Recent news highlights significant ETF inflows and outflows for SVIX, reflecting active market participation and investor interest in volatility-based exchange-traded products.

• SVIX experienced significant ETF outflows in May 2025, indicating investor redemptions or reduced demand during that period [N1].
• Additional ETF outflows for SVIX were reported in mid-May 2025, suggesting continued investor repositioning [N2].
• SVIX saw notable ETF inflows in August 2024, reflecting increased investor interest or capital allocation to the Fund [N3].
• SVIX has been featured in multiple reports on top-performing leveraged/inverse ETFs across various dates from March 2023 through January 2024, indicating its relevance in the leveraged/inverse ETF market segment [N4][N5][N6][N7][N8].

The Fund's ability to provide daily inverse exposure to short-term VIX futures contracts offers investors a tool for hedging or speculating on volatility declines. The use of multiple financial instruments and daily rebalancing aims to closely track the Short VIX Futures Index, providing targeted exposure. The Sponsor's management of market impact during rebalancing and compliance with regulatory requirements supports operational stability. Active market interest evidenced by inflows and outflows in recent years indicates ongoing investor engagement in volatility products.

The Fund's performance is subject to significant tracking error relative to the Short VIX Futures Index due to daily rebalancing, compounding effects, and market conditions. Position limits and accountability levels imposed by exchanges may restrict the Fund's ability to maintain desired exposure, negatively impacting performance and correlation to benchmarks. The Fund is not designed for holding periods longer than one day, limiting suitability for long-term investors. Changes in investment objectives or strategies by the Sponsor without shareholder approval introduce uncertainty. Market volatility and liquidity disruptions can adversely affect the Fund's operations and returns.

VS Trust's moat lies in its specialized focus on volatility-based exchange-traded products (ETPs) that provide daily leveraged or inverse exposure to VIX futures indices. The regulatory registration as a Commodity Pool Operator and compliance with Commodity Futures Trading Commission rules create operational barriers. The daily rebalancing methodology and use of multiple financial instruments to track complex volatility indices require specialized expertise and infrastructure. The continuous offering and redemption mechanism through Authorized Participants supports liquidity and market efficiency. However, the niche nature of volatility ETPs and sensitivity to market volatility conditions limit broad investor appeal and create inherent tracking challenges.

• Position Limits and Accountability Levels: Investments in futures contracts are subject to position limits and accountability levels established by exchanges, which may require the Fund to reduce positions or restrict new positions, potentially impacting Fund operations and performance and decreasing correlation to its benchmark [S2].
• Tracking Error and Compounding Effects: Due to daily rebalancing and the nature of leveraged/inverse exposure, the Fund may experience significant tracking error relative to its benchmark index, especially over periods longer than one day [S1].
• Market Impact and Liquidity Risks: Rebalancing activities may impact VIX futures contract prices. The Sponsor limits participation to mitigate this, but market illiquidity or disruptions could affect the Fund's ability to maintain exposure [S1].
• Regulatory and Compliance Risks: The Trust and Funds are regulated as commodity pools, and compliance with Commodity Futures Trading Commission rules imposes operational requirements and costs that may affect performance [S1].
• Sponsor Discretion: The Sponsor has the power to change the Fund's investment objective, benchmark, or strategy without shareholder approval, subject to regulatory requirements, which may affect Fund characteristics and investor expectations [S1].

• VS Trust is a Delaware statutory trust formed in 2019 and organized into separate series, including SVIX (1x Short VIX Futures ETF) and UVIX (2x Long VIX Futures ETF) which commenced operations as of September 30, 2022 [S1].
• SVIX seeks daily investment results, before fees and expenses, that correspond to the performance of the Short VIX Futures Index for a single day, not for any other period [S1].
• The Short VIX Futures Index measures the daily inverse performance of a portfolio of first- and second-month futures contracts on the CBOE Volatility Index (VIX) [S1].
• SVIX's portfolio typically comprises short positions on first- and second-month VIX futures contracts, rebalanced daily to meet its investment objective [S1].
• The Trust and its Funds are commodity pools regulated under the Commodity Exchange Act and the Commodity Futures Trading Commission, with the Sponsor registered as a Commodity Pool Operator [S1].
• The Funds continuously offer and redeem shares in Creation Units of at least 10,000 shares to Authorized Participants, who then sell shares to the public [S1].
• SVIX is not benchmarked to the inverse of the VIX itself; the Short Index and the inverse of the VIX are separate measurements and can perform very differently [S1].
• The Funds may use options, swaps, forward contracts, and other instruments to achieve their investment objectives, especially under market disruptions or limits on futures contracts [S1].
• The Sponsor seeks to limit market impact of rebalancing by restricting VIX ETP participation to no more than 10% of contracts traded during any 15-minute rebalance period [S1].
• The Sponsor has the power to change the Fund's investment objective, benchmark, or strategy without shareholder approval, subject to regulatory requirements [S1].
• Investments in futures contracts are subject to position limits and accountability levels established by exchanges, which may restrict the Funds' ability to invest or add positions, potentially impacting Fund operations and performance [S2].
• As of December 31, 2025, VS Trust had cash and cash equivalents of approximately $124.8 million and reported a net loss of approximately $623.5 million for the fiscal year 2025 [S1].
• The Sponsor announced a 1-for-20 reverse share split for the 2x Long VIX Futures ETF (UVIX) effective July 1, 2026, which will not change the value of shareholders' investments [S1].
• SVIX has been mentioned in multiple news articles reporting on ETF inflows and outflows, including significant outflows in May 2025 and inflows in August 2024, indicating active market interest and trading activity [N1][N2][N3].
• SVIX has been featured in several reports on top-performing leveraged/inverse ETFs across multiple dates from March 2023 through January 2024, reflecting its relevance in the leveraged/inverse ETF market segment [N4][N5][N6][N7][N8].