Microsectors US Big Oil Index 3x Leveraged ETN (NRGU)

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By buying this are you charged an annual fee ?


Repayment is guaranteed by the issuer – in other words, your money is only as safe as the issuer. If the issuer goes bankrupt, your ETN goes up in smoke. This additional layer of credit risk makes ETNs riskier than ETFs.
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Once issued, ETNs charge annual fees and trade on exchanges just like ETFs. Investors can hold their note until maturity or sell it early on the stock market.
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But structurally, ETFs and ETNs work differently. An ETF is a fund. It owns shares of the stocks, bonds or other securities in its portfolio. When you buy an ETF, you become a fractional owner of those securities

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About MicroSectors™ US Big Oil 3X Lvrgd ETN

The investment seeks to reflect a 3x leveraged long exposure to the performance of the Solactive MicroSectorsTM U.S. Big Oil Index on a daily basis.

The notes are senior unsecured medium-term notes issued by Bank of Montreal with a return linked to a three times leveraged participation in the performance of the index, compounded daily, less a Daily Investor Fee, the Daily Financing Charge and, if applicable, the Redemption Fee Amount.

The index is an equal-dollar weighted index designed to represent the 10 U.S. listed stocks with the largest market capitalization in the energy/oil sector.

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What Is an ETF? The Ultimate Guide

https://money.usnews.com/investing/funds/articles/what-is-an-etf-the-ultimate-guide