Tradr 2X Short AXTI Daily ETF (AXTQ)

This exchange-traded fund from Tradr ETFs seeks daily investment results, before fees and expenses, equal to two times the inverse (opposite) of the daily percentage change in the share price of AXT Inc. (AXTI). It is a single-stock inverse leveraged product that gains when the stock falls on a given day, and it obtains its exposure through swap agreements and other derivatives, holding cash and short-term instruments 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.

The fund rebalances its exposure every trading day, so its target applies only to one-day returns. Over longer periods, compounding can cause results to differ significantly from two times the inverse of the stock's cumulative return.