Company: SVIX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044385
Chunk: 298

Company: VS Trust
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 8
Chunk 298
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 frequently as daily.

While the Funds seek to meet their investment objectives,
there is no guarantee they will do so. Factors that may affect a Fund’s ability to meet its investment objective include: (1) the
Sponsor’s ability to purchase and sell Financial Instruments in a manner that correlates to a Fund’s objective; (2) an imperfect
correlation between the performance of Financial Instruments held by a Fund and the performance of the applicable benchmark; (3) bid-ask
spreads on such Financial Instruments; (4) fees, expenses, transaction costs, financing costs associated with the use of Financial Instruments
and commission costs; (5) holding or trading instruments in a market that has become illiquid or disrupted; (6) a Fund’s Share prices
being rounded to the nearest cent and/or valuation methodology; (7) changes to a benchmark Index that are not disseminated in advance;
(8) the need to conform a Fund’s portfolio holdings to comply with investment restrictions or policies or regulatory or tax law
requirements; (9) early and unanticipated closings of the markets on which the holdings of a Fund trade, resulting in the inability of
the Fund to execute intended portfolio transactions; (10) accounting standards; and (11) differences caused by a Fund obtaining exposure
to only a representative sample of the components of a benchmark, over weighting or under weighting certain components of a benchmark
or obtaining exposure to assets that are not included in a benchmark.

A number of factors may affect a Fund’s ability
to achieve a high degree of correlation with its benchmark, and there can be no guarantee that a Fund will achieve a high degree of correlation.
Failure to achieve a high degree of correlation may prevent a Fund from achieving its investment objective. In order to achieve a high
degree of correlation with their underlying benchmarks, the Funds seek to rebalance their portfolios daily to keep exposure consistent
with their investment objectives. Being materially under- or over-exposed to the benchmark may prevent such Funds from achieving a high
degree of correlation with such benchmark. Market disruptions or closure, large amounts of assets into or out of the Funds, regulatory
restrictions, extreme market volatility, and other factors will adversely affect such Funds’ ability to adjust exposure to requisite
levels. The target amount of portfolio exposure is impacted dynamically by the benchmarks’ movements during each day. Other things
being equal, more significant movement in the value of its benchmark up or down will require more significant adjustments to a Fund’s
portfolio. Because of this, it