Bank of Montreal – MicroSectors Energy 3x Leveraged ETNs (WTIU) filed a 424B2 prospectus supplement covering a $1.402 million issuance of Capped Enhanced Return Notes due June 24, 2026. The unsecured notes are linked to an equally weighted basket of Stryker (SYK) and Thermo Fisher (TMO).
The structure provides 300% leveraged upside on any basket appreciation, but payouts are limited to a 20.25% cap ($1,202.50 per $1,000 note). If the basket declines, investors lose principal on a 1-for-1 basis and could incur a total loss. The notes bear no interest, are not exchange-listed, and are subject to Bank of Montreal’s credit risk. Agent BMOCM receives a 1.25% selling concession; the estimated initial value is $969.42 per $1,000 note.
Bank of Montreal has issued $1,565,000 in Barrier Notes due June 23, 2026, linked to the performance of three major indices: Nasdaq-100 Technology Sector Index, Russell 2000 Index, and S&P 500 Index. The notes offer monthly interest payments of 0.7625% (approximately 9.15% annually).
Key features include:
- Notes will pay monthly coupons of $7.625 per $1,000 principal amount
- Principal is at risk if any Reference Asset falls below 70% of its Initial Level (Trigger Event)
- If a Trigger Event occurs, investors lose 1% for each 1% decline in the worst-performing index
- Maximum return is limited to coupon payments regardless of index appreciation
Initial index levels are: NDXT: 11,161.22, RTY: 2,101.960, SPX: 5,982.72. The estimated initial value is $972.13 per $1,000 principal amount. Notes are subject to Bank of Montreal's credit risk and will not be listed on any securities exchange.
Bank of Montreal has issued $2,535,000 in Digital Return Barrier Notes due July 23, 2026, linked to the performance of the S&P 500 and Russell 2000 indices. The notes offer a 10.05% digital return if the least performing index remains at or above 80% of its initial level at maturity.
Key features include:
- Initial levels: S&P 500 at 5,982.72 and Russell 2000 at 2,101.960
- Digital barrier level: 80% of initial levels
- Principal at risk: Investors lose 1% for each 1% decline below barrier level
- Pricing date: June 17, 2025
- Maturity date: July 23, 2026
The notes carry significant risks including potential loss of principal, limited upside capped at 10.05%, exposure to the worst-performing index only, and credit risk of Bank of Montreal. The estimated initial value is $964.55 per $1,000 principal amount.