VistaShares Harnesses the 'Animal Spirits' of the Market With the Launch of WILD

Business Wire

3 days ago

SAN FRANCISCO & BOSTON & NEW YORK--(BUSINESS WIRE)-- VistaShares, an innovative asset manager seeking to disrupt the status quo in growth equity and income investing, today announced the newest addition to its ETF lineup: the VistaShares Animal Spirits™ 2x Daily Strategy ETF (WILD).
"(WILD) offers a more diversified approach to investing in high-beta securities, and we believe it is the next stage in the evolution of what a leveraged ETF can be,' Adam Patti, CEO of VistaShares.
'The leveraged ETF category has gained a significant number of adherents in recent years, and WILD brings a very different approach to the conversation,' said Adam Patti, CEO of VistaShares. 'Using a systematic process, WILD provides 2x leveraged daily exposure to a portfolio of five widely traded stocks exhibiting the strongest investor sentiment and buying momentum. The portfolio composition is adjusted monthly to reflect changing sentiment among these popular trading stocks. It offers a more diversified approach to investing in high-beta securities, and we believe it is the next stage in the evolution of what a leveraged ETF can be.'
Underpinning WILD's investment philosophy is the idea of an 'Animal Spirits'- focused approach to investing, which seeks to capitalize on the behavioral and psychological factors that drive investor sentiment and market trends.
WILD targets those companies that are garnering outsized attention from traders, reflecting the influence of investor optimism and momentum, which can be key elements of note in seeking attractive investment returns. By providing 2x daily levered exposure to this basket of stocks, WILD allows investors to tap into the type of tactical alpha trading solution long favored by sophisticated institutional investors.
'Institutional trading desks have long put a similar approach to work in their efforts to deliver high-beta exposure to their institutional clients,' added Patti. 'Single-stock leveraged ETFs have clearly found an audience for the roles they can play in a portfolio. The attention different funds in that category attract can tell us much about how the market is viewing a specific company. With that information, we can build an actively managed, concentrated portfolio of those stocks that are generating the most momentum and fueling the most investor optimism, seeking to deliver 2x daily performance for the resulting basket of equities. It's an approach long favored by institutional traders and now available to all investors for the first time.'
WILD joins a VistaShares ETF lineup that also includes the fast-growing equity/income solutions OMAH and QUSA, as well as AIS, an AI Infrastructure ETF that upends the traditional thinking around how thematic portfolios can be constructed and managed.
For more information and updates from VistaShares, please visit www.VistaShares.com and follow the firm on Linkedin @VistaShares and on X @VistaSharesETFs.
The VistaShares Animal Spirits Daily 2x Strategy ETF (the '2x Fund') seeks daily leveraged investment results and is intended to be used as a short-term trading vehicle. The 2x Fund attempts to provide daily investment results that correspond to two times (200%) the share price performance of an actively-managed group of equity securities (the 'Target Portfolio'). The 2x Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. The 2x Fund is very different from most mutual funds and exchange-traded funds. The volatility of the market value of the Target Portfolio may affect the 2x Fund's return as much as, or more than, the Target Portfolio's return. The performance of the 2x Fund for periods longer or shorter than a single day will very likely differ in amount, and possibly even direction, from 200% of the daily return of the Target Portfolio's market value for the same period, before accounting for fees and expenses. The 2x Fund may not perform as expected. he 2x Fund is not suitable for all investors. The 2x Fund is designed to be utilized only by sophisticated investors, such as traders and active investors employing dynamic strategies.
About VistaShares
At VistaShares, we strive to deliver innovative investment solutions for today's investors, helping them navigate evolving market opportunities with confidence. VistaShares ETFs are actively managed by industry and investment experts, offering three distinct solutions. Our Pure Exposure™ Growth Equity ETFs target technology-driven economic Supercycles™ that we believe are poised for significant growth. Target 15™ Options-Income ETFs are designed to generate high monthly income while complementing a core equity portfolio. Animal Spirits™ Tactical Alpha ETFs are designed to provide investors short term trading vehicles that seek to harness momentum and investor sentiment.
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 [phone]. Read the prospectus or summary prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Beta is the measure of the risk or volatility of a portfolio or investment compared with the market as a whole.
Animal Spirits Strategy Risks. The Fund's investment strategy of focusing on companies with strong investor interest carries significant risks. This approach may result in the Fund investing in overvalued securities, as heightened enthusiasm can inflate stock prices beyond their intrinsic value, leaving them vulnerable to sharp corrections. The strategy is influenced by herd mentality, which could lead the Fund to participate in speculative bubbles that may collapse suddenly. Additionally, the strategy often involves a short-term focus, with investments driven by fleeting trends or news cycles, increasing the likelihood of heightened volatility and unpredictability. The Fund may also invest in companies that lack fundamental financial support, relying more on market hype than on sustainable growth or profitability. There is a significant risk of timing errors, as the strategy requires precise entry and exit points to avoid losses. Finally, because the Fund's strategy is based on a ranking process of companies with strong investor interest, the investment decisions may prove to be poor.
Index Strategy Risk. The Fund's strategy is linked to an Index maintained by the Index Provider that exercises complete control over the Index. The Index Provider may delay or add a rebalance date, which may adversely impact the performance of the Fund and its correlation to the Index. In addition, there is no guarantee that the methodology used by the Index Provider to identify constituents for the Index will achieve its intended result or positive performance. Errors in Index data, Index computations or the construction of the Index in accordance with its methodology may occur from time to time and may not be identified and/or corrected for a period of time or at all, which may have an adverse impact on the Fund.
Derivatives Risk. 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's 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, leverage, imperfect daily correlations with underlying investments or the Fund's other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions. The use of derivatives is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. The use of derivatives may result in larger losses or smaller gains than directly investing in securities. When the Fund uses derivatives, there may be imperfect correlation between the share price of the Target Portfolio and the derivative, which may prevent the Fund from achieving its investment objective. Because derivatives often require only a limited initial investment, the use of derivatives may expose the Fund to losses in excess of those amounts initially invested.
New Fund Risk. 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. Newer Sub-Adviser Risk. VistaShares is a recently formed entity and has limited experience with managing an exchange-traded fund, which may limit the Sub-Adviser's effectiveness. Non-Diversification Risk. Because the Fund is 'non-diversified,' 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. As a result, a decline in the value of an investment in a single issuer or a smaller number of issuers could cause the Fund's overall value to decline to a greater degree than if the Fund held a more diversified portfolio.
U.S. Government and U.S. Agency Obligations Risk. The Fund may invest in securities issued by the U.S. government or its agencies or instrumentalities. U.S. Government obligations include securities issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, such as the U.S. Treasury. Payment of principal and interest on U.S. Government obligations may be backed by the full faith and credit of the United States or may be backed solely by the issuing or guaranteeing agency or instrumentality itself. In the latter case, the investor must look principally to the agency or instrumentality issuing or guaranteeing the obligation for ultimate repayment, which agency or instrumentality may be privately owned. There can be no assurance that the U.S. Government would provide financial support to its agencies or instrumentalities (including government-sponsored enterprises) where it is not obligated to do so.
Models and Data Risk. The composition of the Index is heavily dependent on proprietary quantitative models as well as information and data supplied by third parties ('Models and Data').
High Portfolio Turnover Risk. The Fund may actively and frequently trade all or a significant portion of the Fund's holdings. A high portfolio turnover rate increases transaction costs, which may increase the Fund's expenses.
Non-Diversification Risk. Because the Fund is 'non-diversified,' 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.
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