MicroSectors -3x Short Japan ETNs (JPND)

The MicroSectors -3x Short Japan ETNs (JPND) are exchange-traded notes that seek to deliver three times the inverse of the daily performance of an underlying index tied to Japanese equities. The leverage and inverse exposure are reset every day, so the product targets daily returns only, and results over longer periods can differ substantially from three times the inverse of the index's cumulative change.

As ETNs, these securities are unsecured debt obligations of the issuing bank rather than shares in a fund that owns stocks. The MicroSectors line is issued by Bank of Montreal, and the notes do not hold the underlying Japanese shares; payment at maturity or on redemption depends on the index level and on the issuer's ability to pay.

The notes are designed as a short-term trading tool for expressing a bearish view on Japanese stocks.