逐笔明细 标的:
Tradr TSLA 熊证 Daily etf
逐笔明细 标的: TSLQ
Tradr 1.25X NVDA 熊日etf
逐笔明细: NVDS
每一个投资经理系列信托II （以下简称“信托”）
2024年5月15日的补充资料，适用于招股说明书、摘要招股说明书和
附加信息声明（“SAI”），每份资料日期为2023年7月31日，经过补充。
关于计划中的基金名称、投资目标和主要投资策略的重大通知
根据AXS投资公司的建议 作为所有基金类型的顾问，信托的董事会已批准对每个基金的名称、投资 目标和投资策略进行以下更改。每个基金目前 seeks 提供对基础安防-半导体表现的反向或反向杠杆倍数。这些更改预计将在2024年7月15日或其周围实施（“生效日期”），将如下面详细讨论的那样，导致每个基金的反向杠杆倍数增加。 这些更改 将增加对任何基金的投资风险，因为它们将导致基金杠杆的增加。
基金名称更改
生效日期起，每个基金的名称将更改如下：
| 当前基金名称 | 新基金名称 |
| Tradr 开空 创新 日常 etf | Tradr 2X 开空创新日报 etf |
| Tradr TSLA 看空每日ETF | Tradr 2X Short TSLA Daily ETF |
| Tradr 1.25倍 NVDA 熊 日常 etf | Tradr 1.5X Short NVDA Daily ETF |
Tradr 2X 开空创新每日 etf 的投资目标、主要投资策略和主要风险的变更
自生效日期起，基金的投资目标将更改如下：
Tradr 2倍开空创新日常etf （“基金”）寻求每日投资结果，在费用和支出之前，为每日价格和收益表现的两倍负数（-200%）与ark innovation etf的表现。基金不寻求在与交易日不同的时间段实现其所述的投资目标。
自生效日期起，基金主要投资策略下的第一个段落将被以下内容替换：
该 基金是一种主动管理的交易所交易基金，旨在通过对ark innovation etf进行一项或多项掉期交易，在单日内实现其回报的两倍反向（-200%）（而不是任何其他期间）。"单日"是指基金计算其资产净值时到基金下次计算资产净值时的时间。
1
此外，第四段的第一句话 在基金的主要投资策略下被替换为如下内容：
基金顾问预计每天重新平衡基金的持仓，以试图保持基金与 ARK 创新 ETF 的开空暴露相等，因为每日重新平衡和随着时间推移每日回报的复利作用，基金长于单日的回报期间的回报将由该期间每日回报复利的结果决定，这很可能与同期内 ARK 创新 ETF 的回报的-200%有所不同。
自生效日期起，基金的某些风险将更新如下：
复利和市场波动的影响 风险。基金设定单日投资目标，基金在任何其他时期的表现都是其回报的结果 在此期间每天复利。基金在超过一天的时间内的业绩很可能会在金额上有所不同, 甚至可能是方向，在计入费用之前，从同期Ark Innovation ETF每日回报率的-200％开始 和开支。复利会影响所有投资，但对杠杆基金的影响更为显著。这种效果变得更加明显 随着方舟创新ETF的波动性和持有期的增加。超过一天的基金表现 可以根据以下因素的任何一组假设进行估计：(a) 波动性；(b) 业绩；(c) 时期；(d) 融资 与杠杆风险敞口相关的费率；以及 (e) 其他基金支出。下图说明了两个主要因素的影响 — 方舟创新ETF的波动率和方舟创新ETF的表现——取决于基金的表现。该图表显示了基金的估计回报 以方舟创新ETF的波动率和方舟创新ETF在一年内的表现为多种组合。实际波动率， 而方舟创新ETF和基金的表现可能与下图有很大差异。图表中显示的性能假设：(a) 无基金支出；以及（b）借款/贷款利率（以获得杠杆敞口）为零。如果基金支出和/或实际借款/ 贷款利率得到反映，基金的业绩将低于显示的水平。
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下面的图表显示，如果ark innovation etf在一年内没有回报，而其年化波动率为25%，基金预计将损失17.0%。在更高的波动率范围内，即使ark innovation etf的回报持平，基金也有可能遭受显著的价值损失。例如，如果ark innovation etf的年化波动率为100%，基金预计将损失95.3%的价值，即使ark innovation etf的年回报为0%。阴影区域为红色（或深灰色）代表那些基金预计回报低于ark innovation etf表现的-200%的情况，阴影区域为绿色（或浅灰色）代表那些基金预计回报高于ark innovation etf表现的-200%的情况。下面的表格并不代表基金的实际回报，可能由于本文讨论的任何风险因素而显著优于或低于下面显示的回报。
| -200%的 | ARK创新ETF的波动性（年化） | |||||||
| 一年 表现 ARK 创新 etf | 一年 | 10% | 25% | 50% | 75% | 100% | 125% | 150% |
| -95% | 190% | 36110.9% | 31935.5% | 18570.8% | 7461.0% | 2021.9% | 292.9% | -53.9% |
| -90% | 180% | 9182.7% | 7895.4% | 4554.8% | 1756.7% | 406.8% | -8.5% | -89.3% |
| -80% | 160% | 2261.3% | 1930.1% | 1074.3% | 367.1% | 23.9% | -78.0% | -97.5% |
