Trade Energy Stocks With 3 Times Leverage With MicroSectors™ Energy ETNs
Equity securities in the energy sector outperformed the broad market in 2022. The Energy Select Sector Index and the MicroSectors Energy Index were up around 58% and 63%, respectively, while the S&P 500 Index dropped nearly 20%. A few notable performers were ConocoPhillips (NYSE: COP), which returned roughly 71%, and Occidental Petroleum Corporation (NYSE: OXY) which returned 119%.
The Solactive MicroSectors Energy Index, which measures the performance of 12 highly liquid companies active in the US energy sector, is a potential investment option for those who believe in the sector's future growth. The index is composed of top energy sector companies, including Chevron Corporation (NYSE: CVX), Exxon Mobil Corp. (NYSE: XOM), Occidental Petroleum Corp. (NYSE: OXY), ConocoPhillips and Devon Energy Corp. (NYSE: DVN).
MicroSectors™ Energy levered exchange-traded notes, which include the MicroSectors Energy 3X Leveraged ETN (NYSE Arca: WTIU) and the MicroSectors Energy -3X Inverse Leveraged ETN (NYSE Arca: WTID), offer investors exposure to the performance of the Solactive MicroSectors Energy Index. WTIU offers investors three times the daily performance of the Solactive MicroSectors Energy Index, while WTID offers investors the inverse performance of the index, in each case, before fees.
The following graph illustrates, for the indicated period, the daily changes in the closing level of the index, and the daily changes in the closing indicative note value of each ETN. Past performance is no indication of future results as to the index, or any ETN.
Source: MicroSectors.
Investing in REX Shares' MicroSectors™ Energy exchange-traded notes, is subject to significant risks. Like all investments, the energy sector is subject to market conditions and geopolitical risks that could impact the returns of these companies, as discussed in the pricing supplements for the ETNs. Additionally, the use of leverage in WTIU and WTID means that investors could lose their entire initial investment. Investors should carefully consider their investment goals and risk tolerance before investing in these exchange-traded notes.
Click here to learn more about MicroSectors™ Energy ETNs.
This article was created by the author and posted on Benzinga.
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.
The exchange traded notes are subject to the credit risk of Bank of Montreal, the issuer of the ETNs. The ETNs are also subject to the issuer’s credit ratings, and the issuer’s credit spreads may adversely affect the market value of the notes.
Please note that leveraged ETNs seek a return on the underlying index for a single day. Those investments are not “buy and hold” investments, and should not be expected to provide the respective return of the underlying index’s cumulative return for periods greater than a day. The investments 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 only on a daily basis. Leveraged investments include risk and are not suitable for all investors. Please read the disclosure documents, including the relevant pricing supplements, for more complete information, prior to making an investment decision.
Bank of Montreal, the issuer of the ETNs, and which participated in the preparation of this article, has filed a registration statement (including pricing supplements, a product prospectus supplement, a prospectus supplement and a prospectus) with the Securities and Exchange Commission (the "SEC") about the ETNs that are being offered by this article. Please read those documents and the other documents relating to these offerings that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and these offerings. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal, any agent or any dealer participating in these offerings will arrange to send the applicable documents if so requested by calling toll-free at 1-877-369-5412.
MicroSectors™ Launches Gold Long & Short Exchange Traded Notes on NYSE Arca
February 22, 2023 – REX Shares, LLC (“REX”) is pleased to announce the launch of two new MicroSectors Exchange Traded Notes (“ETNs”) issued by Bank of Montreal (“BMO”) linked to the performance of the SPDR® Gold Shares ETF (ticker: GLD). MicroSectors Gold 3x Leveraged ETNs (ticker: SHNY) and MicroSectors Gold -3x Inverse Leveraged ETNs (ticker: DULL) will start trading today on NYSE Arca.
The demand for hedging and trading tools tailored to specific market sectors, including gold, tech, energy, travel, and financials, is constantly changing. Now, the MicroSectors lineup of ETNs will include 3X leveraged and -3X leveraged inverse exposure to both physical gold, through these new ETNs, and gold miners, through its GDXU and GDXD ETNs.
“We are excited to expand our gold related offerings beyond the pair of gold miner ETNs with a new pair of leveraged and inverse leveraged exchange-traded notes linked to an exchange traded fund that invests in physical gold,” said Scott Acheychek, CEO of REX. “The new gold ETNs will offer investors 3x leverage and -3x inverse leverage exposure to physical gold. We hope that sophisticated investors will use these trading products as a way to tactically trade gold.”
