REX and Tuttle Expand T-REX ETF Suite with 2X Leveraged ETFs on Arm Holdings, Roblox, and Trump Media
REX and Tuttle Expand T-REX ETF Suite with 2X Leveraged ETFs on Arm Holdings, Roblox, and Trump Media
More first 200% Leveraged Exposure ETFs for T-REX
MIAMI--(BUSINESS WIRE)-- REX Shares (“REX”), in collaboration with Tuttle Capital Management (“Tuttle”), announces the debut of three new ETFs in its T-REX lineup: the T-REX 2X Long ARM Daily Target ETF (CBOE: ARMU), the T-REX 2X Long RBLX Daily Target ETF (CBOE: RBLU), and the T-REX 2X Long DJT Daily Target ETF (CBOE: DJTU). These ETFs offer investors 200% exposure to the daily price movements of Arm Holdings PLC, Roblox Corp., and Trump Media & Technology Group Corp.
“Expanding the T-REX suite reflects investor demand for targeted, amplified exposure to some of the market’s most closely watched stocks. ARMU, RBLU, and DJTU provide traders with exciting new tools to get exposure to some unique stocks, allowing them to navigate volatility and capitalize on trading opportunities,” said Scott Acheychek, COO of REX Financial.
Matt Tuttle, CEO of Tuttle Capital Management, added, "Through our partnership with REX, we are committed to pioneering first-to-market products like these that give traders cutting-edge tools to engage with the market’s most dynamic stocks.”
T-REX ETFs have been the first to market with 2X exposure to leading stocks like Robinhood, Tesla, Nvidia, MicroStrategy, Google, Apple, Microsoft, Netflix, as well as the leading spot Bitcoin and Ether ETFs.
For more information on the T-REX suite of products, please visit www.rexshares.com.
About REX Financial
REX Financial is an innovative provider of exchange-traded products specializing in alternative-strategy ETFs and ETNs, with over $7 billion in assets under management. REX is renowned for its MicroSectors™ and T-REX product lines and recently introduced a series of option-based income strategies. For more information, visit www.rexshares.com.
About Tuttle Capital Management
Tuttle Capital Management is a leader in thematic and actively managed ETFs, leveraging an agile investment approach to align with market trends. For details, visit www.tuttlecap.com.
Investors should consider the investment objectives, risk, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the T-REX ETFs please call 1-844-802-4004 or visit our website at rexshares.com. Read the prospectus and summary prospectus carefully before investing.
There is no guarantee that the Funds will achieve their investment objectives. Investing involves risk, including possible loss of principal.
Because of daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from 200% of the return of the underlying security over the same period. The Fund will lose money if the underlying security performance is flat over time, and as a result of daily rebalancing, the underlying security’s volatility and the effects of compounding, it is even possible that the Fund will lose money over time while the underlying security’s performance increases over a period longer than a single day.
The Funds’ investment adviser will not attempt to position each Fund’s portfolio to ensure that a Fund does not gain or lose more than a maximum percentage of its net asset value on a given trading day. As a consequence, if a Fund’s underlying security moves more than 50%, as applicable, on a given trading day in a direction adverse to the Fund, the Fund’s investors would lose all of their money.
Important Risks
Investing in a REX Shares ETF may be more volatile than investing in broadly diversified funds. The use of leverage by a Fund increases the risk to the Fund. The REX Shares ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged, or daily inverse leveraged, investment results and intend to actively monitor and manage their investment.
An investment in the Fund entails risk. The Fund may not achieve its leveraged investment objective and there is a risk that you could lose all of your money invested in the Fund. The Fund is not a complete investment program. In addition, the Fund presents risks not traditionally associated with other mutual funds and ETFs. It is important that investors closely review all of the risks listed below and understand them before making an investment in the Fund.
Fixed Income Securities Risk. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund.
Effects of Compounding and Market Volatility Risk. The Funds have a daily leveraged investment objective and the Fund’s performance for periods greater than a trading day will be the result of each day’s returns compounded over the period, which is very likely to differ from 200% of the underlying’s performance, before fees and expenses. Compounding affects all investments, but has a more significant impact on funds that are leveraged and that rebalance daily and becomes more pronounced as volatility and holding periods increase. The impact of compounding will impact each shareholder differently depending on the period of time an investment in the Fund is held and the volatility of underlying stock during the shareholder’s holding period of an investment in the Fund.
Leverage Risk. The Funds obtain investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. An investment in these Funds is exposed to the risk that a decline in the daily performance of the underlying stock will be magnified. This means that an investment in the Fund will be reduced by an amount equal to 2% for every 1% daily decline in the underlying, not including the costs of financing leverage and other operating expenses, which would further reduce its value.
Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. Investing in derivatives may be considered aggressive and may expose the Fund to greater risks, and may result in larger losses or small gains, than investing directly in the reference assets underlying those derivatives, which may prevent the Fund from achieving its investment objective.
Swap Agreements. Swap agreements are entered into primarily with major global financial institutions for a specified period which may range from one day to more than one year. In a standard swap transaction, two parties agree to exchange the return (or differentials in rates of return) earned or realized on particular predetermined reference or underlying securities or instruments. The gross return to be exchanged or swapped between the parties is calculated based on a notional amount or the return on or change in value of a particular dollar amount invested in a reference asset. Swap agreements are generally traded over-the-counter, and therefore, may not receive regulatory protection, which may expose investors to significant losses.
