MicroSectors Travel -3X Inverse Leveraged ETN (FLYD) is an exchange-traded note issued by Bank of Montreal (BMO) that seeks to provide daily investment results that correspond to three times the inverse (-3x) of the daily performance of the U.S. Travel & Leisure Select Industry Index.
As an inverse leveraged ETN, FLYD is designed to magnify the opposite performance of its underlying index. This means that if the underlying index drops by 1%, FLYD should increase by 3% on the same day, although it may not achieve this exact multiple over longer periods of time. It is important to note that FLYD is intended to be used as a short-term trading tool and may not be suitable for buy-and-hold investors.
FLYD charges an expense ratio of 1.00% and trades on the NYSE Arca exchange. As with all exchange-traded products, investors should carefully consider FLYD's investment objective, risks, and costs before investing.
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