BMO and REX Shares Launch Leveraged Semiconductor ETNs
Bank of Montreal (BMO) and REX Shares have launched two leveraged Exchange Traded Notes (ETNs): the MicroSectors™ 3× Long Semiconductor ETN (SMHU) and the -3× Short Semiconductor ETN (SMHD). These products aim to provide three times daily exposure, either long or short, to the VettaFi Semiconductor Fund-Tracking Index. The ETNs will begin trading on Cboe BZX Exchange under tickers SMHU and SMHD. The Daily Investor Fee for these ETNs is waived until January 31, 2027, after which it will be set at an annual rate of 0.70%. These instruments are designed as daily trading tools rather than long-term investments due to the compounding effects from resetting leverage and fees. Investors should note that these ETNs carry significant risk and may not track three times performance over longer periods, making them suitable only for sophisticated investors who understand their volatility.
Tickers: $BMO
Topics: leveraged finance securities launch semiconductor index