SPCX Profile
The AXS SPAC and New Issue ETF is an actively managed exchange-traded fund (ETF) that focuses on investing in Special Purpose Acquisition Companies (SPACs) and companies that have recently gone public. Under normal market conditions, the fund allocates at least 80% of its net assets, including any borrowings, to units and shares of SPACs with a minimum market capitalization of $100 million. Additionally, the fund targets companies that have completed an initial public offering (IPO) within the past two years. This strategy allows the fund to capitalize on the growth potential of newly listed companies and the evolving SPAC market.
SPACs, also known as "blank check companies," are created to raise capital through an IPO with the aim of merging with or acquiring an existing business. By investing in SPACs, the fund seeks to benefit from the value creation associated with these entities as they transition into operating companies. The funds emphasis on SPACs with a substantial capitalization ensures that it invests in more established entities within the SPAC market, aiming to enhance potential returns while managing investment risk.
In addition to SPACs, the fund may invest in newly public companies that have recently completed their IPOs. This approach allows the fund to capture opportunities from companies at the early stages of their public market journey, potentially benefiting from their growth and development. The fund's investment in IPOs aligns with its objective to gain exposure to emerging market leaders and innovative firms that have recently entered the public equity space.
To maintain flexibility and manage liquidity, the fund may also hold up to 20% of its net assets in cash or high-quality short-term debt securities. This allocation can serve as a cash management tool or a strategic reserve in the event that suitable investment opportunities are not readily available. The fund may also invest in depositary receipts for operational purposes or to optimize its cash position. This strategy ensures that the fund remains agile and capable of adjusting its portfolio in response to market conditions and investment opportunities.
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