ConvexityShares™ is diversifying the volatility space. We’re providing new choices and expanding opportunities for traders and sophisticated investors to both manage risk and seek to capitalize on moves in volatility.
ConvexityShares 1x SPIKES Futures ETF (SPKX)
For traders and sophisticated investors who seek to take advantage of changes in volatility in broad-based U.S. equities, SPKX offers exposure to a 1X daily rolling long position, which seeks investment results (before fees and expenses) that match the performance of the T3 SPIKE Front 2 Futures Index (the "SPIKES Futures Short-Term Index" – symbol: SPKF).
ConvexityShares Daily 1.5x SPIKES Futures ETF (SPKY)
SPKY is a 1.5x leveraged volatility fund, which offers more exposure to volatility and is benchmarked against the T3 SPIKE Front 2 Futures Index (the "SPIKES Futures Short-Term Index" - symbol: SPKF). For every 1% daily movement in the index, the fund seeks to move 1.5%, empowering traders and sophisticated investors to take advantage of changes in volatility.
The Funds present significant risks not applicable to other types of funds, including risks relating to investing in SPIKES futures contracts and leveraged ETF risks. Leveraged ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying index performance over periods longer than one day, due to compounding will differ in amount and possibly even direction from the leveraged fund's stated multiple times the return of the index for the same period. The Funds are not suitable for all investors and should be utilized only by investors who understand leverage risk and compounding and who actively manage their investments. The return of the leveraged fund for a period longer than a single day is the result of its return for each day compounded over the period and usually will differ in amount and possibly even direction from the leveraged fund's stated multiple times the return of the index for the same period. These differences can be significant. The Funds' investments may be illiquid and/or highly volatile and the funds may experience large losses from buying, selling, or holding such investments, including the loss of their entire investment.
Benefits of SPIKES ETFs
At ConvexityShares, we aim to improve the experience of trading volatility ETFs through enhanced technology in the underlying index and competitive low fees.
Based on SPY
The SPIKES Volatility Index is based on SPY options which are traded on ALL US options exchanges. It uses live SPY options prices to calculate volatility
SPIKES ETFs are accessible to traders and sophisticated investors, and our 1x and 1.5x leverage funds now provide access to volatility as an asset class at a competitive price point for investors.
To manage risk and capitalize on moves in volatility, traders and sophisticated investors can trade ConvexityShares ETFs through brokerages or an individual retail account.
The SPIKES Volatility Index uses cutting edge ‘price dragging’ calculation methodology which seeks to insulate the index from erratic movements through a blend of trades, bid and offer prices.
The Funds may be highly volatile and generally are intended for short-term investment purposes only. Investors cannot directly invest in an index.
SPIKES Futures ETFs offer a new way to manage risk and capitalize on moves in volatility. Bringing much-needed diversification and competition to the marketplace, SPIKES Futures ETFs provide cost-effective access to volatility in standard brokerage accounts.
The Funds are benchmarked to the T3 SPIKE Front 2 Futures Index and are not benchmarked to the SPIKES Index. The T3 SPIKE Front 2 Futures Index and the SPIKES Index are two separate indexes and can be expected to perform very differently.
About the Indexes
The SPIKES Volatility Index (SPIKE) is a measure of the expected 30-day volatility in the SPDR® S&P 500® ETF (SPY), utilizing a proprietary price dragging technique in its calculation to insulate from erratic movement.
For more information on SPIKES, visit www.miaxoptions.com/spikes
The SPIKES Futures Short-Term Index (SPKF) measures the return from a daily rolling long position in the SPIKES futures contracts traded on MGEX (Minneapolis Grain Exchange). The index is comprised of the first and second contract months, with a daily roll schedule to maintain an average tenor of one month.
For more information on the SPIKES Futures Short-Term Index, see here.
Futures are derivative financial contracts that obligate the parties to transact an asset at a predetermined future date and price. The buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date.