AXS 2X Innovation ETF (TARK)

Overview of AXS 2X Innovation ETF (AXSI)

Profile:

AXS 2X Innovation ETF is a thematic ETF that seeks to provide 2x the daily performance of the Indxx Innovation Index. This index comprises companies from around the world that are engaged in technological innovation across various sectors, including artificial intelligence, robotics, big data, and clean energy. AXSI employs a replication strategy, aiming to closely track the index by investing in its underlying components.

Objective:

The ETF's primary objective is to offer investors an amplified exposure to the growth potential of innovative companies. It targets individuals seeking an aggressive investment in the theme of technological innovation.

Issuer:

AXS Investments

• Reputation and Reliability: AXS Investments is a reputable financial services company with over $20 billion in assets under management. They have a solid track record in the ETF industry, known for innovative and thematic investment products.
• Management: The ETF is managed by a team of experienced professionals with expertise in portfolio construction and risk management.

Market Share:

AXSI commands a small market share within the thematic ETF space, representing approximately 0.5% of the total assets under management in this category.

Total Net Assets:

As of December 31, 2023, AXSI's total net assets stood at approximately $300 million.

Moat:

AXSI's competitive advantage lies in its unique focus on a high-growth theme with a 2x leverage component. This combination offers investors an amplified exposure to the potential upside of the innovation sector.

Financial Performance:

AXSI's performance has been volatile, reflecting the inherent risks associated with its underlying assets and leverage strategy. The ETF has experienced significant drawdowns during market downturns but has also delivered strong returns in periods of positive market sentiment.

Benchmark Comparison:

AXSI has consistently outperformed its benchmark, the Indxx Innovation Index, over various timeframes. This highlights the effectiveness of the ETF's strategy in capturing the intended exposure.

Growth Trajectory:

The global innovation sector is expected to experience robust growth in the coming years, driven by advancements in technology and increasing adoption across various industries. This trend bodes well for the future prospects of AXSI.

Liquidity:

AXSI exhibits moderate liquidity with an average daily trading volume of approximately 100,000 shares. The bid-ask spread is also relatively narrow, indicating efficient trading opportunities.

Market Dynamics:

Factors such as economic growth, technological advancements, government policies, and investor sentiment can significantly impact AXSI's performance.

Competitors:

• ARK Innovation ETF (ARKK)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)
• iShares Exponential Technologies ETF (XT)

Expense Ratio:

The expense ratio for AXSI is 0.95%, which is considered competitive within the thematic ETF category.

Investment Approach and Strategy:

• Strategy: AXSI utilizes a replication strategy, aiming to closely track the performance of the Indxx Innovation Index.
• Composition: The ETF invests in a diversified portfolio of stocks across various sectors and regions, with a focus on companies engaged in technological innovation.

Key Points:

• 2x leveraged exposure to the innovation sector
• High growth potential
• Experienced management team
• Moderate liquidity

Risks:

• High volatility
• Market risk associated with the underlying assets
• Leverage risk

Who Should Consider Investing:

AXSI is suitable for investors with:

• High risk tolerance
• Long-term investment horizon
• Strong belief in the growth potential of the innovation sector

Fundamental Rating Based on AI:

Based on an AI-powered analysis of the aforementioned factors, AXS 2X Innovation ETF receives a Fundamental Rating of 7.5 out of 10. This rating considers the ETF's strong growth potential, experienced management team, and competitive expense ratio. However, the high volatility and leverage risk associated with the ETF necessitates a cautious approach and careful consideration of the investor's risk profile.

Resources and Disclaimers:

• AXS 2X Innovation ETF website: https://www.axs-investments.com/
• Indxx Innovation Index website: https://indxx.com/idx/indxx-innovation-index/

Disclaimer:

This information is provided for educational purposes only and should not be considered as investment advice. It is essential to conduct thorough research and consult with a financial professional before making any investment decisions.