Tradr Launches First Ever Leveraged ETFs on Archer Aviation and Upstart Holdings
- First-ever leveraged ETFs for Archer Aviation and Upstart Holdings stocks
- Provides sophisticated investors easier access to leveraged exposure without margin or options complexity
- Expands Tradr's innovative ETF lineup to 12 products
- Follows successful track record of launching pioneering single-stock leveraged ETFs
- High risk of significant losses due to 2X leverage magnifying underlying stock movements
- Potential for total loss if underlying security moves adversely by more than 50% in one day
- Short-term trading vehicle not suitable for long-term investors
- Complex product requiring active monitoring and management
Insights
New 2X leveraged ETFs for UPST and ACHR create additional trading options but introduce significant volatility risks for investors.
Tradr ETFs has launched two first-of-their-kind single stock leveraged ETFs - UPSX and ARCX - offering 200% daily exposure to Upstart Holdings and Archer Aviation. This development is significant as it expands the toolbox for traders interested in these high-growth companies without requiring margin accounts or options trading knowledge.
These products join Tradr's growing lineup of single stock leveraged ETFs, which began in 2022 with Tesla and Nvidia offerings. The expansion to include Upstart, characterized as an "AI-fintech play" focused on disrupting consumer credit markets, signals market demand for amplified exposure to companies with compelling growth narratives.
While these instruments provide convenient access to leveraged positions, they come with substantial risks that shouldn't be overlooked. The daily reset feature means they're designed specifically for short-term trading, not long-term holding. Performance can diverge dramatically from the underlying security over periods longer than the reset timeframe, potentially even moving in opposite directions.
The extreme leverage means investors could face complete capital loss if the underlying stock moves more than 50% against their position in a single trading day. The introduction of these products may also increase trading volume and volatility in UPST shares themselves, as arbitrage opportunities between the ETF and underlying stock emerge.
For sophisticated investors and active traders, these products offer a streamlined way to express high-conviction views on Upstart's future, but they fundamentally alter the risk profile compared to direct stock ownership.
ARCX and UPSX offer 2X Daily Exposure to two captivating growth stories
The two ETFs mark the first-ever leveraged products tied to ACHR and UPST. These listings follow the early May debut of TEMT, another first-to-market single stock leveraged ETF covering Tempus AI, as well as the April launches of QBTX and APPX which seek two times the daily performance of D-Wave Quantum and AppLovin Corp., respectively.
In 2022, Tradr ETFs became the first issuer to launch leveraged ETFs on single stocks, starting with TSLQ for Tesla and NVDS for Nvidia.
"Both Archer and Upstart are electrifying hyper-growth stories whose profiles have a natural gravitational pull for active traders," said Matt Markiewicz, Head of Product and Capital Markets at Tradr ETFs. "In a quest to transform the future of passenger transportation, Archer is one of the leaders in the burgeoning eVTOL space. Meanwhile, although it has been public for five years, Upstart is a clever AI-fintech play that is only beginning to disrupt the ever-expanding world of consumer credit and personal loans. Given the traction we've seen with our recent launches on similarly exciting growth narratives, we expect the market to rapidly embrace these two new single stock strategies as well."
ARCX and UPSX can be traded through brokerage accounts and allow investors to avoid the hassle of using margin and the complexity of options trading. With this launch, Tradr's lineup grows to 12 leveraged ETFs. The firm continues its mission of providing sophisticated investors with innovative trading tools that enhance their ability to express market views with precision and efficiency.
For detailed information on Tradr ETFs and the significant risks involved with leveraged ETFs, please visit www.tradretfs.com.
About Tradr ETFs
Tradr ETFs are designed for sophisticated investors and professional traders who are looking to express high conviction investment views. The strategies include leveraged and inverse ETFs that seek short or long exposure to actively traded stocks and ETFs.
IMPORTANT RISK INFORMATION
Tradr ETFs are for sophisticated investors and professional traders with high conviction views and are very different from most other ETFs. The Funds are intended to be used as short-term trading vehicles and pursue leveraged investment objectives, which means they are riskier than alternatives that do not use leverage because the Funds magnify the performance of their underlying security. The volatility of the underlying security may affect a Fund's return as much as, or more than, the return of the underlying security.
Investors in the fund should: (a) understand the risks associated with the use of leverage; (b) understand the consequences of seeking inverse and leveraged investment results; (c) for short ETFs, understand the risk of shorting; (d) intend to actively monitor and manage their investment. Fund performance will likely be significantly different than the benchmark over periods longer than the specified reset period and the performance may trend in the opposite direction than its benchmark over periods other than that period.
Leverage increases the risk of a total loss of an investor's investment, may increase the volatility of the Funds, and may magnify any differences between the performance of the Funds and their reference security. The Funds seek leveraged investment results for a specific period (daily, monthly or quarterly). The exact exposure of an investment in the Fund intra-period will depend upon the movement of the reference security from the end of the prior period until the time of investment by the investor.
The Fund will not attempt to position its portfolio to ensure it does not gain or lose more than a maximum percentage of its net asset value on a given trading day. As a consequence, investors in a Fund that seeks two times daily performance would lose all of their money if the Fund's underlying security moves more than
ETFs involve risk including possible loss of the full principal value. There is no assurance that the Fund will achieve its investment objective. Principal risks and other important risks may be found in the prospectus. Past performance does not guarantee future results.
ETF 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.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds. This and other important information about the Fund is contained in the Prospectus, which can be obtained by visiting www.tradretfs.com. The Prospectus should be read carefully before investing.
Distributed by ALPS Distributors, Inc, which is not affiliated with AXS Investments or its Tradr ETFs. AXI000687
View original content to download multimedia:https://www.prnewswire.com/news-releases/tradr-launches-first-ever-leveraged-etfs-on-archer-aviation-and-upstart-holdings-302475979.html
SOURCE TRADR ETFs
FAQ
What are the new leveraged ETFs launched by Tradr for UPST and Archer Aviation?
How much leverage do ARCX and UPSX ETFs provide?
What are the main risks of trading these new leveraged ETFs?
How many leveraged ETFs does Tradr now have in its portfolio?
When did Tradr first launch single-stock leveraged ETFs?
