First ETFs Based
on CBOE Volatility Index
Designed to
Provide Spot Exposure to Key Alternative Asset Classes
NEW YORK, May 18, 2015 (GLOBE NEWSWIRE) -- 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
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: The NASDAQ OMX Group, Inc. via Globenewswire
HUG#1921943
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