About Us | ConvexityShares

ConvexityShares™ provides ETFs benchmarked to the SPIKES Futures Short-Term Index.

We offer two choices for traders and sophisticated investors who want to trade expected volatility of the SPDR® S&P 500® ETF (SPY), as measured by SPIKES® Futures prices. Our ETFs respectively offer 1x and 1.5x exposure to the SPIKES Futures Short-term Index.

These ETFs are designed as tools for those who seek to:

take advantage of changes in the expected volatility of the SPY as measured by the prices of SPIKES Futures contracts
reduce U.S. equity portfolio risk, since changes in the SPIKES Futures Short-Term Index tend to be negatively correlated to returns in the SPY

Company Background

ConvexityShares™, provider of SPIKES Futures ETFs, was formed in 2021 to expand the choices investors have when trading volatility. With a mission to deliver better risk management tools, amplify exposure to volatility and provide a new, better way to hedge against uncertainty, ConvexityShares is bringing competition to a market that currently lacks alternatives.

John Zhu

Meet our CEO, John Zhu

John Zhu, is a Series 3 qualified quantitative portfolio manager with over 15 years of experience in quantitative research and trading, including volatility indexing, statistical arbitrage and derivatives pricing. Zhu previously held trading positions with RBS, ABN Amro and Optiver, completing his BSc Honours (First Class) in Applied Mathematics, specializing in finance at the University of Sydney in 2006 where he was awarded the University Medal. Fluent in Cantonese and Mandarin, Zhu believes in sound money and is leading ConvexityShares in its mission to expand volatility trading options.

Meet our President, Simon Ho

Simon has worked in the options industry for more than 30 years, in trading, product innovation and risk management roles. He has held senior roles at various global investment banks including Goldman Sachs, Deutsche Bank, Merrill Lynch and JP Morgan in New York, London, Singapore and Sydney.

In 2013 Simon founded T3 Index, a research-driven financial indexing firm, specializing in volatility and option benchmarking. T3 Index is dedicated to developing investible, proprietary indices that track related strategies across a range of asset classes to transform the way people invest and manage risk.
The SPIKES Volatility Index was invented by Simon and the T3 Index team.

Simon Ho

The Funds may be highly volatile and generally are intended for short-term investment purposes only. Investors cannot directly invest in an index.

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Important Information

An investor should only consider an investment in a Fund if he or she understands the consequences of seeking exposure to SPIKES futures contracts. The Funds are benchmarked to the T3 SPIKE Front 2 Futures Index (the “SPIKES Futures Short-Term Index”); the Funds are not benchmarked to the SPIKES Volatility Index.

The use of leverage present significant risks not applicable to other types of funds and may be illiquid and/or highly volatile. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. The funds are not suitable for all investors and should only consider an investment in the funds if he or she understands the consequences of seeking daily leveraged results and the impact of compounding and who intends to actively monitor their investments.

The SPIKES Futures Short-Term Index consists of short-term SPIKES Futures contracts. As such, the performance of the Index can be expected to be very different from the actual volatility of SPY or the performance of the SPIKES Volatility Index. As a result, the performance of the Funds also can be expected to be very different from the actual volatility of SPY or the performance of the SPIKES Volatility Index, or the performance of one-and-a-half times (1.5x) of the actual volatility of SPY or the performance of one-and-a-half times (1.5x) the SPIKES Volatility Index. Nonetheless, the Index and the Funds would be expected to underperform in less volatile markets than in more volatile markets. If the Index declines by more than 66.67% on a given trading day, the Leveraged Fund’s investors would lose all of their money. This would be the case with any such single day movements in the Index, even if the Index maintains a level greater than zero at all times.

Unlike certain other asset classes that, in general, have historically increased in price over long periods of time, the volatility of SPY as measured by the SPIKES Volatility Index has historically reverted to a long-term average level over time. This means that the potential upside of an investment in a Fund may be limited. In addition, gains, if any, may be subject to significant and unexpected reversals. Investors holding Shares of the Funds beyond short-term periods have an increased risk of losing all or a substantial portion of their investment. The Funds generally are intended to be used only for short-term investment horizons. Shareholders who invest in the Funds should actively manage and monitor their investments, as frequently as daily.

In the event that the MGEX (Minneapolis Grain Exchange) Order is deemed unlawful, the SPIKES futures contracts could be deemed to be “securities” and fall within the definition under the Investment Company Act of 1940.

Futures may be affected by Backwardation: a market condition in which a futures price is lower in the distant delivery months than in the near delivery months. As a result, the fund may benefit because it would be selling more expensive contracts and buying less expensive ones on an ongoing basis; and Contango: A condition in which distant delivery prices for futures exceeds spot prices, often due to costs of storing and inuring the underlying commodity. Opposite of backwardation. As a result, the Fund’s total return may be lower than might otherwise be the case because it would be selling less expensive contracts and buying more expensive ones.

Daily compounding of the Leveraged Fund’s investment returns can dramatically and adversely affect its long-term performance, especially during periods of high volatility. Volatility has a negative impact on a Fund’s performance and may be at least as important to the Fund’s return for a period as the return of the Fund’s underlying Index. An investor in any of the funds could potentially lose the full principal value of his/her investment within a single day.

Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus with this and other information about the Fund, please email info@convexityshares.com or download a prospectus by clicking here. Read the prospectus carefully before investing.

Foreside Fund Services, LLC is the Marketing Agent to the ConvexityShares SPIKES Futures ETFs.