T-REX 2X Long RDW Daily Target ETF (RDWU)

Overview

RDWU utilizes swap agreements and listed call options to create bullish bets on the share price of Redwire Corporation (NYSE: RDW). Additionally, the fund may invest directly in Redwire Corporation shares. Redwire Corporation is a provider of essential space solutions and infrastructure pivotal for the development of the next-generation space economy, serving both government and commercial clients worldwide. The company boasts intellectual property in areas such as solar power generation and in-space 3D printing and manufacturing, addressing the complexities associated with future space missions. RDWU aims to maintain a daily leveraged exposure that is equivalent to 200% of the daily percentage change in RDW's price through a practice of daily rebalancing. It should be noted that returns may diverge from this expected 200% if investments are maintained for longer than a single day, primarily due to aspects like market volatility and the effects of compounding. As collateral, the fund intends to allocate its investments in U.S. government securities, money market funds, short-term bond ETFs, and corporate debt.

Products and Services

• Swap Agreements: RDWU employs swap agreements to facilitate strategic trades and hedge against potential dips in the share price of Redwire Corporation, allowing for a more flexible investment strategy that aligns with market movements.
• Listed Call Options: The fund uses listed call options as a method to capitalize on anticipated increases in the stock price, providing the potential for significant returns while maintaining a level of risk management.
• Direct Investments in RDW: By investing directly in shares of Redwire Corporation, RDWU can enhance its portfolio's exposure to the company's growth and innovation in the space industry.
• Collateral Investments: To ensure stability and liquidity, RDWU invests in various assets such as U.S. government securities, money market funds, short-term bond ETFs, and corporate debt, serving as a safety net and supporting its leveraged positions.
• Daily Rebalancing: The fund's strategy includes daily rebalancing to maintain 200% exposure to RDW's daily changes, helping to optimize returns and better align investments with market conditions.
• Focus on Next-Generation Space Economy: RDWU is deeply invested in the space solutions and infrastructure that Redwire Corporation provides, aligning its investment goals with the increasing demand for space-related technologies and services in both governmental and commercial sectors.