Defiance launches AVGX and SMCX, the first leveraged single-stock ETFs on Broadcom and Super Micro Computer in the US
Defiance introduces AVGX and SMCX
MIAMI, Aug. 22, 2024 (GLOBE NEWSWIRE) — Defiance ETFs is proud to announce the launch of AVGX and SMCX, the first single-stock long leveraged ETFs for Broadcom and Super Micro Computer, respectively. Defiance’s single-stock leveraged ETFs empower retail investors by providing access to leverage without the need for a margin account and offering leverage within an ETF wrapper. AVGX and SMCX target 200% long daily targeted exposure to Broadcom and Super Micro Computer, respectively.
Broadcom, a global leader in semiconductor solutions, is playing a critical role in driving the AI revolution with its cutting-edge technology. Super Micro Computer, known for its high-performance server solutions, is at the forefront of providing AI infrastructure. With the launch of AVGX and SMCX, investors now have a unique opportunity to gain leveraged exposure to these technology giants within an ETF wrapper.*
“The launch of AVGX and SMCX underscores our ambition to become the market leader in leveraged ETFs,” said Sylvia Jablonski, CEO of Defiance ETFs. “We are committed to providing innovative tools that not only maximize exposure to market-leading companies, but also set the standard for leverage in the ETF space. Our goal is to establish Defiance as the leader in leveraged ETFs and provide unparalleled opportunities for investors to gain exposure to high-growth sectors and individual stocks.”
About Defiance ETFs
Founded in 2018, Defiance is a leading ETF issuer specializing in income and thematic investing. Defiance is also a pioneer in leveraged ETFs designed for traders looking for tactical investment opportunities.
Our range of first-mover leveraged and thematic ETFs enable investors to express targeted views on breakthrough innovations such as artificial intelligence, machine learning and quantum computing, while our actively managed options ETFs are designed to generate current income.
Important information
The investment objectives, risks, charges and expenses of the funds should be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read it carefully before investing. A paper copy of the prospectus may be obtained by calling 833.333.9383.
The Fund seeks to provide daily investment results equal to two times (200%) the share price performance of an underlying exchange-traded fund (an “Underlying Security”). The Fund is not intended for, and is not suitable for, investors who do not wish to actively monitor and manage their portfolios. The Fund is very different from most mutual funds and exchange-traded funds.
The Fund’s Investment Adviser will not attempt to position a Fund’s portfolio so that the Fund does not gain or lose more than a maximum percentage of its net asset value on any given trading day. Therefore, if the share price of an underlying asset referenced by a Fund falls by more than 50% on any given trading day, investors in the relevant Fund could lose all their money.
The fund is not suitable for all investors. The fund is intended for use only by
Sophisticated investors who understand the potential consequences of seeking daily leveraged (2X) investment results, know the risks associated with the use of leverage, and are willing to review their portfolios frequently. Over periods longer than one day, the Fund will lose money if the performance of the underlying security is flat, and it is possible for the Fund to lose money even if the performance of the underlying security increases over a period longer than one day. An investor could lose the entire principal value of his investment in a single day.
Due to daily rebalancing and the compounding of each day’s return over time, the Fund’s return for periods longer than one day is the compounded return of each day over the period, which will very likely differ from 200% of the return of the shares of the underlying security over the same period. The Fund will lose money if the performance of the underlying security remains flat over time, and due to daily rebalancing, the volatility of the shares of the underlying security, and the effects of compounding, the Fund may lose money over time while the performance of the underlying security increases over a period longer than one day. Therefore, investors should not plan to hold shares of the Fund unattended for periods longer than one trading day.
Defiance ETFs LLC is the ETF sponsor. The Fund’s investment advisor is Tidal Investments, LLC (“Tidal” or the “Advisor”).
Investing involves risks. A loss of invested capital is possible.
There is no guarantee that the Fund’s investment strategy will be implemented properly and an investor may lose some or all of his or her investment.
Fundamental security risk. The underlying security is subject to numerous risks that may have a negative impact on the fund.
Risk of fixed-income securities. If the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates will result in a decline in the value of the fixed income securities held by the Fund.
Leverage risk. Leverage may increase the risk of loss and may cause disproportionately large fluctuations in the market value of the Fund’s portfolio or the Fund’s net asset value to decline more quickly than usual.
Derivatives risk. Derivatives may be more sensitive to changes in market conditions and may increase risk.
Risks associated with foreign and emerging markets. Investments in foreign securities may involve risks such as social and political instability, market illiquidity, currency fluctuations, high volatility and limited regulation. Investments in emerging markets involve different and greater risks because these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.
Impact of compound interest and market volatility risk. The Fund has a daily leveraged investment objective and the Fund’s performance for periods longer than one trading day is derived from each day’s compounded returns over the period and is likely to differ from the Fund’s performance before fees and expenses.
Risk of individual issuers. Issuer-specific characteristics may cause an investment in the Fund to be more volatile than a traditional pooled investment that diversifies risk or the market generally. The value of the Fund, which focuses on a single security, may be more volatile than a traditional pooled investment or the market as a whole and may perform differently than the value of a traditional pooled investment or the market as a whole.
Swap agreements. The use of swap transactions is a highly specialized activity that involves different investment techniques and risks than ordinary securities portfolio transactions. These risks may cause the Fund to fail to achieve its leveraged investment objective even if the underlying security later reverses all or part of its movement.
Counterparty risk. Due to its investments in derivatives, the Fund is subject to counterparty risk, which exposes the Fund to the risk that the counterparty will not meet its obligations to the Fund.
Non-diversification risk. Because the Fund is “non-diversified,” it may invest a larger percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, a decline in the value of an investment in a single issuer or a smaller number of issuers could cause the overall value of the Fund to decline more than if the Fund had a more diversified portfolio.
New fund risk. As of the date of this prospectus, the Fund is not yet active and currently has fewer assets than larger funds. As with other new funds, large inflows and outflows may affect the Fund’s market presence for limited periods of time.
Brokerage commissions may be charged on trading transactions.
SMCX does not invest directly in SMCI. AVGX does not invest directly in AVGO.
SMCX and AVGX are distributed by Foreside Fund Services, LLC.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6f7edd0c-684e-4f6d-93bb-bbaf00de7d00
CONTACT: Contact Information: David Hanono Defiance ETFs Tel: 833.333.9383
