At a glance
Over the past year it returned −45.5% with distributions reinvested (S&P 500: +11.5%); over three years it returned +9.0% a year.
The short version
MAX Auto Industry 3X Leveraged ETN (CARU) is an exchange-traded note from BMO Financial Group. Its return is linked to three times the daily move of an auto industry stock index, minus fees. It is a bank's unsecured debt rather than a fund, so it owns no stocks for investors, and BMO's ability to pay matters. The leverage resets daily, which makes it a tool for short-term traders betting on auto stocks, not for long-term holders.
Price history
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CARU -45.5% 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 | |
|---|---|---|---|---|---|---|
| CARU price data to Oct 27, 2026 | -43.2% | -45.5% | +9.0% | — | — | -11.7% |
- Over the year to Oct 27, 2026, CARU returned -45.5%.
- Its worst full calendar year was 2025 (+7.3%); its best was 2024 (+23.4%).
- The deepest fall in its price history was 66.4% (Jul 19, 2023 to Oct 30, 2023), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -43.2% |
| 2025 | +7.3% |
| 2024 | +23.4% |
| 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
CARU doesn't pick investments the way a fund does. It is an exchange-traded note, which is unsecured debt issued by BMO Financial Group. It doesn't hold auto stocks. Instead, BMO promises to pay a return linked to three times the daily performance of an auto industry stock index, minus fees. Because it is a note, it has no fund prospectus or holdings reports. The index's name, selection rules and weightings weren't available for this review, so its largest companies can't be listed here.
The leverage resets every day. Each day the note aims for three times that day's index move, then starts fresh. Over periods longer than a day, compounding means returns can differ sharply from three times the index's return. If the index zigzags and ends where it started, a 3x daily note will usually end lower. Steady trends can help, but losses are magnified just as much as gains.
The structure also adds risks a fund doesn't have. The note pays only as long as BMO can pay. Holders own no pool of assets, so if the bank ran into financial trouble, they could lose money even if auto stocks rose. BMO can also redeem the notes early, which could end a position at a time the holder didn't 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 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
It is a 3x daily-reset note backed only by BMO's promise to pay, built for short-term bets on auto stocks rather than long-term holding.
CARU launched on June 27, 2023, so it has no record through the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Its deepest drop was 66.4%, from July 19 to October 30, 2023. It had not regained that peak as of October 27, 2026. Its weakest full calendar year, 2025, was still a 7.3% gain, following 23.4% in 2024. But it fell 43.2% in 2026 through October 27. Its one-year volatility, a measure of how widely prices swing, was 71.4% as of that date. Anyone forced to cash out in a slump like that would lock in steep losses. It has paid no distributions, so it provides no income, and its fee wasn't available for this review.
Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders seeking a magnified one-day bet on auto industry stocks who can monitor the position every day.
- Experienced investors who understand daily-reset compounding and can handle one-year volatility (a measure of price swings) of 71.4% as of October 27, 2026.
- Traders comfortable relying on BMO Financial Group's credit, since the note is unsecured debt and the bank can redeem it early.
Look elsewhere if
- Retirees and income seekers: CARU has paid no distributions, and it hadn't recovered from a 66.4% drop in 2023 by October 27, 2026.
- Long-term holders: the daily reset can pull multi-month returns far from three times the index, usually for the worse in choppy markets.
- Investors wanting transparent holdings or no bank credit risk: as a BMO note, CARU owns no stocks and publishes no 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
Is CARU good for long-term investing?
No, it isn't built for that. CARU resets its 3x leverage daily. Over periods longer than a day, compounding can make returns differ sharply from three times the index, usually for the worse in choppy markets. Its record also shows how deep losses can run. As of October 27, 2026, its one-year return was -45.5%. It also had not recovered from a 66.4% drop between July and October 2023.
Is CARU an ETF or an ETN?
CARU is an ETN, or exchange-traded note, not an ETF. It trades on an exchange like a fund, but it is unsecured debt issued by BMO Financial Group and owns no assets on investors' behalf. BMO pays a return tied to three times the daily move of an auto industry index, minus fees, but only as long as the bank can pay. BMO can also redeem the notes early.
Does CARU pay dividends?
No. CARU has never paid a distribution, so it provides no income. Any return comes only from changes in the note's price. That price reflects the auto industry index, the 3x daily leverage, fees and BMO's ability to pay. For retirees or others who depend on regular cash flow, the only way to get money out is to cash in the notes. After a steep drop, that could mean taking a loss.
What stocks does CARU hold?
None on investors' behalf. CARU is an exchange-traded note, a debt promise from BMO Financial Group rather than a fund. It has no portfolio and publishes no holdings reports. Its return is linked to an auto industry stock index. That index's name and largest components weren't available for this review. BMO's documents for the notes are the place to check which companies drive its returns.
How has CARU performed since it launched?
Unevenly. CARU launched on June 27, 2023. It gained 23.4% in 2024 and 7.3% in 2025, then fell 43.2% in 2026 through October 27. Its three-year gain was 29% in total, or about 9% a year, as of that date. That period started just before its October 30, 2023 low, which flatters the figure. Its return since launch was -11.7%, and its one-year volatility, a gauge of price swings, was 71.4%.