- New ETFs offer 2x leverage for GameStop and Snowflake stocks.
- REX Shares continues first-to-market innovation with leveraged funds.
- Leveraged ETFs target volatile stocks for short-term traders.
REX Shares announced the launch of two new T-REX ETF products which offer 2x leveraged exposure to GameStop Corp. (GME) and Snowflake Inc. (SNOW).
The T-REX 2x Long GME Daily Target ETF (GMEU) and the T-REX 2x Long SNOW Daily Target ETF (SNOU) deliver double exposure to daily stock price fluctuations.
These funds are the first to offer 200% leveraged exposure to GameStop and Snowflake in the U.S highlighting the increased demand for investment products on volatile assets.
Gamestop’s Volatility Ideal For Leveraged ETFs
The ETFs use derivatives to produce 2X returns from their base asset daily. This approach offers investors enhanced exposure to price changes in stocks such as the volatile GameStop and Snowflake, a top cloud data service provider. GameStop’s addition of Bitcoin as well as Snowflake’s position in AI and cloud storage offers investors unique high-growth potential opportunities.
The two ETFs are part of REX Shares’s mission to launch first-to-market leveraged investment products to retail investors. REX Financial has already launched ETF products that target high-demand companies such as Tesla, Nvidia and Microsoft. REX Financial COO, Scott Acheychek stated the new funds enable investors to capitalize on high-growth companies.
Investment Risks of 2x Leveraged ETFs
These leveraged ETFs pose substantial risks to investors especially when used to track highly volatile stocks. The T-REX 2x Long GME Daily Target ETF focuses on investors who want to benefit from GameStop’s daily price fluctuations.
GameStop’s highly volatile stock, similar to meme stocks, can lead to substantial losses, according to warning materials. Moreover, experts caution that leveraged ETFs could increase stock trading risks and investors could lose their entire investment if the value of base stock plummets.
These ETFs are not suitable for long-term investors. REX Shares states that the funds could lead to losses beyond one day even if the value of the base stock rises. Investors should understand that the leveraged funds will not match the long-term performance of GameStop and Snowflake stocks.
REX Shares Leveraged ETFs Lineup
REX Shares offers retail investors increased access to enhanced trading opportunities through its leveraged products portfolio. REX Shares currently operates more than 20 products which consist of short and long leveraged ETFs. Moreover, REX offers leveraged products that track the price of Bitcoin and Ethereum. The company continues to add its product lineup to address the changing needs of retail investors.
Rex Shares’ leveraged ETFs are high-risk investment products that could amplify potential profits as well as losses.