Defiance Launches LLYX, the First 2X Leveraged Single-Stock ETF on Eli Lilly
LLYX Targets 200% Daily Long Exposure to Eli Lilly
MIAMI, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Defiance ETFs proudly unveils LLYX, the world's first single-stock leveraged ETF for Eli Lilly. LLYX offers retail investors 2X daily long leveraged exposure to the change in the daily share price of Eli Lilly without the need for a margin account, providing a unique tool for tactical traders. LLYX does not invest directly in Eli Lilly and has a higher degree of risk due to tracking a single stock.
Eli Lilly and Company, established in 1876 and headquartered in Indianapolis, Indiana, is a global leader in the pharmaceutical industry, renowned for its innovative approach to medicine. Eli Lilly is particularly noted for its advancements in diabetes care, including its development of GLP-1 (Glucagon-Like Peptide-1) receptor agonists such as Trulicity (dulaglutide) and the novel dual GLP-1 and GIP agonist Tirzepatide.
"Our new ETF, LLYX, allows investors to gain enhanced exposure to the share price movement of Eli Lilly stock, a company at the forefront of the weight loss revolution with GLP-1 receptor agonists," said Sylvia Jablonski, CEO of Defiance ETFs. "We believe the advancements in GLP-1 therapies represent a multi-trillion-dollar opportunity, and we are excited to provide investors with a groundbreaking trading tool to participate in this transformative sector."
About Defiance ETFs
Founded in 2018, Defiance stands as a leading ETF issuer dedicated to income and thematic investing. Defiance also pioneers leveraged ETFs designed for traders seeking tactical opportunities.
Our suite of first-mover leveraged & thematic ETFs empowers investors to express targeted views on disruptive innovations, including artificial intelligence, machine learning, and quantum computing, while our actively managed options ETFs are designed to seek current income.
Important Disclosures
The Funds' investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read carefully before investing. A hard copy of the prospectuses can be requested by calling 833.333.9383.
The fund attempts to provide daily investment results that correspond to two times (200%) the share price performance of an underlying exchange-traded fund (an "Underlying Security"). 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 is very different from most mutual funds and exchange-traded funds.
The Fund’s investment adviser will not attempt to position a Fund's portfolio to ensure that the Fund does not gain or lose more than a maximum percentage of its net asset value on a given trading day. As a consequence, if an Underlying Security's share price referenced by a Fund decreases by more than 50% on a given trading day, the corresponding Fund's investors could lose all of their money.
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 (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. For periods longer than a single day, the Fund will lose money if the Underlying Security’s performance is flat, and it is possible that the Fund will lose money even if the Underlying Security’s performance increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day.
Because of daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from 200% of the return of the Underlying Security’s shares over the same period. The Fund will lose money if the Underlying Security’s performance is flat over time, and because of daily rebalancing, the Underlying Security’s shares’ volatility and the effects of compounding, the Fund may lose money over time while the Underlying Security’s performance increases over a period longer
than a single day. As a consequence, investors should not plan to hold shares of the Fund unmonitored for periods longer than a single trading day.
Defiance ETFs LLC is the ETF sponsor. The Fund’s investment adviser is Tidal Investments, LLC (“Tidal” or the “Adviser”).
Investing involves risk. Principal loss is possible.
There is no guarantee that the Fund’s investment strategy will be properly implemented, and an investor may lose some or all of its investment.
Underlying Security Risk. The underlying security is subject to many risks that can negatively impact the Fund.
Fixed Income Securities Risk. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund.
Leverage Risk. Leverage may increase the risk of loss and cause fluctuations in the market value of the Fund's portfolio to have disproportionately large effects or cause the NAV of the Fund generally to decline faster than it would otherwise.
Derivatives Risk. Derivatives may be more sensitive to changes in market conditions and may amplify risks.
Foreign and Emerging Markets Risks. Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.
Effects of Compounding and Market Volatility Risk. The Fund has a daily leveraged investment objective and the Fund's performance for periods greater than a trading day will be the result of each day's returns compounded over the period, which is very likely to differ from the Fund performance, before fees and expenses.
Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment which diversifies risk or the market generally. The value of the Fund, which focuses on an individual security, may be more volatile than a traditional pooled investment or the market as a whole and may perform differently from the value of a traditional pooled investment or the market as a whole.
Swap Agreements. The use of swap transactions is a highly specialized activity, which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. These risks may prevent the Fund from achieving its leveraged investment objective, even if the Underlying Security later reverses all or a portion of its movement.
Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in derivatives which exposes the Fund to the risk that the counterparty will not fulfill its obligation to the Fund.
Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund. As a result, a decline in the value of an investment in a single issuer or a smaller number of issuers could cause the Fund’s overall value to decline to a greater degree than if the Fund held a more diversified portfolio.
New Fund Risk. As of the date of this prospectus, the Fund has no operating history and currently has fewer assets than larger funds. Like other new funds, large inflows and outflows may impact the Fund's market exposure for limited periods of time.
Brokerage Commissions may be charged on trades.
LLYX is distributed by Foreside Fund Services, LLC.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9351ca06-27a3-4aff-bb7d-66672f8db977