Kurv Technology Titans Select (KQQQ) ETF
Potential Benefits of Kurv’s Yield Premium Strategy ETF
- Enhanced income strategies focused on generating monthly cash flow through diversified multiple sources, including harvesting covered call option premiums, dividends, and interest income
- Dynamic optimization: balance between income vs. capital appreciation potential in certain rising market
- Lower beta to underlying stock could be used as a defensive substitute for single stock investments
- Tax advantage: option premiums may not be immediately taxed, and therefore has the potential to offset short-term tax liabilities
Potential Benefits of Kurv’s Technology Titans Select ETF
- Removing non-technology companies helps to gain purer exposure to the top technology growth stocks through smart security selection
- Dynamic optimization: balance between physical and/or synthetic company exposure
- To seek maximum growth, names are weighted based on momentum signals
- Writing covered calls seeks to generate income on a stock with limited upside potential or low price momentum which can also serve as potential downside mitigation
Investment Objective
Important Risk Information
The Fund is a unique investment product that may not be suitable for all investors. An investor should consider investing in the Fund if it, among other reasons, fully understands the risks inherent in an investment in the Fund’s Shares. There is no guarantee that the Fund, in the future will provide the opportunity for upside participation to the price exposure of underlying. There may be limits on upside participation to the price exposure of underlying under certain market conditions. There is no guarantee that the Fund’s investment strategy will be properly implemented, and an investor may lose some or all of its investment. In addition, an investor may lose its investment even if the strategy is properly implemented.
Documents & Downloads
Monthly Total Return
Quarterly Total Return
Growth of $10,000
Holdings
Distributions
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call 1-888-719-KURV (5878). Read the prospectus carefully before investing.
The Fund is new with a limited operating history.
Fund Objective: The Fund seeks maximum total return, consistent with prudent investment management.
An investment in the Fund entails risk, including the loss of principal. The Fund is not a complete investment program and investors should review the risks associated with the Fund before investing.The Fund is an actively managed portfolio, and the portfolio managers will apply investment techniques and risk analyses that may not produce the desired result. There can be no guarantee that the Fund will meet its investment objective.
As an ETF, the Fund is exposed to the additional risks, including: (1) concentration risk associated with Authorized Participants, market makers, and liquidity providers. Such concentration could negatively impact liquidity; (2) costs risks associated with frequent trading; (3) market prices may differ than the Fund’s net asset value; and (4) liquidity risk due to a potential lack of trading volume.
Fund Risks: The Fund will invest in the equity securities of, or derivative instruments (e.g. options) relating to,Technology Companies. Accordingly, the performance of the Fund could be negatively impacted by events affecting this sector. Market or economic factors impacting technology companies and companies that rely heavily on technological advances could have a significant effect on the value of the Fund’s investments. The value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities. When the Fund or an Underlying Kurv ETF invests in fixed income securities or fixed income ETFs, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. The Fund may engage in certain transactions, such as options, that may give rise to leverage, magnifying gains and losses and causing the Fund to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund. As a result, a decline in the value of an investment in a single issuer or a smaller number of issuers could cause the Fund’s overall value to decline to a greater degree than if the Fund held a more diversified portfolio.
Synthetic Long Risks: The Fund will also invest in the Kurv Yield Premium ETFs. The Fund may gain long exposure via purchasing shares of individual companies or creating a synthetic long position. To achieve a synthetic long exposure, the Fund buys call options of a technology company and, simultaneously, sells put options of the same company to try to replicate the price movements of the underlying company. The combination of the long call options and sold put options seek to provide the Fund with investment exposure to the underlying company for the duration of the application option exposure. Please note that the synthetic long and underlying equity security may not attain a 1:1 correlation. The notional exposure to an underlying company when the Fund buys put and call options directly will not exceed 150% of net asset value (when obtaining exposure to an underlying company through an Underlying Kurv Yield Premium ETF, notional exposure will be limited to 100% of net asset value). The call options the Fund buys and the put options it sells will be at the same strike price and have the same expiration, however, the amount may differ.