| -70% | 140% | 962.0% | 810.9% | 421.8% | 108.1% | -45.0% | -90.4% | -99.0% |
| -60% | 120% | 500.9% | 415.3% | 196.2% | 15.3% | -69.1% | -94.7% | -99.4% |
| -50% | 100% | 286.3% | 230.5% | 89.7% | -25.6% | -80.5% | -96.7% | -99.7% |
| -40% | 80% | 168.8% | 130.4% | 31.6% | -48.3% | -86.9% | -97.8% | -99.8% |
| -30% | 60% | 98.0% | 69.3% | -3.3% | -62.4% | -90.3% | -98.4% | -99.8% |
| -20% | 40% | 51.6% | 29.8% | -26.1% | -71.8% | -92.6% | -98.8% | -99.9% |
| -10% | 20% | 19.8% | 2.4% | -41.6% | -77.5% | -94.2% | -99.0% | -99.9% |
| 0% | 0% | -2.9% | -17.0% | -52.7% | -81.8% | -95.3% | -99.2% | -99.9% |
| 10% | -20% | -19.8% | -31.4% | -61.2% | -84.9% | -96.2% | -99.4% | -99.9% |
| 20% | -40% | -32.6% | -42.4% | -67.4% | -87.5% | -96.7% | -99.4% | -100.0% |
| 30% | -60% | -42.6% | -51.0% | -72.2% | -89.4% | -97.3% | -99.6% | -100.0% |
| 40% | -80% | -50.6% | -57.7% | -76.1% | -90.7% | -97.7% | -99.6% | -100.0% |
| 50% | -100% | -56.9% | -63.3% | -79.2% | -92.0% | -97.9% | -99.7% | -100.0% |
| 60% | -120% | -62.2% | -67.7% | -81.9% | -93.1% | -98.2% | -99.7% | -100.0% |
| 70% | -140% | -66.5% | -71.4% | -83.9% | -93.8% | -98.5% | -99.7% | -100.0% |
| 80% | -160% | -70.2% | -74.6% | -85.6% | -94.4% | -98.6% | -99.8% | -100.0% |
| 90% | -180% | -73.3% | -77.2% | -87.2% | -95.2% | -98.7% | -99.8% | -100.0% |
| 100% | -200% | -74.6% | -78.3% | -87.7% | -95.4% | -98.9% | -99.8% | -100.0% |
ARK Innovation ETF在截至2023年12月31日的五年期间的年化历史波动率为46.73%。2022年的最高年度年化波动率为67.95%。ARK Innovation ETF在截至2023年12月31日的五年期间的年化表现为7.75%。历史ARK Innovation ETF的波动性和表现并不代表未来ARK Innovation ETF的波动性和表现。反映ARK Innovation ETF价值的证券，如掉期的波动性，可能与ARK Innovation ETF的波动性有所不同。
杠杆风险. 杠杆增加了投资者投资的总损失风险，可能会增加基金的波动性，并可能放大基金与 ARK Innovation ETF 的表现之间的任何差异。由于基金包括 ARK Innovation ETF 的负倍数为两倍 (-200%)，如果 ARK Innovation ETF 在任何一天的某个时刻的波动接近 50%，则可能会导致投资者的全部投资损失，即使 ARK Innovation ETF 随后朝相反方向波动，从而消除先前波动的全部或部分。这种情况适用于 ARK Innovation ETF 的任何单日波动，即使 ARK Innovation ETF 在任何时候保持大于零的水平。
Correlation Risk. A number of factors may affect the Fund’s ability to achieve a high degree of correlation with ARK Innovation ETF, and there is no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective, and the percentage change of the Fund’s NAV each day may differ, perhaps significantly in amount, and possibly even direction, from -200% of the percentage change of ARK Innovation ETF on such day.
