General FAQs

Expand all

▶ Who is VelocityShares®?

VelocityShares® designs exchange-traded products to be issued by well-known financial institutions. Our focus is to create unique instruments that will assist professional traders in managing their market views, risk, or desired exposures.

▶ What are VelocityShares ETNs?

VelocityShares exchange-traded notes (“ETNs”) are senior, unsecured debt securities issued by financial institutions that provide traders with sophisticated tools for executing their trading strategies. The ETNs provide investors with exposure to the performance of an index minus an investor fee and, in some cases, other applicable fees as described in the relevant prospectus. The ETNs will trade on an exchange and can be sold short.

▶ On which exchanges are VelocityShares ETNs listed?

VelocityShares ETNs’ primary listing is on either NYSE Arca or NASDAQ, but they may trade on other U.S. stock exchanges.

▶ What is the yearly fee?

The yearly fee for each product is described in the relevant prospectus.

▶ What is roll yield (cost)?

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.

▶ To which index or indices are VelocityShares ETNs linked?

Each VelocityShares ETN is linked to an index as described in the pricing supplement.  Some of the indices are created, maintained, and published by Janus Index and Calculation Services, a division of Janus Capital, while others are licensed from third party index providers.

▶ Will I be exposed to credit risk?

The value of an ETN, including any payment at maturity or on early redemption, 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.

▶ What risk exposure do I have to VelocityShares?

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 VelocityShares, may be unable to perform its duties.  The consequences of such an event are described in the prospectus for each ETN.

▶ Does VelocityShares make markets in the ETNs?

No. VelocityShares has no market making or trading capabilities.

▶ How can I track the value of my ETN?

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.  There is no guarantee the ETNs will trade at their intraday indicative value.

▶ Can VelocityShares ETNs be sold short?

Yes. VelocityShares ETNs can be sold short, subject to applicable laws, rules and regulations.

▶ How do the ETNs settle?

The ETNs are listed on either NYSE Arca or NASDAQ and may be bought and sold on one or more U.S. stock exchanges.  Secondary market transactions settle regular way, T+3.  Subject to certain restrictions, holders of the ETNs may choose to redeem their ETNs with the relevant issuer prior to maturity. Restrictions and instructions for early redemptions of the ETNs are set forth in the relevant prospectus.

VelocityShares  | 17 Old Kings Highway S | Darien, CT 06820 | 877-5 VELOCITY (877-583-5624) | Contact Us | Site Design: 341 Studios

Trading
Leveraged
Inverse
Short
Ultra Short Silver
Double Silver
Triple Silver
Implied Volatility
Equity Volatility		 Silver
Gold
Precious Metals
Energy
Oil
Natural Gas		 Nat Gas
Crude Oil
WTI
West Texas Intermediate
Volatility
VIX		 S&P 500
ETF
ETN
ETP
Variance Swap
Tail Risk
Black Swan
Futures
Options


ETN Risks

Important information about the VelocityShares ETNs is contained within the current prospectuses. For more complete information regarding the VelocityShares ETNs, download a prospectus from this site, call 1-877-5-VELOCITY or 1-203-992-4301, or write to Prospectus Inquiry, VelocityShares, 17 Old Kings Highway S, Darien, CT, 06820 to request a prospectus. You should read the prospectus carefully before making an investment decision.

Not all risks described below will apply to all products. Please refer to the applicable prospectus supplement for a detailed discussion of risks applicable to a particular ETN.

An investment in the ETNs involves significant risks. Please read the more detailed explanation of risks relating to an investment in the ETNs in “Risk Factors” in the applicable pricing supplement.

The ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks. They are designed to achieve their stated investment objectives on a daily basis, but their performance over different periods of time can differ significantly from their stated daily objectives. The ETNs are riskier than securities that have intermediate- or long-term investment objectives, and may not be suitable for investors who plan to hold them for a period other than one day. Any decision to hold the ETNs for more than one day should be made with great care and only as the result of a series of daily (or more frequent) investment decisions to remain invested in the ETNs for the next one-day period. Accordingly, the ETNs should be purchased only by knowledgeable investors who understand the potential consequences of an investment linked to the underlying index and of seeking daily compounding leveraged long or leveraged inverse investment results, as applicable. Investors should actively and frequently monitor their investments in the ETNs, even intra-day. If an investor holds the ETNs for more than one day, it is possible that the investor will suffer significant losses in the ETNs even if the performance of the underlying index over the time the investor holds them is positive, in the case of the leveraged long ETNs, or negative, in the case of the leveraged inverse ETNs.

Because the ETNs are linked to the daily performance of the applicable underlying index and include either leveraged long or leveraged inverse exposure, adverse changes in the market price of the futures included in the underlying index will have a magnified adverse effect on the ETNs and a greater likelihood of causing such ETNs to be worth zero than if such ETNs were not linked to the leveraged inverse or leveraged long return of the applicable underlying Index.

The ETNs do not guarantee any return of principal at maturity, acceleration or redemption and do not pay any interest during their term.

Although the issuer intends to list or has listed the ETNs on NYSE Arca or NASDAQ, a trading market for your ETNs may not develop. The issuer is not required to maintain any listing of the ETNs on NYSE Arca or any other exchange. The issuer of the ETNs may delist the ETNs from any exchange for any reason at any time.

The issuer is not obligated to issue any particular amount of the ETNs and may suspend further issuances at any time. If the issuer suspends further issuances of the ETNs, it is possible that the ETNs could begin to trade at a premium to the indicative value. Any premium that develops may be reduced or eliminated at any time, including as a result of an announcement that the issuer will restart issuances or an announcement that the issuer will exercise its right to accelerate the ETNs for an amount based on the indicative value. Paying a premium purchase price over the indicative value of the ETNs could lead to significant losses in the event the investor sells the ETNs at a time when such premium is no longer present in the marketplace or the ETNs are accelerated at the issuer’s option.

