BNKD - Microsectors U.S. Big Banks -3X ETN

MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETN (BNKD) is an exchange-traded note that tracks the performance of the Solactive MicroSectors U.S. Big Banks Index. The index is designed to provide inverse exposure to the daily performance of the top 10 US banks, which includes JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, Morgan Stanley, U.S. Bancorp, PNC Financial Services, Capital One Financial, and Truist Financial.

BNKD seeks to provide three times the inverse of the daily performance of the index, which means that when the index goes down by 1%, BNKD should go up by 3%. However, it is important to note that BNKD's performance can differ from its stated objective due to various factors such as market volatility, liquidity, and expenses.

BNKD is intended for short-term trading and is not suitable for long-term investment. Investors who want to short the big banks or take a bearish view on the sector can use BNKD as a tactical tool. However, due to its leveraged nature, BNKD can be very volatile and is not suitable for risk-averse investors.

BNKD charges an expense ratio of 0.95%, which is relatively high compared to other ETFs. Additionally, BNKD is an ETN, which means that investors are exposed to credit risk and the creditworthiness of the issuer. If the issuer, Bank of Montreal, were to default, investors could lose their entire investment.

In summary, BNKD is a leveraged ETN that provides inverse exposure to the top 10 US banks. It is intended for short-term trading and is not suitable for long-term investment. Due to its leveraged nature, BNKD can be very volatile and is not suitable for risk-averse investors.