NVDS Profile
The AXS 1.25X NVDA Bear Daily ETF is an actively managed exchange-traded fund designed to provide investors with a leveraged inverse exposure to the daily performance of NVIDIA Corporation (NVDA). Under normal market conditions, the fund will maintain at least 80% of its net assets in financial instruments that offer 1.25 times inverse leverage relative to NVDA’s daily returns. This strategy aims to deliver a -125% performance of NVDA for a single trading day, before accounting for fees and expenses.
The ETF employs a daily rebalancing approach to achieve its investment objective, primarily through swap agreements tied to NVDA. These swap agreements are used to create the leveraged inverse exposure required to meet the fund's daily performance target. By focusing on daily returns, the fund is designed for short-term trading strategies and tactical positions, rather than long-term investments.
As an actively managed fund, the AXS 1.25X NVDA Bear Daily ETF involves the use of complex financial instruments to achieve its investment goals. The fund’s strategy is highly sensitive to daily market fluctuations and compounding effects, which can lead to performance deviations over periods longer than one day. Investors should be aware of the risks associated with leveraged and inverse ETFs, including potential high volatility and the impact of daily rebalancing on returns.
The AXS 1.25X NVDA Bear Daily ETF caters to investors looking to hedge against or profit from declines in NVIDIA’s stock price. It offers a specialized tool for those who anticipate short-term bearish movements in NVDA and seek to capitalize on such declines with enhanced leverage. Due to its non-diversified nature and complex investment strategy, the ETF is best suited for experienced investors with a clear understanding of the associated risks and mechanics.
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