May 21, 2020 – REX Shares, LLC (REX) is proud to announce that Bank of Montreal (BMO) has increased the aggregate principal amount and total notes outstanding of the MicroSectors™ U.S. Big Oil Index 3X Leveraged ETN (NRGU) by $250 million, to a new total of $975 million and 19.5 million notes, respectively. This was the eighth upsize in 2020.
NRGU is the only daily resetting 3x leveraged exchange traded product in the U.S. with exposure to the U.S. Oil and Energy equity sector. NRGU is linked to the Solactive MicroSectors™ U.S. Big Oil Index.
“Oil has been hit by a supply-demand storm in 2020. On the one hand, Saudi Arabia and Russia increased production in a well-supplied market and, on the other hand, COVID-19 and the stay-at-home orders mandated by many countries helped reduce demand.” said Scott Acheychek, President of REX Shares. “We’re glad that NRGU has provided investors with an opportunity to trade the largest U.S. energy companies with leverage during this period of heightened volatility in the energy sector. We’re excited to continue to introduce products with exposure to popular sectors of the market in partnership with BMO.”
The Solactive MicroSectors U.S. Big Oil Index includes the 10 largest U.S. listed energy companies. The index’s underlying composition is equally weighted across ten stocks. While the performance of market capitalization weighted indices can be dominated by a few large stocks, an equal-weighted index offers the potential for a more diversified portfolio.
In addition to NRGU, Bank of Montreal has also issued a -3x Inverse Leveraged Oil/Energy ETN:
*As of 05/15/2020. Index weightings and constituents are subject to change.
Please reach out to us with any questions.
President, REX Shares
Director, BMO Capital Markets
The ETNs are senior, unsecured obligations of Bank of Montreal.
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 exchange traded notes are subject to the credit risk of Bank of Montreal, the issuer of the ETNs. The ETNs are also subject to the issuer’s credit ratings, and the issuer’s credit spreads may adversely affect the market value of the notes.
Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, prospectus supplement and prospectus) with the Securities and Exchange Commission (the "SEC") about the offerings to which this press release relates. Please read those documents and the other documents relating to these offerings that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal 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, the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.
REX Shares is an independent provider of exchange-traded products (ETPs). As ETP architects, the REX team specializes in creating investment vehicles that solve specific access or efficiency challenges in investor portfolios. The firm is rooted with decades of structuring and building innovative exchange-traded product solutions.
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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 $880 billion as of January 31, 2020, 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 more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
Solactive AG (“Solactive”) is the licensor of the Solactive MicroSectors™ U.S. Big Oil Index. The ETNs 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 ETNs; (b) the quality, accuracy and/or completeness of the applicable 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.