AXS Files for 50 Levered Single-Security ETFs

Wealth Management Editor

May 31, 2024

Reviewed by: etf.com Staff

Edited by: etf.com Staff

AXS Investments, which pioneered the first single-stock ETF in 2022, is testing the market’s appetite for creativity once again with a mass filing for 50 single-security ETFs aimed at active traders with patience.

Port Chester, N.Y.-based AXS plans to roll out a suite of exchange-traded funds that offer leveraged and short exposure to 18 different popular securities, including the iShares Bitcoin ETF (IBIT), the SPDR S&P 500 ETF (SPY), the iShares 20+ Year Treasury Bond ETF (TLT), Tesla Inc. and Nvidia Corp., according to a filing with the Securities and Exchange Commission (SEC).

Unique from the 35 existing single-security ETFs now on the market, which experience a daily price reset, the AXS filings, which are branded as Tradr ETFs, will reset weekly, monthly and quarterly.

In a podcast interview with etf.com this week, Matt Markiewicz, head of product and capital markets at AXS, said the trend is toward single-security ETFs, and that there is a growing appetite among an unlikely source of financial advisors and other institutional investors.

“The category is less than two years old, and it has grown to over $6 billion,” he said. “We’re seeing a large uptick in interest from the trading community, including a 31% increase in trading volume for single-security ETFs this year.”

AXS ETF Filing Pushes Beyond Daily Resets

AXS, which currently manages $1 billion across nine ETFs, including its single-security ETFs, is not in uncharted territory with its longer resets.

The Rydex Monthly Rebalance Nasdaq 100 2x Strategy mutual fund (RMQHX) has been employing the strategy of a longer reset since 2014.

While investors are holding many of the current daily-reset single security ETFs longer than one day, they are designed as daily trading vehicles.

The longer resets, which are pegged to the calendar, will allow investors and financial advisors to ride the leverage or short exposure for a week, month or quarter.

“The longer-term resets will help reduce the volatility drag that you get with leveraged ETFs that rebalance daily,” etf.com Senior ETF Analyst Sumit Roy said.

“On the other hand, it makes the daily performance of the funds less predictable,” he added.

Jeff Benjamin

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Jeff Benjamin is the wealth management editor at etf.com, responsible for coverage related to the financial planning industry. This includes writing, hosting podcasts, webinars, video interviews and presenting at in-person events.

Jeff is a veteran journalist with more than 30 years’ experience covering the financial markets. He has won more than two dozen national and regional awards for his reporting. He most recently worked as a senior columnist at InvestmentNews where he wrote about investment products and strategies, as well as the broader financial planning industry. Prior to that, Jeff worked as an analyst at Cerulli Associates where he researched and wrote reports on the alternative investments industry. Jeff also worked as a money management reporter at Dow Jones Newswires, where he covered the mutual fund industry.

Based in North Carolina, Jeff is a former Marine and has a bachelor’s degree in journalism from Central Michigan University.

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