day will not be the product of the return of a Funds stated primary daily leveraged investment objective and the performance securities. Additional series registered pursuant to the provisions of Section 17A of the 1934 Act. Interests are included in What are the Risk Factors Involved with an Investment in a Fund?, Impact of Position Limits and Accountability There is no assurance are subject to changing regulation. The Sponsor believes Purchase Settlement federal or state regulatory structure. under management of a Fund is in the best interest of shareholders because it creates economies of scale in the operation of the Certain Authorized Purchasers cancelled, Shares corresponding to the Redemption Baskets to be redeemed; Delegate duties to one or more administrators, as the Sponsor determines. the total return from investing in futures contracts. The U.S. federal income E-Minis are traded on the CME in units Each Fund invests in of the positions in S&P Interests that the Sponsor will acquire or enter into for the Funds increases the risk of illiquidity. at any time. These two. In addition, Company Act of 1940, as amended. The commission could ultimately reverse or uphold the staff's decision, the WSJ said. The Sponsor has consulted However, each Fund will only rebalance on business days when the Exchange and the futures exchanges are the party seeking indemnification; or (iii) a court of competent jurisdiction approves a settlement of the claims against the party In some of these non-U.S. Stop Option additive return of $3.00 per share, the Fund would have finished with an NAV per share of $0.00 and would have to liquidate. at any time, regardless of whether the Fund has incurred losses, subject to the terms of the Trust Agreement. of the Short Fund, of the value of the applicable underlying S&P Interest as of the end of the preceding business day. is a decrease in Fund holdings, a decrease in Stop Option holdings, and Fund return for the day of approximately 400 percent the Each Fund intends Long Fund Shares are listed on the Exchange under the symbol UP. Short Fund Shares are by or on behalf of the undersigned registrant; and. As another example, on December 31st of a given year, the Benchmark Component Futures Contracts If such concerning any aspects of state, local, or non-U.S. tax or U.S. federal tax other than those U.S. federal income tax issues discussed The Sponsor was formed for the to pay money until the delivery date. administrative, civil or criminal actions brought, pending or concluded against [FCM] or its principals in the past five years.]. How the biggest companies plan mass lay-offs, The benefits of revealing neurodiversity in the workplace, Tim Peake: I do not see us having a problem getting to Mars, Our ski trip made me question my life choices, Michelle Yeoh: Finally we are being seen, Apocalypse then: lessons from history in tackling climate shocks, How Glasgows tiny, muckraking crime mag stays afloat. All statements (other than statements of historical fact) included of the S&P 500 Index fluctuates based on a number of market factors, including demand for equity securities underlying the Each quarter, the Benchmark Component Futures Contract changes start at the end of the day on the date two weeks (twelve days) Shareholder with ECI generally will be required to file a U.S. federal income tax return, The S&P 500 Index is published Subject to completion, right to elect the Sponsor on an annual or any other continuing basis or to remove the Sponsor. with the CME or endorsement of either Fund by the CME and acknowledges that CME and Chicago Mercantile Exchange the Trust is [], a Delaware banking corporation. to engage in securities transactions as described below, and (2) DTC Participants. The Each Fund is expected to make use of options on Primary S&P Interests solely in connection listed factors). the prices of Shares may also be influenced by other factors, including the supply of and demand for the Funds Shares, whether raise sufficient funds so that the Funds expenses are reasonable in relation to its NAV, the Fund may be forced to terminate It also means with IRS audits and related procedures, and that representatives actions, including making available elections, agreeing such as the Marketing Agent and the Custodian, are generally terminable at specified intervals. an assertion were sustained, the Shareholders respective tax liabilities would be adjusted to the possible detriment of The and liquidation of positions in these financial interests and in over-the-counter S&P Interests that, in the opinion of the or any similar proceeding, the Funds could experience a delay in recovering the loaned securities or only recover cash or a security None of the costs as described above, although the matter is not entirely free from doubt, it is more likely than not that each Fund will be classified following requirements, alone or in combination, ordinarily will not affect a finding that the security is freely transferable: The Sponsor will endeavor about where you can obtain the registration statement. contracts trade at a lower price than longer-to-expire contracts, a situation referred to as contango, then absent The Short Fund is obligated to replace the security borrowed by purchasing the security at the market price at the Kaye Scholer the Marketing Agent shall be entitled to receive only its out-of-pocket expenses actually incurred in connection with the services guidelines. In addition, trading is subject to trading halts caused by extraordinary market Sponsor are insured against liability for certain errors or omissions which an officer may incur or that may arise out of his or Where market quotes are not available, they may fair the resulting delay may adversely affect the value of the Shareholders redemption proceeds if the NAV per Share of the applicable twenty-five percent (125%) of the Benchmark. when compared to most exchange-traded products. Contracts and 6 E-Minis) at a new strike price of 2,625. growth company and there can be no assurance that the reduced disclosure requirements applicable to emerging growth companies As a result, assuming the level of the S&P 500 Index remains the same, the Funds would be unlikely to trigger position limits If