First ETFs Based on CBOE Volatility Index
Designed to Provide Spot Exposure to Key
Alternative Asset Classes
Nasdaq today announced that AccuShares Investment Management LLC
(AccuShares) will list two new exchange-traded funds (ETFs),
AccuShares Spot CBOE VIX ETF Up Class Shares (Symbol: VXUP) and
Down Class Shares (Symbol: VXDN), which will begin trading on The
Nasdaq Stock Market on Tuesday, May 19, 2015. The funds will track
the CBOE Volatility Index (VIX).
"We are delighted to partner with Nasdaq as we launch our first
funds for the ETF market," said Jack Fonss, Chief Executive Officer
and Co-Founder of AccuShares. "The reach and technology
capabilities that Nasdaq offers will help us deliver on our goal of
democratizing 'spot' exposure for ETF investors."
With VXUP, investors can seek to capitalize on increases in the
VIX, and with VXDN, can seek to capitalize on decreases in the VIX.
Unlike other exchange-traded VIX funds, the AccuShares Spot CBOE
VIX ETF provides straightforward tax reporting through Form 1099s.
Its transparent pricing and product architecture provide
predictable cost of ownership, eliminating the asset complexities
and term structure associated with other exchange-traded
offerings.
"We are thrilled to list the first AccuShares ETFs and we
appreciate AccuShares' confidence in choosing the Nasdaq
marketplace to list and trade ETFs," said Jeff McCarthy, Vice
President, Head of U.S. ETP Listings at Nasdaq. "Nasdaq generates
opportunities for issuers to access new markets and deliver new
concepts that change the way the industry develops, manages and
applies ETFs. The new innovative funds, VXUP and VXDN, offer
investors unique capabilities to access spot indices."
Nasdaq operates an efficient platform for successfully
introducing a product suite into one of the single largest pools of
liquidity, including market participants that represent a full
spectrum of investors. ETF issuers benefit from an end-to-end
solution that provides ongoing product support at every level
including index licensing, listings opportunities, data offerings
and trading services. As the home to some of the world's most
innovative ventures, Nasdaq generates opportunities for issuers to
access new markets and deliver new concepts that change the way the
industry develops, manages and applies ETFs.
About AccuShares:
Founded in 2011, AccuShares Investment Management, LLC,
(www.accushares.com) seeks to be an innovative, financial services
firm offering exchange traded products (ETP) shares that provide
direct access to "spot" indices in key alternative asset classes.
AccuShares ETFs offer investors the ability to trade both Up and
Down shares, enabling them to potentially take advantage of
opportunity in any market. Its patent-pending technology and
"direct-to-index" quantitative design seeks to reduce overall
expenses while also attempting to both simplify tax reporting and
provide investors with transparent cost of ownership and
transparency in returns.
About CBOE Volatility Index:
The CBOE Volatility Index (VIX) is a key measure of market
expectations of near-term volatility conveyed by S&P 500® stock
index option prices. Since its introduction in 1993, the VIX has
been considered by many to be the world's premier barometer of
investor sentiment and market volatility. For more information,
please visit: http://www.cboe.com/micro/VIX/vixintro.aspx
About Nasdaq:
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, clearing,
exchange technology, listing, information and public company
services across six continents. Through its diverse portfolio of
solutions, Nasdaq enables customers to plan, optimize and execute
their business vision with confidence, using proven technologies
that provide transparency and insight for navigating today's global
capital markets. As the creator of the world's first electronic
stock market, its technology powers more than 70 marketplaces in 50
countries, and 1 in 10 of the world's securities transactions.
Nasdaq is home to more than 3,500 listed companies with a market
value of approximately $9.5 trillion and more than 10,000 corporate
clients. To learn more, visit: nasdaq.com/ambition or
business.nasdaq.com.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements
that are made under the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. These statements include,
but are not limited to, statements about Nasdaq and its products
and offerings. We caution that these statements are not guarantees
of future performance. Actual results may differ materially from
those expressed or implied in the forward-looking statements.
Forward-looking statements involve a number of risks, uncertainties
or other factors beyond Nasdaq's control. These factors include,
but are not limited to factors detailed in Nasdaq's annual report
on Form 10-K, and periodic reports filed with the U.S. Securities
and Exchange Commission. We undertake no obligation to release any
revisions to any forward-looking statements.
