Correspondence 0001999371-24-007878 from Kurv ETF Trust (CIK 0001782952)
Kurv ETF Trust (CIK 0001782952)
Date: June 27, 2024 · CIK: 0001782952 · Accession: 0001999371-24-007878
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File numbers found in text: 333-233633, 811-23473
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CORRESP
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The Atlantic Building
950 F Street, NW
Washington, DC 20004-1404
202-239-3300 | Fax: 202-239-3333
David J. Baum
Direct Dial: 202-239-3346
Email: David.Baum@alston.com
June 27, 2024
VIA E-mail and EDGAR
United States Securities and Exchange Commission
100 F Street, N.E.
Washington, DC 20549
Attn: Christopher Bellacicco
Re:
Kurv ETF Trust (the “Trust” or “Registrant”)
Post-Effective Amendment No. 12 to the Trust’s
Registration Statement on Form N-1A, filed on March 22, 2024
File Numbers 333-233633, 811-23473
Ladies and Gentlemen:
This letter is in response
to the supplemental comments provided by the staff of the U.S. Securities and Exchange Commission (the “Staff”) by phone (the
“Comments”) on June 27, 2024, relating to Post-Effective Amendment No. 12 (“PEA No. 12”) to the Trust’s
Registration Statement on Form N-1A filed on April 9, 2024, regarding the Kurv Yield Premium Technology Select ETF (now known as the Kurv
Technology Titans Select ETF) (the “Fund”), a series of the Trust, and the response letter to the Staff’s comments on
PEA No. 12 dated June 20, 2024 (the “June 20 Comment Response Letter”). The prospectus (the “Prospectus”) and
statement of additional information (“SAI,” and together with the Prospectus, the “Documents”) contained in the
Registration Statement will be updated in response to the Staff’s Comments and a revised post-effective amendment to the Registration
Statement reflecting these changes will be filed subsequent to this correspondence.
Prospectus
Summary Section – Principal Investment
Strategies
Comment #1
The Response to Comment
#4 in the June 20 Comment Response Letter notes, under “Cash and/or Synthetic Long Exposure,” that “[t]he notional exposure
to an underlying company will not exceed 150% of net asset value.” The Staff further notes that in the third bullet point in the
response to Comment #19 in the June 20 Comment Response Letter, it states that “the combination of the purchased call options and
the sold put options provides each Underlying Kurv Yield Premium ETF with investment exposure equal to approximately 100% of Underlying
Security for the duration of the applicable options exposure.” Please clarify where the Fund will and will not use 150% notional
exposure.
Alston & Bird LLP
www.alston.com
Atlanta | Beijing
| Brussels | Charlotte | Dallas | Los Angeles | New York | Research Triangle | San Francisco | Silicon Valley | Washington, D.C.
June 27, 2024
Page 2
Response #1
The Registrant note that the Fund will only
have notional exposure to an underlying company of up to 150% of net asset value when the Fund buys call options and sells put options
directly. When the Fund gains exposure to an underlying company through an Underlying Kurv Yield Premium ETF, notional exposure to the
underlying company would be limited to 100% of net asset value. The Registrant has clarified the disclosure in response to the comment.
Please the revised disclosure below:
Cash and/or Synthetic Long Exposure
The Fund may gain long exposure via
purchasing shares of individual companies or creating a synthetic long position. To achieve a synthetic long exposure, the Fund buys call
options of a technology company and, simultaneously, sells put options of the same company to try to replicate the price movements of
underlying company. The combination of the long call options and sold put options seek to provide the Fund with investment exposure to
the underlying company for the duration of the application option exposure. The notional exposure to an underlying company when
the Fund buys put and call options directly will not exceed 150% of net asset value (when
obtaining exposure to an underlying company through an Underlying Kurv Yield Premium ETF, notional exposure will be limited to 100% of
net asset value). The call options the Fund buys and the put options it sells will be at the same strike price and have
the same expiration, however, the amount may differ.
Comment #2
The Response to Comment #4 in the June 20 Comment Response
Letter contains a reference to “Underlying Security” in the second to last line of the first paragraph under “Underlying
Kurv Yield Premium ETF’s Return Profile vs Underlying Security.” Please verify if “Underlying Security” is the
correct term here or if it should say “Underlying Kurv Yield Premium ETF.”
Response #2
The Registrant confirms that the reference should
be to “Underlying Kurv Yield Premium ETF” and has revised the disclosure accordingly.
***
If you have any further
questions, comments or informational requests relating to this matter, please do not hesitate to contact me at (202) 239-3346.
Sincerely,
/s/ David J. Baum
David J. Baum