Defiance Daily Target 2X Long SMCI ETF (SMCX)

Overview

The Defiance Daily Target 2x Long SMCI ETF (SMCI) seeks daily investment results, before fees and expenses, of 200% of the daily performance of shares of Super Micro Computer, Inc. It is a leveraged ETF designed for short-term trading.

Reputation and Reliability

Defiance ETFs is a relatively new ETF provider focused on thematic and innovative investment strategies. Their reputation is still building.

Management Expertise

The management team at Defiance ETFs has experience in developing and managing specialized ETFs.

Goal

To seek daily investment results, before fees and expenses, that correspond to two times (200%) the daily performance of the common stock of Super Micro Computer, Inc (SMCI).

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy, using financial instruments such as swap agreements, futures contracts, and options, to achieve its 2x daily target.

Composition The ETF's primary holding is derivative contracts linked to the performance of Super Micro Computer, Inc. (SMCI).

Market Share: Data not readily available to accurately determine precise market share for this specific leveraged product.

Total Net Assets (AUM): 66737043.0

Key Competitors

• None. This is a unique leveraged ETF that directly targets SMCI stock. Broadly similar ETFs include UDOW, TQQQ

Competitive Landscape

The competitive landscape is unique as SMCI is a single stock leveraged ETF. Its advantage lies in its high leverage for those bullish on SMCI. Disadvantages are the daily reset which can erode long term gains and substantial risk.

Historical Performance: Performance data is subject to significant fluctuations due to the leveraged nature of the ETF. Past performance is not indicative of future results.

Benchmark Comparison: The ETF aims to deliver 2x the daily performance of SMCI, making SMCI its effective benchmark, though tracking may vary due to leverage and compounding effects.

Expense Ratio: 1.16

Average Trading Volume

The ETF's average trading volume indicates adequate liquidity for most retail investors but can vary.

Bid-Ask Spread

The bid-ask spread can fluctuate based on market conditions and trading volume, impacting the cost of trading.

Market Environment Factors

The ETF's performance is highly dependent on the performance of SMCI stock, making it susceptible to factors affecting SMCI's business, industry, and overall market sentiment.

Growth Trajectory

The growth trajectory is linked to SMCI stock's trends; leveraged products are inherently volatile and not ideal for long-term positions.

Competitive Edge

The SMCI ETF offers a unique opportunity for investors to gain leveraged exposure to Super Micro Computer's daily performance. Its appeal is concentrated in those highly bullish on SMCI's short-term prospects. This leveraged approach provides a niche market advantage for those seeking magnified daily returns, despite the inherent risk of leveraged products. The competitive edge is its specific focus on a single popular stock with a leveraged strategy. It caters to very short-term, speculative trading.

Volatility

The ETF experiences high volatility due to its 2x leveraged structure and is subject to rapid price fluctuations.

Market Risk

The ETF's market risk is tied to SMCI's market risk, with amplified gains and losses due to leverage. This includes sector-specific risks tied to SMCI's industry.

Ideal Investor Profile

The ideal investor is a sophisticated, risk-tolerant trader with a short-term outlook who seeks amplified daily returns on SMCI stock. They should fully understand the risks of leveraged ETFs.

Market Risk

This ETF is suitable for active traders with a short-term investment horizon, not for long-term investors or passive index followers.

The Defiance Daily Target 2x Long SMCI ETF is designed for short-term, aggressive traders seeking leveraged daily exposure to Super Micro Computer, Inc (SMCI) stock. Its leveraged nature results in high volatility and risk, making it unsuitable for long-term investment strategies. The ETF's performance is directly tied to SMCI's daily movements, amplified by its 2x leverage factor. Investors should be aware of the compounding effect on leveraged ETFs and its impact on long-term returns. It is not a buy and hold investment.

Data Sources:

• Defiance ETFs Website
• SEC Filings
• Various Financial News Sources

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Leveraged ETFs are high-risk investments and may not be suitable for all investors. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.