BMO Announces Feb. 24 Reverse Splits for Six MicroSectors ETNs, Forward Splits for Three

BMO moves to reshape denominations of multiple MicroSectors ETNs

Bank of Montreal is implementing a coordinated programme of reverse splits across six Exchange Traded Notes (ETNs) and forward splits across three other ETNs, all taking effect at the open of trading on Feb. 24, 2026 on NYSE Arca, the bank announces. The reverse splits affect six MicroSectors -3× inverse leveraged ETNs, including BERZ (MicroSectors FANG & Innovation) at 1‑for‑20, DULL (MicroSectors Gold) at 1‑for‑50, BNKD and NRGD (U.S. Big Banks and U.S. Big Oil) at 1‑for‑5, and FLYD and OILD (Travel and Oil & Gas E&P) at 1‑for‑10. For the reverse‑split series BMO provides new CUSIPs for post‑split securities and says each series will begin trading on a reverse split‑adjusted basis on the Ex‑Date.

BMO outlines that holders of pre‑Effective Date ETNs receive reverse split‑adjusted ETNs according to the stated ratios (for example, one post‑split ETN for every ten pre‑split ETNs in a 1‑for‑10 split). Any fractional ETNs that are not divisible by the split factor will be paid in cash based on the closing Indicative Note Value on March 2, 2026, with cash payments routed through The Depository Trust Company and expected to settle on or about March 4, 2026, subject to broker processing. The affected inverse products retain their original maturity dates, and BMO reiterates that the swaps remain leveraged daily trading vehicles rather than buy‑and‑hold instruments.

Industry observers say such reverse splits commonly aim to manage trading denominations and marketability of lower‑priced ETNs while preserving aggregate principal and contractual terms; BMO notes the reverse splits do not change the aggregate principal amount or the economic exposure of each series. The bank stresses that trading will reflect split‑adjusted quantities on the Ex‑Date and that specific post‑split holdings, tax treatment and account credits depend on intermediary settlement processes and the applicable offering documents.

Concurrent forward splits on three leveraged ETNs

Separately, BMO declares forward splits for three leveraged ETNs effective on the same Ex‑Date: BULZ (MicroSectors FANG & Innovation 3×) and SHNY (MicroSectors Gold 3×) undergo 10‑for‑1 splits, while SPYU (MAX S&P 500® 4×) undergoes a 2‑for‑1 split. Record holders as of Feb. 20, 2026 see split adjustments based on closing Indicative Note Values on Feb. 23, with tickers and CUSIPs retained and aggregate principal unchanged.

Investor advisory and operational notes

BMO instructs investors to consult the applicable prospectuses, supplemental notices and offering documents for full details, including the precise mechanics, tax considerations and timing of brokerage credits, and cautions that actual settlement and posting may vary with intermediary processing and market conditions.