TARK Profile
AXS 2X Innovation ETF is an exchange-traded fund designed to provide investors with leveraged exposure to the performance of the ARK Innovation ETF. The fund aims to achieve twice the daily performance of the ARK Innovation ETF by entering into swap agreements with major global financial institutions. These agreements are structured to exchange the return differentials between the fund and the underlying ARK Innovation ETF, allowing the fund to amplify the returns of its benchmark.
The fund utilizes swap agreements to gain leveraged exposure, which involves agreeing with financial institutions to exchange the returns earned on the ARK Innovation ETF. The swap agreements can vary in duration, ranging from a single day to over a year, depending on the terms negotiated with the counterparties. This approach enables the AXS 2X Innovation ETF to provide a leveraged return of 200% relative to the daily performance of its benchmark ETF, targeting enhanced gains in rapidly growing sectors such as technology and innovation.
As a leveraged fund, the AXS 2X Innovation ETF aims to deliver double the daily returns of its underlying index, which is composed of high-growth, innovative companies identified by ARK Invest. These companies are typically involved in sectors such as disruptive technology, artificial intelligence, and biotechnology. The fund’s leveraged strategy can result in higher volatility and risk, making it suitable for investors who seek short-term trading opportunities and are comfortable with the potential for amplified gains and losses.
Managed by AXS Investments, the ETF benefits from the firm's expertise in structured and leveraged financial products. AXS Investments applies sophisticated financial engineering and risk management techniques to ensure that the fund meets its leveraged performance objectives. The AXS 2X Innovation ETF offers investors a way to gain amplified exposure to a dynamic sector of the market, combining high potential returns with a focus on innovative companies driving technological advancement.
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