SARK Profile
The AXS Short Innovation Daily ETF is an actively managed exchange-traded fund designed to deliver the inverse performance of the ARK Innovation ETF on a daily basis. Specifically, it aims to achieve -1x the return of the ARK Innovation ETF for a single trading day through the use of a swap agreement. This means that if the ARK Innovation ETF gains value, the AXS Short Innovation Daily ETF is designed to decline in value proportionately, and vice versa. The funds objective is to provide a hedge or speculative play for investors expecting short-term declines in the ARK Innovation ETFs value.
The ARK Innovation ETF, the benchmark for this inverse fund, is known for its focus on disruptive innovation and long-term growth. It invests primarily in equity securities of companies engaged in transformative technologies and innovations across various sectors, including technology, healthcare, and industrials. These companies are typically characterized by their potential to significantly impact and disrupt traditional business models through groundbreaking products or services. As a result, the ARK Innovation ETF is heavily weighted towards high-growth, high-risk investments.
The AXS Short Innovation Daily ETF leverages financial instruments such as swap agreements to achieve its inverse exposure. This daily rebalancing strategy allows the fund to maintain its inverse relationship to the ARK Innovation ETFs performance on a day-to-day basis. However, due to the daily reset of leverage, the fund's performance may deviate significantly from -1x of the ARK Innovation ETF's return over periods longer than one day, particularly in volatile or trending markets.
As an actively managed fund, the AXS Short Innovation Daily ETF provides investors with a tool to potentially benefit from declines in the ARK Innovation ETFs value or to hedge existing positions against short-term market moves. It is important to note that the fund is non-diversified, focusing solely on achieving inverse returns relative to its benchmark ETF. Investors should carefully consider the risks associated with inverse ETFs, including the potential for substantial losses and increased volatility.
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