AXS 2X PFE Bear Daily ETF
Bearish on Pfizer Stock?
If you have a short-term bearish view on Pfizer, Inc. (NYSE: PFE), we offer a distinctive ETF that empowers you to trade on that view. It is part of the AXS Single Stock ETF family that seeks inverse and/or leveraged investment results based on the daily performance of a single stock. Intended to be used as a short-term trading vehicle for traders and sophisticated investors who understand the risks and benefits of these type of funds.
AXS 2X PFE Bear Daily ETF (Nasdaq: PFES) seeks daily investment results, before fees and expenses, that correspond to 2 times the inverse (‑200%) of the daily performance of the common shares of Pfizer, Inc. (PFE).
Inception Date: 7/13/2022
Distribution Frequency: Annual
Management Fee: 0.95%
Gross Expense Ratio: 1.57%
Net Expense Ratio: 1.15%
AXS has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual fund operating expenses will not exceed 1.15% until July 31, 2023.
AXS Bull & Bear Daily ETFs are not suitable for all investors. The Funds are designed to be utilized only by traders and sophisticated investors who understand the potential consequences of seeking daily inverse and/or leveraged investment results, understand the risks associated with the use of leverage and are willing to monitor their portfolios frequently. The Funds are not intended to be used by, and are not appropriate for, investors who do not intend to actively monitor and manage their portfolios. For periods longer than a single day, the Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Fund will lose money even if the underlying stock’s performance decreases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day. The Funds track the price of a single stock rather than an index, eliminating the benefits of diversification that most mutual funds and exchange-traded funds offer. Although the Funds will be listed and traded on an exchange, an investment in a Fund may not be suitable for every investor. The Funds pose risks that are unique and complex. To learn more about the additional risks of investing, please see the Important Risk Information section below.
The Fund, the Investment Managers Series Trust II, and AXS Investments LLC are not affiliated with Pfizer, Inc. and make no representation as to the performance of PFE.
Important Risk Information
ETFs involve risk including possible loss of principal. There is no assurance that the Fund will achieve its investment objective. The Funds pose risks that are unique and complex.
Derivatives Risk: The Funds’ use of derivatives may be considered aggressive and may expose the Funds to greater risks and larger losses or smaller gains than investing directly in the reference asset(s) underlying those derivatives. A derivative refers to any financial instrument whose value is derived, at least in part, from the price of an underlying security, asset, rate or index.
Leverage Risk: Leverage increases the risk of a total loss of an investor’s investment, may increase the volatility of the Funds, and may magnify any differences between the performance of the Funds and their underlying stocks. Because the Funds include positive and/or negative multipliers of the performance of the underlying stock, a single day movement in that stock approaching 50% at any point in the day could result in the total loss of an investor’s investment if that movement is contrary to the investment objective of the given Fund, even if the underlying stock subsequently moves in an opposite direction, eliminating all or a portion of the earlier movement. This would be the case with any such single day movements in the stock, even if the stock maintains a level greater than zero at all times.
Compounding Risk: The Funds have a single day investment objective, and performance for any other period is the result of their returns for each day compounded over the period. The performance of the Funds for periods longer than a single day will very likely differ in amount, and possibly even direction, from the intended leverage multiplier of the daily return of the underlying stock for the same period, before accounting for fees and expenses.
Swap agreement risk: A swap is an agreement between two parties to exchange an asset's benefits on a specific date, in an exchange of a series of payments. It is not limited to one type of investment. A swap can be agreed on for stocks, bonds, ETFs, commodities, foreign currencies, or even interest rates. The Fund expects to use swap agreements as a means to achieve its investment objective, which may expose the Fund to greater risks and larger losses or smaller gains than investing directly in the reference asset(s) underlying those derivatives. Swaps are also subject to the risk of imperfect correlation between the value of the reference asset underlying the swap and the swap. The use of swap agreements are also subject to additional risks such as the lack of regulation, counterparty risk, liquidity risk and could expose investors to significant losses.
Concentration Risk: The Fund will be concentrated in the industry assigned to Pfizer, Inc. (i.e., hold more than 25% of its total assets in investments that provide inverse exposure to the industry). A portfolio concentrated in a particular industry may present more risks than a portfolio broadly diversified over several industries.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. There can be no guarantee that an active trading market for ETF shares will develop or be maintained, or that their listing will continue or remain unchanged. Buying or selling ETF shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly from investment returns.