Tradr 2X Long USAR Daily ETF (USAX)

Overview

USAX is a dynamic short-term tactical investment tool designed to generate double (200%) the daily performance of USA Rare Earth, Inc. (USAR) before accounting for fees and expenses. The fund primarily engages in total return swap agreements with leading global financial institutions that replicate the daily returns of USAR. In circumstances where swaps are inaccessible or less efficient, the fund may utilize FLEX call options or hold USAR stock directly. Investors holding shares for periods longer than one day will need to closely monitor and frequently rebalance their positions to aim for the targeted 2x performance. It is crucial for potential investors to conduct thorough individual stock research prior to initiating any position and to trade with strong conviction. Given the intricacies of the product, the performance generally aligns with expectations only when the underlying shares exhibit a favorable trend, and holders find themselves on the advantageous side of that trade. Any excess cash is strategically invested in collateral resources such as US Treasuries, money market funds, or short-term corporate debt.

Products and Services

• Total Return Swap Agreements:

  The primary mechanism through which USAX aims to achieve its 2x performance target is by entering into total return swap agreements. These agreements are made with significant global financial institutions and are structured to mirror the daily returns of USA Rare Earth, Inc. (USAR).

• FLEX Call Options:

  In instances where total return swaps are not feasible or do not present an efficient option, USAX may opt to use FLEX call options. These options allow investors to leverage their position in USAR and aim to achieve the desired performance amplification.

• Direct Stock Holdings:

  The fund may directly purchase shares of USA Rare Earth, Inc. (USAR) as another method of achieving performance objectives. This approach provides a straightforward means of participating in the stock's price movements.

• Cash Management:

  To maintain liquidity and manage risk, any cash that is not utilized for investments is allocated to high-quality collateral instruments. This includes US Treasuries, money market funds, and short-term corporate debt, ensuring a stable financial foundation for the fund.