MicroSectors™ Launches Energy Long & Short Exchange Traded Notes on NYSE Arca

Rhea-AI Summary

On February 14, 2023, REX Shares announced the launch of two new MicroSectors Exchange Traded Notes (ETNs) issued by Bank of Montreal (BMO). The ETNs, MicroSectors Energy 3x Leveraged (WTIU) and MicroSectors Energy -3x Inverse Leveraged (WTID), will begin trading on NYSE Arca on February 15, 2023. These ETNs are linked to the Solactive MicroSectors Energy Index, which tracks 12 major U.S. energy stocks including Chevron, Exxon Mobil, and Occidental Petroleum. REX aims to meet growing demand for specialized trading tools in energy and oil sectors.

Positive

• Launch of two new MicroSectors ETNs enhances REX's product lineup.
• ETNs cater to sophisticated investors seeking leveraged exposure in the energy sector.

Negative

• Investors should be cautious as ETNs may not be suitable for all.
• Returns over long periods may significantly differ from anticipated outcomes due to daily trading objectives.

NEW YORK, Feb. 14, 2023 /PRNewswire/ - REX Shares, LLC ("REX") today announced the launch of two new MicroSectors Exchange Traded Notes ("ETNs") issued by Bank of Montreal ("BMO"), linked to the Solactive MicroSectors™ Energy Index. MicroSectors Energy 3x Leveraged ETNs (ticker: WTIU) and MicroSectors Energy -3x Inverse Leveraged ETNs (ticker: WTID) will start trading tomorrow on NYSE Arca.

The Solactive MicroSectors Energy Index, launched in January 2023, tracks the performance of 12 highly liquid, U.S. stocks from the energy and oil sector. As of the date of this release, Chevron Corp (CVX), Exxon Mobil Corp (XOM), Occidental Petroleum Corp (OXY), ConocoPhillips (COP), and Devon Energy Corp (DVN) were the five largest common stocks in the Index.

REX, a provider of alternative investment products, continues to see strong demand for hedging and trading tools based on specific segments of the market, such as equity securities of companies in the energy and oil sector.

"We are excited to expand on our existing energy related offerings with a new pair of leveraged and inverse leveraged exchange-traded notes," said Scott Acheychek, CEO of REX.

"The energy ETNs will provide investors with exposure to 12 highly liquid companies that are at the forefront of global energy trends," Acheychek added. "Since founding MicroSectors in 2018, we have been dedicated to innovating the ETP landscape by offering unique exposures to popular investable market segments. We believe the addition of these ETNs to the product lineup furthers this objective."

About REX Shares

Founded in 2015, REX Shares ("REX") is an independent provider of ETPs based in Miami, Florida. As ETP architects, the REX team creates investment vehicles that solve for a range of specific challenges in investor portfolios. The firm is rooted in decades of structuring and building inventive exchange-traded product solutions.

For more information, please visit www.rexshares.com or www.microsectors.com.

Twitter: @REXShares and @MSectors

About BMO Financial Group

Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $1.14 trillion as of October 31, 2022, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.

The ETNs are senior, unsecured obligations of BMO.

Investment suitability must be determined individually for each investor, and the ETNs may not be suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice.  Investors should consult with their own financial advisors as to these matters.

The ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. They are designed to achieve their stated investment objectives on a daily basis. The returns on the ETNs over longer periods of time can, and most likely will, differ significantly from the return on a direct long or short investment in the index.

BMO, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, a product supplement, a prospectus supplement and a prospectus) with the Securities and Exchange Commission (the "SEC") about each of the offerings to which this press release relates. Please read those documents and the other documents relating to these offerings BMO has filed with the SEC for more complete information about BMO and these offerings. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal, any agent or any dealer participating in these offerings will arrange to send the applicable pricing supplement, product supplement, prospectus supplement and prospectus if you so request by calling toll-free at 1-877-369-5412.

Solactive AG ("Solactive") is the licensor of the Index.  The notes are not sponsored, endorsed, promoted or sold by Solactive in any way, and Solactive makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the notes; (b) the quality, accuracy and/or completeness of the Index; and/or (c) the results obtained or to be obtained by any person or entity from the use of the Index. Solactive does not guarantee the accuracy and/or the completeness of the Index and shall not have any liability for any errors or omissions with respect thereto. Notwithstanding Solactive's obligations to its licensees, Solactive reserves the right to change the methods of calculation or publication of the Index, and Solactive shall not be liable for any miscalculation of or any incorrect, delayed or interrupted publication with respect to the Index. Solactive shall not be liable for any damages, including, without limitation, any loss of profits or business, or any special, incidental, punitive, indirect or consequential damages suffered or incurred as a result of the use (or inability to use) of the Index.

MicroSectors™ and REX™ are registered trademarks of REX. The trademarks have been licensed for use for certain purposes by Bank of Montreal. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third-party licensors (collectively, "REX Index Parties"). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the Index to track general market performance. REX Index Parties' only relationship to Bank of Montreal with respect to the Index is the licensing of the Index and certain trademarks, service marks and/or trade names of REX Index Parties. REX Index Parties are not responsible for and have not participated in the determination of the prices, and amount of the ETNs or the timing of the issuance or sale of the ETNs or in the determination or calculation of the equation by which the ETNs are to be converted into cash. REX Index Parties have no obligation or liability in connection with the administration, marketing or trading of the ETNs. Inclusion of a security within an index is not a recommendation by REX Index Parties to buy, sell, or hold such security, nor is it considered to be investment advice.

View original content:https://www.prnewswire.com/news-releases/microsectors-launches-energy-long--short-exchange-traded-notes-on-nyse-arca-301746902.html

SOURCE BMO Financial Group

FAQ

What are the new ETNs launched by REX Shares?

REX Shares launched MicroSectors Energy 3x Leveraged ETNs (WTIU) and MicroSectors Energy -3x Inverse Leveraged ETNs (WTID) on February 14, 2023.

What is the Solactive MicroSectors Energy Index?

The Solactive MicroSectors Energy Index tracks 12 major U.S. energy stocks, including companies like Chevron and Exxon Mobil.

When will the new ETNs start trading?

The new ETNs will start trading on NYSE Arca on February 15, 2023.

What is the issuer of the new ETNs?

The new ETNs are issued by Bank of Montreal (BMO).

What are the potential risks of investing in these ETNs?

These ETNs may not be suitable for all investors and their returns can differ significantly over time from direct investments in the underlying index.