- What does AXTX invest in?
- AXTX is a short-term tactical tool that aims to deliver twice (200%) the daily performance of AXT, Inc. (AXTI), before fees and expenses. The fund primarily enters into total return swap agreements with major global financial institutions that mirror AXTIs daily returns. In case swaps are unavailable or less efficient, the fund may use FLEX call options or directly hold AXTI stock. Purchasers holding shares for longer than a day will need to monitor and rebalance their position frequently to attempt to achieve the 2x multiple. Purchasers should conduct their own individual stock research prior to initiating a position and trade with conviction. Due to the complexities of the product, shares tend to perform as anticipated only when the underlying shares are trending, and holders are on the positive corresponding side of that trade. The remaining cash is invested in collaterals such as US Treasuries, money market funds, or short-term corporate debt.
- What is the expense ratio of AXTX?
- Investment Managers Series Trust II - Tradr 2X Long AXTI Daily ETF (AXTX) charges an expense ratio of 1.49%. This is the annual fee deducted from fund assets to cover management and operations.
- Is AXTX a good long-term hold?
- AXTX 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 AXTX's daily reset work?
- AXTX 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 AXTX?
- Investment Managers Series Trust II - Tradr 2X Long AXTI Daily ETF (AXTX) manages $128.5M 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 AXTX actively managed or an index fund?
- AXTX's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.
