MicroSectors -3x Short Communication Services (XLC) ETNs (XLCD)

The MicroSectors -3x Short Communication Services (XLC) ETNs are exchange-traded notes issued by Bank of Montreal and listed on Cboe BZX under the ticker XLCD. They are designed to deliver three times the inverse of the daily performance of an index tied to the communication services sector, as represented by the Communication Services Select Sector SPDR Fund (XLC).

The communication services sector includes interactive media and internet companies, telecom carriers, and entertainment and media businesses. The notes target daily returns only, so their performance over longer periods can differ substantially from three times the inverse of the sector's return.

As exchange-traded notes, they are unsecured debt obligations of Bank of Montreal rather than funds holding a portfolio of securities, so their value also depends on the issuer's creditworthiness.