About REX Shares
Founded in 2015, REX is an independent provider of ETPs based in Miami, Florida. REX Shares provides investors with access to innovative and diversified investment products that make it easier to access the market. Our team is rooted in decades of experience in the exchange traded product industry and dedicated to building inventive exchange-traded product solutions.
For more information, please visit www.rexshares.com or www.microsectors.com.
Twitter: @REXShares and @MSectors
The ETNs are senior, unsecured obligations of BMO.
Investment suitability must be determined individually for each investor, and the ETNs may not be suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own financial advisors as to these matters.
The 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. The returns on the ETNs over longer periods of time can, and most likely will, differ significantly from the return on a direct long or short investment in the benchmark.
BMO, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, a prospectus supplement and a prospectus) with the Securities and Exchange Commission (the “SEC”) about each of the offerings to which this press release relates. Please read those documents and the other documents relating to these offerings BMO has filed with the SEC for more complete information about BMO and these offerings. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal, any agent or any dealer participating in these offerings will arrange to send the applicable pricing supplement, prospectus supplement and prospectus if you so request by calling toll-free at 1-877-369-5412.
MicroSectors™ and REX™ are registered trademarks of REX. The trademarks have been licensed for use for certain purposes by Bank of Montreal. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third-party licensors (collectively, "REX Index Parties"). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the Index to track general market performance. REX Index Parties' only relationship to Bank of Montreal with respect to the Index is the licensing of the Index and certain trademarks, service marks and/or trade names of REX Index Parties. REX Index Parties are not responsible for and have not participated in the determination of the prices, and amount of the ETNs or the timing of the issuance or sale of the ETNs or in the determination or calculation of the equation by which the ETNs are to be converted into cash. REX Index Parties have no obligation or liability in connection with the administration, marketing or trading of the ETNs. Inclusion of a security within an index is not a recommendation by REX Index Parties to buy, sell, or hold such security, nor is it considered to be investment advice.
MicroSectors™ Launches Energy Long & Short Exchange Traded Notes on NYSE Arca
February 15, 2023 – REX Shares, LLC (“REX”) is pleased to announce the launch of two new MicroSectors Exchange Traded Notes (“ETNs”) issued by Bank of Montreal (“BMO”) linked to the Solactive MicroSectors Energy Index. MicroSectors Energy 3x Leveraged ETNs (ticker: WTIU) and MicroSectors Energy -3x Inverse Leveraged ETNs (ticker: WTID) will start trading today on NYSE Arca.
The Solactive MicroSectors Energy Index, launched in January 2023, tracks the performance of 12 highly liquid, U.S. stocks from the energy and oil sector. As of the date of this release, Chevron Corp (CVX), Exxon Mobil Corp (XOM), Occidental Petroleum Corp (OXY), ConocoPhillips (COP), and Devon Energy Corp (DVN) were the five largest common stocks in the Index.
REX, a provider of alternative investment products, continues to see strong demand for hedging and trading tools based on specific segments of the market, such as equity securities of companies in the energy and oil sector.
“We are excited to expand on our existing energy related offerings with a new suite of leveraged and inverse leveraged exchange-traded notes,” said Scott Acheychek, CEO of REX. “The energy suite will provide investors with exposure to 12 highly liquid companies that are at the forefront of global energy trends,” Acheychek added. “Since founding MicroSectors in 2018, we have been dedicated to innovating the ETP landscape by offering unique exposures to popular investable market segments. We believe the addition of these ETNs to the product lineup furthers this objective.”
About REX Shares
Founded in 2015, REX Shares (“REX”) is an independent provider of ETPs based in Miami, Florida. As ETP architects, the REX team creates investment vehicles that solve for a range of specific challenges in investor portfolios. The firm is rooted in decades of structuring and building inventive exchange-traded product solutions.
For more information, please visit www.rexshares.com or www.microsectors.com.
Twitter: @REXShares and @MSectors
The ETNs are senior, unsecured obligations of BMO.
Investment suitability must be determined individually for each investor, and the ETNs may not be suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own financial advisors as to these matters.
The 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. The returns on the ETNs over longer periods of time can, and most likely will, differ significantly from the return on a direct long or short investment in the index.
