At a glance
It has $49.7M in assets, the 5th largest of that group. Over the past year it returned +171.8% with distributions reinvested (S&P 500: +11.5%), 4th of those 7 funds; over three years it returned +17.6% a year. At its worst it fell 63.6% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The short version
MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN (OILU) is an exchange-traded note from BMO Financial Group. It aims to deliver three times the daily return of an index of oil and gas exploration and production companies. It is bank debt, not a fund, and its leverage resets every day. That makes it far more volatile than 2x rivals such as GUSH: its one-year volatility was 67.5% as of October 27, 2026.
Price history
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OILU +171.8% 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 | |
|---|---|---|---|---|---|---|
| OILU price data to Oct 27, 2026 | +168.9% | +171.8% | +17.6% | — | — | +22.1% |
- Over the year to Oct 27, 2026, OILU returned +171.8%, 4th of 7 among similar funds.
- Its worst full calendar year was 2023 (-32.5%); its best was 2022 (+151.1%).
- The deepest fall in its price history was 81% (Jun 7, 2022 to Apr 10, 2025), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +168.9% |
| 2025 | -16.5% |
| 2024 | -21.6% |
| 2023 | -32.5% |
| 2022 | +151.1% |
| 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 112.7% over that stretch · deepest drop along the way 63.6%, not recovered by the end of the data |
How it works
OILU is an exchange-traded note (ETN), not a fund. A holder owns an unsecured promise from BMO Financial Group. BMO promises to pay the return of an oil and gas exploration and production index, tripled on a daily basis, minus fees. The note owns no stocks on investors' behalf, so it has no holdings to list. There is no fund prospectus and no holdings report.
The 3x target covers one day at a time. The exposure resets each day, so over weeks or months the result can differ sharply from three times the index. In choppy markets, where prices swing up and down without getting anywhere, this compounding usually works against holders. A strong, steady trend can work in their favor. That helps explain how OILU lost money in 2023, 2024 and 2025, then gained 168.9% in 2026 through October 27.
Because the note is debt, every payment depends on BMO's ability to pay. If the bank ran into trouble, holders could lose money even if oil and gas stocks rose. BMO can also redeem (pay off) the notes early, which could force holders out at a bad time. The note has made no distributions.
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
OILU is a daily-reset 3x note that fell 81% from its peak and had not recovered as of October 27, 2026, so it is built for short-term trading, not long-term holding.
OILU launched on November 8, 2021, so it has no record in the 2008 financial crisis or the 2020 COVID crash. During the 2022 bear market it rose 112.7% while the broad market fell. Along the way, though, it dropped 63.6% from June 7 to September 26, 2022. Its deepest drop was 81%, from June 7, 2022 to April 10, 2025, and it had not regained that peak as of October 27, 2026. Its worst calendar year was 2023, at −32.5%. Anyone forced to raise cash during a slump like that could lock in steep losses. It pays no income, and its fee was not available for this review. Past results don't predict the future, and any 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 magnified one-day bets on oil and gas exploration and production stocks and who check their positions daily.
- Traders who understand daily-reset compounding and can live with swings like 2022's 151% gain followed by losses in 2023, 2024 and 2025.
- People comfortable holding unsecured BMO debt, accepting the bank's credit risk and the chance the notes are redeemed early.
Look elsewhere if
- Long-term and retirement investors: its 81% drop from June 2022 to April 2025 had not recovered as of October 27, 2026.
- Anyone who needs income: OILU has made no distributions, and as a note it passes along no dividends from energy companies.
- Those who want milder swings: 2x products like GUSH and ERX still use heavy leverage, and an unleveraged energy fund moves far less.
Close alternatives
Matched by leveraged/inverse funds on the same index (energy), same direction.
| Fund | Exposure | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| OILU this fund | 3× | — | $49.7M | +171.8% | +17.6% |
| WTIU MicroSectors Energy 3X Leveraged ETNs | 3× | — | $20.3M | +185.3% | +17.8% |
| UCO ProShares Ultra Bloomberg Crude Oil | 2× | — | $437.9M | +200.6% | +23.9% |
| GUSH Direxion Daily S&P Oil & Gas Exp. & Prod. B… | 2× | — | $270.5M | +120.6% | +13.2% |
| ERX Direxion Daily Energy Bull 2X Shares | 2× | — | $267.9M | +127.5% | +31.2% |
| DIG ProShares Ultra Energy | 2× | — | $90.8M | +126.9% | +31.1% |
| NRGU MicroSectors U.S. Big Oil 3 Leveraged ETN | 1× | — | — | +263.6% | — |
Questions investors ask
Is OILU a good long-term investment?
It isn't designed to be one. OILU resets its 3x exposure every day, so over longer periods its returns can drift far from three times the index. As of October 27, 2026, its three-year return was 17.6% a year. But it fell 81% between June 7, 2022 and April 10, 2025 and had not regained that peak. It lost money in 2023, 2024 and 2025, then gained 168.9% in 2026 through October 27.
Is OILU an ETF or an ETN?
OILU is an exchange-traded note, not an ETF. It is unsecured debt issued by BMO Financial Group. It owns no stocks for investors. Instead, BMO promises to pay the leveraged index return minus fees. So holders take on the bank's credit risk: if BMO couldn't pay, they could lose money whatever oil stocks did. BMO can also redeem the notes early. There is no fund prospectus or holdings report.
What's the difference between OILU and GUSH?
Both give daily leveraged exposure to oil and gas exploration and production stocks. OILU aims for 3x, while Direxion's GUSH aims for 2x; GUSH's name refers to the S&P Oil & Gas Exp. & Prod. index. OILU is a BMO note, so it adds the bank's credit risk. GUSH is larger, with about $270.5 million in net assets against OILU's $49.7 million. Over one year to October 27, 2026, OILU returned 171.8% and GUSH 120.6%. Over three years, the figures were 17.6% and 13.2% a year.
Does OILU pay dividends?
No. OILU has made no distributions. As an exchange-traded note, it owns no shares in oil and gas companies, so it passes along no dividends. Its entire return comes from changes in the note's price, which follows three times the index's daily moves, minus fees. Investors who want income from energy stocks would need a different kind of product.
How risky is OILU?
Very risky. Volatility measures how widely returns swing. OILU's was 67.5% over one year and 68% over three years, as of October 27, 2026. Its worst drop over the past year was 46.5%, and it fell 81% from its June 2022 peak to April 2025. Other risks add to this: the daily leverage reset, compounding losses in choppy markets, BMO's credit risk and the chance of early redemption.