AXS Short De-SPAC Daily ETF
Looking to Short De-SPAC Stocks?
AXS Short De-SPAC Daily ETF (Nasdaq: SOGU) seeks daily investment results, before fees and expenses, that approximately correspond to the inverse (-1x) of the daily performance of the De-SPAC Index. SOGU is appropriate for investors who are either looking to express a near-term view on the de-SPAC market or who may be looking to hedge an existing long portfolio of de-SPAC’d stocks.
Daily inverse ETFs are riskier than alternatives that do not use leverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk and who actively manage their investments. Please see additional risk information below.
SOGU is the first ETF to offer short exposure to de-SPACs.
Seeks daily investment results, before fees and expenses, that approximately correspond to the inverse (-1x) of the daily performance of the De-SPAC Index, an index of the 25 largest de-SPAC stocks.
Appropriate for investors looking to express a near-term bearish view on the de-SPAC market or to hedge an existing long portfolio of de-SPAC’d stocks.
Inception Date: 5/19/2021
Distribution Frequency: Annual
Management Fee: 0.90%
Gross Expense Ratio: 1.29%
Net Expense Ratio*: 0.95%
Options Available: Yes
Management Style: Passive
*Net expense ratio reflects contractual fee waivers through August 8, 2024.
Frequently Asked Questions
What is a "de-SPAC"?
It is a company that went 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,” it 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 a structural flexibility that offers a competitive advantage vs. the typical IPO process. There is minimum upfront capital outlay and a faster time to market compared to a traditional IPO.
What is the symbol for AXS Short De-SPAC Daily ETF?
When did SOGU start trading?
May 19, 2021.
Does SOGU track an index?
No. SOGU is meant to provide approximate daily 1x inverse performance of 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 18-month basis. If you have access to a Bloomberg terminal, the ticker for the index is DESPACTR.
Where can I see SOGU’s holdings?
Holdings can be viewed here.
What is the management fee for SOGU?
SOGU’s management fee is 0.90%.
On which exchange is SOGU listed?
It is listed on Nasdaq Stock Market.
How can I buy or sell SOGU?
Check with your financial advisor or online broker to see if SOGU 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 SOGU?
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 SOGU?
Yes. SOGU options were listed on March 4, 2022.
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.
Inverse ETFs seek to provide the opposite of the single day performance of the index they track and are subject to substantial volatility.
The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily inverse (-1x) investment results, understand the risks associated with the use of shorting and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. For periods longer than a single day, the Fund will lose money if the Index's performance is flat, and it is possible that the Fund will lose money even if the Index'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 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.
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. The AXS Short De-SPAC Daily ETF seeks daily inverse investment results in pursuit of its investment goals. This means that the Fund’s return for a period longer than a full trading day may have no resemblance to -100% of the return of the De-SPAC Index and that longer holding periods and higher volatility of the De-SPAC Index may increase the impact of compounding on an investor’s returns.
Purchasing and writing put and call options are highly specialized activities and entail greater than ordinary investment risks. The Fund may not fully benefit from or may lose money on an option if changes in its value do not correspond as anticipated to changes in the value of the underlying securities. The Fund expects to use swap agreements, which could expose investors to significant losses under certain circumstances, including in the event of trading abuses or financial failure by participants. The Fund is subject to increased counterparty risk with respect to the amount it expects to receive from counterparties to uncleared swaps.
Because the Fund’s short (inverse) positions are designed to profit from a decline in the price of the Index, the Fund will lose value when the Index’s price rises. Inverse positions may be considered aggressive and may result in significant losses. Certain Fund transactions, such as entering into futures contracts, options and short sales, may give rise to a form of leverage that can magnify the effects of changes in the value of the Fund’s investments and make the Fund more volatile and potentially result in the loss of all assets.
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.