We advised Bank of Montreal on the launch of two new series of ETNs

Davis Polk advised Bank of Montreal (BMO) in connection with the launch of two new series of SEC-registered exchange traded notes (ETNs). The MicroSectors 3× Long Artificial Intelligence (AI) ETNs and the MicroSector -3× Short Artificial Intelligence (AI) ETNs are each intended to offer sophisticated investors three times leveraged long or short, as applicable, participation in the daily performance of the BITA AI Leaders Select NTR US Index (the “Index”), before taking into account fees, charges and the decay effect caused by the daily resetting of the leverage. Each series of ETNs is listed on NYSE Arca.

The Index is designed to track the performance of 25 U.S.-listed companies involved in AI technologies from both an application and infrastructure perspective. The Index includes “Purity Leaders,” which are companies that the index sponsor determines have high relative revenue exposure to AI products, services and activities, and “Key Enablers,” which are larger, more diversified companies that the index sponsor considers to be key direct enablers of the business application of AI technologies.

BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.5 trillion as of April 30, 2026. Serving clients for more than 200 years, BMO provides a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services across Canada, the United States and select markets globally.

The Davis Polk capital markets team included partner Christopher S. Schell, counsel Michael J. Russo and associate Christian Mueller. The tax team included partner Aliza Slansky, counsel David S. Fisher and associate Alexander (Alec) Oveis. Members of the Davis Polk team are based in the New York and Northern California offices.

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