Indirect Investment Risk. Roblox Corp., Arm Holdings PLC, or Trump Media & Technology Group Corp. are not affiliated with the Trust, the Adviser or any affiliates thereof and is not involved with this offering in any way, and has no obligation to consider the Funds in taking any corporate actions that might affect the value of the Funds. The Trust, the Funds and any affiliate are not responsible for the performance of the underlying companies and make no representation as to the performance of RBLX, ARM, or DJT. Investing in the Fund is not equivalent to investing in RBLX, ARM, or DJT. Fund shareholders will not have voting rights or rights to receive dividends or other distributions or any other rights with respect to RBLX, ARM, or DJT.
Industry Concentration Risk. The Funds will be concentrated in the industry to which the underlying stocks are assigned (i.e., hold more than 25% of its total assets in investments that provide inverse exposure to the industry to which the underlying stocks. are assigned). A portfolio concentrated in a particular industry may present more risks than a portfolio broadly diversified over several industries.
Rebalancing Risk. If for any reason the Fund is unable to rebalance all or a part of its portfolio, or if all or a portion of the portfolio is rebalanced incorrectly, the Fund’s investment exposure may not be consistent with its investment objective. In these instances, the Fund may have investment exposure to the underlying stocks that are significantly greater or significantly less than its stated multiple. The Fund may be more exposed to leverage risk than if it had been properly rebalanced and may not achieve its investment objective, leading to significantly greater losses or reduced gains.
Counterparty Risk. A counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty.
Daily Correlation Risk. There is no guarantee that the Fund will achieve a high degree of correlation to the underlying stock and therefore achieve its daily leveraged investment objective. The Fund’s exposure to the underlying stock is impacted by RBLX, ARM, or DJT movement. Because of this, it is unlikely that the Fund will be perfectly exposed to RBLX, ARM, or DJT at the end of each day. The possibility of the Fund being materially over- or under-exposed to underlying funds increases on days when the underlying stock is volatile near the close of the trading day. Market disruptions, regulatory restrictions and high volatility will also adversely affect the Fund’s ability to adjust exposure to the required levels.
Liquidity Risk. Holdings of the Funds may be difficult to buy or sell or may be illiquid, particularly during times of market turmoil. Illiquid securities may be difficult to value, especially in changing or volatile markets. If the Fund is forced to buy or sell an illiquid security or derivative instrument at an unfavorable time or price, the Fund may be adversely impacted. Certain market conditions or restrictions may prevent the Fund from limiting losses, realizing gains or achieving a high correlation with the underlying stock. There is no assurance that a security or derivative instrument that is deemed liquid when purchased will continue to be liquid. Market illiquidity may cause losses for the Fund. To the extent that the underlying stock value increases or decreases significantly, the Fund may be one of many market participants that are attempting to transact in the underlying fund.
Non-Diversification Risk. The Fund is classified as “non-diversified” under the Investment Company Act of 1940, as amended. This means it has the ability to invest a relatively high percentage of its assets in the securities of a small number of issuers or in financial instruments with a single counterparty or a few counterparties.
New Fund Risk. As of the date of this prospectus, the Fund has no operating history and currently has fewer assets than larger funds. Like other new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time.
Communication Services Sector Risk. The performance of companies in the communication services sector may be affected by (without limitation) the following factors: industry competition, increasing governmental regulation, the ability to keep pace with technological advancement and scrutiny by public bodies. Technological innovations may reduce the utility of products and services of companies in the communication services sector and render them less competitive or obsolete over time. These companies may need to commit substantial capital investment to deal with increasing competition and to keep pace with technological enhancement in order to remain competitive.
Associated Risks of Video Game Companies. Video game companies face intense competition, both domestically and internationally, may have limited product lines, markets, financial resources, or personnel, may have products that face rapid obsolescence, and are heavily dependent on the protection of patent and intellectual property rights. Such factors may adversely affect the profitability and value of video game companies. These companies also may be subject to increasing regulatory constraints, particularly with respect to cybersecurity and privacy.
Internet and Media Services Industry Risk. The prices of the securities of companies engaged in content and information creation or distribution through proprietary platforms, where revenues are derived primarily through pay-per click advertisements, including search engines, social media and networking platforms, online classifieds, and online review companies are closely tied to the performance of the overall economy and may be affected by changes in general economic growth, consumer confidence and consumer spending. Changes in demographics and consumer tastes also may affect the success of companies in the Internet and Media Services Industry. In addition, legislative or regulatory changes and increased government supervision may affect companies in the Internet and Media Services Industry.
Technology Sector Risk. The market prices of technology-related securities tend to exhibit a greater degree of market risk and sharp price fluctuations than other types of securities. These securities may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices. Technology securities may be affected by intense competition, obsolescence of existing technology, general economic conditions and government regulation and may have limited product lines, markets, financial resources or personnel. Technology companies may experience dramatic and often unpredictable changes in growth rates and competition for qualified personnel. These companies are also heavily dependent on patent and intellectual property rights, the loss or impairment of which may adversely impact a company’s profitability. A small number of companies represent a large portion of the technology industry.
Underlying Security Investing Risk. Issuer-specific attributes may cause an investment held by the Fund to be more volatile than the market generally. The value of an individual security or particular type of security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole.
The Funds’ investment adviser will not attempt to position each Fund’s portfolio to ensure that a Fund does not gain or lose more than a maximum percentage of its net asset value on a given trading day. As a consequence, if a Fund’s underlying security moves more than 50%, as applicable, on a given trading day in a direction adverse to the Fund, the Fund’s investors would lose all of their money.
Distributor: Foreside Fund Services, LLC, member FINRA, not affiliated with REX Shares or the Funds’ investment advisor.
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Contacts
For media inquiries, please contact:
Gregory FCA for REX Shares
rexshares@gregoryfca.com
Matthew Tuttle for Tuttle Capital
mtuttle@TuttleCap.com
Source: REX Shares