BMO, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, a product supplement, a prospectus supplement and a prospectus) with the Securities and Exchange Commission (the “SEC”) about each of the offerings to which this press release relates. Please read those documents and the other documents relating to these offerings BMO has filed with the SEC for more complete information about BMO and these offerings. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal, any agent or any dealer participating in these offerings will arrange to send the applicable pricing supplement, product supplement, prospectus supplement and prospectus if you so request by calling toll-free at 1-877-369-5412.
Solactive AG (“Solactive”) is the licensor of the Index. The notes are not sponsored, endorsed, promoted or sold by Solactive in any way, and Solactive makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the notes; (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. Solactive 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 Solactive’s obligations to its licensees, Solactive reserves the right to change the methods of calculation or publication of the Index, and Solactive shall not be liable for any miscalculation of or any incorrect, delayed or interrupted publication with respect to the Index. Solactive 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.
MicroSectors™ and REX™ are registered trademarks of REX. The trademarks have been licensed for use for certain purposes by Bank of Montreal. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third-party licensors (collectively, "REX Index Parties"). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the Index to track general market performance. REX Index Parties' only relationship to Bank of Montreal with respect to the Index is the licensing of the Index and certain trademarks, service marks and/or trade names of REX Index Parties. REX Index Parties are not responsible for and have not participated in the determination of the prices, and amount of the ETNs or the timing of the issuance or sale of the ETNs or in the determination or calculation of the equation by which the ETNs are to be converted into cash. REX Index Parties have no obligation or liability in connection with the administration, marketing or trading of the ETNs. Inclusion of a security within an index is not a recommendation by REX Index Parties to buy, sell, or hold such security, nor is it considered to be investment advice.
Bank of Montreal Announces the Reverse Split of Two Series of ETNs
NEW YORK, November 21, 2022– Bank of Montreal (TSX:BMO) (NYSE:BMO) today announced that it will implement a reverse split of the ETNs listed in the table below, expected to be effective as of December 2, 2022.
The table below indicates the ETNs that will be subject to the reverse split, their respective trading symbols, the applicable reverse split ratio, their current CUSIP numbers, and the CUSIP numbers that they will receive after giving effect to the reverse split:
The reverse splits will be effective at the open of trading on December 2, 2022. Each ETN will begin trading on the NYSE Arca on a reverse split-adjusted basis on that date. Holders of an ETN who purchased that ETN prior to December 2, 2022 will receive one reverse split-adjusted ETN for every 10 pre-reverse split ETNs.
In addition, investors that hold a number of ETNs that are not evenly divisible by the applicable number will receive a cash payment for any fractional ETNs remaining (the "partials"). The cash amount due on any partials will be determined on December 12, 2022 and will equal, for each remaining ETN, its closing indicative value on that date. Bank of Montreal will pay these amounts on or about December 15, 2022.
The closing indicative value of each ETN on December 1, 2022 will be multiplied by 10 to determine the reverse split-adjusted closing indicative value. Following the reverse split, each ETN will have a new CUSIP, as set forth above, but will continue to trade under their current respective ticker symbols.
The reverse splits will affect the trading denominations of each of the ETNs, but they will not affect the aggregate principal amount of the ETNs, except that the aggregate principal amount will be reduced by the corresponding aggregate amount of any cash payments for the "partials."
Illustrations of a Reverse Split
The following table shows the effect of the 1-for-10 reverse split on the hypothetical closing indicative value of the ETNs. The closing indicative value of an ETN is not the same as its principal amount or the trading price of that ETN.
None of the other exchange traded notes issued by Bank of Montreal are affected by this announcement.
The ETNs are senior, unsecured obligations of Bank of Montreal.
Investment suitability must be determined individually for each investor, and the ETNs may not be suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own financial advisors as to these matters.
The leveraged ETNs discussed in this press release 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. The returns on the ETNs over longer periods of time can, and most likely will, differ significantly from the return
on a direct short investment in the index underlying those ETNs.
Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, prospectus supplement and prospectus) with the SEC regarding the ETNs discussed in this press release. 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 offerings of the ETNs, will arrange to send the applicable pricing supplement, product supplement (if applicable), prospectus supplement and the prospectus if so
requested by calling toll-free at 1-877-369-5412.
