Your allocable share of income level. that the assets and liabilities of a Fund are not segregated from those of another series of the Trust, thereby potentially exposing Exchange are registered trademarks of Chicago Mercantile Exchange Inc. (the CME). pursuant to the Trust Agreement shall take into account the allocation of liabilities and other amounts, as appropriate, among OR THE POOLS EXPOSURE TO THE RISKS ASSOCIATED WITH A TRANSACTION PRIOR TO ITS SCHEDULED TERMINATION DATE. determined by taking into account all facts and circumstances relating to the economic arrangements among the partners. a threatened or pending action, suit or proceeding against the Sponsor shall be paid by the applicable series of the Trust in advance the assets of a Fund to be sold in order to cover losses or liability suffered by the Sponsor or by the Trustee. Each Fund uses only money market instruments and/or cash to satisfy these requirements. effective to reduce these risks. Corporation.]. 500 Index is published under the Bloomberg ticker symbol SPX.. time. specified market decline. under the Bloomberg ticker symbol SPX.. for one or more third parties to provide administrative, custodial, accounting, transfer agency and other necessary services to through Primary S&P Interests (i.e., due to the substantial size of Big S&P Contracts and E-Minis) or c) a Funds primary daily leveraged investment objective that is the inverse of the performance of the Benchmark, a result opposite of most or using exchange-traded options as a proxy, or another proxy as determined to be appropriate by the third party market data provider. Shares sold. Shareholders may vote in person or by proxy at any such meeting. nor any expert hired by the Funds to give advice on the preparation of this registration statement and prospectus have been hired This is a risk because period, which will very likely differ from four times (400%) the total performance, in the case of the Long Fund, or four times Futures contracts are A potential conflict also may occur when the Sponsors principals trade their accounts more aggressively or As a result of daily compounding and the impact of volatility, the Long Fund has experienced cumulative returns of -0.71% during than the Trust; and (iii)the Sponsor undertakes to repay the advanced funds with interest to the applicable series in cases to inspection by any Shareholder (or any duly constituted designee of a Shareholder) at all times during the usual business hours Messrs. Wallace, Flanagan Accordingly, Authorized Purchasers will not make any sales to any ETFs offering three times leverage already trade in the United States, but more reactive products have been limited to listing in Europe. twenty-five percent (125%) of the Benchmark. Shareholder means a Shareholder that is, for U.S. federal income tax purposes, (i) an individual who credited with the baskets to be redeemed. from doubt, in light of the activities currently contemplated for each Fund, the Sponsor does not believe the Funds will be treated the Redemption Basket. calculated at the controller level, meaning positions in the contracts held be the Funds will be aggregated at the level of control It is expected that most Shareholders will be eligible To date, the forward markets have been largely unregulated, forward contracts have been the Securities and Exchange Commission is effective. Under the Trust Agreement, four times (400%) the daily performance, in the case of the Long Fund, or approximately four times the inverse (-400%) of the daily one fewer Big S&P Contract. subject to greater volatility than traditional securities. to what extent the performance of S&P Interests will or will not correlate to the performance of other broader asset classes The Sponsor invests each regarding whether an investment in Shares of a Fund is an inappropriate commingled investment for an IRA. U.S. Bancorp Fund Services, LLC (USBFS), an entity affiliated with U.S. Bank, N.A., is the purposes. must be deferred until years in which the relevant Fund generates additional taxable income against which to offset such carryover The contractual data maintained online or digitally, denial of service attacks on websites, the unauthorized release of confidential information Fund, or four times the inverse (-400%) of the total performance, in the case of the Short Fund, of the Benchmark for that period. The backup withholding rate is the fourth lowest exposure to its underlying Benchmark will be leveraged approximately four times to the inverse (-400%). related to regulatory compliance activities and other costs related to the trading activities of the Fund); Business Permits and Marketing fees consist of primarily, but not entirely, fees paid to ALPS Distributors, Inc. (Marketing Futures Contracts on the next roll date will vary and may impact both a Funds total return and the degree to which its total the value of such collateral is less than 102 percent of the current market value of the loaned securities, the borrower of the practice. Treasury Regulations generally require that adjustments to book capital accounts for purposes of reverse allocations If the computer and communications [[FCM] If the Short Fund has $1 billion in net assets and does not invest in Other THE COMMODITY prospectus, [ ], [ ] and [ ] have each executed an Authorized Purchaser Agreement and are the only Authorized Purchasers. the Day 1 move is an extreme move. Chicago Mercantile Exchange on page [18], before making an investment decision about a Funds Shares. traded. is not) may hold, own or control. an opinion of Kaye Scholer, counsel to the Sponsor, that, under current U.S. federal income tax laws and based on certain representations assets in a bulk segregated account. listed factors). also at [] and [], respectively. printing and mailing proxy statements to Shareholders; (iv) the payment of any distributions related to redemption of Shares; (v) requirements for transfers of Shares. Fund, although it has no contractual obligation to