In order to achieve a high degree of correlation with ARK Innovation ETF, the Fund seeks to rebalance its portfolio daily to keep exposure consistent with its investment objective. Being materially under- or overexposed to ARK Innovation ETF may prevent the Fund from achieving a high degree of correlation with ARK Innovation ETF and may expose the Fund to greater leverage risk. Market disruptions or closure, regulatory restrictions, market volatility, illiquidity in the markets for the financial instruments in which the Fund invests, and other factors will adversely affect the Fund’s ability to adjust exposure to requisite levels. The target amount of portfolio exposure is impacted dynamically by ARK Innovation ETF’s movements, including intraday movements. Because of this, it is unlikely that the Fund will have perfect -200% exposure during the day or at the end of each day and the likelihood of being materially under- or overexposed is higher on days when ARK Innovation ETF is volatile, particularly when ARK Innovation ETF is volatile at or near the close of the trading day.
3
A number of other factors may also adversely affect the Fund’s correlation with ARK Innovation ETF, including fees, expenses, transaction costs, financing costs associated with the use of derivatives, income items, valuation methodology, accounting standards and disruptions or illiquidity in the markets for the securities or financial instruments in which the Fund invests. The Fund may take or refrain from taking positions in order to improve tax efficiency, comply with regulatory restrictions, or for other reasons, each of which may negatively affect the Fund’s correlation with ARK Innovation ETF. The Fund may also be subject to large movements of assets into and out of the Fund, potentially resulting in the Fund being under- or overexposed to ARK Innovation ETF. Additionally, the Fund’s underlying investments and/or reference assets may trade on markets that may not be open on the same day as the Fund, which may cause a difference between the changes in the daily performance of the Fund and changes in the performance of ARK Innovation ETF. Any of these factors could decrease correlation between the performance of the Fund and ARK Innovation ETF and may hinder the Fund’s ability to meet its daily investment objective on or around that day.
Effective on the Effective Date, the Fund’s investment objective will be changed as follows:
The Tradr 2X Short TSLA Daily ETF seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-200%) of the daily performance of the common shares of Tesla, Inc. The Fund does not seek to achieve its stated investment objective for a period of time different than a trading day.
Effective on the Effective date, the first paragraph under the Fund’s principal investment strategies is replaced with the following:
Under normal market circumstances, the Fund will maintain at least 80% exposure to financial instruments that provide inverse exposure to two times the daily performance of TSLA. The Fund is an actively-managed exchange-traded fund (“ETF”) that seeks to achieve on a daily basis, before fees and expenses, -200% performance of TSLA for a single day, not for any other period, by entering into one or more swaps on TSLA. A “single day” is measured from the time the Fund calculates its net asset value (“NAV”) to the time of the Fund’s next NAV calculation.
Additionally, the third sentence of the second paragraph under the Fund’s principal investment strategies is replaced with the following:
The Advisor expects to rebalance the Fund’s holdings daily in an attempt to maintain short exposure for the Fund equal to -200% of TSLA. Because of daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from -200% of the return of Tesla, Inc. over the same period.
