VegaShares Announces Launch of Autocallable Income ETF (VAIE)
“We are excited to bring further innovation from structured investments into a more accessible ETF wrapper with better liquidity, transparency, and tax efficiency,” said
Autocallables have, over the decades, been sought after market-linked investments in structured notes format amongst high-net-worth investors. When issued through an ETF, the investment vehicle gains further benefits. An ETF can operationally obtain exposure to multiple autocallables with staggered entries and maturities, diversifying timing risk. The fund will also automatically reinvest matured autocallables into new structures, reducing operational burden on investors and advisors.
“As the landscape for structured investment strategies develops, Barnabas is excited to add the ETF structure as an additional vehicle for our network of advisors,” said
About VegaShares
VegaShares specializes in derivatives-based ETFs and other innovative investment strategies. Developed by institutional-level experts, VegaShares blends quantitative research with disciplined risk management to create liquid, exchange-traded tools for modern investors seeking efficiency, precision, and performance.
About
Securities offered through
Before investing, carefully consider the fund's investment objectives, risks, and charges and expenses. The prospectus and summary prospectus contain this and other important information and may be obtained by visiting VegaSharesETFs.com or calling 1-888-862-3299. Read it carefully before investing.
The fund, its investment adviser
The VegaShares US Equity Autocallable Income ETF is a series of
Goldman Sachs is not an advisor, promoter, in any way affiliated with the fund and has no responsibility for the fund's performance, marketing, or trading, or any responsibility regarding the suitability of the fund as an investment.
An investment in the fund is subject to risks, and you could lose money on your investment in the fund. There can be no assurance that the fund will achieve its investment objective. Your investment in the fund is not a deposit in a bank and is not insured or guaranteed by the
Investing involves risks. Loss of principal is possible. The fund faces numerous market trading risks, including authorized participation concentration risk, capital protection risk, capped upside risk, cash holdings risk, clearing member default risk, correlation risk, derivatives risk, equity securities risk, investment timing risk, large-capitalization investing risk, liquidity risk, market maker risk, market risk, non-diversification risk, options risk, premium-discount risk, secondary market trading risk, sector risk, tax risk, trading issues risk, underlying ETF risk and valuation risk. For a detailed list of fund risks see the prospectus. The principal risks of investing in the VegaShares US Equity Autocallable Income ETF include: autocallable structure risk, contingent income risk, early redemption risk, barrier risk, authorized participant concentration risk, calculation methodology risk, cash holdings risk, correlation risk, costs of buying and selling fund shares, counterparty risk, credit risk, derivatives risk, equity securities risk, index risk, interest rate risk, laddered portfolio risk, liquidity risk, market maker risk, market risk, new fund risk, non-diversification risk, premium-discount risk, secondary market trading risk, swap agreement risk, tax risk, trading issues risk, valuation risk, and volatility target index risk.
- Autocallable Risk. The Fund's returns are correlated to the performance of the autocallables included in the NYSE®
- Coupon Payment Risk. A coupon payment from an autocallable is not guaranteed and will not be made if the respective reference index breaches the respective coupon barrier on any given observation date. As a result, the fund may generate significantly less income than anticipated during market downturns.
- Autocall Barrier Risk. If the respective reference index reaches or breaches the respective autocall barrier for any given autocallable on an observation date after the expiration of the respective non-callable period, then the autocallable will be called before its scheduled maturity. This automatic early redemption could force reinvestment of that portion of the portfolio at lower rates if market yields have declined.
- Maturity Barrier Risk. If the respective reference index is below the respective maturity barrier for an autocallable on the day that the autocallable matures, the fund will be fully exposed to the downside of the respective reference index from its initial level and the amount of principal repaid to the Fund will be reduced by an amount equal to that downside performance of the respective index. This conditional protection creates a binary outcome that can result in sudden, significant losses if a maturity barrier is breached. If a reference index's value is at or near its maturity barrier for an autocallable at the end of the autocallable's maturity, small changes in the value of the reference index could result in dramatic changes in the value of the autocallable and NYSE®
- Swap Agreements Risk. Swap agreements are entered into primarily with major financial intermediaries for a specified period which may range from one day to more than one year. In a standard swap transaction, two parties agree to exchange the return (or differentials in rates of return) earned or realized on particular predetermined reference or underlying securities or instruments. The gross return to be exchanged or swapped between the parties is calculated based on a notional amount or the return on or change in value of a particular dollar amount invested in a reference asset. Swap agreements are generally traded over-the-counter, and therefore, may not receive regulatory protection, which may expose investors, including the Fund, to significant losses. A swap counterparty may default on its obligations to the Fund.
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Source: VegaShares