Leverage Shares 2X Long AXTI Daily ETF (AXTL)

This exchange-traded fund from Leverage Shares by Themes seeks daily investment results, before fees and expenses, equal to two times the daily percentage change in the share price of AXT Inc. (AXTI). It is a single-stock leveraged product: rather than holding a diversified portfolio, it obtains its exposure mainly through swap agreements and other derivatives referencing AXT Inc. common stock, along with cash and short-term instruments held as collateral.

The underlying company: AXT Inc. manufactures compound semiconductor substrates, including indium phosphide, gallium arsenide and germanium wafers, used in optical networking, wireless, lasers, sensors and solar applications.

Because the fund resets its leverage every trading day, its stated two multiple applies only to one-day returns. Over longer holding periods, compounding of daily results means performance can differ substantially from two times the stock's cumulative return, particularly when the share price is volatile.