\nVGTX is an actively managed ETF that combines exposure to U.S. information technology companies with options strategies designed to generate options premiums and cash distributions. The fund invests primarily in U.S. technology companies and ETFs providing exposure to the information technology sector, while using an options strategy to pursue an additional source of income potential.<\/p>\n
\n\u201cTechnology remains an important source of long-term growth for investors, but that exposure has traditionally offered little in the way of income,\u201d said David Nicholas, CEO of XFUNDS. \u201cWith VGTX, we’re taking a familiar technology allocation and adding an options strategy designed to create another potential source of return through income.\u201d<\/p>\n
\nVGTX will seek to generate option premiums through call spreads, put spreads and other options strategies on individual securities or ETFs. The fund may also utilize stand-alone options, including short calls and cash-secured puts, and may hold U.S. Treasury bills, money market funds and other cash equivalents to provide liquidity or serve as collateral for its options positions.<\/p>\n
\nUnder normal market conditions, the fund will invest at least 80% of its assets in information technology companies, ETFs providing exposure to the sector and options on those securities. The portfolio is expected to focus primarily on large-cap U.S. technology companies, while retaining the flexibility to invest in select mid- and small-cap companies.<\/p>\n
\nVGTX joins XFUNDS’ growing lineup of actively managed ETFs spanning income, alternatives and thematic strategies. Learn more at https:\/\/nicholasx.com<\/a>.<\/p>\n About XFUNDS<\/b><\/p>\n \nXFUNDS is a leading provider of actively managed ETFs. XFUNDS’ research primarily focuses on mitigating risk by utilizing derivatives and income-producing securities. The firm’s strategies attempt to find non-correlated returns in both up and down-market cycles. They use distinct tactics to measure risk and minimize portfolio volatility. VGTX<\/a> joins a growing fund lineup that includes: VOOY<\/a>, <\/b>XCSH<\/a>, FITZ<\/a>, FIZY<\/a>, FIAX<\/a>, GIAX<\/a>, BLOX<\/a>, GLDN<\/a>, SLVX<\/a>, NUKX<\/a>, WEPN<\/a>, BHDG<\/a>, NGHT<\/a> and DRMY<\/a>.<\/b> Learn more at nicholasx.com<\/a>.<\/p>\n Important Information<\/b><\/p>\n Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (855) 563-6900 or visit our website at <\/b>www.nicholasx.com<\/b><\/a>. Read the prospectus or summary prospectus carefully before investing.<\/b><\/p>\n \nInvestments involve risk. Principal loss is possible.<\/p>\n Derivatives Risk. <\/b>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. The Fund\u2019s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund\u2019s other portfolio holdings, higher price volatility, lack of availability,counterparty risk, liquidity, valuation and legal restrictions.<\/p>\n Counterparty Risk. <\/b>The Fund is subject to counterparty risk by virtue of its investments in option contracts which exposes the Fund to the risk that the counterparty will not fulfill its obligation to the Fund.<\/b><\/p>\n NAV Erosion Risk Due to Distributions. <\/b>When the Fund makes a distribution, the Fund\u2019s NAV will typically drop by the amount of the distribution on the related ex-dividend date. The repeated payment of distributions by the Fund, if any, may significantly erode the Fund\u2019s NAV and trading price over time. As a result, an investor may suffer significant losses to their investment.<\/p>\n Equity Market Risk.<\/b> By virtue of the Fund\u2019s investments in option contracts equity ETFs and equity indices, the Fund is exposed to common stocks indirectly which subjects the Fund to equity market risk.<\/p>\n High Portfolio Turnover Risk. <\/b>The Fund may actively and frequently trade all or a significant portion of the Fund\u2019s holdings. A high portfolio turnover rate increases transaction costs, which may increase the Fund\u2019s expenses<\/p>\n Non-Diversification Risk. <\/b>Because the Fund is \u201cnon-diversified,\u201d it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund.<\/p>\n New Fund Risk.<\/b> The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.<\/p>\n Distribution Risk.<\/b> As part of the Fund\u2019s investment objective, the Fund seeks to provide current monthly income. There is no assurance that the Fund will make a distribution in any given week. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next.<\/p>\n Information Technology Sector Risk<\/b>. The information technology sector includes companies engaged in Internet software and services, technology hardware and storage peripherals, electronic equipment instruments and components, and semiconductors and semiconductor equipment, among other things. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Information technology companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base, or achieve general market acceptance for their products could have a material adverse effect on a company\u2019s business. Companies in the information technology sector are heavily dependent on intellectual property, and the loss of patent, copyright and trademark protections may adversely affect the profitability of these companies.<\/p>\n Technology Sector Risk<\/b>. The technology sector is characterized by rapid innovation, intense competition, and frequent changes in consumer preferences, which can lead to significant market volatility. Companies in this sector are particularly vulnerable to product obsolescence, regulatory scrutiny, and supply chain disruptions that may impact production and distribution. Increased global competition, including from foreign companies with lower production costs, can pressure profit margins and market share. Additionally, any technology companies rely heavily on intellectual property protections, and any loss or infringement of patents, copyrights, or trade secrets could negatively impact revenues. Smaller and newly established technology firms may be especially susceptible to economic downturns, capital constraints, and shifts in market sentiment, leading to heightened stock price volatility.<\/p>\n Large-Capitalization Investing. <\/b>The securities of large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion. Large-capitalization companies may also be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes.<\/p>\n Options Contracts. <\/b>The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying security or instrument, including the anticipated volatility, which is affected by fiscal and monetary policies, changes in the actual or implied volatility of the underlying security or instrument, the time remaining until the expiration of the option contract and economic events<\/p>\n Definitions<\/span><\/p>\n Calls: <\/b>A call option gives the buyer the right, but not the obligation, to buy an asset at a set price within a specific time. \nDistributed by Foreside Fund Services, LLC.<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20261009391637\/en\/<\/a><\/span><\/p>\n Media Contact KEYWORDS:<\/b> United States North America Georgia<\/p>\n INDUSTRY KEYWORDS:<\/b> Banking Asset Management Professional Services Finance<\/p>\n
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Puts: <\/b>A put option gives the buyer the right, but not the obligation, to sell an asset at a set price within a specific time.
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Put\/call spreads: <\/b>A put spread generally involves the purchase and sale of put options with different strike prices but the same expiration date, while a call spread involves the purchase and sale of call options with different strike prices but the same expiration date.<\/p>\n<\/p>\n
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<\/b>Gregory Agency for XFUNDS
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xfunds@gregoryagency.com<\/a><\/p>\n
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