FactorETF Trust Files For 23 Innovative 2X Leveraged ETFs
FactorETF Trust, a newcomer to the etf market, plans to launch 23 2X leveraged ETFs. The proposed ETFs would be based on underlying indexes that measure their respective sector and, or asset class against broader markets. Included in the application, FactorETF is also asking regulators for approval to offer other ETFs that provide 100%, 200% and 300% exposure to various underlying indexes.
We have included some pieces of the SEC filing below, for the full filing click: HERE
“Applicant intends to establish certain index-based market-basket investment products intended to be made available to both institutional and retail investors. The Trust is organized as a Delaware statutory trust and is registered under the 1940 Act as an open-end management investment company that is authorized to offer an unlimited number of series (each, a “Fund”). Each Fund will have a distinct investment objective. Each Fund, on a daily basis, will seek to achieve, before fees, expenses and transaction costs, the daily performance of a particular index. These indexes include: (i) domestic equity, foreign equity or fixed income securities indexes (respectively, an “Underlying Long-Only Domestic Index,” “Underlying Long-Only Foreign Index,” or “Underlying Long-Only Fixed Income Index,” and together, the “Underlying Long-Only Indexes”); and (ii) long/short domestic equity, long/short foreign equity, long/short fixed income and long/short hybrid indexes (respectively, an “Underlying Long/Short Domestic Index,” “Underlying Long/Short Foreign Index,” “Underlying Long/Short Fixed Income Index,” or “Underlying Long/Short Hybrid Index,” and together, the “Underlying Long/Short Indexes”). Funds based on Underlying Long-Only Domestic Indexes are “Long-Only Domestic Funds.” Funds based on Underlying Long-Only Foreign Indexes are “Long-Only Foreign Funds.” Funds based on Underlying Long-Only Fixed Income Indexes are “Long-Only Fixed Income Funds.” Funds based on Underlying Long-Only Indexes are “Long-Only Funds.” Funds based on Underlying Long/Short Domestic Indexes are “Long/Short Domestic Funds.” Funds based on Underlying Long/Short Foreign Indexes are “Long/Short Foreign Funds.” Funds based on Underlying Long/Short Fixed Income Indexes are “Long/Short Fixed Income Funds.” Funds based on Underlying Long/Short Hybrid Indexes are “Long/Short Hybrid Funds.” Funds based on Underlying Long/Short Indexes are “Long/Short Funds.” Long-Only Foreign Funds and Long/Short Funds, collectively, are “Foreign Funds.” Exhibit A identifies the Underlying Indexes of the Initial Funds (as defined below).
| EXHIBIT A | |||
| Fund | Objective | Index | Description |
| FactorETF 2x Value Factor | Seeks to track the performance | Factor Advisors 2x Value | Measures 200% of the daily |
| Shares | of a benchmark index that | Factor Index | excess return of US value |
| measures 200% of the daily | stocks over US growth stocks | ||
| excess return of US value | |||
| stocks over US growth stocks | |||
| FactorETF 2x Growth Factor | Seeks to track the performance | Factor Advisors 2x Growth | Measures 200% of the daily |
| Shares | of a benchmark index that | Factor Index | excess return of US growth |
| measures 200% of the daily | stocks over US value stocks | ||
| excess return of US growth | |||
| stocks over US value stocks | |||
| FactorETF 2x Small Factor | Seeks to track the performance | Factor Advisors 2x Small | Measures 200% of the daily |
| Shares | of a benchmark index that | Factor Index | excess return of US small- |
| measures 200% of the daily | capitalization stocks over US | ||
| excess return of US small- | large-capitalization stocks | ||
| capitalization stocks over US | |||
| large-capitalization stocks | |||
| FactorETF 2x Large Factor | Seeks to track the performance | Factor Advisors 2x Large | Measures 200% of the daily |
| Shares | of a benchmark index that | Factor Index | excess return of US large- |
| measures 200% of the daily | capitalization stocks over US | ||
| excess return of US large- | small-capitalization stocks | ||
| capitalization stocks over US | |||
| small-capitalization stocks | |||
| Fund | Objective | Index | Description |
| FactorETF 2x Momentum | Seeks to track the performance | Factor Advisors 2x Momentum | Measures 200% of the daily |
| Factor Shares | of a benchmark index that | Factor Index | excess return of well- |
| measures 200% of the daily | performing US stocks over | ||
| excess return of well- | poorly-performing US stocks | ||
| performing US stocks over | |||
| poorly-performing US stocks | |||
| FactorETF 2x Reversal Factor | Seeks to track the performance | Factor Advisors 2x Reversal | Measures 200% of the daily |
| Shares | of a benchmark index that | Factor Index | excess return of poorly- |
| measures 200% of the daily | performing US stocks over | ||
| excess return of poorly- | well-performing US stocks | ||
| performing US stocks over | |||
| well-performing US stocks | |||
| FactorETF 2x Non-US | Seeks to track the performance | Factor Advisors 2x Non-US | Measures 200% of the daily |
| Developed Factor Shares | of a benchmark index that | Developed Factor Index | excess return of US stocks over |
| measures 200% of the daily | non-US developed market | ||
| excess return of non-US | stocks | ||
| developed market stocks over | |||
| US stocks | |||
| FactorETF 2x US Developed | Seeks to track the performance | Factor Advisors 2x US | Measures 200% of the daily |
| Factor Shares | of a benchmark index that | Developed Factor Index | excess return of US stocks over |
| measures 200% of the daily | non-US developed market | ||
| excess return of US stocks over | stocks | ||
| non-US developed market | |||
| stocks | |||
| Fund | Objective | Index | Description |
