MicroSectors -3x Short Taiwan ETNs (TPEI)

The MicroSectors -3x Short Taiwan ETNs are exchange-traded notes in the MicroSectors product line issued by Bank of Montreal. They are designed to deliver three times the inverse of the daily performance of an index tied to Taiwanese equities.

Because the notes reset their exposure every day, they target the -3x multiple only for single-day returns; over longer periods, compounding can cause results to differ substantially from three times the inverse of the index's cumulative return. As ETNs, they are unsecured debt obligations of the issuer rather than funds holding a portfolio of stocks, so their value also depends on the issuer's credit.