Effective on the Effective Date, certain risks of the Fund will be updated as follows:
Effects of Compounding and Market Volatility Risk. The Fund has a single day investment objective, and the Fund’s performance for any other period is the result of its return for each day compounded over the period. The performance of the Fund for periods longer than a single day will very likely differ in amount, and possibly even direction, from -200% of the daily return of TSLA for the same period, before accounting for fees and expenses. Compounding affects all investments, but has a more significant impact on funds that are leveraged and that rebalance daily. This effect becomes more pronounced as TSLA’s volatility and the holding periods increase. Fund performance for a period longer than a single day can be estimated given any set of assumptions for the following factors: (a) TSLA volatility; (b) TSLA performance; (c) period of time; (d) financing rates associated with leveraged exposure; and (e) other Fund expenses. The chart below illustrates the impact of two principal factors — TSLA volatility and TSLA performance — on Fund performance. The chart shows estimated Fund returns for a number of combinations of TSLA volatility and TSLA performance over a one-year period. Actual volatility, TSLA and Fund performance may differ significantly from the chart below. Performance shown in the chart assumes: (a) no Fund expenses; and (b) borrowing/lending rates (to obtain leveraged exposure) of zero percent. If Fund expenses and/or actual borrowing/ lending rates were reflected, the Fund’s performance would be lower than shown.
4
As shown in the chart below, the Fund would be expected to lose 17.0% if TSLA provided no return over a one year period during which TSLA experienced annualized volatility of 25%. At higher ranges of volatility, there is a chance of a significant loss of value in the Fund, even if TSLA’s return is flat. For instance, if TSLA’s annualized volatility is 100%, the Fund would be expected to lose 95.3% of its value, even if TSLA’s cumulative return for the year was 0%. Areas shaded red (or dark gray) represent those scenarios where the Fund can be expected to return less than -200% of the performance of TSLA and those shaded green (or light gray) represent those scenarios where the Fund can be expected to return more than -200% of the performance of TSLA. The table below is not a representation of the Fund’s actual returns, which may be significantly better or worse than the returns shown below as a result of any of the risk factors discussed herein.
| -200% of | Volatility of the Underlying Stock (annualized) | |||||||
| One Year Performance of Underlying Stock | One Year | 10% | 25% | 50% | 75% | 100% | 125% | 150% |
| -95% | 190% | 36110.9% | 31935.5% | 18570.8% | 7461.0% | 2021.9% | 292.9% | -53.9% |
| -90% | 180% | 9182.7% | 7895.4% | 4554.8% | 1756.7% | 406.8% | -8.5% | -89.3% |
| -80% | 160% | 2261.3% | 1930.1% | 1074.3% | 367.1% | 23.9% | -78.0% | -97.5% |
| -70% | 140% | 962.0% | 810.9% | 421.8% | 108.1% | -45.0% | -90.4% | -99.0% |
| -60% | 120% | 500.9% | 415.3% | 196.2% | 15.3% | -69.1% | -94.7% | -99.4% |
| -50% | 100% | 286.3% | 230.5% | 89.7% | -25.6% | -80.5% | -96.7% | -99.7% |
| -40% | 80% | 168.8% | 130.4% | 31.6% | -48.3% | -86.9% | -97.8% | -99.8% |
| -30% | 60% | 98.0% | 69.3% | -3.3% | -62.4% | -90.3% | -98.4% | -99.8% |
| -20% | 40% | 51.6% | 29.8% | -26.1% | -71.8% | -92.6% | -98.8% | -99.9% |
| -10% | 20% | 19.8% | 2.4% | -41.6% | -77.5% | -94.2% | -99.0% | -99.9% |
| 0% | 0% | -2.9% | -17.0% | -52.7% | -81.8% | -95.3% | -99.2% | -99.9% |
| 10% | -20% | -19.8% | -31.4% | -61.2% | -84.9% | -96.2% | -99.4% | -99.9% |
| 20% | -40% | -32.6% | -42.4% | -67.4% | -87.5% | -96.7% | -99.4% | -100.0% |
| 30% | -60% | -42.6% | -51.0% | -72.2% | -89.4% | -97.3% | -99.6% | -100.0% |
| 40% | -80% | -50.6% | -57.7% | -76.1% | -90.7% | -97.7% | -99.6% | -100.0% |
| 50% | -100% | -56.9% | -63.3% | -79.2% | -92.0% | -97.9% | -99.7% | -100.0% |
| 60% | -120% | -62.2% | -67.7% | -81.9% | -93.1% | -98.2% | -99.7% | -100.0% |
| 70% | -140% | -66.5% | -71.4% | -83.9% | -93.8% | -98.5% | -99.7% | -100.0% |
| 80% | -160% | -70.2% | -74.6% | -85.6% | -94.4% | -98.6% | -99.8% | -100.0% |
| 90% | -180% | -73.3% | -77.2% | -87.2% | -95.2% | -98.7% | -99.8% | -100.0% |
| 100% | -200% | -74.6% | -78.3% | -87.7% | -95.4% | -98.9% | -99.8% | -100.0% |
TSLA’s annualized historical volatility rate for the five-year period ended December 31, 2023, was 64.72%. TSLA’s highest calendar year annualized volatility was 89.64% in 2020. TSLA’s annualized total return performance for the five-year period ended December 31, 2023, was 64.62%. Historical volatility and performance are not indications of what TSLA volatility and performance will be in the future.