About REX Shares
Founded in 2015, REX Shares (“REX”) is an independent provider of ETPs based in Miami, Florida. As ETP architects, the REX team creates investment vehicles that solve for a range of specific challenges in investor portfolios. The firm is rooted in decades of structuring and building inventive exchange-traded product solutions.
For more information, please visit www.rexshares.com or www.microsectors.com.
Twitter: @REXShares and @MSectors
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $1.07 trillion as of July 31, 2022, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
BMO Media Contact:
Kelly Hechler, Kelly.Hechler@bmo.com, (416) 867-3996
Bank of Montreal ETNs
US.ETN@bmo.com, +1-877-369-5412
Internet: www.bmo.com
Bank of Montreal Announces the Reverse Split of Three Series of ETNs
NEW YORK, October 21, 2022– Bank of Montreal (TSX: BMO) (NYSE: BMO) today announced that it will implement a reverse split of the ETNs listed in the table below, expected to be effective as of October 31, 2022.
The table below indicates the ETNs that will be subject to the reverse split, their respective trading symbols, the applicable reverse split ratio, their current CUSIP numbers, and the CUSIP numbers that they will receive after giving effect to the reverse split:
The reverse splits will be effective at the open of trading on October 31, 2022. Each ETN will begin trading on the NYSE Arca on a reverse split-adjusted basis on that date. Holders of an ETN who purchased that ETN prior to October 31, 2022 will receive one reverse split-adjusted ETN for every 10 pre-reverse split ETNs.
In addition, investors that hold a number of ETNs that are not evenly divisible by the applicable number will receive a cash payment for any fractional ETNs remaining (the "partials"). The cash amount due on any partials will be determined on November 15, 2022 and will equal, for each remaining ETN, its closing indicative value on that date. Bank of Montreal will pay these amounts on or about November 18, 2022.
The closing indicative value of each ETN on October 28, 2022 will be multiplied by 10 to determine the reverse split-adjusted closing indicative value. Following the reverse split, each ETNs will have a new CUSIP, as set forth above, but will continue to trade under their current respective ticker symbols.
The reverse splits will affect the trading denominations of each of the ETNs, but it will not have any effect on the aggregate principal amount of the ETNs, except that the aggregate principal amount will be reduced by the corresponding aggregate amount of any cash payments for the "partials."
Illustrations of a Reverse Split
The following table shows the effect of the 1-for-10 reverse split on the hypothetical closing indicative value of the ETNs. The closing indicative value of an ETN is not the same as its principal amount or the trading price of that ETN.
None of the other exchange traded notes issued by Bank of Montreal are affected by this announcement.
The ETNs are senior, unsecured obligations of Bank of Montreal.
Investment suitability must be determined individually for each investor, and the ETNs may not be suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own financial advisors as to these matters.
The leveraged ETNs discussed in this press release 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. The returns on the ETNs over longer periods of time can, and most likely will, differ significantly from the return on a direct short investment in the index underlying those ETNs.
Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, prospectus supplement and prospectus) with the SEC regarding the ETNs discussed in this press release. 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 offerings of the ETNs, will arrange to send the applicable pricing supplement, product supplement (if applicable), prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.
About REX Shares
Founded in 2015, REX Shares ("REX") is an independent provider of ETPs based in Miami, Florida. As ETP architects, the REX team creates investment vehicles that solve for a range of specific challenges in investor portfolios. The firm is rooted in decades of structuring and building inventive exchange-traded product solutions.
For more information, please visit www.rexshares.com or www.microsectors.com.
Twitter: @REXShares and @MSectors
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $1.07 trillion as of July 31, 2022, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group
MicroSectors Launches U.S. Travel Long & Short Exchange Traded Notes on NYSE Arca
June 22, 2022 – REX Shares, LLC (“REX”) is pleased to announce the launch of two new MicroSectors Exchange Traded Notes (“ETNs”) issued by Bank of Montreal (“BMO”) linked to the MerQube MicroSectors U.S. Travel Index (ticker: MQUSTRAV). MicroSectors Travel 3x Leveraged ETNs (ticker: FLYU) and MicroSectors Travel -3x Inverse Leveraged ETNs (ticker: FLYD) will start trading today on NYSE Arca.
The MerQube MicroSectors U.S. Travel Index, launched in November 2021, tracks the performance of large U.S. domiciled and listed companies operating in specified segments of the travel and tourism industry. As of the date of this release, Walt Disney Company, Uber Technologies, Inc., Airbnb, Inc., Booking Holdings Inc., and Carnival Corporation were the five largest common stocks in the Index.
