Tradr TLT ETFs
Get leveraged exposure to long-term US Treasury Bonds.
Tradr 1.75X Long TLT Quarterly ETF (TLTQ)
TLTQ seeks calendar quarter investment results, before fees and expenses, that correspond to 1.75 times (175%) the calendar quarter performance of the common shares of the iShares® 20+ Year Treasury Bond ETF (TLT). The Fund does not seek to achieve its stated investment objective for a period of time different than a full calendar quarter.
The iShares® 20+ Year Treasury Bond ETF is an index-based exchange traded fund that seeks to track investment results that, before fees and expenses, of an index designed to measure the performance of public obligations of the U.S. Treasury that have a remaining maturity greater than or equal to 20 years. The underlying index consists of publicly-issued U.S. Treasury securities that have a remaining maturity greater than or equal to 20 years and have $300 million or more of outstanding face value, excluding amounts held by the Federal Reserve System. In addition, the securities in the underlying index must be fixed-rate and denominated in U.S. dollars.
* 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 August 31, 2025, and it may be terminated before that date only by IMST II’s Board of Trustee
**“Other expenses” are estimated for the current fiscal year.
Not for Everyone
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.
Fund Literature
How to Invest
You may invest in Tradr ETFs through your brokerage account. For your convenience, you can link to popular online brokers below.
Important Risk information
ETFs involve risk including possible loss of principal. There is no assurance that the Fund will achieve its investment objective. 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 quarter investment objective, and performance for any other period is the result of its return for each quarter compounded over the period. Performance for periods longer than a full calendar quarter will very likely differ in amount, and possibly even direction, from 175% of the daily return of the iShares® 20+ Year Treasury Bond 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 quarterly. This effect becomes more pronounced as the volatility of iShares® 20+ Year Treasury Bond 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® 20+ Year Treasury Bond ETF , the underlying security. Because the Fund includes a multiplier of 1.75 times (175%) the underlying security, a full calendar quarter movement in the underlying security approaching 58% at any point in the quarter 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® 20+ Year Treasury Bond 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 quarter 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 quarter leveraged investment results. The exact exposure of an investment in the Fund intra-quarter will depend upon the movement of the iShares® 20+ Year Treasury Bond ETF (the underlying security) from the end of the prior calendar quarter 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 175% 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® 20+ Year Treasury Bond ETF, which may prevent the Fund from achieving its investment objective, and the percentage change of the Fund’s net asset value each calendar quarter may differ from 200% of the percentage change of the underlying security during such calendar quarter.