MicroSectors U.S. Big Oil -3 Inverse Leveraged ETN

Frequently Asked Questions About NRGD

What does NRGD invest in?

This senior, unsecured, medium-term note, issued by Bank of Montreal, is designed to deliver returns that are three times (3x) the inverse daily performance of its underlying index, compounded on a daily basis. Investors should note that these returns are subject to deductions including a daily investor fee, any negative daily interest, and, if applicable, a redemption fee. The underlying index itself is an equally dollar-weighted benchmark composed of the ten U.S.-listed energy and oil companies with the largest market capitalization.

What is the expense ratio of NRGD?

MicroSectors U.S. Big Oil -3 Inverse Leveraged ETN (NRGD) charges an expense ratio of 2.60%. This is the annual fee deducted from fund assets to cover management and operations.

Is NRGD a good long-term hold?

NRGD is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple — typically negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does NRGD's daily reset work?

NRGD rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level — so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is NRGD?

MicroSectors U.S. Big Oil -3 Inverse Leveraged ETN (NRGD) manages $5.2M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is NRGD actively managed or an index fund?

NRGD's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.