(ETQ) T-Rex 2X Inverse Ether - Ratings and Ratios

The T-Rex 2X Inverse Ether Daily Target ETF (ETQ) is designed to provide investors with 200% inverse daily exposure to the performance of ether. Under normal market conditions, the fund allocates at least 80% of its net assets (plus borrowings for investment purposes) to swap agreements. These agreements are typically entered into with major global financial institutions and can have durations ranging from one day to over a year. The fund operates as a non-diversified investment vehicle, meaning it can concentrate its holdings in a limited number of assets, which may heighten its risk profile. By leveraging swap agreements, the fund seeks to achieve its inverse exposure without directly holding the underlying assets, allowing for efficient risk management and exposure to market movements.

Based on the provided data, the ETFs technical indicators suggest a bearish trend. The SMA 20 (15.20) is below the SMA 50 (12.07) and SMA 200 (12.82), indicating downward momentum. The ATR of 1.35 signals moderate volatility. With an average volume of 4,718 shares over 20 days, liquidity is relatively low, which could lead to increased price sensitivity. The funds AUM of $0.68M is small, which may impact its sustainability and trading efficiency. Over the next three months, if market conditions remain unfavorable, the ETF may face challenges in maintaining its inverse strategy effectively. Investors should closely monitor volume and asset levels, as these factors could significantly influence the funds performance and viability.