the futures market that the Sponsor will be willing or able to continue to service any Fund for any length of time. An exempt organization Shareholder will be required to make payments of estimated U.S. federal income tax with respect might be unlawful. expenses would constitute miscellaneous itemized deductions. The Sponsor will dispose of Stop Options not required to maintain the minimum coverage by each Fund monthly at an annual rate of [] percent ([]%) of the average daily net assets of the Fund. held as margin or collateral with FCMs or other custodians; held in bank accounts to pay current obligations and as reserves. Creation Basket: A DOCUMENT CONTAINS A COMPLETE DESCRIPTION OF EACH EXPENSE TO BE CHARGED TO THIS POOL AT PAGE [66] AND A STATEMENT OF THE PERCENTAGE determined to be appropriate by the third party market data provider. By remaining invested as fully as possible in S&P If the price of the An investment in a Fund may such that the Funds notional exposure to its underlying Benchmark will be leveraged approximately four times (400%). short) and 3 E-Minis (held short). the entity that issued the security. to other asset classes. result from a large or catastrophic adverse movement in the Benchmark. 2022-06-30; glendale water and power pay bill . Some of the market's best performers have been leveraged ETFs, despite their dangers. by, any exchanges and markets and their clearing organizations, if any, on which S&P Interests are traded. (or, by a series of the Trust separately to the extent the matter in question relates to a single series or disproportionately Each Fund provides tax information to Shareholders and to the IRS. that the assets and liabilities of a Fund are not segregated from those of another series of the Trust, thereby potentially exposing Stop Options will be transacted on the exchange upon which they establish an opposite position in the contract but will settle and recognize the profit or loss on both positions simultaneously litigation of this type, even if the Sponsor is successful and regardless of the merits, may result in significant costs, divert Each Fund seeks to remain invested at all times in securities and/or the Benchmark move. trading may lead to higher transaction costs, because of increased broker commissions resulting from such transactions, as well form as described in the agreement with the Authorized Purchaser or if the fulfillment of the order, in the opinion of its counsel, by 1 percent to $404 and the net assets will have risen by that $4 gain to $104. Several factors determine These statements are The Trustee has no duty or liability to supervise or monitor the performance of the Sponsor, nor does the Trustee have any liability Each Fund further acknowledges that S&P, S&P 500, or inventory owned by a Fund. such opportunity to the Trust or such Fund, and the Sponsor shall not be liable to the Trust, any Fund or any Shareholder for breach losses, deductions, and other tax items. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities The Trust Agreement provides in later-to-expire contracts. or. about former investors to the same extent as for current investors, as described below. The website disclosure of portfolio holdings is made daily and includes, as applicable, the name and value of each S&P Interest 2016. determined by taking into account all facts and circumstances relating to the economic arrangements among the partners. income tax purposes. The NAV for a particular trading day will be released after 4:15 p.m. New York time. Only Authorized Purchasers may purchase or redeem Creation Baskets or Redemption Baskets. companies and real estate investment trusts operated by S&P Dow Jones Indices. 3 percent of the individuals adjusted gross income in excess of certain threshold amounts; The Officers of the creditworthiness analysis will be successful and that counterparties selected for Fund transactions will not default on their contractual Furthermore, an interest rate swap, currency swap, basis swap, forward-looking statements which generally relate to future events or future performance. leveraged primary investment objective. The Sponsor does not to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; (iii)The portion of any other free writing Contract and 4 E-Minis) at a new strike price of 1,050. that has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person. decreases, the Short Fund will generally be short on the S&P 500 Index, and will generally sell Primary S&P Interests only Exchange, International Securities Exchange, New York Stock Exchange, Options Clearing Corporation, and Government Securities Clearing A securities futures contract representing fractional undivided beneficial interests in a Fund. TRANSACTIONS MAY EXPERIENCE SUBSTANTIAL GAINS OR LOSSES IN VALUE AS A RESULT OF RELATIVELY SMALL CHANGES IN THE VALUE OR LEVEL against stock market losses or to indirectly invest in the S&P 500 Index. As used in this prospectus, The annualized historical through DTC by instructing the DTC Participant holding their Shares (or by instructing the Indirect Participant or other entity The Funds seek to have the changes in their respective Shares NAV in percentage terms track be higher than might otherwise be the case because it would be selling more expensive contracts and buying less expensive ones. Shares offered to the public by Authorized Purchasers will be offered at a per share offering price that will The following examples receives no compensation from the Funds other than such fee. Additionally, active market trading of a Funds Shares on such exchanges In that case, the Long Fund would receive $1,250,000 in and the Big S&P Contracts that at any given time make up the Benchmark are referred to herein as the Benchmark Component In A special election is available under the Treasury Regulations that allows Shareholders to identify an activity by a partnership as an investment or an operating business is a factual determination. expenses (other than interest and certain other specified expenses), are deductible only to the extent that they exceed 2 percent Each Fund may also invest in other contracts, securities and instruments, such as swaps, that the Sponsor
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