Nothing contained herein should be construed as investment
advice from Nasdaq, either on behalf of a particular financial
product or an overall investment strategy. Nasdaq makes no
recommendation to buy or sell any financial product or any
representation about the financial condition of any company or
fund. Investors should undertake their own due diligence and
carefully evaluate financial products before investing. ADVICE FROM
A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
Exposure to the expected price volatility of the S&P
500 Index involves a significant degree of risk and may not be
appropriate for all investors. Moreover, shares of the fund are
intended for sophisticated, professional and institutional
investors.
Unlike other exchange traded products, the fund will
engage principally in cash distributions and potentially paired
share distributions to deliver to the shareholders the economic
exposure to the fund's underlying index, the CBOE Volatility
Index. Such distributions may not represent any income or
gains on the fund's eligible assets and may represent a return of
shareholder's capital. Each fund will issue its shares in
offsetting pairs, where one constituent of the pair is positively
linked to the fund's underlying index ("Up Shares") and the other
constituent is negatively linked to the fund's underlying index
("Down Shares"). Therefore, the fund will only issue,
distribute, maintain and redeem equal quantities of Up and Down
shares at all times.
Key Risk Factors:
The Funds are not intended to be used as long-term
passive investment vehicles and should be used by investors who
understand the risks of the volatility market. By purchasing the
Down Shares, investors should have an expectation that the
Underlying Index will decrease during the Measurement
Period. If the Underlying Index increases during the
Measurement Period, investors in the Down Shares will experience a
significant loss and could lose their entire investment. The
Funds are not appropriate for you if you do not intend to actively
monitor and manage your holdings in the Funds before and
immediately following each Fund distribution date.
Investing in the Fund involves substantial risk and high
volatility, including possible loss of entire principal. Receipt of
distributions of cash or shares will reduce an investor's
opportunity for gains in subsequent periods. Special Distributions
will alter the timing of distributions to investors and reduce an
investor's opportunity for gains in subsequent periods. A
Corrective Distribution will eliminate an investor's opportunity
for gains relating to the Underlying Index if an investor fails to
rebalance his/her investments. Net income distributions may not
occur. Decreases in Class Values per Share from distributions
and/or net losses may reduce Class Values per Share leading to an
adverse effect on the liquidity of the market for the Fund's Shares
and may deplete the Fund's assets. Additionally, a less liquid
market for the fund's shares would increase the difficulty for
investors seeking to acquire or sell fund shares at any
price. Moreover, a significant decline in the fund's class
values may cause the sponsor to terminate the fund if its continued
operation would be uneconomical.
Disclosures:
AccuShares Commodities Trust I is a Delaware statutory trust
organized by AccuShares Management LLC, the trust's sponsor, into
separate Fund series. Neither the Fund nor the Trust is an
investment company under the Investment Company Act of 1940 or is
subject to regulation under the Commodities Exchange Act or by the
Commodity Futures Trading Commission and investors in the Fund are
not afforded protection under such laws and regulations. Each
Fund's shares represent fractional undivided interests in and
ownership of that Fund only. Each Fund will offer its shares on a
continuous basis and be listed on the Nasdaq Stock
Market.
Distributions and Exposure to
Underlying Index:
Exposure to changes in an Underlying Index will be achieved
through the allocation of the Fund's liquidation value to each of
its share classes and the resulting distribution to Fund
shareholders of cash or cash and paired Up and Down Shares on
prescribed distribution dates. A Fund's Up Shares will be entitled
to a distribution when the Fund's Underlying Index has increased as
of specified dates ("Regular Distributions") or by 75% ("Special
Distributions"). Similarly, a Fund's Down Shares will be entitled
to a distribution when the Fund's Underlying Index has decreased as
of specified dates ("Regular Distributions") or by 75% ("Special
Distributions"). Any Regular or Special Distribution will not take
into account any index change of more than 90%, in either direction
since the previous distribution date. Regular and Special
Distributions are expected to be made principally in cash, though
the sponsor reserves the right to make all or any part of any such
distribution in paired shares, especially where further cash
distributions would have an adverse effect on the liquidity of the
market for the Fund's shares. After the first six months of Fund
share trading, such distributions will be made in paired shares if
Fund assets are $25 million or less. Investors who receive
distributions in the form of paired shares should determine whether
the distributed shares have altered the intended exposure. In
the event of a paired share distribution, shares will be received
that provide the opposite exposure, and as a result, an investor
might consider selling the unwanted shares and purchasing the
desired share class. Sales and purchases of
shares to maintain a desired exposure are subject to regular
commissions and transaction costs.
