BMO Increases the Financing Spread for its MicroSectors™ Gold Miners 3X Leveraged ETNs (NYSE Arca: GDXU)
BMO announced that the Financing Spread for its MicroSectors™ Gold Miners 3X Leveraged ETNs (GDXU) will increase from 2.25% to 3.25%, effective November 21, 2025 (Fee Effective Date).
The Daily Financing Charge, which is the Federal Reserve Bank Prime Loan Rate plus the Financing Spread, will increase and will therefore reduce returns on the ETNs. Holders may hold, sell in the secondary market, or elect redemption under the ETN terms. The issuer waived the Minimum Redemption Amount for redemptions validly elected on or after the announcement date through the Fee Effective Date; outside that period, redemptions require a minimum of 25,000 ETNs. The notice warns the change may adversely affect liquidity and secondary-market prices and reiterates that the ETNs are intended as short-term daily trading tools for sophisticated investors.
BMO ha annunciato che lo Spread di Finanziamento per i suoi MicroSectors™ Gold Miners 3X Leveraged ETNs (GDXU) aumenterà da 2,25% a 3,25%, con effetto 22 novembre 2025 (Data di efficacia della commissione).
Il Costo di Finanziamento Giornaliero, cioè il tasso Prime del Federal Reserve Bank più lo Spread di Finanziamento, aumenterà e di conseguenza ridurrà i rendimenti degli ETN. I titolari possono detenere, vendere sul mercato secondario o optare per il rimborso secondo i termini dell'ETN. L'emittente ha rinunciato all'importo minimo di rimborso per i rimborsi validamente eletti dalla data dell'annuncio fino alla Data di Efficacia della Commissione; al di fuori di tale periodo, i rimborsi richiedono un minimo di 25.000 ETNs. L'avviso avverte che la modifica potrebbe influire negativamente sulla liquidità e sui prezzi del mercato secondario e ribadisce che gli ETN sono strumenti di trading quotidiano a breve termine destinati a investitori sofisticati.
BMO anunció que el Spread de Financiamiento para sus ETNs apalancados de 3x para Mineros de Oro MicroSectors™ (GDXU) aumentará de 2.25% a 3.25%, con efecto a partir del 21 de noviembre de 2025 (Fecha de Vigencia de la Tarifa).
El Costo de Financiamiento Diario, que es la Tasa de Préstamo Prime del banco Federal Reserve más el Spread de Financiamiento, aumentará y, por lo tanto, reducirá los rendimientos de los ETNs. Los tenedores pueden mantener, vender en el mercado secundario o elegir el reembolso conforme a los términos del ETN. El emisor eximió el Monto Mínimo de Redención para redenciones válidamente elegidas desde la fecha del anuncio hasta la Fecha de Vigencia de la Tarifa; fuera de ese periodo, las redenciones requieren un mínimo de 25.000 ETNs. El aviso advierte que el cambio podría afectar negativamente a la liquidez y a los precios del mercado secundario y reitera que los ETNs están destinados como herramientas de negociación diaria a corto plazo para inversores sofisticados.
BMO는 MicroSectors™ Gold Miners 3X Leveraged ETNs (GDXU)의 파이낸싱 스프레드가 2.25%에서 3.25%로 상승하며, 이는 2025년 11월 21일에 발효됩니다(수수료 발효일).
일일 파이낸싱 비용은 연방준비은행 프라임 대출 금리와 파이낸싱 스프레드를 합친 것으로 증가하여 ETN의 수익을 감소시킬 것입니다. 보유자는 ETN의 조건에 따라 보유, 2차 시장에서 매도 또는 상환을 선택할 수 있습니다. 발행사는 발표일로부터 수수료 발효일 까지 유효하게 선택된 상환에 대한 최소 상환 금액을 면제했습니다; 그 기간 외에는 최소 25,000 ETNs의 상환이 필요합니다. 이 공지는 변경이 유동성 및 2차 시장 가격에 부정적 영향을 줄 수 있음을 경고하며, ETN이 고급 투자자를 위한 단기 일일 거래 도구로 의도되었음을 재차 강조합니다.
BMO a annoncé que l'Écart de Financement pour ses ETNs à effet de levier 3x sur les or mineurs MicroSectors™ (GDXU) augmentera de 2,25% à 3,25%, avec effet le 21 novembre 2025 (Date d'effet des frais).
Le Coût de Financement Quotidien, qui est le Taux d'Emprunt Prime de la Banque de Réserve fédérale plus l'Écart de Financement, augmentera et réduira ainsi les rendements des ETN. Les détenteurs peuvent détenir, vendre sur le marché secondaire ou choisir le rachat conformément aux termes de l'ETN. L'émetteur a exonéré le Montant Minimum de Rachat pour les rachats valablement élits à partir de la date d'annonce jusqu'à la Date d'Effet des Frais; en dehors de cette période, les rachats nécessitent un minimum de 25.000 ETNs. L'avis avertit que le changement pourrait affecter négativement la liquidité et les prix du marché secondaire et réitère que les ETN sont destinés à des outils de négociation quotidienne à court terme pour des investisseurs sofisticés.
