushing up gold prices. In addition to this, demand for gold for technology purposes grew 7% driven by AI’s reliance on gold for chips and circuitry. This dual demand surge is beneficial for miners, boosting revenues via higher gold prices.

How Gold Miners Can Outperform Spot Gold

The combination of factors, uncertainty surrounding tariffs, the Federal Reserve's interest rate-cutting cycle, steady demand from central banks, and emerging demand from the AI sector, is driving up the gold prices, breaking $3,000/oz for the first time in history earlier this month.

The surge in gold price is boosting Gold Miners by directly enhancing their revenues and profitability. In anticipation of increased revenues and profitability, Gold Mining stocks see their share prices rise as a result of increased demand from investors.

Gold Miners have fixed costs, like equipment and labor, which creates the dynamic that makes them leveraged to the price of gold. Here is an example of how this works:

  • Gold at $1,500/oz, cost $1,200/oz = $300 profit.
  • Gold at $2,000/oz, cost $1,200/oz = $800 profit.
  • Result: A 33% price jump yields a 167% profit surge, making miners a leveraged bet on gold

Unlocking the Power of the Gold Miners Index

The S Network MicroSectors Gold Miners Index offers a robust entry point into the gold mining sector, blending stability with growth potential. It comprises two key components: the VanEck Gold Miners ETF, which accounts for 73% of the index and represents the world’s leading global gold mining companies, and the VanEck Junior Gold Miners ETF, constituting 27%, which focuses on small-cap firms actively engaged in gold and silver exploration and production. This strategic composition delivers a balanced exposure to both established industry leaders and agile, high-potential juniors, positioning investors to capitalize on the diverse dynamics of the gold mining landscape. Click here to learn more.

Important Information
S-Network Global Indexes, Inc. (“S-Network”) is the licensor of the S-Network MicroSectors™ Gold Miners Index. The MicroSectors ETNs tied to the index are not sponsored, endorsed, sold or promoted by S-Network, or its third-party licensors, in any way and makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the ETNs; (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. S-Network 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 S-Network’s obligations to its licensees, S-Network reserves the right to change the methods of calculation or publication of the Index, and S-Network shall not be liable for any miscalculation of or any incorrect, delayed or interrupted publication with respect to the Index. S-Network 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.

by Matt Hazen