TDAQ Lift ETF (TDAX)

Overview

TDAX is a financial product designed to provide leveraged exposure to 130% of the daily performance of the TDAQ index. The fund employs a systematic approach by resetting its portfolio exposure at the end of each trading day. By primarily engaging in swap agreements and occasionally utilizing exchange-traded call options, TDAX aims to maintain its targeted exposure dynamically. As the fund resets its exposure on a daily basis, the returns over multiple days may diverge significantly from the performance of the TDAQ index due to the compounding effect of daily results. The fund is engineered to pursue its investment objective irrespective of prevailing market conditions and deliberately abstains from taking defensive positions. This strategy can result in considerable portfolio turnover. Due to the nature of leveraged products, TDAX’s performance is exceedingly sensitive to short-term price fluctuations, and a substantial negative move in TDAQ could lead to a total loss of the fund's value in a single trading session.

Products and Services

• Leveraged Exposure:

  TDAX offers leveraged exposure to TDAQ, aiming for 130% of its daily performance. This feature provides investors with the potential to amplify their returns on a daily basis compared to investing directly in TDAQ.

• Swap Agreements:

  The fund primarily utilizes swap agreements to achieve the desired level of exposure. These financial derivatives allow TDAX to effectively replicate TDAQ's performance while leveraging its returns.

• Exchange-Traded Call Options:

  TDAX occasionally engages in exchange-traded call options to enhance its portfolio and manage exposure. These options serve as tools to capitalize on upward movements in TDAQ while managing risk.

• Daily Rebalancing:

  The fund's exposure is reset at the end of each trading day, ensuring that it remains aligned with its targeted performance metrics. This process is crucial for maintaining the accuracy of leveraged returns on a day-to-day basis.

• High Portfolio Turnover:

  Due to its strategy of not taking defensive positions, TDAX may experience high portfolio turnover rates. This approach is designed to maximize returns in various market conditions and adapt swiftly to price movements.

• Investment Objective Pursuit:

  TDAX relentlessly pursues its investment objective in all market conditions, providing investors with a product that is designed for those willing to accept the associated risks of a leveraged exposure strategy.

• Potential for Complete Loss:

  Investors should be aware that the leveraged nature of TDAX makes it highly susceptible to sharp declines in TDAQ. A significant adverse price movement during a single trading day can result in a complete loss of value for the fund.