WESTPORT, Conn., May 3, 2016 /PRNewswire/ -- REX Shares, LLC (REX), a provider of intelligently designed exchange-traded funds (ETFs), today announced the launch of its latest funds the REX VolMAXXTM Long VIX Weekly Futures Strategy ETF (Ticker: VMAX) and the REX VolMAXXTM Inverse Weekly Futures Strategy ETF (Ticker: VMIN).
These two funds, the first in REX's suite of VolMAXXTM ETFs, set a number of firsts for volatility-focused strategies, which allow investors to express directional views on the widely-followed CBOE Volatility Index (the "VIX"). VMAX and VMIN are the first regulated investment company funds to invest in VIX futures, and seek to track movements in the VIX Index by maintaining a weighted average time to expiry of their investments in VIX futures contracts of less than 30 days at all times.
"We believe VMAX and VMIN are exactly what sophisticated investors have been asking for: exchange-traded funds that get closer to spot VIX," said Greg King, Founder and CEO of REX Shares. "Thanks to recent innovations at the CBOE Futures Exchange, we are able to deliver these products to market."
CBOE introduced weekly expirations for VIX futures in July 2015. The shorter time horizon found with weekly VIX futures contracts should result in a higher correlation and beta to the true daily price of the VIX Index. The long fund (VMAX) seeks opportunities that arise should the VIX spike upward while the inverse fund (VMIN) seeks to gain as the VIX falls. Both funds will be actively managed with the objective of being fully invested in VIX futures at all times.
REX Shares creates and delivers intelligently engineered exchange-traded products ("ETPs") that address specific access and efficiency problems. REX was founded in 2014 with a focus on delivering new alternative ETPs. REX Shares sponsors ETPs based on strategies that include Gold Hedged Equities, VIX, and MLPs. REX is based in Westport, Connecticut.
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' prospectus, which may be obtained by calling 1-844-REX-1414. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. These Funds are actively managed and there are no guarantees investments selected and strategies employed will achieve the intended results. Active management may also increase transaction costs. The Funds expect to invest primarily in VIX futures contracts, which are considered commodities.
The use of derivatives, such as futures contracts, swap agreements and options, presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities.
Changes in the value of a derivative may not correlate perfectly with the underlying security, asset, rate or index. Gains or losses in a derivative may be magniﬁed and may be much greater than the derivative's original cost. The derivatives may not always be liquid. This could have a negative effect on the Funds' ability to achieve its investment objective and may result in losses.
The Funds will invest in exchange-traded notes and exchange-traded funds, and will be subject to the risks associated with such vehicles. The Funds' performance will be directly related to the performance of those investments.
The return for investors that invest in VMIN for periods other than a full trading day will differ from the VMIN's stated daily inverse investment objective. During periods of high volatility, the VMIN may not perform as expected and may have losses when an investor may have expected gains if the VMIN is held for a period that is different than one trading day.
The Funds are non-diversiﬁed.
Exchange Traded Concepts, LLC serves as the investment advisor and Vident Financial serves as sub advisor to the fund. The Funds are distributed by SEI Investments Distribution Co. (One Freedom Valley Dr., Oaks, PA 19456), which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.
Hod Klein/Ryan Gorman
Dukas Linden Public Relations
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SOURCE REX Shares, LLC