The SPAC and New Issue ETF (SPCX)
About The SPAC and New Issue ETF (SPCX)
The Fund is an actively managed exchange-traded fund (ETF). Under normal circumstances, at least 80% of the Fund's net assets, plus borrowings for investment purposes, will be invested in units and shares of Special Purpose Acquisitions Companies (SPACs) that have a minimum capitalization of $100 million and companies that completed an initial public offering (IPO) within the last two years. A SPAC is blank check company that has not yet merged with an operating company or even chosen a merger target. SPACs are formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. SPACs often have pre-determined time frames to merge (typically two years) or the SPAC will liquidate. A SPAC generally offers units, each comprised of one share of common stock and a warrant (or portion of a warrant) to purchase common stock. A warrant is a security that allows its holder to purchase a specified amount of common stock at a specified price for a specified time. The Fund may seek to sell warrants that it receives in connection with the purchase of a SPACs units in order to generate additional returns for shareholders. The Fund may purchase units or shares of SPACs that have completed an IPO within the last two years on a secondary market or during a SPACs IPO. A SPAC that has completed a business transaction within the last two years is considered a company that has completed an IPO within the last two years.
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The SPAC and New Issue ETF News
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Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website. Please read the prospectus carefully prior to investing.
Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate and when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the standardized performance data quoted. Select the Standardized Performance link for the latest quarterly performance.