REX, a provider of alternative investment products, continues to see strong demand for hedging and trading tools based on specific segments of the market, such as equity securities of companies in the travel industry.
“We are excited to partner with BMO and MerQube on the launch of the travel equity-focused exchange-traded notes,” said Scott Acheychek, President of REX. “The MerQube MicroSectors U.S. Travel Index offers sophisticated investors access to many of the largest companies operating in travel and tourism, which has become a popular industry to trade due COVID-19 and the volatility in travel and tourism stocks,” Acheychek added. “Since our founding, MicroSectors has focused on innovating the ETP landscape by providing unique exposures to popular investable market segments. We are pleased to build on this objective by adding U.S. Travel to our product lineup.”
About REX Shares
Founded in 2015, REX Shares (“REX”) is an independent provider of ETPs based in Miami, Florida. As ETP architects, the REX team creates investment vehicles that solve for a range of specific challenges in investor portfolios. The firm is rooted in decades of structuring and building inventive exchange-traded product solutions.
For more information, please visit www.rexshares.com or www.microsectors.com.
Twitter: @REXShares and @MSectors
The ETNs are senior, unsecured obligations of BMO.
Investment suitability must be determined individually for each investor, and the ETNs may not be suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own financial advisors as to these matters.
The 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. The returns on the ETNs over longer periods of time can, and most likely will, differ significantly from the return on a direct long or short investment in the index.
BMO, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, a product supplement, a prospectus supplement and a prospectus) with the Securities and Exchange Commission (the “SEC”) about each of the offerings to which this press release relates. Please read those documents and the other documents relating to these offerings BMO has filed with the SEC for more complete information about BMO and these offerings. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal, any agent or any dealer participating in these offerings will arrange to send the applicable pricing supplement, product supplement, prospectus supplement and prospectus if you so request by calling toll-free at 1-877-369-5412.
MerQube does not sponsor, endorse, sell, promote or manage any securities that are offered by third parties and that seek to provide an investment return based on the performance of the Index. MerQube makes no assurance that the notes or any other investment products based on the Index will accurately track index performance or provide positive investment returns. MerQube is not an investment advisor, and MerQube makes no representation regarding the advisability of investing in any such securities.
MerQube and its third-party data providers and licensors (collectively the "MerQube Parties") do not-guarantee the accuracy, completeness, timeliness or availability of the any data relating to the Index (the "Content"). The MerQube Parties are not responsible for any errors or omissions, regardless of the cause, for the results obtained from the use of the Content. THE CONTENT IS PROVIDED ON AN "AS IS" BASIS, AND THE MERQUBE PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, OR THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED. In no event shall the MerQube Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the Content, even if advised of the possibility of such damages.
MicroSectors™ and REX™ are registered trademarks of REX. The trademarks have been licensed for use for certain purposes by Bank of Montreal. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third-party licensors (collectively, "REX Index Parties"). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the Index to track general market performance. REX Index Parties' only relationship to Bank of Montreal with respect to the Index is the licensing of the Index and certain trademarks, service marks and/or trade names of REX Index Parties. REX Index Parties are not responsible for and have not participated in the determination of the prices, and amount of the ETNs or the timing of the issuance or sale of the ETNs or in the determination or calculation of the equation by which the ETNs are to be converted into cash. REX Index Parties have no obligation or liability in connection with the administration, marketing or trading of the ETNs. Inclusion of a security within an index is not a recommendation by REX Index Parties to buy, sell, or hold such security, nor is it considered to be investment advice.
Bank of Montreal Announces the Reverse Split of NRGD ETNs
NEW YORK, April 1, 2022 – Bank of Montreal (TSX:BMO)(NYSE:BMO) announced today that it will implement a 1-for-50 reverse split of its outstanding MicroSectors™ U.S. Big Oil Index -3X Inverse Leveraged ETNs due March 25, 2039 (the “ETNs”), expected to be effective as of April 11, 2022.
The table below indicates the ETNs that will be subject to the reverse split, their trading symbol, their current CUSIP number, and the CUSIP number that they will receive after giving effect to the reverse split:
In addition, investors that hold a number of ETNs that are not evenly divisible by 50 will receive a cash payment for any fractional ETNs remaining (the "partials"). The cash amount due on any partials will be determined on April 8, 2022 and will equal, for each remaining ETN, its closing indicative value on that date. Bank of Montreal will pay these amounts on or about April 20, 2022.
