AXS 2X NKE Bull Daily ETF (NKEL)

Overview

This ETF is an actively managed fund that concentrates on providing its investors with a leveraged exposure to NKE (Nike, Inc.)'s daily performance. Specifically, the fund aims to deliver twice (200%) the daily performance of NKE, but only for a single day. This objective is pursued through engaging in swap agreements related to NKE, making it crucial for investors to understand that the fund's leveraged nature is designed to achieve its stated performance goal on a day-to-day basis, and not for any extended period. The fund operates under the premise of maintaining at least 80% of its exposure to financial instruments that grant this two times leveraged exposure. It's also important to note that the ETF is non-diversified, meaning it focuses its investments more narrowly than a diversified fund might.

Products and Services

• Two Times Leveraged Exposure to NKE

This product is at the core of the ETF's strategy, offering investors an opportunity to obtain twice the daily performance of Nike, Inc. (NKE) through leveraged financial instruments. The aim is to capitalize on the short-term movements in NKE's stock, but it carries a higher level of risk and is recommended for knowledgeable investors familiar with leveraged investments.

• Swap Agreements on NKE

As a means to achieve its leveraged exposure, the ETF enters into one or more swap agreements pertaining to NKE. Swaps are derivative contracts through which two parties exchange financial instruments, in this case, to provide the fund with leveraged exposure to NKE’s daily performance. This approach enables the ETF to meet its objective of doubling the performance of NKE on a daily basis, albeit with a significant risk due to the nature of derivatives and leverage.