The MicroSectors product line is a partnership between REX Shares and the Bank of Montreal, which is the issuer of these ETNs.
ETNs are unsecured debt instruments issued and underwritten by banks or other large financial institutions. They can be held to maturity or sold. Unlike exchange-traded funds, which are backed by their underlying basket of securities, ETNs are backed by the creditworthiness of their underwriters. In this case, the MicroSectors products are unsecured obligations of the Bank of Montreal.
All of the U.S. Big Bank ETNs are slated to mature on March 25, 2039. Investors who hold their ETNs until maturity would get a cash payment based on the leveraged participation in the performance of the index.
But these aren’t buy-and-hold investments. As REX Shares states in the product literature, these ETNs are meant to be daily trading tools for sophisticated investors to manage daily trading risks in their portfolio.