The closing indicative value of each ETN on April 8, 2022 will be multiplied by 50 to determine the reverse split-adjusted closing indicative value. Following the reverse split, the ETNs will have a new CUSIP, as set forth above, but will continue to trade under their current ticker symbol.
The reverse split will affect the trading denominations of the ETNs, but it will not have any effect on the aggregate principal amount of the ETNs, except that the aggregate principal amount will be reduced by the corresponding aggregate amount of any cash payments for the "partials."
Illustration of a Reverse Split
The following table shows the effect of the 1-for-50 reverse split on the hypothetical closing indicative value of the ETNs. The closing indicative value of an ETN is not the same as its principal amount (currently, $500) or the trading price of that ETN.
None of the other exchange traded notes issued by Bank of Montreal are affected by this announcement.
The ETNs are senior, unsecured obligations of Bank of Montreal.
Investment suitability must be determined individually for each investor, and the ETNs may not be suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own financial advisors as to these matters.
The leveraged ETNs discussed in this press release 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. The returns on the ETNs over longer periods of time can, and most likely will, differ significantly from the return on a direct short investment in the index underlying those ETNs.
Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, prospectus supplement and prospectus) with the SEC regarding the ETNs discussed in this press release. 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 offerings of the ETNs, will arrange to send the applicable pricing supplement, the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.
About REX Shares
Founded in 2015, REX Shares (“REX”) is an independent provider of exchange traded products based in Miami, Florida. As ETP architects, the REX team creates investment vehicles that solve for a range of specific challenges in investor portfolios. The firm is rooted in decades of structuring and building inventive exchange-traded product solutions.
For more information, please visit www.rexshares.com or www.microsectors.com
Follow REX (@REXShares) and MicroSectors (@msectors) on Twitter.
REX Media Contacts: media@rexshares.com
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $1.02 trillion as of January 31, 2022, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
BMO Media Contact: Kelly Hechler, Kelly.Hechler@bmo.com, (416) 867-3996
Bank of Montreal ETNs: US.ETN@bmo.com, +1-877-369-5412
Internet: www.bmo.com
BMO Announces Redemption of Four ETNs
NEW YORK, December 1, 2021 – Bank of Montreal (TSX:BMO)(NYSE:BMO) today announced that it intends to redeem all of the outstanding securities in each of the series set forth in the following table (collectively, the "Affected Securities"):
Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the relevant pricing supplement for the Affected Securities.
With respect to each series of Affected Securities, the Call Settlement Amount payable on the Call Settlement Date will be calculated as specified in the relevant pricing supplement, as applicable, for the Affected Securities. BMO will pay the applicable Call Settlement Amount to investors holding Affected Securities on the applicable Call Settlement Date.
BMO intends to send a notice of redemption to holders of the Affected Securities on December 3, 2021. For each series of Affected Securities, the Call Settlement Amount will equal the arithmetic mean of the closing Indicative Note Values on each Index Business Day in the related Call Measurement Period. The Call Measurement Period is expected to consist of:
- for FNGZ and GNAF, the following five trading days: December 6, 2021, December 7, 2021, December 8, 2021, December 9, 2021 and December 10, 2021; and
- for MJJ and MJO, the following ten trading days: December 6, 2021, December 7, 2021, December 8, 2021, December 9, 2021, December 10, 2021, December 13, 2021, December 14, 2021, December 15, 2021, December 16, 2021 and December 17, 2021
Each series of Affected Securities will be delisted from the NYSE Arca exchange prior to the open of trading on the Call Settlement Date.
Holders of the Affected Securities may choose to continue to hold their securities until the Call Settlement Date, or may choose to sell or redeem their Affected Securities prior to the applicable Call Settlement Date, in accordance with the terms of the Affected Securities. BMO has announced the waiver of the minimum early redemption size for each of the Affected Securities. Prior to the waiver, holders of the Affected Securities were required to redeem at least 25,000 ETNs at one time in order to exercise their right to redeem them.
None of the other ETNs that BMO has previously issued are affected by this announcement.
