LongPoint Launching Canada's First Triple Levered Index ETFs

• LongPoint will list six ETFs on Friday – QQQU, QQQD, SPYU, SPYD, SOXU, SOXD
• LongPoint's new ETFs will meet Canadian investors' demand for Canadian-listed products
• LongPoint is a Canadian owned and operated ETF provider

Toronto, Ontario--(Newsfile Corp. - May 21, 2025) - LongPoint Asset Management Inc. ("LongPoint") is proud to announce the upcoming launch of Canada's first six triple levered index ETFs (the "Mega ETFs") which will take place this Friday, May 23, 2025 on the Toronto Stock Exchange (the "TSX"). This initial launch includes three triple levered long index ETFs (the "MegaLong (3X) ETFs") and three triple levered inverse index ETFs (the "MegaShort (-3X) ETFs"). In addition to this first wave of products, the remaining five Mega ETFs, qualified for initial public offering via a final prospectus dated May 16, 2025, are expected to be listed on the TSX on May 29, 2025.

The Mega ETFs are the first Canadian domiciled products of their kind available to investors in Canadian dollars and listed on a domestic stock exchange. Currently, there are 196 leveraged and inverse leveraged exchange-traded products ("ETPs") listed in the U.S. that track equity and fixed income indices, with approximately CAD $130 billion (USD $99 billion) in assets under management ("AUM"). Of these, 75 are triple-leveraged (or higher) index ETPs, accounting for nearly CAD $100 billion (USD $70 billion) in AUM — equivalent to almost 20% of the total AUM of the Canadian ETF industry. A 2024 report estimated that Canadian investors held over CAD $2.5 billion (USD $1.8 billion) in U.S.-listed triple-leveraged ETFs which has generated millions of dollars in U.S. tax revenue.

LongPoint believes that the launch of its Mega ETFs will enable Canadian investors to benefit from the growth of the local ETF market and ecosystem — rather than continuing to contribute to the U.S. market due to a lack of domestic alternatives. Canada was home to the world's first ETF over 35 years ago, and now is the time for Canadian-owned and operated issuers to reclaim leadership by expanding access and options for active Canadian investors.

"We're thrilled to finally bring Canadian-listed triple-leveraged index ETFs to market — something active Canadian investors have been requesting for years," said Steve Hawkins, CEO of LongPoint. "Until now, Canadian investors had no choice but to trade U.S.-listed triple-leveraged ETFs. After nearly 11 months of working closely with regulators, we are proud to be launching the first triple-leveraged index ETFs built by Canadians for Canadians."

"Our team at LongPoint brings over 70 years of combined ETF experience, including nearly 50 years specifically focused on managing leveraged and inverse products," Hawkins added. "We've designed the Mega ETFs as powerful tools for knowledgeable, sophisticated Canadian investors who employ high-conviction, short-term trading strategies."

The Mega ETFs seek daily investment results that endeavour to correspond, before fees and expenses, to either three times (3X) or three times the inverse (-3X) of the daily performance of an underlying index. The Mega ETFs do not hedge their exposure to the U.S. dollar. The Mega ETFs will only trade in Canadian Dollars.

Friday's listing will include the following MegaLong (3X) ETFs:

Friday's listing will include the following MegaShort (-3X) ETFs:

The following MegaLong (3X) ETFs are expected to be listed on May 29, 2025:

The following MegaShort (-3X) ETFs are expected to be listed on May 29, 2025:

"With continued volatility across North American markets—driven in part by actions from the U.S. administration — Canadian investors are seeing increased short-term trading opportunities," Hawkins continued. "The Mega ETFs will provide Canadian-dollar-denominated exposure to broad market indices, all traded domestically on a Canadian exchange. These products are designed to help active investors respond quickly to market signals, momentum shifts, and geopolitical developments without relying on U.S.-listed alternatives."

The final prospectus dated May 16, 2025, containing important information relating to the Mega ETFs, has been filed with the securities commissions or similar authorities in each of the provinces and territories of Canada. A copy of the final prospectus is available on www.sedarplus.ca.

The first six Mega ETFs have closed their offering of initial shares and will begin trading on the TSX when the market opens on Friday May 23, 2025. You cannot buy shares of the Mega ETFs until they begin trading on Friday.

LongPoint is the newest Canadian provider of leveraged and inverse leveraged ETFs, having listed crude oil and natural gas up to two times leverage and inverse leveraged ETFs in December 2024. LongPoint also offers its unique Partnership ETF platform, which simplifies the launch, operation and growth of ETFs for its partner asset managers. LongPoint is a Canadian owned and operated company.

About LongPoint Asset Management Inc.

LongPoint Asset Management Inc. delivers innovative ETF solutions designed to enhance your Canadian investing journey. With over 70 years of combined expertise in the ETF market, our dedicated team leverages deep industry connections and local insights to design, build and launch exceptional ETFs tailored for Canadian investors. Discover the value of investing with LongPoint!

The Mega ETFs are alternative mutual funds, and as such, the Mega ETFs are permitted to invest in asset classes or use investment strategies that are not permitted for other types of mutual funds. The Mega ETFs are highly speculative. The Mega ETFs use a significant amount of leverage which magnifies gains and losses. They are intended for use in daily or short-term trading strategies by very knowledgeable, sophisticated investors. If you hold such an ETF for more than one day, your return could vary considerably from the Mega ETF's daily target return. The negative effect of compounding on returns is more pronounced when combined with leverage and daily rebalancing in volatile markets. The ETFs are not suitable for investors who do not intend to actively monitor and manage their investments.

The Mega ETFs employ significant leverage, may experience amplified losses and should not be expected to return +300% in the case of MegaLong (3X) ETFs and -300% in the case of the MegaShort (-3X) ETFs of their target index over any period of time other than daily. An investor in a Mega ETF could lose their entire investment within a single day if the Daily Target gains or loses, as applicable, more than 33% that day. The returns of the ETFs over periods longer than one day will likely differ in amount and possibly direction from the performance or inverse performance, as applicable, of their target index for the same period. This effect is more pronounced for the Mega ETFs as the volatility of the target index and/or the period of time increases.

This material is for informational purposes only. This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do not take into account the particular investment objectives, needs, restrictions and circumstances of a specific investor and, thus, should not be used as the basis of any specific investment recommendation. Investors should consult a financial and/or tax advisor for financial and/or tax information applicable to their specific situation.

Commissions, management fees, performance fees and operating expenses may all be associated with an investment in the Mega ETFs. The Mega ETF is not guaranteed, its value changes frequently and past performance may not be repeated. The ETF Facts and prospectus contain important detailed information about the Mega ETFs. Please read the relevant documents before investing.

Certain statements may constitute a forward-looking statement, including those identified by the expression "expect" and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect LongPoint's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking statements. These forward-looking statements are made as of the date hereof and LongPoint does not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/252925