BMO and REX Shares Launch Leveraged Communication Services and Consumer Staples ETNs
Bank of Montreal (BMO) and REX Shares have launched four new leveraged Exchange Traded Notes (ETNs): XLCU, XLCD, XLPU, and XLPD. These ETNs offer three times long or short exposure to the VettaFi US Communications Fund-Tracking Index (VXLCF), which tracks the State Street Communication Services Select Sector SPDR ETF (XLC), and the VettaFi US Consumer Staples Fund-Tracking Index (VXLPF), tracking the State Street Consumer Staples Select Sector SPDR ETF (XLP). The ETNs are designed for sophisticated investors seeking daily leveraged exposure to these sectors, with a maturity date of July 31, 2046. They will begin trading on Cboe BZX Exchange under their respective ticker symbols. The new products expand the MicroSectors platform's sector coverage and follow recent launches in semiconductors, corporate bonds, equities from Brazil, Japan, Taiwan, and other indices. The ETNs are not intended for long-term holding but rather as daily trading tools to manage short-term market exposure. Investors should be aware that due to compounding effects of leverage resets, returns over multiple days may deviate significantly from three times the index performance.
Topics: BMO Exchange Traded Notes (ETNs) leveraged products REX Shares