BMO does not intend to issue or register any additional Affected Securities on or after the date of this press release. BMO and its affiliates also intend to suspend any further sales from inventory of the Affected Securities on December 3, 2021. The market value of these securities may be influenced by, among other things, supply and demand for the Affected Securities. It is possible that the suspension of any further sales of the Affected Securities by BMO may influence the market value of the Affected Securities and the liquidity of the market for the Affected Securities, potentially leading to insufficient supply, and causing the Affected Securities to trade at a premium above their closing or intraday indicative value. Any such premium may subsequently decrease at any time and for any reason without warning, resulting in financial loss to investors who paid this premium when they acquired their Affected Securities.
Investors who purchase the Affected Securities at any time prior to the Call Settlement Date for an amount that is greater than the applicable Call Settlement Amount that they will receive on the Call Settlement Date will suffer a loss on their investment. Furthermore, investors who sell the Affected Securities at any time prior to delisting for an amount that is less than the applicable Call Settlement Amount they would have received on the Call Settlement Date will also suffer a loss. In either case, such losses could be significant. Investors will not receive any other compensation or amount for the loss of the investment opportunity of holding the Affected Securities.
BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider- the 8th largest bank, by assets, in North America. With total assets of $971 billion as of July 31, 2021, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
BMO Media Contact: Kelly Bechler, Kelly.Hechler@bmo.com, (416) 867-3996
Bank of Montreal ETNs: US.ETN@bmo.com, + 1-877-369-5412
Internet: www.bmo.com
Bank of Montreal, the issuer of the Affected Securities, has filed a registration statement (including a pricing supplement, prospectus supplement and prospectus) with the SEC regarding each of the Affected Securities. Please read those documents and the other documents relating to the Affected Securities that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and the applicable Affected Securities. 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 Affected Securities, will arrange to send the applicable pricing supplement, the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.
Bank of Montreal Announces the Reverse Split of FNGD ETNs
NEW YORK, November 26, 2021 – Bank of Montreal (TSX:BMO)(NYSE:BMO) announced today that it will implement a 1-for-20 reverse split of its outstanding MicroSectors™ FANG+™ Index -3X Inverse Leveraged ETNs due January 8, 2038 (the “ETNs”), expected to be effective as of December 6, 2021.
The table below indicates the ETNs that will be subject to the reverse split, their trading symbol, their current CUSIP number, and the CUSIP number that they will receive after giving effect to the reverse split:
The reverse split will be effective at the open of trading on December 6, 2021. Each ETN will begin trading on the NYSE Arca on a reverse split-adjusted basis on that date. Holders of an ETN who purchased that ETN prior to December 6, 2021 will receive one reverse split-adjusted ETN for every 20 pre-reverse split ETNs.
In addition, investors that hold a number of ETNs that are not evenly divisible by 20 will receive a cash payment for any fractional ETNs remaining (the "partials"). The cash amount due on any partials will be determined on December 13, 2021 and will equal, for each remaining ETN, its closing indicative value on that date. Bank of Montreal will pay these amounts on or about December 16, 2021.
The closing indicative value of each ETN on December 3, 2021 will be multiplied by 20 to determine the reverse split-adjusted closing indicative value. Following the reverse split, the ETNs will have a new CUSIP, as set forth above, but will continue to trade under their current ticker symbol.
The reverse split will affect the trading denominations of the ETNs, but it will not have any effect on the aggregate principal amount of the ETNs, except that the aggregate principal amount will be reduced by the corresponding aggregate amount of any cash payments for the "partials."
Illustration of a Reverse Split
The following table shows the effect of the 1-for-20 reverse split on the hypothetical closing indicative value of the ETNs. The closing indicative value of an ETN is not the same as its principal amount (currently, $500) or the trading price of that ETN.
None of the other exchange traded notes issued by Bank of Montreal are affected by this announcement.
The ETNs are senior, unsecured obligations of Bank of Montreal.
Investment suitability must be determined individually for each investor, and the ETNs may not be suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own financial advisors as to these matters.
The leveraged ETNs discussed in this press release 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. The returns on the ETNs over longer periods of time can, and most likely will, differ significantly from the return on a direct short investment in the index underlying those ETNs.
Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, prospectus supplement and prospectus) with the SEC regarding the ETNs discussed in this press release. 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 offerings of the ETNs, will arrange to send the applicable pricing supplement, the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.
About REX Shares
Founded in 2015, REX Shares (“REX”) is an independent provider of exchange traded products based in Fairfield, Connecticut. As ETP architects, the REX team creates investment vehicles that solve for a range of specific challenges in investor portfolios. The firm is rooted in decades of structuring and building inventive exchange-traded product solutions.