The share class having an adverse experience from
Underlying Index changes will receive no Regular or Special
Distribution and will experience dilution in value caused by the
distribution to the opposing share class. Corrective
distributions of shares ("Corrective Distributions") may occur if
the Fund's share classes' exchange trading prices deviate
persistently from the value per share representing their share
class' relative portion of the Fund's liquidation value ("Class
Value per Share"). See "Investment Objectives," "Distributions and
Distribution Dates," and "Description of the Shares & Certain
Terms of the Trust Agreement."
Eligible Investments:
Each Fund will hold only cash, short-dated U.S.
Treasuries or eligible repurchases agreements collateralized by
U.S. Treasuries. The Fund will not invest in commodities, futures,
swaps, or other derivatives. The Fund does not directly invest in
the index, or in the securities it tracks.
Investor Reassessment:
The Funds have been designed to be utilized by investors
who are prepared to reassess their holding of the shares at least
as frequently as each Distribution Date. Investors in a
Fund who wish to maintain a maximum exposure, a targeted absolute
exposure, or a targeted relative exposure to such Fund's Underlying
Index over multiple Distribution Dates should reassess their
positions following all cash, share and Net Income Distributions,
and all Fund resets relating to the Share Index Factors.
The Funds will not compound investor gains or otherwise
rebalance investor positions to maximize investor
exposure. The Funds are designed to make Regular
Distributions of cash and in some cases shares to facilitate
regular distribution of investor gains and to promote a deliberate
and regular reassessment by investors of their investment in the
Funds.
Investors who hold shares over one or more consecutive
Distribution Dates without reassessment of their Fund share
portfolio may experience decreased exposure to the Fund's
Underlying Index as well as a reduced opportunity for gain and
loss.
Material should be preceded or accompanied by a
prospectus, downloaded here.
Disclaimers
The Underlying Index is a product of The Chicago Board Options
Exchange Incorporated ("CBOE") which is licensed by S&P Dow
Jones Indices LLC ("SPDJI") to AccuShares Management LLC in
connection with the AccuShares Spot CBOE VIX Fund. Standard &
Poor's®, S&P® and S&P 500® are registered trademarks of
Standard & Poor's Financial Services LLC ("S&P"); Dow
Jones® is a registered trademark of Dow Jones Trademark Holdings
LLC ("Dow Jones"); CBOE®, Chicago Board Options Exchange®, CBOE
Volatility Index® and VIX® are registered trademarks of the Chicago
Board Options Exchange, Incorporated ("CBOE"); and, these
trademarks have been licensed for use by SPDJI and sublicensed for
certain purposes by AccuShares Management LLC. AccuShares Spot CBOE
VIX Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow
Jones, S&P, any of their respective affiliates or their third
party licensors (including CBOE) and none of such parties make any
representation regarding the advisability of investing in such
product(s) nor do they have any liability for any errors,
omissions, or interruptions of the CBOE Volatility Index.
Standard & Poor's and S&P are registered trademarks of
Standard & Poor's Financial Services LLC, a part of McGraw Hill
Financial. Dow Jones is a registered trademark of Dow Jones
Trademark Holdings LLC ("Dow Jones"). These trademarks have
been licensed to S&P Dow Jones Indices LLC. It is not possible
to invest directly in an index. S&P Dow Jones Indices LLC, Dow
Jones, S&P and their respective affiliates (collectively
"S&P Dow Jones Indices") do not sponsor, endorse, sell, or
promote any investment fund or other investment vehicle that is
offered by third parties and that seeks to provide an investment
return based on the performance of any index. This document does
not constitute an offer of services in jurisdictions where S&P
Dow Jones Indices does not have the necessary licenses. S&P Dow
Jones Indices receives compensation in connection with licensing
its indices to third parties.
Foreside Fund Services, LLC marketing agent
NDAQG
CONTACT: AccuShares Media Contact:
Morrison Shafroth
+1 (720) 239-1263 (office)
+1 (720) 470-3653 (mobile)
mshafroth@peppercomm.com
Nasdaq Media Contact:
Alexa Sugrue
+1 (212) 231-5552 (office)
+1 (646) 577-3157 (mobile)
Alexa.Sugrue@nasdaq.com
Accushares Spot Cboe Vix Down Shares (NASDAQ:VXDN)
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