Bank of Montreal launch of MicroSectors 3× Long and -3× Short Communication Services and Consumer Staples ETNs
We advised Bank of Montreal on the launch of four new series of ETNs
Davis Polk advised Bank of Montreal (BMO) in connection with the launch of four new series of SEC-registered exchange traded notes (ETNs). The MicroSectors 3× Long and -3× Short Communication Services and Consumer Staples ETNs are each intended to offer sophisticated investors three times leveraged long or short, as applicable, participation in the daily performance of the relevant 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 the Cboe BZX Exchange, Inc.
The MicroSectors 3× Long and -3× Short Communication Services (XLC) ETNs are linked to the VettaFi US Communications Fund-Tracking Index, a total return index designed to provide exposure to the communication services sector of the S&P 500 Index through a single fund-tracking vehicle.
The MicroSectors 3× Long and -3× Short Consumer Staples (XLP) ETNs are linked to the VettaFi US Consumer Staples Fund-Tracking Index, a total return index designed to provide exposure to the consumer staples sector of the S&P 500 Index through a single fund-tracking vehicle.
BMO Financial Group is the eighth-largest bank in North America by assets, with total assets of $1.5 trillion as of July 31, 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 associates Christian Mueller and John Foster. 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.