| FactorETF 2x Emerging Factor | Seeks to track the performance | Factor Advisors 2x Emerging | Measures 200% of the daily |
| Shares | of a benchmark index that | Factor Index | excess return of emerging |
| measures 200% of the daily | market stocks over US stocks | ||
| excess return of emerging | |||
| market stocks over US stocks | |||
| FactorETF 2x Non-Emerging | Seeks to track the performance | Factor Advisors 2x Non- | Measures 200% of the daily |
| Factor Shares | of a benchmark index that | Emerging Factor Index | excess return of US stocks over |
| measures 200% of the daily | emerging market stocks | ||
| excess return of US stocks over | |||
| emerging market stocks | |||
| FactorETF 2x Financial Factor | Seeks to track the performance | Factor Advisors 2x Financial | Measures 200% of the daily |
| Shares | of a benchmark index that | Factor Index | excess return of US Financial |
| measures 200% of the daily | sector stocks over US stocks | ||
| excess return of US Financial | |||
| sector stocks over US stocks | |||
| FactorETF 2x Energy Factor | Seeks to track the performance | Factor Advisors 2x Energy | Measures 200% of the daily |
| Shares | of a benchmark index that | Factor Index | excess return of US Energy |
| measures 200% of the daily | sector stocks over US stocks | ||
| excess return of US Energy | |||
| sector stocks over US stocks | |||
| FactorETF 2x Technology | Seeks to track the performance | Factor Advisors 2x Technology | Measures 200% of the daily |
| Factor Shares | of a benchmark index that | Factor Index | excess return of US |
| measures 200% of the daily | Technology sector stocks over | ||
| excess return of US | US stocks | ||
| Technology sector stocks over | |||
| US stocks | |||
| Fund | Objective | Index | Description |
| FactorETF 2x REIT Factor | Seeks to track the performance | Factor Advisors 2x REIT | Measures 200% of the daily |
| Shares | of a benchmark index that | Factor Index | excess return of US REIT |
| measures 200% of the daily | stocks over US stocks | ||
| excess return of US REIT | |||
| stocks over US stocks | |||
| FactorETF 2x Gold Factor | Seeks to track the performance | Factor Advisors 2x Gold Factor | Measures 200% of the daily |
| Shares | of a benchmark index that | Index | excess return of US Gold |
| measures 200% of the daily | Mining stocks over US stocks | ||
| excess return of US Gold | |||
| Mining stocks over US stocks | |||
| FactorETF 2x Equity Premium | Seeks to track the performance | Factor Advisors 2x Equity | Measures 200% of the daily |
| Shares | of a benchmark index that | Premium Index | excess return of US stocks over |
| measures 200% of the daily | US Government Bonds | ||
| excess return of US stocks over | |||
| US Government Bonds | |||
| FactorETF 2x Anti-Equity | Seeks to track the performance | Factor Advisors 2x Anti-Equity | Measures 200% of the daily |
| Premium Shares | of a benchmark index that | Premium Index | excess return of US |
| measures 200% of the daily | Government Bonds over US | ||
| excess return of US | stocks | ||
| Government Bonds over US | |||
| stocks | |||
| FactorETF 2x Steepening Yield | Seeks to track the performance | Factor Advisors 2x Steepening | Measures 200% of the daily |
| Curve Factor Shares | of a benchmark index that | Yield Curve Index | excess return of short duration |
| measures 200% of the daily | US Government Bonds over | ||
| excess return of short duration | long duration US Government | ||
| US Government Bonds over | Bonds | ||
| long duration US Government | |||
| Fund | Objective | Index | Description |
| Bonds | |||
| FactorETF 2x Flattening Yield | Seeks to track the performance | Factor Advisors 2x Flattening | Measures 200% of the daily |
| Curve Factor Shares | of a benchmark index that | Yield Curve Index | excess return of long duration |
| measures 200% of the daily | US Government Bonds over | ||
| excess return of long duration | short duration US Government | ||
| US Government Bonds over | Bonds | ||
| short duration US Government | |||
| Bonds | |||
| FactorETF 2x Falling Credit | Seeks to track the performance | Factor Advisors 2x Falling | Measures 200% of the daily |
| Spread Factor Shares | of a benchmark index that | Credit Spread Index | excess return of US Corporate |
| measures 200% of the daily | Bonds over US Government | ||
| excess return of US Corporate | Bonds | ||
| Bonds over US Government | |||
| Bonds | |||
| FactorETF 2x Rising Credit | Seeks to track the performance | Factor Advisors 2x Rising | Measures 200% of the daily |
| Spread Factor Shares | of a benchmark index that | Credit Spread Index | excess return of US |
| measures 200% of the daily | Government Bonds over US | ||
| excess return of US | Corporate Bonds | ||
| Government Bonds over US | |||
| Corporate Bonds | |||
| FactorETF 2x Falling Inflation | Seeks to track the performance | Factor Advisors 2x Falling | Measures 200% of the daily |
| Factor Shares | of a benchmark index that | Inflation Factor Index | excess return of nominal US |
| measures 200% of the daily | Government Bonds over US | ||
| excess return of nominal US | Inflation-Indexed Bonds | ||
| Government Bonds over US | |||
| Inflation-Indexed Bonds | |||
| Fund | Objective | Index | Description |
| FactorETF 2x Rising Inflation | Seeks to track the performance | Factor Advisors 2x Rising | Measures 200% of the daily |
| Factor Shares | of a benchmark index that | Inflation Factor Index | excess return of US Inflation- |
| measures 200% of the daily | Indexed Bonds over nominal | ||
| excess return of US Inflation- | US Government Bonds | ||
| Indexed Bonds over nominal | |||
| US Government Bonds | |||
GET A FREE TREND ANALYSIS FOR ANY ETF HERE!
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