XNAV Profile
The FundX Aggressive ETF is an actively managed exchange-traded fund designed to pursue aggressive growth strategies through diversified investments in various equity sectors. Under normal market conditions, the fund invests predominantly, and occasionally exclusively, in Sector and Aggressive Equity Underlying ETFs. These underlying funds focus on sectors that may be highly concentrated, and may include investments in small-cap or mid-cap companies, commodities such as precious metals, or real estate. The fund is characterized by its high-risk tolerance and potential for substantial returns, reflecting its aggressive investment approach.
The strategy of the FundX Aggressive ETF involves deploying capital into sectors or asset classes that are perceived to offer significant growth potential, often including those that are less seasoned or more volatile. This includes investing in ETFs that track smaller or emerging market companies, which can experience rapid growth but also higher levels of risk. The fund may also allocate assets to commodities and real estate, further diversifying its portfolio and capitalizing on opportunities in these markets.
In addition to equity and sector investments, the fund may utilize complex investment techniques to enhance returns or manage risk. This includes the use of leverage, which amplifies the potential returns but also increases exposure to market risks. Short sales and margin trading may also be employed to capitalize on anticipated declines in securities or to increase the fund’s investment capacity. Derivative securities, such as options, futures, and swap contracts, are used for both hedging purposes to protect against adverse market movements and speculative purposes to potentially benefit from market fluctuations.
Given its focus on high-risk and high-reward strategies, the FundX Aggressive ETF is non-diversified and carries a higher degree of volatility compared to more conservative investment vehicles. Investors should carefully consider their risk tolerance and investment objectives before investing in this fund, as its aggressive strategy involves significant exposure to potentially volatile sectors and complex financial instruments.
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