XUSP

XUSP is suitable for speculative investors who are very bullish on the SPDR S&P 500 ETF (SPY). The strategy sells a call credit spread in order to buy 5% out-of-the-money call options. The fund uses four, one-year FLEX Options packages with laddered 3-month expirations. The strategy does not offer any downside protection and will experience all subsequent losses of SPY on a one-to-one basis. In order to potentially receive any return, the index must increase more than 5% at the end of the one-year period. The accelerated returns mentioned in the fund are not stated as multiples, but rather, are calculated yearly for each options package and are dependent on market conditions. At each quarterly expiration, one of the option packages will be rolled further out and option strike prices set based on the index level. Shareholders should expect a higher portfolio turnover, which may result in higher taxes if held in a taxable account. The all in costs of this product should be compared with just simply buying long calls on SPY.