MicroSectors 3x Long High Yield Corporate Bond (HYG) ETNs (HYGU)

The MicroSectors 3x Long High Yield Corporate Bond (HYG) ETNs (HYGU) are exchange-traded notes that seek to return three times (3x) the daily performance of the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), a widely traded fund holding U.S. dollar high-yield corporate bonds.

As exchange-traded notes, HYGU are unsecured debt obligations of the issuing bank, Bank of Montreal, rather than funds that hold assets. Payments depend on the issuer's credit as well as the reference fund's performance. The notes are part of the MicroSectors lineup offered with REX Financial.

The 3x leverage applies to daily returns, so over longer periods compounding can cause results to differ substantially from three times the return of HYG.