The T-REX 2X Inverse CRWV Daily Target ETF (CORD) seeks to provide -200% of the daily performance of the CRWV Index, which measures companies involved in crowdsourcing, gig economy platforms, and peer-to-peer marketplace technologies. This leveraged inverse ETF profits when the underlying crowdsourcing sector declines.
How It Works
CORD uses derivatives including swaps and futures contracts to achieve twice the inverse daily return of its benchmark index. The fund rebalances daily to maintain its -2x leverage target, meaning positions are reset each trading day regardless of market direction. As an actively managed ETF, it may hold cash, short-term securities, and derivative instruments rather than directly shorting individual stocks. The daily reset mechanism means returns compound differently over multi-day periods.
Key Features
- Provides -200% daily exposure to crowdsourcing and gig economy decline, offering hedging potential for technology portfolios
- Daily rebalancing maintains consistent -2x leverage target but creates compounding effects unsuitable for long-term holding
- Recently launched ETF with 0.00% expense ratio, though actual fees may apply as fund establishes operations
Risks
- This ETF can lose significant value if crowdsourcing stocks rise, with potential for 40-60% daily losses during strong sector rallies
- Daily rebalancing causes compounding decay—even if underlying index returns to break-even over time, this ETF will show losses
- Extreme volatility from 2x leverage amplifies all price movements, making this unsuitable for risk-averse investors or retirement accounts
Who Should Own This
Designed for sophisticated traders with very high risk tolerance seeking short-term (hours to days) tactical bets against crowdsourcing sector momentum. Requires active monitoring and should represent less than 5% of total portfolio. Not suitable for buy-and-hold investors or those unfamiliar with leveraged derivative products.