BMO Announces Upcoming Increase to the Financing Spread for its MicroSectorsTM Gold Miners 3X Leveraged ETNs (NYSE Arca: GDXU)

Rhea-AI Summary

Bank of Montreal (BMO) announced an increase to the Financing Spread for its MicroSectors Gold Miners 3X Leveraged ETNs (NYSE Arca: GDXU, due June 29, 2040). The spread rises from 3.25% to 5.00%, effective February 6, 2026.

The Daily Financing Charge, set as the Federal Reserve Bank Prime Loan Rate plus the Financing Spread, will increase and likely reduce investor returns; redemption mechanics and minimums are described in the ETN documents.

Positive

• None.

Negative

• Financing Spread increases from 3.25% to 5.00% effective February 6, 2026
• Daily Financing Charge will rise, directly reducing holder returns
• Short-term redemption rules: Minimum Redemption Amount waived for redemptions elected through the Fee Effective Date
• ETNs remain senior unsecured obligations of BMO, exposing holders to issuer credit risk

Key Figures

Current Financing Spread: 3.25% Adjusted Financing Spread: 5.00% Leverage Factor: 3x +3 more

6 metrics

Current Financing Spread 3.25% Existing spread on MicroSectors Gold Miners 3X Leveraged ETNs

Adjusted Financing Spread 5.00% Financing spread effective from February 6, 2026

Leverage Factor 3x Daily leveraged long exposure to S-Network MicroSectors Gold Miners Index

Fee Effective Date February 6, 2026 Date on which the increased financing spread becomes effective

Maturity Date June 29, 2040 Stated maturity of the MicroSectors Gold Miners 3X Leveraged ETNs

Minimum Redemption Amount 25,000 ETNs Minimum size for issuer redemptions outside the specified waiver window

Market Reality Check

Price: $136.15 Vol: Volume 2,725,569 is 3.29x...

high vol

$136.15 Last Close

Volume Volume 2,725,569 is 3.29x the 20-day average of 829,261, indicating elevated trading activity ahead of the ETN fee change. high

Technical Shares are trading above the 200-day moving average of 118.37, near the 52-week high of 141.63.

Peers on Argus

BMO gained 1.56% with elevated volume, while peers showed smaller mixed moves: B...

BMO gained 1.56% with elevated volume, while peers showed smaller mixed moves: BNS +1.11%, BK +1.46%, ING +0.10%, SMFG +0.05%, and BCS -0.30%, suggesting a stock-specific catalyst rather than a broad sector rotation.

Historical Context

5 past events · Latest: Jan 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 05	Investor day announcement	Positive	+1.5%	Announcement of all-bank Investor Day with senior leadership presentations.
Dec 23	Charitable giving update	Positive	+0.5%	Employees donate over $36 million to community organizations, beating campaign goal.
Dec 04	Board appointment	Positive	-0.1%	Addition of Tammy Brown to Board, bringing audit and governance expertise.
Dec 04	Dividend increase	Positive	-0.1%	Quarterly common dividend raised to $1.67 per share, up 5% year-over-year.
Dec 04	Earnings results	Positive	-0.1%	Fiscal 2025 net income and EPS grow double-digits with strong capital ratios.

Pattern Detected

Recent history shows several fundamentally positive announcements where the stock’s next-day move was flat to slightly negative, indicating occasional divergence between news tone and short-term price reaction.

Recent Company History

Over the past few months, BMO has reported strong fundamentals and shareholder-friendly actions. On Dec 4, 2025, it posted fiscal 2025 net income of $8,725 million and adjusted EPS of $12.16, alongside an increased quarterly dividend of $1.67 and share repurchases of 8.0 million shares. Board refreshment and an upcoming Mar 26, 2026 Investor Day highlight ongoing strategic communication. Against this backdrop, today’s ETN financing-spread increase affects a specific leveraged product rather than BMO’s core banking operations.

Market Pulse Summary

This announcement details an increase in the financing spread on BMO’s MicroSectors Gold Miners 3X L...

Analysis

This announcement details an increase in the financing spread on BMO’s MicroSectors Gold Miners 3X Leveraged ETNs, raising it from 3.25% to 5.00% effective February 6, 2026. The change directly raises the Daily Financing Charge and can reduce returns for ETN holders. In contrast, recent news has emphasized strong earnings, with fiscal 2025 net income of $8,725 million and a dividend of $1.67 per share. Investors following this product may focus on fee impact, redemption terms, and how it fits within a short-term, actively managed trading approach.

