BMO Announces Upcoming Reverse Splits of Two Series of its Exchange Traded Notes (NYSE Arca: GDXD and FNGD)

Rhea-AI Summary

Bank of Montreal (BMO) will implement a 1-for-10 reverse split for two ETN series (GDXD and FNGD) effective at the open of trading on February 9, 2026. Each series will retain its ticker but receive a new CUSIP.

Fractional ETNs will be cashed out: Partials' cash payments are expected to be determined on February 18, 2026 and paid on or about February 20, 2026. Reverse-split adjusted Indicative Note Values will be calculated using the February 6, 2026 closing Indicative Note Value multiplied by the split factor.

Positive

• Reverse split 1-for-10 effective Feb 9, 2026
• New CUSIPs assigned for both ETN series
• Partials cash payment determination Feb 18, 2026 and expected payment ~Feb 20, 2026

Negative

• ETNs provide 3x inverse daily leverage and are not buy-and-hold
• Timing of crediting cash payments depends on brokers and intermediaries
• Aggregate principal unchanged except reduced by cash payments for Partials

News Market Reaction

+1.56%

1 alert

+1.56% News Effect

On the day this news was published, BMO gained 1.56%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

GDXD reverse split ratio: 1-for-10 FNGD reverse split ratio: 1-for-10 Split factor: 10 +5 more

8 metrics

GDXD reverse split ratio 1-for-10 MicroSectors Gold Miners -3X Inverse Leveraged ETNs

FNGD reverse split ratio 1-for-10 MicroSectors FANG+ Index -3X Inverse Leveraged ETNs

Split factor 10 Applied to determine reverse split-adjusted values

Effective date February 9, 2026 Reverse splits effective at open of trading

Cash partials date February 18, 2026 Date to determine cash payment for fractional ETNs

Hypothetical pre-split ETNs 100,000 ETNs Illustrative example in reverse split table

Hypothetical pre-split value $5.00 per ETN Illustrative closing Indicative Note Value pre-split

Hypothetical post-split value $50.00 per ETN Illustrative closing Indicative Note Value post 1-for-10 split

Market Reality Check

Price: $141.26 Vol: Volume 462,027 is 0.67x t...

low vol

$141.26 Last Close

Volume Volume 462,027 is 0.67x the 20-day average of 685,491 shares. low

Technical Shares trade above the 200-day MA of 117.86, near the 52-week high of 139.

Peers on Argus

BMO was up 0.87% with mixed peer moves: BNS +1.19%, ING +1.38%, BCS +0.82%, SMFG...

BMO was up 0.87% with mixed peer moves: BNS +1.19%, ING +1.38%, BCS +0.82%, SMFG +0.66%, while BK declined 0.32%, suggesting stock-specific trading 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	Employee giving campaign	Positive	+0.5%	Employees donate over $36 million to community organizations in 2025.
Dec 04	Board appointment	Neutral	-0.1%	Appointment of Tammy Brown to Board, adding audit and governance expertise.
Dec 04	Dividend increase	Positive	-0.1%	Quarterly common dividend raised to $1.67 per share for Q1 2026.
Dec 04	Earnings results	Positive	-0.1%	Fiscal 2025 net income and EPS grew strongly with higher adjusted results.

Pattern Detected

Recent news, including strong fiscal 2025 results and dividend increases, has generally seen modest positive or flat near-term price reactions, with some divergence on clearly positive financial updates.

Recent Company History

Over the past few months, BMO reported strong fiscal 2025 results with net income of $8,725 million and adjusted net income of $9,248 million, alongside higher EPS and a CET1 ratio of 13.3%. The bank raised its common dividend to $1.67 and continued capital returns via share repurchases. Governance was reinforced by appointing Tammy Brown to the board, and an Investor Day was scheduled for March 26, 2026. The current ETN reverse split announcement fits into ongoing product and capital markets management rather than core earnings or capital actions.

Market Pulse Summary

This announcement details 1-for-10 reverse splits for two 3x inverse leveraged ETNs, changing tradin...

