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CARDMax Auto Industry -3X Inverse Leveraged ETN

Take a bet2y track recordRanked #593 of 775 in this goal

Seeks daily investment results equal to -3x the daily performance of the Prime Auto Industry Index, less a Daily Investor Fee.

By Bank of Montreal · Launched 2023

Annual Cost

0.95%

#4,684 of 5,562 · expensive

Fund Size

$1M

#5,406 of 5,562 · small

Return (1Y)Goal

-43.2%

Track Record

2 years

#3,056 of 5,562 · seasoned

Performance

Total-return NAV · USD
Growth of $10,000
$5,914-40.9%

Total-return NAV, USD. Net of fund fees, before tax.

Classification

How Beacon categorizes this fund

Asset class

Equity

Strategy

Inverse

Index tracked

Prime Auto Industry Index

What it actually holds

By weight

Concentration

Top 10 holdings = 78.8% of fundconcentrated

Carvana Co Class ACVNA
12.6%
Tesla IncTSLA
12.1%
Ford Motor CoF
11.0%
General Motors CoGM
8.0%
Rivian Automotive Inc Class ARIVN
7.8%
O'Reilly Automotive IncORLY
7.2%
AutoZone IncAZO
6.5%
Genuine Parts CoGPC
5.2%
Ferrari NVRACE.MI
4.7%
CarMax IncKMX
3.8%

Asset allocation

Stocks
100.0%

By sector

Consumer Cyclical
98.7%
Industrials
1.3%

Risk profile

Last 12 months · Sharpe & Sortino need 3+ years
Volatility (1Y)
70.1%High

Year-on-year price swings

Max drawdown
-82.5%Severe

Worst peak-to-trough loss

Sharpe (3Y)
Unavailable

Needs 3+ years of history

Sortino (3Y)
Not yet

Needs 3+ years of history

Where to buy

Listing

Exchange
NYSE Arca

Full fund details

Objective
Seeks daily investment results equal to -3x the daily performance of the Prime Auto Industry Index, less a Daily Investor Fee.
Strategy
Daily-reset 3x inverse leveraged exposure to U.S.-listed automobile industry companies (manufacturing, parts and retail, new and used car dealers) via the Prime Auto Industry Index. Designed for short-term trading; daily compounding causes returns over periods longer than one day to diverge significantly from -3x the underlying index return.
Inception date
June 27, 2023
Fund family
Bank of Montreal

Our take

Structural notes on how this fund behaves. Read our guide on the 6 warning signs.

Leveraged
Warning

Leveraged ETF — not a long-term hold

This fund uses leverage to amplify daily returns (e.g. 2x or 3x of an index). Daily rebalancing creates volatility decay — over weeks and months, the fund's return drifts from the stated multiple. In trending markets with low realised volatility, leveraged index ETFs can outperform their nominal multiple; in sideways or volatile markets they bleed. Designed for short-term tactical use, not buy-and-hold.

Source: Cheng & Madhavan, 'The Dynamics of Leveraged and Inverse ETFs' (2009)

Why we flagged this: strategy=inverse + leveraged_name_or_strategy

Inverse
Warning

Inverse ETF — daily tool only

Delivers the inverse of the benchmark's daily return. The compounding path makes multi-day holding unpredictable even when the benchmark's total move goes your way. Legitimate as a one-day hedge; dangerous as a view.

Source: Cheng & Madhavan (2009)

Why we flagged this: strategy=inverse + inverse_name_or_strategy

Educational analysis of structural product characteristics. Not investment advice. Always read the fund prospectus and consult a qualified advisor before investing. More

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Data updated on 2026-06-19