Leveraged ETFs

Company

Thematic ETFs
How to Invest
  • Leverage & Inverse ETPs

All ETFs

Compare Our Products

All ETFs
  • About
  • Information

All ETFs

Compare Our Products

All ETFs
  • Instruments
  • Instruments

Frequently Asked Questions

How do Leverage Shares’ leveraged ETFs work?

Contacts

About Us

Leveraged 2x Single Stock ETFs provide two times (2x) the daily performance of a specific stock. For instance, if the underlying stock rises by 1% in a day, the ETF is designed to rise by 2%; similarly, if the stock falls by 1%, the ETF will fall by 2%, before fees and expenses.

Each ETF gains leveraged exposure through swap agreements with major financial institutions, which allow the ETF to achieve its targeted daily exposure. By leveraging access to institutional pricing for swaps and trading, these ETFs are designed to be cost-efficient for investors.

Some of the most popular single stocks: TSLA & NVDA.

Experienced investors and market participants may use leveraged ETFs for a variety of strategies, including:

  • Responding to technical indicators on individual stocks
  • Amplifying returns when stocks are driven by momentum
  • Trading the volatility and the directionality of individual stocks
  • Positioning or responding to earnings and news announcements

Trading Leverage Shares ETPs

The ETFs will be listed on NASDAQ, making them available for trading through most major brokers.

There is no minimum holding period, but the ETFs are intended for daily trading or very short-term positions due to the compounding effects of leverage over time.

The 2x exposure resets daily. This means the performance of the ETF is tied to the daily percentage change of the underlying stock. Holding the ETF for longer than a day can lead to returns that differ significantly from 2x the cumulative return of the stock due to compounding.

These ETFs carry significant risks, including:

  • Amplified losses: Losses are magnified in line with the leverage.
  • Compounding effects: Over time, returns may diverge from the expected 2x performance due to market volatility.
  • Market volatility: Higher sensitivity to price swings of the underlying stock. Investors should consult the prospectus and understand the risks fully before investing.

The management fee for the ETFs is 0.75% annually. Additional costs, such as swap financing and transaction fees, are detailed in the prospectus.

No. Losses are limited to the initial investment.

Scenarios

A stock split or reverse stock split on the underlying stock will not affect the total value of your investment in the leveraged ETF. The ETF’s holdings and swap exposure will be recalibrated to maintain the target leverage ratio.

Our ETFs

Thematic
Get ETF List
Company
Our ETFs
Thematic
Get ETF List
Company
Centered Icon and Text

Investment involves significant risk.

PERFORMANCE DISCLOSURE

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. Returns for performance for one year and under are cumulative, not annualized. Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. For additional information, see the fund(s) prospectus.

INVESTMENT RISKS: Investing in the Funds involves a high degree of risk. As with any Investment, there is a risk that you could lose all or a portion of your investment in the Funds.

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about Themes ETFs. To obtain a Fund’s prospectus and summary prospectus call 886-584-3637. A Fund’s prospectus and summary prospectus should be read carefully before investing.

An investment in the Fund involves risk, including the possible loss of principal. The Fund is non-diversified and includes risks associated with the Fund concentrating its investments in a particular industry, sector, or geographic region which can result in increased volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. Risks of the Fund include effects of Compounding and Market Volatility Risk, Inverse Risk, Market Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Daily Index Correlation Risk, Other Investment Companies (including ETFs) Risk, and risks specific to the securities of the Underlying Stock and the sector in which it operates. These and other risks can be found in the prospectus.

Underlying Stock Risk: The Underlying Stock is subject to many risks that can negatively impact its revenue and viability including, but are not limited to price volatility risk, management risk, inflation risk, global economic risk, growth risk, supply and demand risk, operations risk, regulatory risk, environmental risk, terrorism risk and the risk of natural disasters. The Underlying Stock objectives may be affected by its ability to develop and launch new products, the growth of its sales and delivery capabilities, part supplier constraints or delays, consumer demand for electric vehicles and competition from existing and competitors. The Fund’s daily returns may be affected by many factors but will depend on the performance and volatility of the Underlying Stock.

Fixed Income Securities Risk. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund.

Money Market Instrument Risk. The Fund may use a variety of money market instruments for cash management purposes, including money market funds, depositary accounts and repurchase agreements. Money market funds may be subject to credit risk with respect to the debt instruments in which they invest. Depository accounts may be subject to credit risk with respect to the financial institution in which the depository account is held. Repurchase agreements may be subject to market and credit risk related to the collateral securing the repurchase agreement. Money market instruments may lose money.

Effects of Compounding and Market Volatility Risk. The Fund has a daily leveraged investment objective and the Fund’s performance for periods greater than a trading day will be the result of each day’s returns compounded over the period, which is very likely to differ from the Fund performance, before fees and expenses.

Leverage Risk. The Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. Derivatives Risk, Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. Investing in derivatives may be considered aggressive and may expose the Fund to greater risks, and may result in larger losses or small gains, than investing directly in the reference assets underlying those derivatives, which may prevent the Fund from achieving its investment objective. Market Price: The current price at which shares are bought and sold. Market returns are based upon the last trade price. NAV: The dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day

Shares are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. There can be no guarantee that an active trading market for ETF shares will develop or be maintained, or that their listing will continue or remain unchanged. Buying or selling ETF shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly from investment returns.

Because the Funds may effect redemptions principally for cash, rather than in-kind distributions, an investment in Funds’ shares may be less tax efficient than investments in shares of conventional ETFs, and there may be a substantial difference in the after-tax rate of return between the Funds and conventional ETFs.

The Funds may engage in frequent trading of derivatives. Active and frequent trading may lead to the realization and distribution to shareholders of higher short-term capital gains, which would increase their tax liability. Frequent trading also increases transaction costs, such as commissions, which could detract from the Funds ‘performance.

This information is not an offer to sell or a solicitation of an offer to buy shares of any Funds to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.

Themes Management Company LLC serves as an adviser to the Themes ETFs Trust. The funds are distributed by ALPS Distributors, Inc (1290 Broadway, Suite 1000, Denver, Colorado 80203). Themes ETFs are not sponsored, endorsed, issued, sold, or promoted by these entities, nor do these entities make any representations regarding the advisability of investing in the Themes ETFs. Neither ALPS Distributors, Inc, Themes Management Company LLC nor Themes ETFs are affiliated with these entities. Themes Management Company LLC and Leverage Shares are affiliates that are under common control.  Themes Management Company and Leverage Shares have entered into a licensing agreement in which Leverage Shares licenses the trademark LEVERAGE SHARES ™ to Themes Management Company LLC for use in financial services in the United States.

© Leverage Shares 2024