# VS Trust

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/VS Trust).

## Overview

VS Trust is a Delaware statutory trust that issues exchange-traded shares through separate series focused on VIX futures exposure. Its funds are designed to provide daily investment results linked to short and leveraged long positions in VIX futures indexes, using futures contracts and related instruments. The shares of each fund trade on Cboe BZX Exchange.

## Products & services

• 1x Short VIX Futures ETF (SVIX)
• 2x Long VIX Futures ETF (UVIX)
• Futures-based exchange-traded fund shares
• Daily VIX futures index exposure
• Commodity pool investment vehicles

- **Short VIX futures ETF** (50%) — Exchange-traded shares seeking daily inverse exposure to the Short VIX Futures Index.
- **Leveraged long VIX futures ETF** (50%) — Exchange-traded shares seeking daily 2x exposure to the Long VIX Futures Index.

- 1x Short VIX Futures ETF (SVIX)
- 2x Long VIX Futures ETF (UVIX)
- Futures-based exchange-traded fund shares
- Daily VIX futures index exposure
- Commodity pool investment vehicles

## Customers

The funds are bought by investors seeking tactical exposure to volatility rather than long-term buy-and-hold index tracking. Typical users include active traders, hedge funds, and sophisticated retail investors that want to express a view on market volatility or hedge equity risk. The products are designed for daily trading and are not intended to replicate returns over longer holding periods.

- **Active traders** (primary) — Buy listed shares to express short-term views on volatility and market direction.
- **Hedge funds and institutional traders** (primary) — Use the funds for tactical hedging, volatility trades, and portfolio overlays.
- **Sophisticated retail investors** (secondary) — Trade the ETFs on exchange for speculative or hedging purposes.

- Active traders seeking short-term volatility exposure
- Hedge funds using VIX futures for tactical positioning
- Sophisticated retail investors trading listed ETF shares
- Investors hedging equity market drawdowns
- Market participants seeking leveraged or inverse exposure

## Geography

VS Trust is organized in the United States as a Delaware statutory trust, and its shares trade on a U.S. exchange. The business is operationally centered in U.S. futures and exchange-traded markets, with exposure tied to U.S.-listed VIX futures contracts and U.S. clearing infrastructure. Geography matters mainly through the location of the exchange, futures markets, and counterparties rather than through end-customer sales regions.

- U.S.-organized Delaware statutory trust
- Shares listed on Cboe BZX Exchange
- Exposure centered on U.S. VIX futures markets
- Clearing and brokerage relationships are U.S.-based
- No country revenue disclosure provided in reports

## Strategy

The funds are structured to deliver daily exposure to VIX futures indexes, with one series targeting inverse short exposure and the other targeting leveraged long exposure. Maintaining access to futures markets, clearing brokers, and exchange liquidity is central to the strategy because the products depend on continuous trading and daily rebalancing. The trust’s competitive position comes from offering exchange-traded, rules-based volatility exposure in a wrapper that is accessible through standard brokerage accounts.

- **Preserve futures market access** (short-term) — The funds need counterparties and clearing access to maintain positions and create shares.
- **Deliver daily benchmark-linked exposure** (medium-term) — The product proposition depends on closely matching the stated daily index objective.
- **Support exchange-traded investor access** (long-term) — Listed shares make volatility strategies available through ordinary brokerage accounts.

- Provide daily VIX futures exposure through listed ETF shares
- Offer both inverse and leveraged volatility strategies
- Maintain access to futures commission merchants and clearing
- Use exchange listing to broaden investor accessibility
- Track benchmark performance on a one-day basis

## Risks

The funds are exposed to the structural risks of futures-based volatility products, including leverage, inverse exposure, and daily reset effects that can cause returns to diverge from longer-horizon expectations. They also depend on exchange position limits, FCM discretion, margin requirements, and market liquidity, any of which can restrict trading or reduce tracking quality. Because the portfolios are marked to fair value, reported results can change sharply with VIX futures prices and valuation inputs.

- **Position limits and accountability levels** [high] — Exchange rules may force position reductions or prevent new futures trades.
- **FCM and clearing access dependence** [high] — Futures account agreements can be terminated at the FCM's discretion and margin can change.
- **Daily leverage and inverse exposure decay** [high] — The funds target one-day outcomes, so multi-day returns can differ materially from benchmark intuition.
- **Fair value and market liquidity risk** [medium] — Futures are marked to fair value and may be hard to exit at quoted prices in stressed markets.

- Daily reset can cause performance to diverge over longer holding periods
- Exchange position limits may restrict futures exposure
- FCMs can terminate agreements or raise margin requirements
- VIX futures volatility can create large swings in NAV
- Fair value estimates can differ from realizable exit prices

## Accounting

The most important accounting issue is fair value measurement of futures contracts, since unrealized gains and losses flow through earnings each period. NAV and reported results can also be affected by trade-date accounting, closing-price valuation, and differences between financial statement values and creation/redemption NAV calculations. Management fee accruals tied to each fund’s NAV and brokerage commissions on futures trading also create period-to-period variability.

- **Fair value measurement of futures** — Can create large period-to-period swings in net income and NAV
- **NAV-based management fee accrual** — Operating expenses vary with fund asset values
- **Creation/redemption valuation differences** — Can affect comparability between reported NAV and transaction pricing
- **Trade-date and closing-price valuation** — Can shift reported period results and valuation outcomes

- Futures are recorded at fair value with changes in earnings
- Unrealized gains and losses can move reported results sharply
- Trade-date accounting affects when futures positions are recognized
- NAV-based management fees vary with fund asset levels
- Brokerage commissions and exchange fees affect operating results

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*Last updated: 2026-04-29T05:07:14.617443+00:00*