MicroSectors™ Taiwan Leveraged ETNs: TAWN & TPEI Explained
EXCHANGE TRADED NOTES
The MicroSectors™ Taiwan lineup of exchange traded notes provides 3x long exposure and -3x short exposure to the daily share price performance of EWT, the iShares MSCI Taiwan ETF. Daily-resetting trading tools built for sophisticated investors.
TWO WAYS TO TRADE TAIWAN
Long or short, at 3x. Each ETN seeks a daily return of 3x, or -3x, the daily share price performance of EWT, the iShares MSCI Taiwan ETF, before fees and expenses, resetting each trading day.
WHAT IS EWT?
Seeks 3x the daily share price performance of EWT
Seeks -3x the daily share price performance of EWT
Leverage resets each trading day; multi-day returns differ from the stated multiple
EWT, the iShares MSCI Taiwan ETF, is one of the longest-running US-listed single-country funds. It seeks to track the MSCI Taiwan 25/50 Index, a rules-based benchmark of large- and mid-cap Taiwanese companies weighted by float-adjusted market cap and subject to concentration caps, with semiconductors and technology hardware the dominant weights alongside financials and industrials.
Because EWT concentrates that market into a single US-listed instrument trading in US hours, while the Taipei session is closed, its daily share price has become a standard intraday expression of Taiwan exposure for US traders. The ETNs on this page reference that daily share price directly: 3x long or -3x short, resetting each trading day.
What is the structure of MicroSectors™ Taiwan ETNs?
Both ETNs are designed as short-term trading tools, not buy-and-hold investments. 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 EWT, 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 EWT’s own fees and any tracking difference against its underlying index. The notes reference the closing market price of EWT 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 ETNs are unsecured debt obligations of Bank of Montreal and do not hold underlying assets, so repayment depends on the creditworthiness of the issuer.
The inverse note carries risks the long note does not. The -3x note is designed to lose value when EWT rises, and because the exposure resets each day, a sustained rally compounds against the position. A single-day increase of approximately 33% in EWT would reduce the value of the note to zero, and investors would lose their entire investment.
Benchmark for the MicroSectors™ Taiwan ETNs*
- 100.00% ISHARES MSCI TAIWAN ETF
*Components as of SOD 08/26/2026
Important Disclaimers Regarding ETN Performance
It is important to note the following disclaimers regarding ETN performance: Index data prior to July 13, 2026 is hypothetical and reflects the application of the Index methodology in hindsight, and past historical or hypothetical data is not a guarantee of future Index results. 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. More information can be found in the relevant prospectus and offering documents at microsectors.com or on the SEC website at www.sec.gov.