The FAQs below are intended only to provide a brief discussion of the applicable Notes. Investors should read the applicable registration statement (including a prospectus and related supplements) linked below and any other documents relating to the offering that the issuer has filed with the SEC to understand fully the terms of the relevant Notes, including risks, fees and other considerations that are important in making an investment decision.
VelocityShares® designs exchange-traded products issued by well-known financial institutions. Our focus is to create distinct instruments that can assist sophisticated institutional investors in managing their market views, risk, or desired exposures.
VelocityShares exchange-traded notes ("ETNs" or "Notes") are senior, unsecured debt securities issued by financial institutions that are designed to provide sophisticated institutional investors with sophisticated tools for executing their trading strategies. The Notes provide such investors with exposure to the performance of an index minus a daily investor fee and, in some cases, other applicable fees as described in the applicable prospectus and related supplements.
The U.S. Volatility, Metals and Energy Notes have been delisted and no longer trade on any national securities exchange. Delisted products may trade, if at all, on an over-the-counter (OTC) basis. There can be no assurance a secondary market will develop or be maintained.
The yearly fee for each product is applied daily and described in the applicable prospectus and related supplements.
Roll yield (cost) is a profit (loss) that can be generated when investing in the futures market, due to the price difference between futures contracts with different expiration dates.
Each VelocityShares ETN is linked to an index as described in the applicable prospectus and related supplements. Some of the indices are created, maintained, and published by Janus Henderson Indices LLC, a subsidiary of Janus Henderson Group plc, while others are licensed from third party index providers.
The value of an ETN, including any payment at maturity, on early redemption, or at any other time, is subject to the creditworthiness of the issuer of that ETN. The buyer of an ETN is therefore exposed to the credit risk of the issuer while holding the ETN.
VelocityShares and its affiliates may calculate and publish certain information related to the indices and the ETNs. In the event of a market disruption or force majeure event affecting VelocityShares or the components of any index, there is a risk that VelocityShares may be unable to perform its duties. The consequences of such an event are described in the applicable prospectus and related supplements for each ETN.
No. VelocityShares has no market making or trading capabilities.
The intraday indicative value, the most current approximation of the closing indicative value of the ETNs, is calculated and disseminated over the Consolidated Tape and/or other major market data vendors every 15 seconds, or as described in the applicable prospectus and related supplements. There is no guarantee the ETNs will trade at their intraday indicative value.
Yes. VelocityShares ETNs can be sold short, subject to applicable laws, rules and regulations.
The U.S. Volatility, Metals and Energy Notes have been delisted and no longer trade on any national securities exchange. Delisted products may trade, if at all, on an over-the-counter (OTC) basis. There can be no assurance a secondary market will develop or be maintained. Secondary market transactions, if any, settle regular way, T+2, unless otherwise specified in the applicable prospectus and related supplements. Subject to certain restrictions and fees, holders of the ETNs may choose to redeem their ETNs with the relevant issuer prior to maturity. Restrictions, fees and instructions for early redemptions of the ETNs are set forth in the applicable prospectus and related supplements.