MicroSectors 3x Long Communication Services (XLC) ETNs (XLCU)

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

That sector covers internet and interactive media companies, telecommunications carriers, and entertainment and media businesses. The leverage is reset daily, so the notes target three times the return of a single trading day, and results over longer periods can deviate meaningfully from three times the sector's return.

Because they are notes, XLCU represents unsecured debt of Bank of Montreal, and holders are exposed to the issuer's credit risk in addition to the performance of the underlying index.