Defiance Daily Target 2X Long RKT ETF

The Defiance Daily Target 2X Long RKT ETF is an actively managed exchange-traded fund that seeks to deliver two times (200%) the daily performance of Rocket Companies, Inc. (NYSE: RKT), before fees and expenses. This leveraged ETF provides amplified long exposure to RKT, a Detroit-based financial technology company specializing in digital mortgage origination, refinancing, and personal finance solutions through proprietary software, automation, and data analytics. Its performance is closely tied to factors such as interest rate fluctuations, U.S. housing market conditions, mortgage volumes, consumer credit demand, regulatory changes, and macroeconomic trends impacting lending. Designed strictly for short-term tactical trading by sophisticated investors, the fund uses swap agreements and other derivatives to achieve its daily target, magnifying both gains and losses while distributing dividends monthly. Unlike direct investment in RKT shares, this ETF is not suitable for long-term holding due to the effects of daily compounding, which can cause returns to deviate significantly from 2X over multi-day periods, potentially leading to substantial principal erosion. It serves active traders seeking to capitalize on short-term bullish views in the mortgage and fintech sectors without margin accounts.