MicroSectors -3× Short Investment Grade Corporate Bond (LQD) ETN

Exchange traded note issued by Bank of Montreal, seeking three times leveraged inverse participation in the daily performance of the VettaFi Investment Grade Corporate Bond Fund-Tracking Index, before fees and charges. The Index is a total return index tracking the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), providing exposure to U.S. dollar-denominated investment-grade corporate debt; the value of the ETNs generally rises as the Index falls and falls as the Index rises. Leverage is reset at the close on each Leverage Reset Day, so returns over periods longer than one day will differ, potentially significantly, from three times the point-to-point inverse return of the Index. The ETNs pay no interest, do not guarantee return of principal, and are subject to the credit risk of Bank of Montreal. The issuer states they are intended as daily trading tools for sophisticated investors rather than buy-and-hold investments, and are not intended to be held to maturity. Because there is no maximum limit to the level of the Index, an increase in the Index could cause a total loss.