FactorETF Trust Files For 23 Innovative 2X Leveraged ETFs

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July 21, 2009 10:14am ETF BASIC NEWS

comingsooonFactorETF 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     

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