How to Invest
You may invest in Tradr ETFs through your brokerage account. For your convenience, you can link to major online brokers below.
* The Fund’s investment advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual fund operating expenses (exclusive of any (i) leverage interest, (ii) brokerage fees and commission, (iii) acquired fund fees and expenses, (iv) fees and expenses associated with derivative instruments (including for example options and swap fees and expenses), (v) interest and dividend expense on short sales, (vi) taxes, (vii) expenses incurred in connection with any merger or reorganization, or (viii) extraordinary expenses such as litigation expenses) will not exceed 1.30%. This agreement is effective until July 31, 2025 and it may be terminated before that date only by IMST II’s Board of Trustees.
**“Other expenses” are estimated for the current fiscal year.
Tradr ETFs are for sophisticated investors and professional traders with high conviction views and are very different from most other exchange-traded funds. Know the risks before you invest. 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 trading for investors seeking daily, weekly, monthly or quarterly 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, calendar week, calendar month and calendar quarter inverse and leveraged investment results; (c) for short ETFs, understand the risk of shorting; (d) intend to actively monitor and manage their investment. Fund performance will likely be significantly different than the benchmark over periods longer than the specified reset period and the performance may trend in the opposite direction than its benchmark over periods other than that period.
The Funds seek leveraged investment results over a specific period and are intended to be used as short-term trading vehicles. The Funds pursue 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.
ETFs involve risk including possible loss of the full principal value, regardless of whether an investor holds the ETF for a single calendar reset period or over the course of multiple calendar reset periods. There is no assurance that the Fund will achieve its investment objective. Principal risks and other important risks may be found in the prospectus.
There is no guarantee that this, or any investment strategy will succeed. 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 calendar month investment objective, and performance for any other period is the result of its return for each month compounded over the period. Performance for periods longer than a full calendar month will very likely differ in amount, and possibly even direction, from 200% of the daily return of the iShares® Semiconductor ETF for the same period, before accounting for fees and expenses. Compounding affects all investments but has a more significant impact on leveraged funds that rebalance monthly. This effect becomes more pronounced as the volatility of iShares® Semiconductor ETF and holding periods increase.
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 the iShares® Semiconductor ETF , the underlying security. Because the Fund includes a multiplier of two times (200%) the underlying security, a full calendar month movement in the underlying security approaching 50% at any point in the month 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 the iShares® Semiconductor ETF subsequently moves in an opposite direction, eliminating all or a portion of the earlier movement. This would be the case with any such full calendar month movements in the underlying security, even if it maintains a level greater than zero at all times.
Swap 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.
Intra-Calendar Period Investment Risk: The Fund seeks calendar month leveraged investment results. The exact exposure of an investment in the Fund intra-month will depend upon the movement of the iShares® Semiconductor ETF (the underlying security) from the end of the prior calendar month until the time of investment by the investor. If the underlying security gains value, the Fund’s net assets will rise by the same amount as the Fund’s exposure. Conversely, if it loses value, the Fund’s net assets will decline by the same amount as the Fund’s exposure. Thus, an investor who purchases shares on a day other than the last business day of the calendar period will likely obtain more, or less, than 200% leveraged investment exposure to the underlying security, depending upon its movement from the end of the prior calendar period until the time of investment by the investor. If there is a significant intra-calendar period market event and/or the securities of the underlying security experience a significant decrease in value, the Fund may not meet its investment objective or be able to rebalance its portfolio appropriately.
Correlation Risk: A number of factors may affect the Fund’s ability to achieve a high degree of correlation with the iShares® Semiconductor ETF, which may prevent the Fund from achieving its investment objective, and the percentage change of the Fund’s net asset value each calendar month may differ from 200% of the percentage change of the underlying security during such calendar month.
ETF 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.
There are risks involved with investing including the possible loss of principal. Diversification does not guarantee investment returns or eliminate the risk of loss. Past performance does not guarantee future results.
Investors should carefully consider the investment objectives, risks, charges and expenses of the fund before investing. To obtain a prospectus containing this and other important information, please click here to view or download a prospectus online. Read the fund’s prospectus carefully before you invest.
Distributed by ALPS Distributors, Inc, which is not affiliated with AXS Investments or its Tradr ETFs.
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