Analysis

This announcement details 1-for-10 reverse splits for two 3x inverse leveraged ETNs, changing trading denominations and CUSIPs while leaving aggregate principal unchanged aside from fractional cash payments. The ETNs are positioned as daily trading tools with high risk and sensitivity to index volatility. In context of BMO’s recent strong earnings, dividend increases, and capital strength, investors may focus on understanding ETN-specific leverage mechanics and monitoring future disclosures for product or balance sheet impacts.

Key Terms

reverse splits, exchange traded notes, indicative note value, cusip, +4 more

8 terms

reverse splits financial

"announced today that it will be implementing reverse splits of two series of its outstanding"

A reverse split is when a company combines multiple existing shares into a smaller number of higher-priced shares — for example, turning ten $1 shares into one $10 share — so the total value of your holdings stays roughly the same. Investors watch reverse splits because they can signal efforts to meet stock-exchange rules or improve market perception, but they often reduce share liquidity and can change how easy it is to buy or sell the stock.

exchange traded notes financial

"reverse splits of two series of its outstanding Exchange Traded Notes listed in the table"

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

"will equal, for each remaining ETN of that series, its closing Indicative Note Value on that date"

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

"Current CUSIP / New CUSIP"

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.

leveraged financial

"designed to reflect a 3x leveraged short exposure to the performance"

Leveraged means using borrowed money or other tools to increase the size of an investment so potential gains are larger than they would be with only your own funds. Like using a lever to lift a heavier object, leverage can magnify profits but also magnify losses, making the investment more volatile and increasing the chance of rapid losses or forced selling, which is critical for investors to manage carefully.

prospectus supplement regulatory

"including a pricing supplement, product supplement (if applicable), prospectus supplement and prospectus"

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.

registration statement regulatory

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

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.

senior, unsecured obligations financial

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

Senior, unsecured obligations are loans or bonds that a company promises to repay before lower-ranked (subordinated) creditors but without specific collateral backing them. They matter to investors because they combine relatively higher priority in a company’s payment order with greater risk than secured debt, so they typically offer higher yields and influence how much money investors could recover if the company runs into financial trouble.

AI-generated analysis. Not financial advice.

NEW YORK, Jan. 28, 2026 /PRNewswire/ - Bank of Montreal ("BMO") announced today that it will be implementing reverse splits of two series of its outstanding Exchange Traded Notes listed in the table below (each, an "ETN" and, collectively, the "ETNs"). Each reverse split is expected to be effective at the open of trading on February 9, 2026 (the "Effective Date").

The table below summarizes the reverse splits.

ETN Title	Ticker Symbol	Reverse Split Ratio	Split Factor	Current CUSIP / New CUSIP
MicroSectorsTM Gold Miners -3X Inverse Leveraged ETNs due June 29, 2040	GDXD	1-for-10	10	06367V709/  06368M302
MicroSectors™ FANG+™ Index -3X Inverse Leveraged ETNs due January 8, 2038	FNGD	1-for-10	10	06367V402/  06368M203

Each series of ETNs is expected to begin trading on NYSE Arca, Inc. on a reverse split-adjusted basis on the Effective Date. Holders of a series of ETNs who purchased such ETNs prior to the Effective Date will receive reverse split-adjusted ETNs based on the applicable Reverse Split Ratio set forth in the table above. For example, a 1-for-10 Reverse Split Ratio means that holders of a series of ETNs who purchased such ETNs prior to the Effective Date will receive one reverse split-adjusted ETN for every ten pre-reverse split ETNs they hold.

In addition, investors that hold a number of ETNs not evenly divisible by the applicable Split Factor will receive a cash payment for any fractional ETNs remaining (the "Partials"). The cash payment due on any Partials for each series of ETNs is expected to be determined on February 18, 2026 and will equal, for each remaining ETN of that series, its closing Indicative Note Value on that date. BMO will make any cash payment due on any Partials for each series of ETNs in accordance with its standard procedures through The Depository Trust Company, and expects that these amounts will be paid to holders of such ETNs on or about February 20, 2026. Investors should note that the timing of crediting amounts to their accounts will depend on processing by their brokers or other intermediaries.

