At a glance
Over the past year it returned −46.4% with distributions reinvested (S&P 500: +11.5%).
The short version
MicroSectors U.S. Big Banks -3 Inverse Leveraged ETN (BNKD) is an exchange-traded note from BMO Financial Group. Its return is linked to three times the opposite of the daily move in an index of big U.S. bank stocks. Traders may use it to profit from, or hedge against, a brief drop in bank shares. It is unsecured BMO debt that resets daily, and it fell 90.2% from April 4, 2025, to August 14, 2026.
Price history
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BNKD -46.4% 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 | |
|---|---|---|---|---|---|---|
| BNKD price data to Oct 27, 2026 | -28.7% | -46.4% | — | — | — | -54.1% |
- Over the year to Oct 27, 2026, BNKD returned -46.4%.
- The deepest fall in its price history was 90.2% (Apr 4, 2025 to Aug 14, 2026), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -28.6% |
| 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 | Before this security existed |
How it works
BNKD is an exchange-traded note (ETN) issued by BMO Financial Group under the MicroSectors name. An ETN is unsecured debt. BMO promises a return linked to an index, minus fees, but it holds no bank shares or other assets for holders. This note is tied to an index of big U.S. bank stocks. As the -3 in its name signals, it is inverse and leveraged. On any one day, a fall in the index should lift the note by about three times as much in percentage terms. A rise should cut it by about three times as much.
The exposure resets every day. That keeps the multiple steady for a single day. Over longer stretches, though, each day's gain or loss builds on a new starting value. Returns over weeks or months can therefore differ sharply from three times the opposite of the index. The gap is usually worse when prices chop up and down. As of October 27, 2026, the note had lost 46.4% over one year, with price swings (volatility) of 59% a year.
Because it is a note, not a fund, BNKD has no fund prospectus, no holdings reports and no portfolio to rebalance. Its value depends on BMO being able to pay. BMO can also redeem the notes early, which could close a position on the issuer's timetable rather than the holder's.
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 -2× 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
It is built for trades lasting days because of its triple inverse exposure, daily reset and unsecured note structure, and it fell 90.2% between April 2025 and August 2026.
BNKD launched on February 19, 2025, so it has no record in the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Its short history is harsh. It fell 90.2% from its peak on April 4, 2025, to a low on August 14, 2026, and had not recovered as of October 27, 2026. Through that date it was down 28.65% for 2026 (a partial year) and 46.4% over one year. Anyone forced to raise cash during a stretch like that would lock in deep losses. It pays no income. Its fees are set by BMO's note terms rather than a fund expense ratio, and holders carry BMO's credit risk. Even as a hedge for bank stocks, the daily reset makes results over months hard to predict. Past results don't predict the future, and a plan should look at the whole portfolio, not one holding.
Who it may suit — and who should look elsewhere
May suit
- Active traders who want a magnified one-day bet against big U.S. bank stocks and can check their positions every day.
- Experienced investors hedging bank-stock exposure for days rather than months, who understand how the daily reset causes returns to drift.
- Traders who can stomach 59% one-year volatility (as of October 27, 2026) and a 90.2% fall from April 2025 to August 2026.
Look elsewhere if
- Retirees seeking income: BNKD has recorded no distributions and owns no dividend-paying bank shares.
- Long-term holders: it lost 46.4% in the year to October 27, 2026, and 54.1% since its February 2025 launch.
- Anyone wary of relying on one issuer: as an ETN, it is unsecured BMO Financial Group debt that BMO can redeem early.
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 BNKD an ETF or an ETN?
BNKD is an exchange-traded note (ETN), not an ETF. It trades on an exchange like a stock, but it is unsecured debt issued by BMO Financial Group under the MicroSectors name. It owns no bank shares or other assets on investors' behalf. Instead, BMO promises a return linked to three times the opposite of the daily move in a big U.S. bank stock index, minus fees. That promise holds only as long as BMO can pay.
Is BNKD a good long-term investment?
BNKD is built for short-term trading, not long holding. It resets its triple inverse exposure every day. Over weeks or months, compounding can pull its returns far from three times the opposite of the index, usually for the worse in choppy markets. As of October 27, 2026, it had lost 46.4% over one year and 54.1% since its February 19, 2025, launch. Its one-year volatility was 59%.
Does BNKD pay dividends?
No. BNKD has recorded no distributions. As a note, it owns no bank stocks, so it has no dividends to pass along. Any gain or loss comes only from changes in the note's price. That sets it apart from funds that hold bank shares and pay out their dividends. It also means BNKD adds nothing to a portfolio's income.
What happens to BNKD if BMO runs into trouble?
Holders could lose money even if their bet against bank stocks pays off. BNKD is unsecured debt of BMO Financial Group, so its payments depend on BMO's ability to pay, and no pool of assets is set aside for holders. BMO can also redeem the notes early, which could end a position at a time the holder did not choose. BMO is itself a bank, so stress across banking could weigh on the issuer just as the note gains most.
Why did BNKD drop so much?
BNKD loses value when big U.S. bank stocks rise, and its triple inverse exposure magnifies those moves each day. Daily compounding adds further losses when prices swing back and forth. From its peak on April 4, 2025, to its low on August 14, 2026, it fell 90.2%. It had not regained that peak as of October 27, 2026. Moves run both ways, though: it gained 29.1% over the three months to that date.