United States: Investment firm seeks to list double-leveraged ETFs based on single stocks

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In an SEC filing, an investment firm seeks approval for a series of dual-leveraged bull and bear exchange-traded funds (“ETFs”) that each track the performance of a only equity security listed in the United States.

According to the filing, the funds intend to provide daily returns that are twice the daily return (or twice the inverse daily return) of a single underlying US security. Underlying securities offered include Tesla, Inc. (TSLA), NVIDIA Corporation (NVDA), ConocoPhillips Company (COP), Boeing Company (BA), PayPal Holdings, Inc. (PYPL), Wells Fargo & Company (WFC), Pfizer Inc. (PFE), salesforce.com, Inc. (CRM) and Nike Inc. (NKE).

The funds’ investment adviser, AXS Investments, LLC (“AXS”), would seek to achieve these investment objectives by entering into one or more swap agreements with major global financial institutions and may invest between 40% and 80% of the fund’s portfolio. a fund in collateral investments (for example., US government securities and money market funds).

AXS is seeking SEC approval to list these ETFs on an exchange to be determined.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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