The closing Indicative Note Value of each series of ETNs on February 6, 2026 will be multiplied by the applicable Split Factor to determine the reverse split-adjusted closing Indicative Note Value of such ETNs. Following the reverse split, each series of ETNs will have a new CUSIP but will continue to trade under its current ticker symbol.

Each reverse split will affect the trading denominations of the applicable series of ETNs, but will not have any effect on the aggregate principal amount of such ETNs, except that the aggregate principal amount of a series of ETNs will be reduced by the corresponding aggregate amount of any cash payments for any Partials applicable to those ETNs.

Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the applicable ETN Prospectus (as defined below).

Illustration of a Reverse Split

The following table shows the effect of a hypothetical 1-for-10 reverse split based on a hypothetical number of ETNs held and a hypothetical closing Indicative Note Value for the ETNs. The closing Indicative Note Value of an ETN is not the same as the trading price of such ETN.

	Number of ETNs Held	Hypothetical Closing Indicative Note Value	Aggregate Closing Note Indicative Value
Pre-Reverse Split	100,000	$5.00 per ETN	$500,000
Post 1-for-10 Reverse Split	10,000	$50.00 per ETN	$500,000

Disclosures

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 short exposure to the performance of the relevant index on a daily basis, before taking into account the negative effect of the fees and charges. However, due to 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 short investment in the relevant 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 intraday 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 relevant index, and returns on the ETNs may be negatively impacted in complex ways by the volatility of the relevant index on a daily or intraday basis. It is possible that you will suffer significant losses in the ETNs even if the long-term performance of the relevant index is negative. 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 leveraged exposure to the short performance of the relevant 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 applicable pricing supplement and related documents that we have filed with respect to the ETNs (each, an "ETN Prospectus"). Investors should review the relevant ETN Prospectus carefully prior to making an investment decision.

The ETN Prospectus relating to each series of ETNs 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 each series of the ETNs, has filed a registration statement (including a pricing supplement, product supplement (if applicable), prospectus supplement and prospectus) with the SEC regarding each series of the ETNs. Please read those documents and the other documents relating to these securities that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and the applicable securities. 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 applicable pricing supplement, the product supplement (if applicable), 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 indices 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 indices to track general stock market performance.

View original content:https://www.prnewswire.com/news-releases/bmo-announces-upcoming-reverse-splits-of-two-series-of-its-exchange-traded-notes-nyse-arca-gdxd-and-fngd-302673092.html

SOURCE BMO Financial Group

FAQ

What reverse split did BMO announce for GDXD and FNGD (NYSE Arca: GDXD, FNGD)?

BMO announced a 1-for-10 reverse split for both GDXD and FNGD effective at market open on February 9, 2026. According to the company, each series will trade on a reverse split-adjusted basis under the same ticker with new CUSIPs.

How will BMO handle fractional ETNs (Partials) after the GDXD and FNGD reverse split?

Investors with fractional ETNs will receive a cash payment for Partials rather than fractional notes. According to the company, Partials are expected to be determined on Feb 18, 2026 and paid on or about Feb 20, 2026.

Will GDXD and FNGD tickers change after the 1-for-10 reverse split?

No, both ETNs will continue trading under their current tickers (GDXD and FNGD). According to the company, each series will receive a new CUSIP but retain its existing ticker symbol on NYSE Arca.

How is the reverse split-adjusted closing Indicative Note Value for GDXD and FNGD calculated?

The reverse split-adjusted closing Indicative Note Value equals the Feb 6, 2026 closing Indicative Note Value multiplied by the split factor. According to the company, the Split Factor for both series is 10 for the 1-for-10 reverse split.

Are GDXD and FNGD suitable for long-term investors after the reverse split?

These ETNs are not intended for buy-and-hold and are designed for daily trading by sophisticated investors. According to the company, the 3x inverse daily leverage makes returns volatile and unsuitable for most long-term strategies.