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 Semiconductor ETNs and the MicroSector -3× Short Semiconductor ETNs are each intended to offer sophisticated investors three times leveraged long or short, as applicable, participation in the daily performance of the VettaFi Semiconductor Fund-Tracking 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 the Cboe BZX Exchange, Inc.

The Index is a total return index designed to provide exposure to the largest and most liquid U.S. exchange-listed companies in the semiconductor industry 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 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 associates Christian Mueller and John Foster. The tax team included partner Aliza Slansky, counsel David S. Fisher and associate Nicholas Wong. Members of the Davis Polk team are based in the New York and Northern California offices.

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