ABOUT THIS FUND
EMXX seeks to deliver two times the daily performance of Vanguard FTSE Emerging Markets ETF (NYSE Arca: VWO), which tracks an index of large-, mid-, and small-cap stocks. South Korea is not counted as an emerging market, and it may also invest in China A-shares. Rather than holding VWO directly, the fund primarily uses derivatives such as swap agreements and options to create leveraged exposure. The portfolio is rebalanced at the end of each trading day to maintain its targeted leverage level, meaning returns over periods longer than a single day can differ significantly from two times the cumulative return of VWO due to compounding effects. The fund may also obtain leveraged exposure through exchange-traded equity futures contracts and exchange-traded options contracts, including standardized call and put options. Collateral supporting these derivative positions may be invested in money market instruments, repurchase agreements, or short-term US government securities.