AXS Investments Enters ETF Space with AXS Astoria Inflation Sensitive ETF (PPI)
Latest move in the AXS ETF business expansion for the innovative provider of alternative strategies
NEW YORK, December 30, 2021 – AXS Investments, a leading asset manager providing access to alternative investments for growth, income and diversification, is today launching its first Exchange-Traded Fund (ETF): the AXS Astoria Inflation Sensitive ETF (PPI).
PPI is a multi-asset ETF designed to combat the pernicious effects that inflation can have on a portfolio, a major concern for all investors as inflation has recently flared up to levels not seen since the 1980s.
PPI is actively managed by ETF veteran John Davi, founder and CIO of institutional manager Astoria Advisors, and designed as a one-stop allocation to investments believed to be best positioned to benefit from an inflationary environment. The portfolio includes a dynamic mix of historically inflation-sensitive stocks and ETFs, including commodities, TIPS, cyclical stocks such as industrials, materials, banks, home builders, and more.
“An ETF comprised of a broad range of inflation-sensitive assets requires highly specialized and experienced active management, and we believe there’s no one better suited to manage this strategy than John Davi,” said Greg Bassuk, Chief Executive Officer of AXS Investments. “He and the Astoria team have a long history of success in managing inflation-sensitive portfolios for RIAs and financial advisors, and we are thrilled to partner with them to bring PPI to market at such a crucial time for advisors and investors to position their portfolios for the dramatic return of inflation we’re expecting into 2022.”
“After years of managing ETF portfolios, I could not be more excited to team up with AXS to bring this first-of-its-kind ETF to market,” added Davi. “To this point, ETF investors have been largely forced to select among a menu of single-exposure inflation-sensitive strategies, but commodity-only, equity-only and TIPS-only strategies each have drawbacks and limitations, as different asset classes behave differently in inflationary environments and often in unexpected ways. An expansive multi-asset class approach offers investors a compelling way to dynamically hedge inflation and potentially generate positive, real rate adjusted investment results.”
Led by ETF Industry Pioneers, AXS Plans Major Expansion of ETF Suite in 2022 and Beyond
In addition to Mr. Bassuk, who co-founded ETF industry innovator IndexIQ, AXS counts among its leadership team a number of other ETF industry veterans, including Ben Fulton. Mr. Fulton is widely regarded as one of the founders of the ETF industry and has been a leader in the field for more than 25 years, including as a driving force behind the exponential growth of PowerShares and, later, Invesco’s global ETF business.
“Launching PPI is an outstanding way for our team to close out 2021, but we are just getting started when it comes to the AXS ETF business,” added Bassuk. “In the coming months, we’ll be aggressively building out our ETF lineup to complement our existing family of differentiated alternative funds, including by partnering with leading investment managers to launch ETFs based on their success and pedigree as leaders in their respective categories.”
“AXS is about access, and we believe our ETFs will provide investors and advisors with access to cutting-edge strategies and best-in-class managers as we endeavor to build what will soon become one of the more compelling ETF lineups in the space,” added Fulton. “Launching our first ETF with someone of John Davi’s caliber speaks volumes about the nature of funds and the types of teams we’ll be partnering with going forward. The ETF market is ripe for a new level of innovation, and we are excited to trailblaze at this unique and defining time in the global ETF industry’s continued evolution.”
About AXS Investments
AXS Investments is a leading alternative investment manager providing a diversified family of alternative investments for growth, income and diversification. The firm empowers investors to diversify their portfolios with investments previously available only to the largest institutional and high net worth investors. The investor-friendly AXS funds are time-tested, liquid, transparent and managed by high pedigreed portfolio managers with long and strong track records. For more information, visit www.axsinvestments.com.
TIPS are Treasury Inflation-Protected Securities, a type of U.S. Treasury security whose principal value is indexed to the rate of inflation. ETFs are liquid in that they are exchange traded.
There is no guarantee the sectors or asset classes the advisor identifies will benefit from inflation. Fund may invest a larger portion of its assets in one or more sectors than many other funds, and thus will be more susceptible to negative events affecting those sectors.
Equity Securities Risk: Equity securities may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or in only a particular country, company, industry or sector of the market.
Commodities Risk: Commodity prices can have significant volatility, and exposure to commodities can cause the value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner. The values of commodities may be affected by changes in overall market movements, real or perceived inflationary trends, commodity index volatility, changes in interest rates or currency exchange rates, population growth and changing demographics, international economic, political and regulatory developments, and factors affecting a particular region, industry or commodity.
Futures Contracts Risk: The Fund expects that certain of the Underlying ETFs in which it invests will utilize futures contracts for its commodities investments. The risk of a position in a futures contract may be very large compared to the relatively low level of margin the Underlying ETF is required to deposit. In many cases, a relatively small price movement in a futures contract may result in immediate and substantial loss or gain to the investor relative to the size of a required margin deposit. The prices of futures contracts may not correlate perfectly with movements in the securities or index underlying them.
TIPS Risk: Principal payments for Treasury Inflation-Protection Securities are adjusted according to changes in the Consumer Price Index (CPI). While this may provide a hedge against inflation, the returns may be relatively lower than those of other securities.
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.