Leverage Risk. Leverage increases the risk of a total loss of an investor’s investment, may increase the volatility of the Fund, and may magnify any differences between the performance of the Fund and TSLA. Because the Fund includes a multiplier of negative of two times (-200%) TSLA, a single day movement in TSLA 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 Fund, even if TSLA 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 TSLA, even if TSLA maintains a level greater than zero at all times.
5
Correlation Risk. A number of factors may affect the Fund’s ability to achieve a high degree of correlation with TSLA, and there is no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective, and the percentage change of the Fund’s NAV each day may differ, perhaps significantly in amount, and possibly even direction, from -200% of the percentage change of TSLA on such day.
In order to achieve a high degree of correlation with TSLA, the Fund seeks to rebalance its portfolio daily to keep exposure consistent with its investment objective. Being materially under- or overexposed to TSLA may prevent the Fund from achieving a high degree of correlation with TSLA and may expose the Fund to greater leverage risk. Market disruptions or closure, regulatory restrictions, market volatility, illiquidity in the markets for the financial instruments in which the Fund invests, and other factors will adversely affect the Fund’s ability to adjust exposure to requisite levels. The target amount of portfolio exposure is impacted dynamically by TSLA’s movements, including intraday movements. Because of this, it is unlikely that the Fund will have perfect -200% exposure during the day or at the end of each day and the likelihood of being materially under- or overexposed is higher on days when TSLA is volatile, particularly when TSLA is volatile at or near the close of the trading day.
A number of other factors may also adversely affect the Fund’s correlation with TSLA, including fees, expenses, transaction costs, financing costs associated with the use of derivatives, income items, valuation methodology, accounting standards and disruptions or illiquidity in the markets for the securities or financial instruments in which the Fund invests. The Fund may take or refrain from taking positions in order to improve tax efficiency, comply with regulatory restrictions, or for other reasons, each of which may negatively affect the Fund’s correlation with TSLA. The Fund may also be subject to large movements of assets into and out of the Fund, potentially resulting in the Fund being under- or overexposed to TSLA. Additionally, the Fund’s underlying investments and/or reference assets may trade on markets that may not be open on the same day as the Fund, which may cause a difference between the changes in the daily performance of the Fund and changes in the performance of TSLA. Any of these factors could decrease correlation between the performance of the Fund and TSLA and may hinder the Fund’s ability to meet its daily investment objective on or around that day.
Effective on the Effective Date, the Fund’s investment objective will be changed as follows:
The Tradr 1.5X Short NVDA Daily ETF seeks daily investment results, before fees and expenses, that correspond to one and a half times the inverse (-150%) of the daily performance of the common shares of NVIDIA Corporation. The Fund does not seek to achieve its stated investment objective for a period of time different than a trading day.
Effective on the Effective date, the first paragraph under the Fund’s principal investment strategies is replaced with the following:
Under normal market circumstances, the Fund will maintain at least 80% exposure to financial instruments that provide one and a half times inverse leveraged exposure to the daily performance of NVDA. The Fund is an actively-managed exchange-traded fund (“ETF”) that seeks to achieve on a daily basis, before fees and expenses, -150% performance of NVDA for a single day, not for any other period, by entering into one or more swaps on NVDA. A “single day” is measured from the time the Fund calculates its net asset value (“NAV”) to the time of the Fund’s next NAV calculation.