Key Terms

exchange traded notes, indicative note value, cusip, registration statement, +2 more

6 terms

exchange traded notes financial

"Gold Miners 3X Leveraged Exchange Traded Notes due June 29, 2040"

Exchange traded notes (ETNs) are unsecured debt securities issued by banks that aim to track the performance of an index or asset, minus fees, while trading on an exchange like a stock. Think of them as IOUs that mirror a benchmark’s return rather than owning the underlying assets; investors should care because ETNs combine market exposure with the issuer’s credit risk and market liquidity, which can affect value independently of the tracked index.

indicative note value financial

"The closing Indicative Note Value of the ETNs reflect the daily deduction"

An indicative note value is a provisional price or estimated worth shown for a debt or structured note to give investors a quick snapshot of its current market value. Like a store’s price tag that can change, it helps investors decide whether to buy, sell or hold by showing an approximate value before a final trade or formal valuation is confirmed, but it is not a guaranteed execution price.

cusip financial

"ETN Title | Ticker Symbol | CUSIP | Current Financing Spread"

A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.

registration statement regulatory

"has filed a registration statement (including a pricing supplement, product"

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

prospectus supplement regulatory

"including a pricing supplement, product supplement, prospectus supplement"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

pricing supplement regulatory

"please carefully read the pricing supplement and related documents"

A pricing supplement is a short, final document that gives the exact terms of a new securities offering—such as the price, interest rate, size and settlement date—building on the broader prospectus. Think of it as the day’s receipt that turns a general menu into the specific order; investors use it to see the concrete deal terms that determine value, yield and whether to buy.

AI-generated analysis. Not financial advice.

NEW YORK, Jan. 30, 2026 /PRNewswire/ - Bank of Montreal ("BMO") today announced that pursuant to the terms of BMO's MicroSectors^TM Gold Miners 3X Leveraged Exchange Traded Notes due June 29, 2040 (the "ETNs"), BMO Capital Markets Corp., the Calculation Agent of the ETNs, is electing to exercise its right to increase the Financing Spread for the ETNs. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the ETN Prospectus (as defined below) for the ETNs.

It is expected that effective as of February 6, 2026 (the "Fee Effective Date"), the Financing Spread will be increased as follows:

ETN Title	Ticker Symbol	CUSIP	Current Financing Spread	Adjusted Financing Spread
MicroSectorsTM Gold Miners 3X Leveraged ETNs due June 29, 2040	GDXU	063679542	3.25 %	5.00 %

The closing Indicative Note Value of the ETNs reflect the daily deduction of a Daily Financing Charge and the other fees and charges described in the ETN Prospectus. The Daily Financing Charge is based on the Federal Reserve Bank Prime Loan Rate, plus the Financing Spread. Therefore, given that the Financing Spread is increasing, the Daily Financing Charge will also increase. As a result, the return on investor's ETNs will be adversely affected.

Holders of the ETNs may choose to continue to hold their ETNs, or they may choose to elect to require BMO to redeem their ETNs, in accordance with the terms of the ETNs, or sell their ETNs in the secondary market. As disclosed in the ETN Prospectus for the ETNs, the Minimum Redemption Amount will not be applicable for any redemption validly elected on or after the date of this announcement to and including the Fee Effective Date. Outside of this period, holders of the ETNs are required to redeem at least 25,000 ETNs at one time in order to exercise their right to require BMO to redeem them.

Disclosures

The issuance of this notice of the election to increase the Financing Spread may adversely impact your ability to sell the ETNs and/or will likely adversely impact the price at which investors may be able to sell their ETNs.

The ETNs are not intended to be "buy and hold" investments, and are not intended to be held to maturity. Instead, the ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. The ETNs are designed to reflect a 3x leveraged long exposure to the performance of the S-Network MicroSectors^TM Gold Miners Index (the "Index") on a daily basis, before taking into account the negative effect of the fees and charges. However, as a result of the daily resetting leverage, the returns on the ETNs over different periods of time can, and most likely will, differ significantly from three times the return on a direct long investment in the Index. The ETNs are designed to achieve their stated investment objectives on a daily basis. The performance of the ETNs over different periods of time can differ significantly from their stated daily objectives. The ETNs are considerably riskier than securities that have intermediate- or long-term investment objectives, and are not suitable for investors who plan to hold them for a period of more than one day or who have a "buy and hold" strategy. Investors should actively and continuously monitor their investments in the ETNs on an intra-day basis, and any decision to hold the ETNs for more than one day should be made with great care and only as the result of a series of daily (or more frequent) investment decisions to remain invested in the ETNs for the next one-day period. The ETNs are very sensitive to changes in the level of the Index, and returns on the ETNs may be negatively affected in complex ways by the volatility of the Index on a daily or intra-day basis. It is possible that investors will suffer significant losses in the ETNs even if the long-term performance of the Index is positive. Accordingly, the ETNs should be purchased only by sophisticated investors who understand and can bear the potential risks and consequences of the ETNs that are designed to provide exposure to the leveraged performance of the Index on a daily basis and that will be highly volatile and may experience significant losses, up to the entire amount invested, in a short period of time.

