Company: SVIX
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004207
Chunk: 5

Company: VS Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 5
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Neither Fund is actively managed by traditional
methods (e.g., by effecting changes in the composition of a portfolio on the basis of judgments relating to economic, financial
and market conditions with a view toward obtaining positive results under all market conditions). Each Fund seeks to remain fully invested
at all times in Financial Instruments and money market instruments that, in combination, provide exposure to the Index consistent with
its investment objective without regard to market conditions, trends or direction.

Each Fund seeks to position its portfolio so
that its exposure to its Benchmark is consistent with its investment objective. The time and manner in which the Fund rebalances its
portfolio is defined by the Index methodology but may vary from day to day depending upon market conditions and other circumstances,
deemed at the discretion of the Commodity Sub-Adviser, beneficial at tracking the Benchmark, or beneficial to the Fund holders.

The amount of exposure a Fund has to a specific
combination of Financial Instruments may differ and may be changed without shareholder approval at any given time. Currently, SVIX seeks
to be, under normal market conditions and absent any unforeseen circumstances, fully exposed to short positions in short-term VIX futures
contracts, and UVIX seeks to be, under normal market conditions and absent any unforeseen circumstances, fully exposed to long positions
in short-term VIX futures contracts. To the extent that any options or swap transaction entered into by a Fund are believed by the Fund
to be “securities” under the Investment Company Act of 1940, the Fund will limit its investments in such transactions so
that such investments, in combination, will not exceed 40 percent of the Fund’s assets (other than cash and government securities)
and thereby avoid potentially being deemed an unregistered investment company.”

The amount of a Fund’s exposure should
be expected to change from time to time at the discretion of the Sponsor based on market conditions and other factors.

In addition, the Sponsor has the power to change
the Fund’s investment objective, Benchmark or investment strategy at any time, without shareholder approval, subject to applicable
regulatory requirements.

Mitigating Price Impacts to VIX Futures Contract
Prices at Times of Fund Rebalancing

The Sponsor will seek to minimize the market
impact of rebalances across all exchange traded products based on VIX Futures Contracts that it sponsors (the “VIX ETPs”)
on the price of VIX futures contracts by limiting VIX ETP participation, on any given day, in VIX futures contracts