The trading price of the ETNs may vary considerably before any valuation date (as defined in each prospectus), due, among other factors, to fluctuations in the price or the volatility of the underlying index, and other events that are difficult to predict. At higher levels of volatility, and since the ETNs are not principal protected, there is a significant chance of a complete loss of ETN value even if the performance of the underlying index is flat.

The daily resetting of each ETN’s leveraged exposure to the underlying index is likely to cause each ETN to experience a “decay” effect, which is likely to worsen over time and will be greater the more volatile the underlying index. The “decay” effect refers to a likely tendency of the ETNs to lose value over time independent of the performance of the underlying index. Accordingly, the ETNs are not suitable for intermediate- or long-term investment, as any intermediate- or long-term investment is very likely to sustain significant losses, even if the underlying index appreciates (in the case of the leveraged long ETNs) or depreciates (in the case of the leveraged inverse ETNs) over the relevant time period. Although the decay effect is more likely to manifest itself the longer the ETNs are held, the decay effect can have a significant impact on ETN performance even over a period as short as two days.

If the level of the underlying index decreases or does not increase sufficiently (or if it increases or does not decrease sufficiently in the case of inverse ETNs), to offset the effect of the Daily Investor Fee and any other applicable fees over the term of the ETNs, the investor will receive less than the amount invested upon sale, early redemption, acceleration or maturity of the ETNs.

Prior to maturity, you may, subject to certain restrictions described in the pricing supplement, offer the applicable minimum number of your ETNs to the issuer for redemption on an Early Redemption Date (as defined in the prospectus). You must offer for redemption at least the applicable minimum number of ETNs (typically 25’000 or 50’000 depending on the product) as set forth in the pricing supplement, or an integral multiple of such amount in excess thereof, at one time in order to exercise your right to cause the issuer to redeem your ETNs on any Early Redemption Date. In addition, the issuer may charge investors a redemption charge of a percentage of the Closing Indicative Value of any ETN that is redeemed at the investor’s option, at a rate as indicated in the applicable pricing supplement. Please see the applicable pricing supplement for fees or charges relating to the ETNs.

Any payment on the ETNs is subject to the ability of the issuer to satisfy its obligations as they become due.

The risks listed above are not exhaustive. Investors should review the prospectus for each ETN, including all risk factors set forth therein, and consult their independent tax, accounting, legal and financial advisors before investing in any ETN.

VelocityShares® is a trade name used by Janus Distributors LLC, a registered U.S. broker-dealer, in connection with the services and products described herein.

“VelocityShares” and the VelocityShares logo are trademarks of Janus International Holding LLC. Janus Index and Calculation Services LLC (“Janus Index”) is the licensor of certain trademarks, service marks and trade names of Janus International Holding LLC and of certain Indices, which are determined, composed and calculated by Janus Index without regard to the issuer of the any securities which may be linked to such indices. Neither Janus, Janus Index nor any other party guarantees the accuracy and/or the completeness of the indices or any date included therein.

“Standard & Poor’s®”, “S&P®”, “S&P 500®”, “Standard & Poor’s 500™”, “S&P 500 VIX Short-Term Futures™”, “S&P 500 VIX Mid-Term Futures™”, “S&P GSCI®”, “S&P GSCI® Gold Index”, “S&P GSCI® Silver Index” , “S&P GSCI® Platinum Index”, “S&P GSCI® Palladium Index”, “S&P GSCI® Brent Crude Index”, “S&P GSCI® Crude Oil Index”, “S&P GSCI® Natural Gas Index” and “S&P GSCI® Copper Index”are trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and have been licensed for use by Janus Index & Calculation Services. “VIX” is a trademark of the Chicago Board Options Exchange, Incorporated (“CBOE”) and has been licensed for use by S&P. The ETNs are not sponsored, endorsed, sold or promoted by S&P or CBOE and S&P and CBOE make no representation regarding the advisability of investing in the ETNs. The S&P GSCI index and the S&P GSCI sub-indices are not owned, endorsed, or approved by or associated with Goldman Sachs & Co. or its affiliated companies.

Securities Products: Are Not FDIC Insured * Are Not Bank Guaranteed * May Lose Value

This site is for informational purposes only. Nothing herein constitutes a solicitation, offer or recommendation by VelocityShares or its affiliates to buy or sell securities. VelocityShares does not render investment, tax, accounting or legal advice. The securities discussed herein are complex products and may not be suitable for all investors and should only be used by knowledgeable investors who understand the potential consequences of seeking inverse or leveraged investment results. Investors should actively monitor their investments in the securities. Investors should review the prospectus for each security and make their own investment decisions based on their specific investment objectives and financial position and after consulting independent tax, accounting, legal and financial advisors. VelocityShares will receive a fee from the issuers of the products discussed on this site based on the quantity of products outstanding.

Past performance does not predict future performance. The value of the securities may decrease and investors may lose some or all of their investment.

Janus Distributors LLC, a registered broker-dealer, will only transact business in states in which it is registered, unless it is otherwise excluded or exempted from being registered in such state.

Please see “VelocityShares Terms of Use” for additional information regarding use of this website.

The applicable issuer has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (”SEC”) for the ETNs. Before you invest, you should read the registration statement (including the prospectus and the documents incorporated by reference into the registration statement) to understand fully the terms of the ETNs and other considerations that are important in making a decision about investing in the ETNs. You may get these documents without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, you can request these documents without cost by calling toll-free 1-877-5-VELOCITY or 1-203-992-4301.