For additional information, including a discussion of the risks relating to an investment in the ETNs, please carefully read the pricing supplement and related documents that we have filed with respect to the ETNs (collectively, the "ETN Prospectus"). Investors should review the ETN Prospectus carefully prior to making an investment decision.

The ETN Prospectus can be found on EDGAR, the Securities and Exchange Commission (the "SEC") website at: www.sec.gov, as well as on the product websites at the following links: www.bmoetns.com and www.microsectors.com 

Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, product supplement, prospectus supplement and prospectus) with the SEC regarding the ETNs. Please read those documents and the other documents relating to this offering that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and this offering. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal, and any agent or dealer that participated in the offering of the ETNs, will arrange to send the pricing supplement, the product supplement, the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.

The ETNs are senior, unsecured obligations of BMO, and are subject to BMO's credit risk.

Investment suitability must be determined individually for each investor, and the ETNs are not suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own financial advisors as to these matters.

About REX Shares

REX Shares ("REX") is a leading provider of innovative exchange-traded products ("ETPs"). With over $8 billion in assets under management, REX is known for pioneering the MicroSectors™ and T-REX product lines, offering leveraged and inverse exposure to a variety of stocks and market sectors. REX continues to drive innovation through its growing suite of ETPs, serving investors seeking sophisticated trading tools, options-based income strategies, and unique crypto exposures.

For more information, please visit www.rexshares.com or www.microsectors.com

Follow REX (@REXShares) and MicroSectors (@msectors) on X.

REX Media Contacts: rexshares@gregoryfca.com

About BMO Financial Group

BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.5 trillion as of October 31, 2025. Serving clients for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to approximately 13 million clients across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and stronger communities.

Bank of Montreal ETNs: US.ETN@bmo.com, +1 (877) 369-5412

Internet: www.bmo.com

MicroSectors™ and REX™ are trademarks of REX. The trademarks have been licensed for use for certain purposes by REX. The Index have been licensed for use by REX. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third-party licensors (collectively, "REX Index Parties"). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the Index to track general stock market performance.

View original content:https://www.prnewswire.com/news-releases/bmo-announces-upcoming-increase-to-the-financing-spread-for-its-microsectorstm-gold-miners-3x-leveraged-etns-nyse-arca-gdxu-302675387.html

SOURCE BMO Financial Group

FAQ

What change did BMO announce for the GDXU Financing Spread and when does it take effect?

BMO is increasing the Financing Spread for GDXU from 3.25% to 5.00%, effective February 6, 2026. According to the company, this change raises the Daily Financing Charge, which will likely reduce ETN returns for holders after that date.

How will the Financing Spread increase affect returns for GDXU holders?

The increase raises the Daily Financing Charge, which reduces net ETN returns on a daily basis. According to BMO, the Daily Financing Charge equals the Fed Prime Loan Rate plus the Financing Spread, so a higher spread lowers investor returns.

Can GDXU holders redeem because of the Financing Spread increase, and what are the redemption terms?

Holders may elect redemption; the Minimum Redemption Amount is waived for redemptions elected through the Fee Effective Date. According to BMO, outside that window holders must redeem at least 25,000 ETNs at one time to require redemption.

What is the maturity date and ticker for the affected ETN?

The affected product is MicroSectors Gold Miners 3X Leveraged ETNs, ticker GDXU, maturing on June 29, 2040. According to BMO, the ETNs provide 3x daily leveraged exposure before fees and charges.

What risks should investors consider after BMO's announcement for GDXU?

Investors face higher financing costs, increased daily charge volatility, and issuer credit risk. According to BMO, the ETNs are senior unsecured obligations and are designed as high‑volatility, short‑term trading tools, not buy‑and‑hold investments.