RKLZ seeks to deliver -200% of the daily percentage change in the share price of
Investment Objective
The Fund seeks daily inverse investment results, before fees and expenses, of -2 times (-200%) the daily percentage change in the share price of
Underlying Stock:
An investment in RKLZ is not an investment in
The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged inverse (–2X) investment results, understand the risks associated with the use of leverage, and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. The Fund pursues daily leveraged inverse investment objectives, which means it is riskier than alternatives that do not use leverage. The Fund magnifies the inverse performance of the Underlying Security and is designed strictly for short-term use. For periods longer than a single day, the Fund’s performance will be the result of compounded daily returns, which is very likely to differ from –200% of the return of RKLB over the same period. It is possible investors could lose their entire principal within a single trading day.
IMPORTANT DISCLOSURES
The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary prospectus contain this and other important information about the investment company. Please read the prospectus and/or summary prospectus carefully before investing. Hard copies can be requested by calling 833.333.9383.
Investing involves risk. Principal loss is possible. As an ETF, the Fund may trade at a premium or discount to NAV. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. A portfolio concentrated in a single issuer or sector may be subject to a higher degree of risk. There is no guarantee the Fund’s strategy will be properly implemented, and an investor may lose some or all of their investment.
RKLB Price Appreciation Risk. As part of the Fund’s inverse investment strategy, the Fund enters into swap contracts and options contracts based on the share price of
RKLB Good Performance Risk. The market value of
Single Issuer Risk. Issuer-specific factors may cause an investment in the Fund to be more volatile than diversified investments. The Fund focuses on a single equity security and may fluctuate sharply compared to the broader market.
Compounding and Market Volatility Risk. The Fund’s performance for periods greater than a trading day will result from each day’s returns compounded over time, likely differing from -200% of the Underlying Security’s performance before fees and expenses. Compounding effects are magnified during volatile markets and extended holding periods.
Daily Correlation/Tracking Risk. There is no guarantee that the Fund will achieve a high degree of inverse correlation to RKLB’s share performance. Market disruptions or high volatility may cause the Fund’s exposure to exceed or fall short of its target -200% objective.
Leverage Risk. The Fund will seek -2X inverse exposure through financial instruments such as swaps and options, which can amplify both gains and losses. Leverage increases volatility, and losses may exceed the Underlying Security’s gains on any given day.
Counterparty Risk. The Fund is subject to the risk that counterparties to its derivative positions may default, experience insolvency, or fail to perform obligations. The Fund may be unable to recover its investment or experience delays in recovery.
Derivatives and Options Risk. The Fund’s investments in swaps and options involve heightened risks including market volatility, imperfect correlation with underlying securities, and liquidity or valuation challenges. Option contracts, in particular, are influenced by actual and anticipated volatility and can rapidly change in value.
Fixed Income Securities Risk. When the Fund invests in fixed income securities, their value will fluctuate with changes in interest rates. Rising rates typically cause declines in fixed income prices, particularly for longer-duration instruments. Other factors such as credit, extension, and prepayment risks may also negatively affect the Fund’s NAV.
Rebalancing Risk. If the Fund cannot rebalance its portfolio or rebalances incorrectly, its exposure may deviate materially from its -2X investment objective, increasing risk and reducing performance accuracy.
Non-Diversification Risk. As a non-diversified fund, the Fund may invest a greater percentage of assets in a single issuer or small number of issuers, resulting in greater potential loss.
Liquidity Risk. Derivative positions or certain underlying securities may become illiquid during periods of market stress, impeding the Fund’s ability to meet its investment objective.
New Fund Risk. The Fund is newly organized and has a limited operating history, which may increase uncertainty in achieving its investment goals.
Diversification does not ensure a profit nor protect against loss in a declining market. Brokerage commissions may apply.
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Media Contact
info@defianceetfs.com
833.333.9383
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bb048017-a1e4-4d52-ad01-1e215798c505
Defiance ETFs Launches RKLZ: the First 2X Short ETF of Rocket Lab Corporation
Defiance ETFs proudly announces the launch of the Defiance Daily Target 2X Short RKLB ETF (Ticker: RKLZ), expanding its family of single-stock leveraged ETFs designed for sophisticated traders seeking tactical exposure to high-growth innovation companies.
2025 GlobeNewswire, Inc., source
