Invest in De-SPAC Stocks

Special Purpose Acquisition Companies (SPACs) are one of the most disruptive structures to hit the U.S. capital markets over the past several years. Along with an increase in the number of SPAC IPOs, larger deal sizes and seasoned sponsor teams are drawing investors to this once underfollowed market. Virgin Galactic, DraftKings and Lucid Motors are among higher profile "de-SPACs" – companies that went public through SPACs – over the past several years.

AXS De-SPAC ETF (Nasdaq: DSPC) is the first exchange traded fund to offer exposure to private companies that went public as the result of a merger with a SPAC. It's available within an ETF’s familiar wrapper that offers the potential for diversity, tax efficiency and liquidity.

Diverse de-SPAC exposure through an ETF.

Attractive opportunity that allows easy access to some of the world’s newest and most exciting public companies.

Seeks to provide investment results that correspond to the performance of the De-SPAC Index, an index of the 25 largest de-SPAC stocks.

Fund Details

Exchange: Nasdaq
Ticker: DSPC
CUSIP: 46144X651
Inception Date: 5/19/2021
Distribution Frequency: Annual
Management Style: Passive

Management Fee: 0.75%
Gross Expense Ratio: 2.12%
Net Expense Ratio*: 0.75%
Options Available: Yes
* Net expense ratio reflects contractual fee waivers through August 8, 2024.

Frequently Asked Questions

What is the symbol for the AXS De-SPAC ETF?

When did DSPC start trading?
May 19, 2021.

Does DSPC track an index?
Yes, DSPC tracks the De-SPAC Index.

What is the De-SPAC index?
The De-SPAC Index is an equally weighted portfolio of 25 of the largest de-SPAC stocks on a rolling 12-month basis. If you have access to a Bloomberg terminal, the ticker for the index is DESPACTR.

How often is the De-SPAC Index rebalanced?
The De-SPAC Index is rebalanced monthly.

How many stocks are in the De-SPAC Index?
The index has 25 stocks.

How are the constituents in the De-SPAC Index weighted?
Equally weighted. The De-SPAC Index constituents are all given a 4% weight on rebalance day.

Where can I see DSPC’s holdings?
Holdings can be viewed here.

What is the management fee for DSPC?
DSPC’s management fee is 0.75%.

On which exchange is DSPC listed?
It is listed on the Nasdaq Stock Market.

How can I buy or sell DSPC?
Check with your financial advisor or online broker to see if DSPC is available on their platform. If it isn’t, please contact AXS. We are constantly working with new platforms to help onboard our ETFs.

What type of order should I use when trading DSPC?
While a limit order is the most conservative route, it may take longer for your order to get executed. If you have specific questions about a larger order size, please call your financial advisor or feel free to contact AXS.

Can I trade options on DSPC?
Yes. DSPC options were listed on May 26, 2021.

Can I short sell DSPC?
Yes, but it is best to check with your financial advisor first to understand the risks of shorting any ETF, not just DSPC. Another option is to explore the AXS Short De-SPAC ETF (SOGU).

What is a de-SPAC?
It is a company that becomes public as a result of a merger with a SPAC. “SPAC” stands for Special Purpose Acquisition Company. Often referred to as a “blank check company”, a SPAC is a listed acquisition vehicle that raises money to buy a private operating company.

Why are more companies choosing to go public via SPACs in recent years?
For sponsors, SPACs provide structural flexibility that offers a competitive advantage vs. the typical IPO process. There is minimum upfront capital outlay and a faster time to market vs. a traditional IPO.

Important Risk Information

Investing involves risk. Principal loss is possible. As an ETF, the fund may trade at a premium or discount to NAV. The Fund is new with a limited operating history.

The Fund invests in companies that have completed a business combination transaction with a SPAC. SPACs are companies that may be unseasoned and lack a trading or operational history, a track record of reporting to investors, and widely available research coverage. Public stockholders of SPACs may not be afforded a meaningful opportunity to vote on a proposed initial business combination because certain stockholders, including stockholders affiliated with the management of the SPAC, may have sufficient voting power, and a financial incentive, to approve such a transaction without support from public stockholders. As a result, a SPAC may complete a business combination even though a majority of its public stockholders do not support such a combination. In addition, SPAC-derived companies may share similar illiquidity risks of private equity and venture capital. The free float shares held by the public in a SPAC-derived company are typically a small percentage of the market capitalization. The ownership of many SPAC-derived companies often includes large holdings by venture capital and private equity investors who seek to sell their shares in the public market in the months following a business combination transaction when shares restricted by lock-up are released, causing greater volatility and possible downward pressure during the time that locked-up shares are released.

To the extent the Index concentrates (i.e., holds more than 25% of its total assets) in the securities of a particular industry or group of related industries, the Fund will concentrate its investments to approximately the same extent as the Index.

The AXS De-SPAC ETF attempts to replicate the Index by its net assets substantially in the stocks that make up the De-SPAC Index. The Adviser uses a “passive” or indexing approach to try to achieve investment objectives.

It is possible that the Fund may hold equity interests in SPACs or other entities that are treated as passive foreign investment companies (“PFICs”) or controlled foreign corporations (“CFCs”) for U.S. federal income tax purposes. The application of the PFIC and CFC rules is complex and is not clear in all cases. It is possible that the IRS could take a position with respect to the PFIC or CFC rules that is contrary to positions taken by the Fund and/or one or more entities in which the Fund invests.

The Shares will change in value, and you could lose money by investing in the Fund. The Fund may not achieve its investment objective.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns. NAVs are calculated using prices as of 4:00 PM Eastern Time. The closing price is the midpoint between the bid and ask price as of the close of exchange. Closing price returns do not represent the returns you would receive if you traded shares at other times.