Underlying Kurv Yield Premium ETF Risks: The Fund will invest in Underlying Kurv ETFs, so the Fund’s investment performance is likely to be related to the performance of the Underlying Kurv ETFs. An investment in the Fund entails more costs and expenses than the combined costs and expenses of direct investments in the Underlying Kurv ETFs. Each Underlying Kurv ETF invests in options contracts which are based on the value of its Underlying Security and subjects each ETF to the risks associated with the industry of the corresponding Underlying Issuer. Each Underlying Kurv ETF employs a strategy of selling call option contracts, limiting its participation in the value increase of the Underlying Security during the call period. Should an Underlying Security’s value increase beyond the sold call options’ strike price, the Underlying Kurv ETF may not experience the same extent of increase, potentially underperforming the Underlying Security and experiencing a NAV decrease, especially given its full exposure to any value decrease of the Underlying Security over the call period. The Underlying Kurv ETFs aim to provide monthly income, although distributions are not guaranteed, and amounts may vary. Monthly distributions may consist of capital returns, reducing each ETFs NAV and trading price over time which could lead to significant losses for investors (including the Fund). Repetitive payment of distributions may erode the Underlying Kurv ETFs NAV and trading price over time, which could result in notable losses for the Fund. The continuous application of each Underlying Kurv ETFs call writing strategy impacts its ability to participate in the positive price returns of its Underlying Security, which in turn affects each Underlying Kurv ETF’s returns both during the term of the sold call options and over longer time frames. Some securities held by the Underlying Kurv ETFs, including options contracts, may be difficult to sell or be illiquid, particularly during times of market turmoil. This risk is greater for the Underlying Kurv ETFs as each will hold options contracts on a single security, and not a broader range of options contracts.
The Kurv Technology Titans Select ETF is distributed by Paralel Distributors LLC, Member FINRA/SIPC. Paralel Distributors is not affiliated with Kurv Investment Management
1 The Fund’s adviser has contractually agreed to waive its fees and reimburse expenses of the Fund until July 31, 2025, so that the Total Annual Operating Expenses After Fee Waiver and Reimbursement (excluding: (i) any front-end or contingent deferred loads; (ii) brokerage fees and commissions, (iii)acquired fund fees and expenses; (iv) borrowing costs (such as interest and dividend expense on securities sold short);(v) taxes; and (vi) extraordinary expenses, such as litigation expenses (which may include indemnification of Fund officers and Trustees, contractual indemnification of Fund service providers (other than the adviser)) will not exceed 0.79%, of average daily net assets. These fee waivers and expense reimbursements are subject to possible recoupment from theFund within the three years after the fees have been waived or reimbursed, if such recoupment can be achieved within the lesser of the foregoing expense limits or the expense limits in place at the time of recoupment. This agreement may be terminated only by the Board of Trustees on 60 days’ written notice to the adviser. Acquired Fund Fees and Expenses are estimated for the Fund’s initial fiscal year.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. Eastern time (when NAV is normally determined for most ETFs), and do not represent the returns you would receive if you traded shares at other times. Ordinary brokerage commissions may apply and will reduce returns.
Nasdaq-100 Total Return™ Index (XNDX™) represents the total return of the Nasdaq-100 Index®, comprised of 100 of the largest and most innovative non-financial companies listed on the Nasdaq Stock Market based on market capitalization, considering both price appreciation and reinvested dividends. Indexes are unmanaged.
Nasdaq top 15 represents the total return of the largest 15 companies listed on the Nasdaq Stock Market based on market capitalization, considering both price appreciation and reinvested dividends. Top 15 is intended to provide a better suited performance benchmark according to the design of this strategy which focuses on the largest 15-20 technology companies, majority listed on Nasdaq.
It is not possible to invest directly in an index.