BMO gab bekannt, dass der Financing Spread für seine MicroSectors™ Gold Miners 3X Leveraged ETNs (GDXU) von 2,25% auf 3,25% erhöht wird, wirksam ab dem 21. November 2025 (Gebührenwirkungsdatum).
Die Daily Financing Charge, die den Prime Loan Rate der Federal Reserve Bank zuzüglich des Financing Spread darstellt, wird steigen und damit die Renditen der ETNs verringern. Inhaber können halten, im Sekundärmarkt verkaufen oder eine Rückzahlung gemäß den ETN-Bedingungen wählen. Der Emittent hob den Mindest-Rückzahlungsbetrag für Rückzahlungen, die gültig ab dem Ankündigungsdatum bis zum Gebührenwirkungsdatum gewählt wurden, auf; außerhalb dieses Zeitraums ist eine Rückzahlung von mindestens 25.000 ETNs erforderlich. Die Mitteilung warnt, dass die Änderung die Liquidität und die Preise im Sekundärmarkt beeinträchtigen könnte, und erinnert daran, dass die ETNs als kurzfristige Daily-Trading-Tools für anspruchsvolle Investoren gedacht sind.
BMO أعلن أن فرق التمويل لـ MicroSectors™ Gold Miners 3X Leveraged ETNs (GDXU) سيزداد من 2.25% إلى 3.25%، ساري المفعول اعتباراً من 21 نوفمبر 2025 (تاريخ سريان الرسوم).
سيزداد رسم التمويل اليومي، الذي هو معدل الاقتراض الأساسي لبنك الاحتياطي الفيدرالي بالإضافة إلى فرق التمويل، وبالتالي ستنخفض عوائد الـ ETNs. يجوز للمُلّاك الاحتفاظ بالأسهم، البيع في السوق الثانوية، أو اختيار الاسترداد وفقاً لشروط ETN. أعفى المُصدر من الحد الأدنى للاسترداد للاستردادات التي تم اختيارها بشكل صحيح من تاريخ الإعلان حتى تاريخ سريان الرسوم؛ خارج تلك الفترة، يتطلب الاسترداد حدًا أدنى قدره 25,000 ETN. يحذر الإعلان من أن التغيير قد يؤثر سلباً على السيولة وأسعار السوق الثانوية ويعيد التذكير بأن ETNs مخصصة كأدوات تداول يومية قصيرة الأجل للمستثمرين المتطورين.
- Financing Spread adjustment is effective Nov 21, 2025
- Minimum Redemption Amount waived for elections from Nov 14 to Nov 21, 2025
- Financing Spread increased by 1.00 percentage point (2.25% to 3.25%)
- Daily Financing Charge will increase, which will adversely affect ETN returns
- Issuer warns the change may adversely impact liquidity and secondary-market price
Insights
BMO raises the ETN financing spread from
The ETNs deduct a Daily Financing Charge equal to the Federal Reserve Bank Prime Loan Rate plus the Financing Spread. Raising the Financing Spread from
This change can depress secondary-market prices and reduce net carry for short-term traders who use these ETNs as daily leverage tools. The issuer notes the Minimum Redemption Amount will not apply for redemptions elected up to and including
Monitor intra-day Indicative Note Value, secondary-market bid-ask spreads, and trading volume in the days around
Filed Pursuant to Rule 433
Registration Statement No. 333-285508
November 14, 2025
It is expected that effective as of November 21, 2025 (the "Fee Effective Date"), the Financing Spread will be increased as follows:
|
ETN Title |
Ticker Symbol |
CUSIP |
Current Financing Spread |
Adjusted Financing Spread |
|
MicroSectors™ Gold Miners 3X Leveraged ETNs due June 29, 2040 |
GDXU |
063679542 |
2.25 % |
3.25 % |
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 the Financing Spread is increasing, the Daily Financing Charge will also increase, and your return on the ETNs will be adversely affected.
Holders of the ETNs may choose to continue to hold their ETNs, or 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 us 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 you may be able to sell your 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™ Gold Miners Index (the "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 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 impacted in complex ways by the volatility of the Index on a daily or intra-day basis. It is possible that you 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.
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About BMO Financial Group
BMO Financial Group is the seventh largest bank in
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.
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SOURCE BMO Financial Group
FAQ
What change did BMO announce for GDXU effective November 21, 2025?
How does the financing spread increase affect GDXU investor returns?
Can GDXU holders redeem early without the 25,000 minimum after the announcement?
What are GDXU redemption requirements outside the waiver window?
Will the financing spread increase likely affect GDXU secondary-market liquidity or price?