For more information, please visit www.MicroSectors.com
Follow REX on Twitter @MSectors
REX Media Contacts: media@rexshares.com
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $971 billion as of July 31, 2021, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
BMO Media Contact: Kelly Hechler, Kelly.Hechler@bmo.com, (416) 867-3996
Bank of Montreal ETNs: US.ETN@bmo.com, +1-877-369-5412
Internet: www.bmo.com
MicroSectors™ Launches Oil & Gas Exploration & Production Exchange Traded Notes on NYSE Arca
FAIRFIELD, CT, November 9, 2021 – REX Shares, LLC (“REX”) is pleased to announce the launch of two new MicroSectors Exchange Traded Notes (“ETNs”) issued by Bank of Montreal (“BMO”) linked to the Solactive MicroSectors™ Oil & Gas Exploration & Production Index (ticker: SOLOILT). MicroSectors™ Oil & Gas Exploration & Production 3x Leveraged ETNs (ticker: OILU) and MicroSectors™ Oil & Gas Exploration & Production -3x Inverse Leveraged ETNs (ticker: OILD) will start trading today on NYSE Arca.
The Solactive MicroSectors™ Oil & Gas Exploration & Production Index, was launched in October 2021, and tracks the stock prices of large-capitalization companies that are domiciled and listed in the U.S. and that are active in the exploration and production of oil and gas.
“We are excited to bring another pair of leveraged and inverse leveraged exchange-traded notes to market with BMO and Solactive,” said Scott Acheychek, President of REX. “MicroSectors focuses on innovating the exchange traded products (“ETPs”) landscape by offering targeted indices across popular market segments, such as U.S. energy, U.S. large cap banks, and U.S. big tech.”
About REX Shares
Founded in 2015, REX Shares (“REX”) is an independent provider of ETPs based in Fairfield, Connecticut. As ETP architects, the REX team creates investment vehicles that solve for a range of specific challenges in investor portfolios. The firm is rooted in decades of structuring and building inventive exchange-traded product solutions.
For more information, please visit www.rexshares.com or www.microsectors.com.
Twitter: @REXShares and @MSectors
Press Contact
Gregory FCA for REX Shares
Jill Fritz, 484-832-7034
rexshares@gregoryfca.com
The ETNs are senior, unsecured obligations of BMO.
Investment suitability must be determined individually for each investor, and the ETNs may not be suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own financial advisors as to these matters.
The 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. The returns on the ETNs over longer periods of time can, and most likely will, differ significantly from the return on a direct long or short investment in the index.
BMO, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, a product supplement, a prospectus supplement and a prospectus) with the Securities and Exchange Commission (the “SEC”) about each of the offerings to which this free writing prospectus relates. Please read those documents and the other documents relating to these offerings BMO has filed with the SEC for more complete information about BMO and these offerings. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal, any agent or any dealer participating in these offerings will arrange to send the applicable pricing supplement, product supplement, prospectus supplement and prospectus if you so request by calling toll-free at 1-877-369-5412.
Solactive AG (“Solactive”) is the licensor of the Index. The notes are not sponsored, endorsed, promoted or sold by Solactive in any way, and Solactive makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the notes; (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. Solactive 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 Solactive’s obligations to its licensees, Solactive reserves the right to change the methods of calculation or publication of the Index, and Solactive shall not be liable for any miscalculation of or any incorrect, delayed or interrupted publication with respect to the Index. Solactive 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.
MicroSectors™ and REX™ are registered trademarks of REX. The trademarks have been licensed for use for certain purposes by Bank of Montreal. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third-party licensors (collectively, "REX Index Parties"). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the Index to track general market performance. REX Index Parties' only relationship to Bank of Montreal with respect to the Index is the licensing of the Index and certain trademarks, service marks and/or trade names of REX Index Parties. REX Index Parties are not responsible for and have not participated in the determination of the prices, and amount of the ETNs or the timing of the issuance or sale of the ETNs or in the determination or calculation of the equation by which the ETNs are to be converted into cash. REX Index Parties have no obligation or liability in connection with the administration, marketing or trading of the ETNs. Inclusion of a security within an index is not a recommendation by REX Index Parties to buy, sell, or hold such security, nor is it considered to be investment advice.