If you thought the AI investment product arms race was slowing down, think again. Rex Shares and Bank of Montreal have teamed up to launch two new leveraged exchange-traded notes that let traders make turbocharged bets on artificial intelligence stocks, both long and short.
The products, trading under the tickers AIQU and AIQD, began trading on June 2. AIQU provides 3x long daily exposure to the BITA AI Leaders Select NTR US Index, while AIQD offers the inverse: -3x short daily exposure to the same basket. In English: AIQU triples any daily gain in the index (and triples any loss), while AIQD does the opposite, profiting when AI stocks fall.
What’s actually in the box
The underlying index, tracked by the ticker BAILSN, holds 25 US-listed companies categorized into two buckets. “Purity Leaders” are firms with high revenue exposure directly tied to AI. “Key Enablers” are companies that provide critical infrastructure or support for AI deployment but aren’t pure-play AI businesses.
Both products are structured as exchange-traded notes, not exchange-traded funds. That distinction matters more than most people realize. ETNs are unsecured debt obligations issued by a bank, in this case BMO. They don’t actually hold the underlying stocks. Instead, BMO promises to pay returns linked to the index’s performance.
