Tradr 2x Long App Daily ETF (APPX)

Overview

APPX is a short-term tactical investment vehicle designed to achieve double (200%) the daily performance of AppLovin Corp. (APP), before fees and expenses are applied. The fund primarily utilizes total return swap agreements with large global financial institutions to replicate the daily returns of APP. In instances where swaps are unavailable or less efficient, the fund can resort to FLEX call options or directly hold shares of APP stock. Investors are cautioned that holding shares for longer than a single day necessitates frequent monitoring and rebalancing of their positions to align with the intended 2x leverage. It is also essential for potential purchasers to engage in their own comprehensive research regarding APP prior to initiating a position, and to trade with a strong conviction. Given the complexities associated with this financial product, the shares tend to meet performance expectations primarily when the underlying stock price trends favorably, and holders maintain a position that corresponds positively with that trade. Furthermore, any remaining cash is strategically invested in collateral assets such as U.S. Treasuries, money market funds, or short-term corporate debts.

Products and Services

• Total Return Swap Agreements: These financial instruments allow APPX to mirror the daily performance of AppLovin Corp. by entering into swap agreements with major global financial institutions. This method helps capture the intended leverage of 200% on the fund’s daily returns.
• FLEX Call Options: In cases where total return swaps are not accessible or are less efficient, APPX may utilize FLEX call options as an alternative means to achieve its investment objective. FLEX options provide flexibility in defining contract terms and can be tailored to closely match the desired exposure to APP.
• Direct Stock Holdings: The fund has the option to directly hold shares of AppLovin Corp. If deemed beneficial for achieving the investment objective, this approach grants the fund the potential to capitalize on the stock’s performance.
• Cash Management and Collateral Investments: APPX invests remaining cash in low-risk, liquid instruments such as U.S. Treasuries, money market funds, or short-term corporate debt. This strategy aims to preserve capital while ensuring that available funds are effectively managed.