Defiance Daily Target 2X Long SMCI ETF (SMCX)

Overview

The Defiance Daily Target 2X Long SMCI ETF (SMOG) is a leveraged exchange-traded fund designed to provide twice the daily return of Super Micro Computer, Inc. (SMCI). It is an actively managed fund that does not seek to track a specific index but rather to achieve its leveraged investment objective through the use of financial derivatives, including swap agreements and futures contracts.

Reputation and Reliability

Defiance ETFs is a relatively newer entrant in the ETF market, focusing on thematic and actively managed products. Their reputation is still developing, but they aim to provide innovative investment solutions. Reliability is demonstrated through adherence to regulatory standards and accurate daily rebalancing of their leveraged products.

Management Expertise

The management team at Defiance ETFs has experience in developing and managing complex financial products, including leveraged and inverse ETFs. Their expertise lies in constructing and managing portfolios that utilize derivatives to achieve specific, often short-term, investment objectives.

Goal

The primary investment goal of the ETF Defiance Daily Target 2X Long SMCI ETF is to achieve daily investment results that are 2x the daily performance of Super Micro Computer, Inc. (SMCI). This means it aims to magnify the daily price movements of SMCI. It is not designed for long-term holding due to the effects of compounding over time.

Investment Approach and Strategy

Strategy: The ETF aims to achieve its leveraged objective by investing in financial instruments, including swap agreements and futures contracts, that provide 2x daily leveraged exposure to the price of Super Micro Computer, Inc. (SMCI). It does not track a broad index or sector but focuses specifically on a single company's stock.

Composition The ETF's composition is primarily based on derivative contracts, such as swap agreements and futures contracts, which are used to gain 2x leveraged exposure to the daily performance of Super Micro Computer, Inc. (SMCI). It does not hold direct shares of SMCI in significant quantities, but rather financial instruments that replicate its performance, leveraged.

Market Share: Given its highly specific focus on a single stock with leveraged exposure, the ETF Defiance Daily Target 2X Long SMCI ETF operates in a niche market. Precise market share data for such a specialized product within the broader ETF landscape is not readily available or typically tracked in the same way as broad-market ETFs.

Total Net Assets (AUM): 16200000

Key Competitors

• Other leveraged ETFs focusing on specific stocks (if any exist and are publicly traded)
• Direct investment in SMCI stock

Competitive Landscape

The competitive landscape for a leveraged ETF targeting a single stock is extremely limited. Competitors would primarily be other, potentially hypothetical, leveraged products targeting the same stock, or investors choosing to leverage their SMCI position through other means like options. The primary advantage of SMOG is its structured 2x daily leverage. Disadvantages include the inherent risks of leveraged products, high expense ratios, and the potential for significant tracking error and decay over time, especially for longer-term investors.

Historical Performance: Due to the leveraged nature of SMOG, its historical performance is highly volatile and closely mirrors 2x the daily fluctuations of Super Micro Computer, Inc. (SMCI), adjusted for expenses and fees. Performance over longer periods will differ significantly from 2x the underlying stock's performance due to daily rebalancing and compounding effects. Specific numerical historical performance data for various periods (e.g., 1-day, 1-week, 1-month, YTD) can be found on financial data provider websites.

Benchmark Comparison: SMOG does not have a traditional benchmark index as it targets 2x the daily return of a single stock, Super Micro Computer, Inc. (SMCI). Its performance is directly compared against 2x the daily performance of SMCI, before fees and expenses. Deviations from this 2x target are attributable to the ETF's operating expenses, rebalancing costs, and the methodology of its derivative investments.

Expense Ratio: 0.0125

Average Trading Volume

The average daily trading volume for the ETF Defiance Daily Target 2X Long SMCI ETF is typically moderate, allowing for reasonable liquidity for active traders.

Bid-Ask Spread

The bid-ask spread for the ETF Defiance Daily Target 2X Long SMCI ETF is generally tight, reflecting its accessibility to active market participants.

Market Environment Factors

The performance of SMOG is heavily influenced by the market sentiment and financial performance of Super Micro Computer, Inc. (SMCI), as well as broader trends in the semiconductor and IT hardware sectors. Factors such as demand for AI infrastructure, supply chain dynamics, and technological advancements directly impact SMCI's stock price and, consequently, SMOG's returns.

Growth Trajectory

The growth trajectory of SMOG is inherently tied to the stock price performance of Super Micro Computer, Inc. (SMCI). As SMCI experiences significant growth and volatility, SMOG's assets under management may fluctuate accordingly, driven by investor interest in leveraged exposure to the company's upside potential. Strategy and holdings remain consistent in their objective of achieving 2x daily leverage on SMCI.

Competitive Edge

The primary competitive edge of the Defiance Daily Target 2X Long SMCI ETF lies in its specialized and leveraged exposure to a single, high-growth technology stock. It offers investors a direct, amplified daily bet on Super Micro Computer, Inc. This specific focus allows investors to gain concentrated, magnified exposure without needing to manage complex options strategies or individual derivative contracts themselves. It caters to a specific segment of traders seeking short-term, amplified directional plays on a particular company's anticipated daily movements.

Volatility

The ETF Defiance Daily Target 2X Long SMCI ETF exhibits very high historical volatility due to its 2x leveraged nature. Its price movements are designed to be twice as sensitive as the underlying stock, amplifying both gains and losses.

Market Risk

The primary market risk for SMOG is the significant price risk associated with Super Micro Computer, Inc. (SMCI). Any adverse news, competitive pressures, or industry downturns affecting SMCI will be amplified in SMOG's performance. Additionally, as a leveraged product, it faces risks related to compounding, potential for significant daily losses, and tracking error, especially over periods longer than one day.

Ideal Investor Profile

The ideal investor for the Defiance Daily Target 2X Long SMCI ETF is an active trader or sophisticated investor with a high-risk tolerance and a strong conviction about the short-term direction of Super Micro Computer, Inc. (SMCI). This investor should understand the intricacies of leveraged ETFs and be prepared for potential rapid and substantial losses.

Market Risk

This ETF is best suited for active traders and very short-term speculation, not for long-term investors or passive index followers. Its daily rebalancing mechanism and compounding effects make it unsuitable for buy-and-hold strategies.

The Defiance Daily Target 2X Long SMCI ETF (SMOG) is a highly specialized leveraged ETF providing 2x daily exposure to Super Micro Computer, Inc. (SMCI). It is managed actively using derivatives and is intended for sophisticated traders with a high-risk tolerance seeking short-term magnified directional bets. Its performance is highly volatile and tied directly to SMCI's daily price movements, making it unsuitable for long-term investment due to compounding effects and potential for significant losses.

Data Sources:

• Defiance ETFs Official Website
• Financial Data Provider APIs (e.g., Morningstar, Yahoo Finance)

Disclaimers:

This information is for educational purposes only and does not constitute investment advice. Leveraged ETFs are complex instruments and carry a high level of risk. Investors should consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. The data provided is based on available public information and may not be exhaustive or entirely up-to-date.