Defiance Daily Target 2X Long LLY ETF (LLYX)

Overview

The Defiance Daily Target 2x Long LLY ETF (LLYU) seeks daily investment results, before fees and expenses, corresponding to two times (2x) the daily performance of Eli Lilly and Company (LLY) common stock. It offers leveraged exposure to a single company within the pharmaceutical sector.

Reputation and Reliability

Defiance ETFs is a relatively new issuer focused on thematic and innovative ETFs. Their reliability is still being established.

Management Expertise

Defiance ETFs has a team with experience in investment management and ETF development, focusing on specialized and leveraged products.

Goal

To seek daily investment results, before fees and expenses, corresponding to two times (2x) the daily performance of Eli Lilly and Company (LLY) common stock.

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy, aiming for 2x the daily performance of Eli Lilly (LLY).

Composition The ETF primarily holds financial instruments, such as swap agreements, that provide leveraged exposure to Eli Lilly stock.

Market Share: Data not readily available on specifically the market share, as this is a very niche product.

Total Net Assets (AUM): 30230660

Key Competitors

• None Direct

Competitive Landscape

As a leveraged, single-stock ETF, LLYU occupies a very niche segment. There are no direct competitors with the exact same objective. Competitors exist within the leveraged ETF space, but not specifically for a single stock.

Historical Performance: Highly dependent on LLY's daily performance. Due to the leveraged nature, performance can be highly volatile and may not reflect the underlying asset's long-term returns.

Benchmark Comparison: The benchmark is 2x the daily performance of LLY. Tracking error can occur due to fees, expenses, and the effects of compounding.

Expense Ratio: 1.15

Average Trading Volume

The average daily trading volume of LLYU fluctuates but is generally moderate, which can impact execution costs.

Bid-Ask Spread

The bid-ask spread can be relatively wide, especially during periods of high volatility or low trading volume, increasing trading costs.

Market Environment Factors

LLYU's performance is highly sensitive to news, earnings reports, and developments within Eli Lilly and the broader pharmaceutical industry. General market sentiment and economic conditions also indirectly influence the stock.

Growth Trajectory

The growth trajectory is entirely dependent on the performance of Eli Lilly (LLY) and the demand for leveraged exposure to the stock. Strategic or holdings changes are less relevant due to the tracking strategy.

Competitive Edge

LLYU offers a unique, leveraged opportunity to capitalize on the daily movements of Eli Lilly stock. It caters to sophisticated investors seeking short-term gains or hedging strategies. The ETF's specialized focus provides a concentrated exposure that is not available in broader pharmaceutical ETFs. However, the leveraged nature also introduces significantly higher risks and is not suitable for all investors. This laser focus on the daily movements of Eli Lilly also can be a disadvantage.

Volatility

LLYU exhibits very high volatility due to its 2x leverage factor, magnifying both gains and losses. The potential for significant losses is substantial, especially in a fluctuating market.

Market Risk

The ETF is exposed to the market risk of Eli Lilly and Company, including industry-specific risks, regulatory changes, and competitive pressures. The leveraged structure amplifies these risks.

Ideal Investor Profile

LLYU is suitable for sophisticated investors and active traders with a high-risk tolerance who seek short-term, leveraged exposure to Eli Lilly stock. It is not appropriate for long-term investors or those with a conservative investment approach.

Market Risk

LLYU is best suited for active traders who understand the risks associated with leveraged ETFs and are comfortable with short-term investment horizons.

The Defiance Daily Target 2x Long LLY ETF (LLYU) offers a leveraged opportunity to profit from the daily movements of Eli Lilly stock. It is designed for sophisticated traders and active investors willing to take on significant risk for potentially high returns. The ETF's performance is highly dependent on LLY's daily performance, and its leveraged structure amplifies both gains and losses. Long-term holding is highly discouraged due to compounding effects and volatility erosion. Due to the leveraged nature of the ETF, it is not suitable for buy-and-hold investors.

Data Sources:

• Defiance ETFs Website
• ETF.com
• SEC Filings

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investors should conduct their own due diligence before making any investment decisions. Leveraged ETFs are inherently risky and may not be suitable for all investors. Past performance is not indicative of future results.