T-REX 2X Liquid Natural Gas Apple Daily Target Fund (AAPX)

Overview

The mentioned fund is a financial instrument designed to offer investors leveraged exposure to AAPL (Apple Inc.) stock. By investing primarily in swap agreements, the fund is able to provide its investors with double the daily performance of AAPL, amounting to 200% of the daily returns. This means that if AAPL stock's value increases by 1% in a day, the fund aims to increase by 2%, and conversely, if AAPL drops by 1%, the fund would aim to drop by 2%, before fees and expenses. It is important to note that this mechanism works on a daily basis, which may lead to compounded gains or losses over periods longer than a single day. The fund maintains at least 80% of its net assets in these swap agreements, with the remainder possibly used for borrowing for additional investment purposes or cash holdings. It engages in these swap agreements with major global financial institutions, essentially betting on the daily performance of AAPL against the value of its net assets. This fund is classified as non-diversified, meaning it concentrates its investments more heavily in a single issuer or sector, in this case, AAPL, which can involve higher risks compared to diversified funds.

Products and Services

• Swap Agreements for Leveraged Daily Exposure to AAPL

These financial derivative contracts are the fund's primary investment vehicles. By entering into swap agreements with major global financial institutions, the fund secures the right to the return on AAPL stock that is twice the daily return, proportional to its net assets. This is a speculative strategy aimed at investors who seek aggressive growth and are comfortable with the risk of significant volatility. It's particularly suitable for those who wish to capitalize on their bullish expectations for AAPL stock in the short term without purchasing the stock directly.

• Non-Diversified Fund Structure

As a non-diversified fund, this product focuses its investments predominantly on AAPL through swap agreements, diverging from a strategy that spreads investments across a wide array of assets. While this can lead to higher returns if AAPL performs well, it also increases risk since the fund's performance is heavily dependent on the fortunes of a single company. This concentration makes the fund more susceptible to specific market, economic, political, regulatory, and other changes affecting AAPL and could lead to more volatile swings in the fund's value.