At a glance
Over the past year it returned +15.6% with distributions reinvested (S&P 500: +11.5%).
The short version
MicroSectors U.S. Big Banks 3 Leveraged ETN (BNKU) is an exchange-traded note, or ETN, from BMO Financial Group. It aims to deliver three times the daily return of an index of big U.S. bank stocks, minus fees. It is built for short-term trading: the leverage resets every day, and because it is BMO's unsecured debt rather than a fund, it holds no shares and depends on BMO's ability to pay.
Price history
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BNKU +15.6% 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 | |
|---|---|---|---|---|---|---|
| BNKU price data to Oct 27, 2026 | -7.5% | +15.6% | — | — | — | +19.6% |
- Over the year to Oct 27, 2026, BNKU returned +15.6%.
- The deepest fall in its price history was 58% (Feb 20, 2025 to Apr 4, 2025), recovered by Jul 2, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -7.5% |
| 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
BNKU is not a fund. It is an exchange-traded note (ETN): unsecured debt issued by BMO Financial Group that trades on an exchange like a stock. BMO promises to pay a return linked to an index of big U.S. bank stocks, but it does not hold those shares on investors' behalf. Because it is a note, there is no fund prospectus and no holdings report showing which banks the index includes, how they are weighted or how often they are rebalanced.
The note aims to deliver three times the index's daily return, minus fees. The leverage resets every day. Over any period longer than a day, compounding means results can differ sharply from three times the index's return. In a steady, one-way market, that gap can work in a holder's favor. In choppy markets that swing up and down, it usually hurts, and value can leak away even if the index ends near where it started.
Two more features come with the note structure. First, BMO's credit matters: the note is unsecured, so it pays only as long as BMO can pay. Second, BMO can redeem the notes early, which could end a position at a time the holder did not choose.
What it really costs
Structure and tax notes
- Resets its 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
Its daily leverage reset, its structure as unsecured BMO debt and its 59.8% annualized volatility over the year to October 27, 2026, make it a trading instrument rather than a long-term holding.
At most, BNKU offers a short-term leveraged bet on big U.S. bank stocks. It launched in February 2025, so it has no record through the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market, and no full calendar year yet. Its deepest drop came right at the start: it lost 58% from February 20 to April 4, 2025, then took about 2.9 months to recover, by July 2, 2025. As of October 27, 2026, it was down 30.1% over three months. Anyone forced to cash out in a slump like that would lock in a deep loss, and the daily reset can wear down value over long holding periods. It has recorded no distributions, so it provides no income, and fees come out of its return. Past results don't predict the future, and a retirement plan needs to look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Experienced traders who want a short-term, three-times leveraged bet on big U.S. bank stocks and can check their positions every day.
- Investors who understand ETNs and accept that BNKU is unsecured BMO debt, with issuer credit risk and the chance of early redemption.
- Traders who can live with swings like its 58% drop in early 2025 and 59.8% annualized volatility over the year to October 27, 2026.
Look elsewhere if
- Retirees and long-term holders: the daily leverage reset means returns over months can drift far from three times the bank index.
- Income seekers: BNKU has recorded no distributions, so it provides no regular cash payouts to draw on.
- Investors who want to own actual bank shares: as BMO's unsecured debt, BNKU holds no stocks and has no fund holdings reports.
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
What does BNKU track?
BNKU tracks an index of big U.S. bank stocks. It aims to return three times that index's daily move, minus fees. It is an exchange-traded note issued by BMO Financial Group, not a fund, so it owns no bank shares. Because it is a note, there is no fund prospectus or holdings report listing the banks in the index or how they are weighted. Its returns depend on the index and on BMO's ability to pay.
Does BNKU really return 3x bank stocks?
Only over a single day. BNKU aims for three times the daily return of its big-bank index, and the leverage resets every day. Over weeks or months, compounding means its return can differ sharply from three times the index, usually for the worse when prices swing up and down. That is why it is built for short-term trading. Over the year to October 27, 2026, its beta was 2.73. Beta measures how strongly a security moves with the overall stock market.
Does BNKU pay dividends?
No. BNKU has recorded no distributions. As an exchange-traded note, it is BMO debt, not a fund that owns bank shares. It does not collect bank dividends and pass them on to holders. Any return comes from changes in the note's price, after fees. Investors who want regular income from bank stocks may find dividend-paying bank or financial-sector funds worth comparing.
Is BNKU good for retirement?
BNKU is not designed for retirement portfolios. It is a short-term trading tool whose leverage resets daily, and it is unsecured BMO debt. It has been extremely volatile. It fell 58% between February 20 and April 4, 2025, soon after launch, and dropped 30.1% in the three months to October 27, 2026. It pays no income. Because it launched in February 2025, it has no record through the 2008, 2020 or 2022 downturns.
What happens to BNKU if BMO can't pay?
Holders could lose money no matter how bank stocks perform. BNKU is an exchange-traded note, which is unsecured debt of BMO Financial Group. It owns no assets on holders' behalf. It pays the leveraged index return minus fees only as long as BMO can pay. That makes BMO's credit strength as important as the index. BMO can also redeem the notes early, which could end a holder's position at a time they did not choose.