In addition, the third sentence of the second paragraph under the Fund’s principal investment strategies is replaced with the following:
The Advisor attempts to consistently apply leverage to increase the Fund’s exposure to -150% of NVDA and expects to rebalance the Fund’s holdings daily to maintain such exposure. Because of daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from -150% of the return of NVIDIA Corporation over the same period.
6
Effective on the Effective Date, certain risks of the Fund will be updated as follows:
Effects of Compounding and Market Volatility Risk. The Fund has a single day investment objective, and the Fund’s performance for any other period is the result of its return for each day compounded over the period. The performance of the Fund for periods longer than a single day will very likely differ in amount, and possibly even direction, from -150% of the daily return of NVDA 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 NVDA’s volatility and the holding periods increase. Fund performance for a period longer than a single day can be estimated given any set of assumptions for the following factors: (a) NVDA volatility; (b) NVDA performance; (c) period of time; (d) financing rates associated with leveraged exposure; and (e) other Fund expenses. The chart below illustrates the impact of two principal factors — NVDA volatility and NVDA performance — on Fund performance. The chart shows estimated Fund returns for a number of combinations of NVDA volatility and NVDA performance over a one-year period. Actual volatility, NVDA and Fund performance may differ significantly from the chart below. Performance shown in the chart assumes: (a) no Fund expenses; and (b) borrowing/lending rates (to obtain leveraged exposure) of zero percent. If Fund expenses and/or actual borrowing/ lending rates were reflected, the Fund’s performance would be lower than shown.
As shown in the chart below, the Fund would be expected to lose 11.0% if NVDA provided no return over a one year period during which NVDA experienced annualized volatility of 25%. At higher ranges of volatility, there is a chance of a significant loss of value in the Fund, even if NDVA’s return is flat. For instance, if NDVA’s annualized volatility is 100%, the Fund would be expected to lose 85.2% of its value, even if NDVA’s cumulative return for the year was 0%. Areas shaded red (or dark gray) represent those scenarios where the Fund can be expected to return less than -150% of the performance of NDVA and those shaded green (or light gray) represent those scenarios where the Fund can be expected to return more than -150% of the performance of NDVA. The table below is not a representation of the Fund’s actual returns, which may be significantly better or worse than the returns shown below as a result of any of the risk factors discussed herein.
| -150% of | Volatility of the Underlying Stock (annualized) | |||||||
| One Year Performance of the Underlying Stock | One Year | 10% | 25% | 50% | 75% | 100% | 125% | 150% |
| -95% | 143% | 7377.2% | 6520.9% | 4593.2% | 2581.4% | 1102.2% | 318.8% | 15.1% |
| -90% | 135% | 2917.4% | 2656.4% | 1860.0% | 1006.2% | 387.1% | 71.6% | -53.5% |
| -80% | 120% | 980.7% | 881.5% | 595.3% | 291.9% | 74.1% | -40.3% | -84.2% |
| -70% | 105% | 492.1% | 437.6% | 281.0% | 112.8% | -6.6% | -67.7% | -91.5% |
| -60% | 90% | 286.1% | 250.2% | 147.6% | 38.7% | -39.2% | -79.5% | -94.6% |
| -50% | 75% | 176.6% | 151.0% | 77.6% | -1.0% | -57.0% | -85.3% | -96.2% |
| -40% | 60% | 111.0% | 91.3% | 35.1% | -24.7% | -67.2% | -88.9% | -97.1% |
| -30% | 45% | 67.5% | 51.8% | 7.0% | -40.6% | -74.2% | -91.2% | -97.8% |
| -20% | 30% | 37.2% | 24.4% | -12.3% | -51.6% | -78.9% | -92.9% | -98.2% |
| -10% | 15% | 15.0% | 4.2% | -26.9% | -59.5% | -82.4% | -94.1% | -98.5% |
| 0% | 0% | -1.9% | -11.0% | -37.3% | -65.3% | -85.2% | -94.9% | -98.7% |
| 10% | -15% | -14.9% | -22.9% | -45.9% | -69.9% | -87.0% | -95.6% | -98.9% |
| 20% | -30% | -25.4% | -32.4% | -52.5% | -73.7% | -88.7% | -96.3% | -99.0% |
| 30% | -45% | -33.8% | -40.0% | -57.8% | -76.7% | -90.0% | -96.6% | -99.2% |
| 40% | -60% | -40.8% | -46.4% | -62.2% | -79.1% | -91.1% | -97.0% | -99.2% |
| 50% | -75% | -46.7% | -51.7% | -66.0% | -81.3% | -91.9% | -97.4% | -99.3% |