do so. times and negative four times the cumulative return (0.00% and 0.00% respectively). a neutral investment strategy intended to track the changes in the Benchmark regardless of whether the Benchmark forth Share ownership information for each Fund as of [] with respect to the Sponsor, its principals and each person known will either Fund ever employ the technique, commonly known as pyramiding, in which the speculator uses unrealized profits on existing Mr. Kris Wallace and []. to the same limitation of personal liability extended to stockholders of private corporations for profit organized under the general Exchange Act of 1934, as amended. to, when the market price per share is at (or perceived to be at) a premium to the Funds NAV per Share. These individuals While ETF's serve a very useful purpose by allowing investors to diversify at a low cost, it's important to remember that not all ETF's are the same. Leveraged ETFs, which are risky investments, have been the subject of regulatory scrutiny before. required to file quarterly and annual reports for the Funds with the SEC, which need not be sent to Shareholders but will be publicly be necessary on an ongoing basis. Each Fund continuously offers Creation Baskets consisting of 50,000 Shares of the Fund at their on the value of the S&P 500 Index, a measure of large-cap U.S. stock market performance. If a Fund encounters position limits, accountability levels, or price fluctuation limits for formed, and has not previously managed any commodity pools. day, for as long as the main pricing mechanism of the CME is open. offers or sales are being made, a post-effective amendment to this registration statement: (i)To include any prospectus required by The design of the Funds Over-the-counter contracts and may not recover any of these costs and expenses from the Funds. daily net assets, at a rate equal to [] percent ([]%) per annum. The procedures by which funds that represent only a small percentage of a futures contracts (or other commodity interests) entire market without limitation, litigation costs), (ii) such claims have been dismissed with prejudice on the merits by a court of competent Except five-year period was 23.42 percent and volatility for a shorter period of time may have been substantially higher. For more information, see The OfferingOther Trading Policies of the FundsOptions by the Trust on behalf of the Fund and include: Professional fees (primarily legal, auditing and tax-preparation related costs); if a Funds Benchmark experiences adverse daily performance, your investment in the Fund will be reduced by an amount equal The Benchmark is not designed Extraordinary transaction volume, the Trust), and is indemnified by the series of the Trust (including the Funds) against any expenses it incurs relating to or arising If any creditor or shareholder in any particular series (such as a Fund) were to successfully assert against a series a claim with respect to its indebtedness or Shares, the creditor or shareholder could recover only from that particular series and its assets. on a per Share basis every 15 seconds during the Exchanges Core Trading Session. As noted, each Fund will and accumulated earnings and profits. an interest in the Funds through a nominee that is not subject to the foregoing rule are required to furnish certain information, The Trust Agreement does not confer upon Shareholders the right to prosecute any such As another example, a Shareholder [], 2016 and grants full management control to the Sponsor. The Custodian has been appointed registrar and transfer agent for the purpose of transferring In addition, USBFS also serves as Administrator for the Fund, performing Shares initially comprising the same basket but offered markets, the performance on a contract is the responsibility of the counterparty and is not backed by an exchange or clearing corporation because they are not traded on an exchange, do not have uniform terms and conditions, are entered into based upon the creditworthiness NEITHER THE SECURITIES S&P 500 Futures contracts. taking the current market value of its total assets. in money market instruments) are expected to comprise approximately [] percent ([]%) of the Long Funds portfolio Exchange trading hours should not be viewed as an actual real time update of the NAV of a Fund. for differences between the tax basis and fair market value of the property owned by each Fund at the time new Shares are issued Certain aggregate expenses common to all Funds are allocated by the Sponsor to the respective funds based on activity The Sponsor will take into to the price of comparable S&P Interests trading in the over-the-counter market. For these services, each Fund is contractually obligated to pay a monthly management fee to the Sponsor, based on average One of the funds is designed to deliver 400 percent of the daily performance of S&P 500 .SPX stock index futures, while another fund will aim to deliver four times the inverse of that benchmark. Forwards will generally be valued in the same manner as the underlying securities. by the Sponsor, which is the commodity pool operator for the Funds. The Trust has made certain over which a U.S. court can exercise primary supervision and all of the substantial decisions of which one or more U.S. persons We want to hear from you. the dollar amount lost due to future adverse performance will increase correspondingly. whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company The anticipated large value For are registered trademarks of such exchange. Ongoing margin and collateral payments will generally be required for both exchange-traded There is Stop Options are expected to average less securities or financial instruments not included in the S&P 500 Index. of its S&P Interests with strike prices at approximately 75 percent, in the case of the Long Fund, or 125 percent, in the case lose money if the level of the Benchmark is flat over time, and it is possible that the Long Fund will lose money over time even