At a glance
Over the past year it returned −64.8% with distributions reinvested (S&P 500: +11.5%); over three years it returned −77.0% a year. At its worst it fell 56.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months after the low.
The short version
BERZ, the MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN, is an exchange-traded note from BMO Financial Group designed to deliver three times the opposite of its Solactive index's daily return, rising when that index falls. It is unsecured debt that BMO must repay, not a fund holding stocks. Because its exposure resets daily, it is built for short-term trading; it lost about 99% over the three years to October 27, 2026.
Price history
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BERZ -64.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| BERZ price data to Oct 27, 2026 | -66.1% | -64.8% | -77.0% | -65.6% | — | -65.8% |
- Over the year to Oct 27, 2026, BERZ returned -64.8%.
- Its 5-year annualized return was -65.6%.
- Its worst full calendar year was 2023 (-89.1%); its best was 2022 (+102.8%).
- The deepest fall in its price history was 99.8% (Oct 14, 2022 to Sep 22, 2026), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -66.1% |
| 2025 | -78.8% |
| 2024 | -66.0% |
| 2023 | -89.1% |
| 2022 | +102.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 186.3% over that stretch · deepest drop along the way 56.4%, back to its old high 1.9 months after the low |
How it works
BERZ is an exchange-traded note (ETN), not a fund. Its issuer, BMO Financial Group, promises a return linked to -3 times the daily performance of a Solactive FANG & Innovation index, minus fees. (FANG is a market nickname for a handful of large, well-known technology stocks.) The note doesn't own any stocks or bet against them. As bank debt, it has no fund prospectus or holdings reports, so how the index picks, weights and rebalances its stocks isn't described here.
The -3x target applies to one day at a time. If the index falls on a given day, the note is designed to rise by about three times that percentage; if the index rises, the note falls about three times as much. Then the exposure resets. Over longer periods, compounding (each day's result building on the last) can make returns differ sharply from -3 times the index's return, usually for the worse when the index swings up and down. A sustained rise in the index can erase most of the note's value.
Because an ETN is unsecured debt, meaning no specific assets back it, holders rely on BMO's ability to pay. If the bank ran into trouble, the note could lose value whatever the index did. The issuer can redeem the notes early, ending positions on its timing.
What it really costs
Structure and tax notes
- Resets its inverse exposure every day. Over periods longer than a day, compounding means returns can differ sharply from -3× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
- An exchange-traded note: unsecured debt of the issuing bank, not a fund. It owns no assets on investors’ behalf; it pays the index return minus fees only as long as the issuer can pay, so the bank’s credit matters, and the issuer can redeem the notes early.
In a retirement portfolio
Its -3x inverse exposure resets daily, it is unsecured bank debt, and it lost 99.8% from its October 2022 peak to its September 2026 low.
BERZ launched in August 2021, so it has no record in the 2008 financial crisis or the 2020 COVID crash. In the 2022 bear market, a long slide in stock prices, it gained 186.3% between the market's January 3 peak and October 12 low. Even then, it fell 56.4% from June 16 to August 15, 2022, before recovering by October 11. After that, losses were severe: 2023 was its worst calendar year at -89.1%, and from October 14, 2022, to September 22, 2026, it lost 99.8%, a drop it hadn't recovered from as of October 27, 2026. Anyone needing cash from it after that would have had little left. It has paid no distributions, and no fee figure was available for comparison. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders who want one-day, three-times inverse exposure to a Solactive FANG & Innovation index and can watch positions daily.
- Traders hedging against a brief fall in that index who can absorb steep swings: one-year volatility was 90.2% as of October 27, 2026.
- Traders comfortable with BMO Financial Group's credit risk, since the note is unsecured debt that holds no stocks and can be redeemed early.
Look elsewhere if
- Long-term and retirement investors: BERZ lost about 99% over the three years to October 27, 2026, and hadn't regained its October 2022 peak.
- Income seekers: it has made no distributions, so any return depends entirely on short-term price moves in the note.
- Anyone expecting -3 times the index over months: daily resets mean longer-run returns can differ sharply, usually for the worse in choppy markets.
Close alternatives
Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).
No close alternatives found.
Questions investors ask
Is BERZ good for retirement or long-term investing?
No, it isn't built for that. BERZ resets its -3x inverse exposure every day, so over longer periods compounding can pull results far from -3 times its index, usually for the worse in choppy markets. It fell 99.8% from its October 14, 2022, peak to its September 22, 2026, low. As of October 27, 2026, it had lost 77% a year, on average, over three years. It has also made no distributions and is unsecured debt of BMO Financial Group.
How does BERZ work?
BERZ aims to return three times the opposite of a Solactive FANG & Innovation index's daily move, minus fees. If the index falls on a given day, the note is designed to rise about three times as much in percentage terms. If the index rises, the note falls about three times as much. It is a promise from BMO Financial Group rather than a portfolio of stocks, and the target resets each day.
Is BERZ an ETF or an ETN?
BERZ is an ETN, or exchange-traded note, not an ETF. An ETF is a fund that owns assets on behalf of its shareholders. An ETN is unsecured debt of the issuing bank, here BMO Financial Group. It owns nothing for investors and pays the index-linked return, minus fees, only as long as the issuer can pay. The issuer can also redeem the notes early, on its own timing.
Does BERZ pay dividends?
No. BERZ has made no distributions, and because it is a note that owns no stocks, it has no dividends to pass along. Any gain or loss comes from changes in its price, which swings widely: its one-year volatility, a measure of how much the price moves around, was 90.2% as of October 27, 2026. Over the year to that date, it returned -64.8%.
How has BERZ performed since it launched?
Mostly poorly, after one strong year. Launched in August 2021, BERZ gained 102.85% in 2022, including a 186.3% rise between the stock market's January 3 peak and October 12 low. It then lost 89.12% in 2023, 65.95% in 2024 and 78.81% in 2025, and was down 66.08% for 2026 through October 27. Over the five years to that date, it lost 65.6% a year, on average.