MicroSectors, known for its suite of leveraged Exchange Traded Notes (ETNs), has introduced two new instruments designed to give sophisticated, short-term traders direct exposure to artificial intelligence (AI) as a standalone sector. The MicroSectors 3X Long Artificial Intelligence ETN (NYSE: AIQU) and the MicroSectors 3X Short Artificial Intelligence ETN (NYSE: AIQD) are now available, according to a press release issued by the company.
The launch underscores a growing recognition that AI is no longer merely a sub-theme of the technology sector but has evolved into its own tradable category with distinct dynamics. As noted in the release, AI now possesses its own capital expenditure cycle, leaders, and price action, making it a focal point for investors. The ETNs seek to provide three times leveraged or inverse leveraged participation in the daily performance of the BITA AI Leaders Select NTR U.S. Index, before fees and other costs.
The underlying index is designed to track the performance of 25 U.S.-listed companies involved in AI technologies, from both an application and infrastructure perspective. It is a net total return index, meaning dividends are reinvested after applicable withholding taxes. The index methodology splits constituents into two categories: 'Key Enablers' and 'Purity Leaders.' Key Enablers, which include companies that provide the 'picks and shovels' of the AI economy—such as semiconductor manufacturers, networking firms, and platform providers—currently make up 60% of the index. Purity Leaders, companies that derive at least 50% of their revenue from AI products and services, represent the remaining 40%. As of June 2, 2026, the index is allocated with Key Enablers equal-weighted and Purity Leaders weighted by liquidity. The index rebalances monthly and refreshes its constituent list quarterly, ensuring the basket remains aligned with its rules-based methodology.
The decision to launch these ETNs is supported by three key factors highlighted by REX Shares, the issuer: spending, concentration, and volatility. Hyperscaler capital expenditures tied to AI have reset baselines for semiconductors, networking, and power, meaning AI-related spending no longer fits neatly into a generic technology basket. Additionally, a small group of U.S.-listed companies is capturing most of the AI earnings growth, making sector-targeted exposure more precise than broad-tech exposure. Finally, AI stocks exhibit significant price movement, which is precisely the kind of action that daily 3X or -3X tools are built to capture.
While the potential for amplified returns may appeal to active traders, the press release cautions that these ETNs are not suitable for all investors. They are designed as daily trading tools for sophisticated investors who can closely monitor positions. Holding these ETNs for longer than one day can lead to compounding effects and decay that may erode returns. Additionally, because they are unsecured debt obligations of the Bank of Montreal (BMO), they carry the credit risk of the issuer. The ETNs are not intended for buy-and-hold investors and require active management.
For those interested in trading their convictions on AI, the new ETNs offer a way to express a bullish or bearish view on a basket of AI leaders for a single trading day. As the release states, the instruments balance exposure between Key Enablers and Purity Leaders through a rules-based, liquid basket of U.S.-listed stocks. Further details are available from MicroSectors and REX Shares.
