AXS 2X Innovation ETF
Bullish on Disruptive Innovation?
Next-gen Internet, electric vehicles, genomics, fintech. These are among the industries with tremendous potential to transform the world and disintermediate many traditional industries. However, the stock prices of these innovative companies may not always reflect their long-term value.
If you believe the bull thesis for disruptive innovation remains intact and growth stock valuations have reached attractive levels, consider the AXS 2X Innovation ETF (Nasdaq: TARK).
TARK is an actively managed exchange traded fund focused on disruptive innovation.
Attractive opportunity that allows investors to obtain leveraged long exposure to a concentrated portfolio of secular growth companies.
Attempts to achieve double (2x) the return of the ARK Innovation ETF (NYSE Arca: ARKK) for a single day, not for any other period.
Listing Date: 5/2/2022
Distribution Frequency: Annual
Management Fee: 0.95%
Gross Expense Ratio: 1.35%
Net Expense Ratio: 1.15%
The significant risks of leveraged and/or inverse ETFs include the risks of leverage, derivatives, and/or other complex investment strategies that they employ. These investments are designed for short-term or intraday trading for investors seeking daily leveraged investment results. Investors in the fund should: (a) understand the risks associated with the use of leverage; (b) understand the consequences of seeking daily leveraged investment results; (c) intend to actively monitor and manage their investment. Fund performance will likely be significantly different than the benchmark over periods longer than one day and the performance may trend in the opposite direction than their benchmark over periods other than one day.
The Funds seek daily leveraged investment results and are intended to be used as short-term trading vehicles. The Funds pursue daily leveraged investment objectives, which means they are riskier than alternatives that do not use leverage because the Funds magnify the performance of their underlying security. The volatility of the underlying security may affect a Fund’s return as much as, or more than, the return of the underlying security.
The Fund is not suitable for all investors and should be used only by knowledgeable investors, such as traders and active investors employing dynamic strategies, who intend to use them for short-term or intraday trading to seek daily leveraged investment results seeking daily leveraged (2X) investment results, understand the risks associated with the use of leverage 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 ARK Innovation ETF’s performance is flat, and it is possible that the Fund will lose money even if the ARK Innovation ETF’s performance increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day if the ARK Innovation ETF loses more than 50% in one day. The Fund is not a complete investment program.
ETFs involve risk including possible loss of principal. There is no assurance that the Fund will achieve its investment objective. Principal risks and other important risks may be found in the prospectus.
Frequently Asked Questions
When did TARK start trading?
May 2, 2022.
On which exchange is TARK listed?
The primary listing is on Nasdaq.
Why did AXS launch TARK?
Many investors believe the recent selloff in disruptive innovation stocks has gone too far. TARK is designed for high conviction investors who are looking for short-term long exposure to a basket of transformational growth companies.
What is the management fee for TARK?
TARK’s management fee is 0.95%.
Where can I find the one-pager for TARK?
The TARK fact sheet can be found here.
How can I buy or sell TARK?
Check with your financial advisor or online broker to see if TARK is available on their platform. If it isn’t, please contact us. We are constantly working with brokerage platforms to help onboard our ETFs.
What type of order should I use when trading TARK?
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 us.
Can I trade options on TARK?
Yes. TARK options began trading on May 25, 2022.
The AXS 2X Innovation ETF, Investment Managers Series Trust II, and AXS Investments LLC are not affiliated with the ARK ETF Trust, the ARK Innovation ETF, or ARK Investment Management LLC.
Important Risk Information
The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) investment results, understand the risks associated with the use of leverage 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 ARK Innovation ETF’s performance is flat, and it is possible that the Fund will lose money even if the ARK Innovation ETF’s performance increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day if the ARK Innovation ETF loses more than 50% in one day. The Funds pose risks that are unique and complex. The Fund is riskier than alternatives that do not use leverage and the volatility of the underlying security may affect the Fund’s return as much as, or more than, the return of the underlying security.
Compounding risk: The Fund has a single day investment objective, and performance for any other period is the result of its return for each day compounded over the period. Performance for periods longer than a single day will very likely differ in amount, and possibly even direction, from 200% of the daily return of the ARK Innovation ETF for the same period, before accounting for fees and expenses. Compounding affects all investments but has a more significant impact on a leveraged fund. This effect becomes more pronounced as the ARK Innovation ETF volatility and holding periods increase.
Leverage risk: Leveraged ETFs pursue daily leveraged investment objectives, which means they 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.
Swap agreement risk: The Fund’s use of derivatives may be considered aggressive and may expose the Fund to greater risks and larger losses or smaller gains than investing directly in the reference asset(s) underlying those derivatives. The use of swap agreements are subject to additional risks such as the lack of regulation, counterparty risk and liquidity risk, and could expose investors to significant losses.
Equity securities risk: The value of the equity securities the Fund holds may fall due to general market and economic conditions.
Foreign securities risk: Investments in the securities of foreign issuers involve risks beyond those associated with investments in U.S. securities.
Health care sector risk: The health care sector may be adversely affected by government regulations and government health care programs.
Communications sector risk: Companies in this sector may be adversely affected by potential obsolescence of products/services, pricing competition, research and development costs, substantial capital requirements and government regulation.
Information technology sector risk: Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins.
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.