REX VolMAXX Long VIX Futures Strat ETF (VMAX)

Overview

The REX VolMAXX Long VIX Futures Strategy ETF (VXXL) seeks to provide leveraged exposure to the daily performance of the S&P 500 VIX Short-Term Futures Index. It invests in a combination of first- and second-month VIX futures contracts to achieve its investment objective. VXXL is designed for sophisticated investors seeking short-term trading opportunities and is not intended as a long-term investment.

Reputation and Reliability

REX Shares is a known issuer of volatility-based ETFs. They are considered reliable within their niche but are subject to the inherent risks of volatility products.

Management Expertise

The management team at REX Shares has experience in developing and managing specialized ETFs, including those focused on volatility.

Goal

To seek leveraged daily investment results, before fees and expenses, of 1.5 times (1.5x) the daily performance of the S&P 500 VIX Short-Term Futures Index.

Investment Approach and Strategy

Strategy: The ETF aims to track 1.5x the daily performance of the S&P 500 VIX Short-Term Futures Index.

Composition The ETF primarily holds VIX futures contracts, typically first and second month contracts.

Market Share: VXXL holds a substantial market share within the leveraged VIX futures ETF segment.

Total Net Assets (AUM): 117.12

Key Competitors

• ProShares Ultra VIX Short-Term Futures ETF (UVXY)
• iPath Series B S&P 500 VIX Short-Term Futures ETN (VXXB)
• ProShares Short VIX Short-Term Futures ETF (SVXY)

Competitive Landscape

The VIX futures ETF market is concentrated among a few key players. VXXL's leveraged approach offers higher potential returns but also higher risk compared to non-leveraged competitors. Its reliance on VIX futures exposes it to contango and decay issues, similar to its peers.

Historical Performance: Historical performance has been highly volatile, generally exhibiting negative returns over the long term due to the nature of VIX futures and the effects of contango.

Benchmark Comparison: The ETF's performance is designed to track 1.5x the daily moves of its benchmark index, the S&P 500 VIX Short-Term Futures Index. Tracking error may occur due to fees, expenses and leverage adjustments.

Expense Ratio: 1.65

Average Trading Volume

VXXL exhibits high average daily trading volume, which is generally above 2 million shares on average.

Bid-Ask Spread

The bid-ask spread can be relatively tight but can widen considerably during periods of high volatility.

Market Environment Factors

Performance is greatly influenced by market volatility, investor sentiment, and expectations of future volatility. Economic uncertainty and geopolitical events can significantly impact VXXL.

Growth Trajectory

Due to the product structure it's not suitable for long term hold.

Competitive Edge

VXXL offers leveraged exposure to VIX futures, which is a distinct advantage for investors seeking magnified short-term gains from volatility spikes. The fund's high trading volume and liquidity also give it an advantage over smaller, less liquid volatility products. However, the leveraged nature also amplifies losses. It's easy and has efficient short term access to volatility in the market through VIX futures. VXXL provides the ability for investors to speculate on short-term volatility movements.

Volatility

VXXL is inherently highly volatile due to its leveraged exposure to VIX futures.

Market Risk

The primary risk is the decay associated with VIX futures contracts (contango). Sudden market drops can result in huge returns, but volatility is hard to predict.

Ideal Investor Profile

The ideal investor is a sophisticated trader with a high risk tolerance, seeking short-term trading opportunities in the volatility market. They understand the risks associated with leveraged VIX futures products.

Market Risk

VXXL is best suited for active traders with a short-term investment horizon and an understanding of VIX futures dynamics. It is not suitable for long-term investors.

REX VolMAXX Long VIX Futures Strat ETF (VXXL) is a leveraged ETF designed to provide 1.5x the daily performance of the S&P 500 VIX Short-Term Futures Index. It's best suited for sophisticated, short-term traders seeking to profit from volatility spikes. However, it's subject to significant decay and high volatility, making it unsuitable for long-term investment. Investors should carefully consider the risks before investing and understand how the ETF functions.

Data Sources:

• REX Shares Website
• ETF.com
• Yahoo Finance

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investing in ETFs involves risk, including the potential loss of principal. VXXL is a complex product and should be carefully considered before investing.