- What does AAOX invest in?
- AAOX uses swap agreements and listed call options to make bullish bets on the share price of Applied Optoelectronics, Inc. (NASDAQ: AAOI). The fund may also invest directly in AAOI. Applied Optoelectronics engages in the design and manufacture of optical communications products. Its products include optical devices and equipment for applications in fiber-to-the-home, cable television, point to point communications, and wireless. The fund seeks to maintain daily leveraged exposure equivalent to 200% of the daily percentage change in AAOI price through daily rebalancing. Returns may deviate from the expected 2x if held for longer than a single day due to factors such as volatility and compounding effects. The fund expects to invest in US Government securities, money market funds, short-term bond ETFs, and corporate debt as collateral.
- What is the expense ratio of AAOX?
- Tradr 2X Long AAOI Daily ETF (AAOX) charges an expense ratio of 1.49%. This is the annual fee deducted from fund assets to cover management and operations.
- Is AAOX a good long-term hold?
- AAOX is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple, typically with negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.
- How does AAOX's daily reset work?
- AAOX rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level, so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.
- How big is AAOX?
- Tradr 2X Long AAOI Daily ETF (AAOX) manages $227.8M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.
- Is AAOX actively managed or an index fund?
- AAOX's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.