| 60% | -90% | -51.6% | -56.2% | -69.3% | -83.0% | -92.6% | -97.5% | -99.4% |
| 70% | -105% | -55.8% | -60.0% | -71.9% | -84.6% | -93.3% | -97.7% | -99.4% |
| 80% | -120% | -59.5% | -63.3% | -74.3% | -85.8% | -93.9% | -97.9% | -99.5% |
| 90% | -135% | -62.6% | -66.2% | -76.4% | -86.8% | -94.5% | -98.2% | -99.5% |
| 100% | -150% | -64.1% | -67.5% | -77.2% | -87.3% | -94.6% | -98.2% | -99.6% |
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NVDA’s annualized historical volatility rate for the five-year period ended December 31, 2023, was 51.79%. NVDA’s highest calendar year annualized volatility rate was 63.42% in 2022. NVDA’s annualized total return performance for the five-year period ended December 31, 2023, was 71.30%. Historical NVDA volatility and performance are not indications of what NVDA volatility and performance will be in the future. The volatility of U.S. exchange-traded securities or instruments that reflect the value of NVDA may differ from the volatility of NVDA.
Leverage Risk. Leverage increases the risk of a total loss of an investor’s investment, may increase the volatility of the Fund, and may magnify any differences between the performance of the Fund and NVDA. Because the Fund includes a multiplier of negative one and a half times (-150%) NVDA, a single day movement in NVDA approaching 67% 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 Fund, even if NVDA 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 NVDA, even if NVDA maintains a level greater than zero at all times.
Correlation Risk. A number of factors may affect the Fund’s ability to achieve a high degree of correlation with NVDA, and there is no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective, and the percentage change of the Fund’s NAV each day may differ, perhaps significantly in amount, and possibly even direction, from -150% of the percentage change of NVDA on such day.
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In order to achieve a high degree of correlation with NVDA, the Fund seeks to rebalance its portfolio daily to keep exposure consistent with its investment objective. Being materially under- or overexposed to NVDA may prevent the Fund from achieving a high degree of correlation with NVDA and may expose the Fund to greater leverage risk. Market disruptions or closure, regulatory restrictions, market volatility, illiquidity in the markets for the financial instruments in which the Fund invests, and other factors will adversely affect the Fund’s ability to adjust exposure to requisite levels. The target amount of portfolio exposure is impacted dynamically by NVDA’s movements, including intraday movements. Because of this, it is unlikely that the Fund will have perfect -150% exposure during the day or at the end of each day and the likelihood of being materially under- or overexposed is higher on days when NVDA is volatile, particularly when NVDA is volatile at or near the close of the trading day.
A number of other factors may also adversely affect the Fund’s correlation with NVDA, including fees, expenses, transaction costs, financing costs associated with the use of derivatives, income items, valuation methodology, accounting standards and disruptions or illiquidity in the markets for the securities or financial instruments in which the Fund invests. The Fund may take or refrain from taking positions in order to improve tax efficiency, comply with regulatory restrictions, or for other reasons, each of which may negatively affect the Fund’s correlation with NVDA. The Fund may also be subject to large movements of assets into and out of the Fund, potentially resulting in the Fund being under- or overexposed to NVDA. Additionally, the Fund’s underlying investments and/or reference assets may trade on markets that may not be open on the same day as the Fund, which may cause a difference between the changes in the daily performance of the Fund and changes in the performance of NVDA. Any of these factors could decrease correlation between the performance of the Fund and NVDA and may hinder the Fund’s ability to meet its daily investment objective on or around that day.
Please file this Supplement with your records.
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