RKLX ETF — Holdings & Analysis

The Defiance Daily Target 2X Long RKLB ETF (RKLX) is a leveraged equity ETF seeking to deliver twice the daily percentage change in the share price of Rocket Lab USA, Inc. (RKLB).

With $0.16 billion in assets under management, RKLX distinguishes itself through its leveraged strategy, targeting a specific company rather than a broad market segment. The fund's high expense ratio of 1.31% reflects the costs associated with its leveraged approach. Investors should note that RKLX is designed for short-term trading and is not intended for long-term investment strategies. Past performance does not guarantee future results.

Daily Target 2X Long RKLB ETF (RKLX) ETF — Price, Holdings & Analysis

The Defiance Daily Target 2X Long RKLB ETF (RKLX) is a leveraged equity ETF seeking to deliver twice the daily percentage change in the share price of Rocket Lab USA, Inc. (RKLB). With $0.16 billion in assets under management, RKLX distinguishes itself through its leveraged strategy, targeting a specific company rather than a broad market segment. The fund's high expense ratio of 1.31% reflects the costs associated with its leveraged approach. Investors should note that RKLX is designed for short-term trading and is not intended for long-term investment strategies. Past performance does not guarantee future results.

ETF Overview

The Defiance Daily Target 2X Long RKLB ETF (the “Fund”) seeks daily leveraged investment results of two times (200%) the daily percentage change in the share price of Rocket Lab USA, Inc. (NASDAQ: RKLB). Because the Fund seeks daily leveraged investment results, it is very different from most other exchange-traded funds and there is no guarantee that the Fund will meet its stated objective. The Fund should not be expected to provide 2 times the cumulative return of RKLB for periods greater than a single trading day.

The Defiance Daily Target 2X Long RKLB ETF (RKLX) aims to provide daily investment results that correspond to two times (200%) the daily percentage change in the price of Rocket Lab USA, Inc. This leveraged approach means the fund is designed for sophisticated investors seeking short-term tactical exposure to RKLB. RKLX achieves this exposure primarily through holding Rocket Lab USA, Inc., with its sector allocation entirely focused on Industrials (100.0%). The fund's top holding is First American Government Obligs X (FGXXX) at 1.86%. Unlike broad-based equity ETFs, RKLX offers a highly concentrated and leveraged bet on a single company. Due to its leveraged nature, RKLX is not suitable for buy-and-hold investors and should be used with caution. Past performance does not guarantee future results.

Risk Metrics

RKLX carries significant risks due to its leveraged nature and concentrated holdings. The fund's objective of delivering twice the daily return of RKLB means that it is subject to amplified gains and losses, especially over longer periods. The high expense ratio of 1.31% further erodes potential returns, creating a significant expense drag compared to non-leveraged ETFs. The fund's concentration in a single company (Rocket Lab USA, Inc.) and a single sector (Industrials) exposes investors to company-specific and sector-specific risks. The fund's beta is currently 0.00, but this may not accurately reflect its volatility due to its leveraged strategy. Investors should carefully consider their risk tolerance and investment horizon before investing in RKLX. Past performance does not guarantee future results.

Expense Ratio

1.31%

What does RKLX hold?

Holding	Weight
First American Government Obligs X (FGXXX)	1.86%

How Is the Fund Allocated?

Sector	Weight
Industrials	100.0%

Country	Weight
Other	100.0%

Dividend Yield

0.00%

Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) — 0.16% expense ratio
iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio

Daily Target 2X Long OKLO ETF (OKLL) (Equity) — 1.31% expense ratio
Daily Target 2X Long SOFI ETF (SOFX) (Equity) — 1.29% expense ratio
Daily Target 2X Short PLTR ETF (PLTZ) (Equity) — 1.29% expense ratio
Defiance BMNR Option Income ETF (YBMN) (Equity) — 0.85% expense ratio
Daily Target 2X Short LLY ETF (LLYZ) (Equity) — 1.29% expense ratio
S&P 500 Weekly Distribution ETF (WDTE) (Equity) — 1.03% expense ratio

Risk Metrics

Beta: 0.00

Questions & Answers

What is RKLX and what does it track?

The Defiance Daily Target 2X Long RKLB ETF (RKLX) is a leveraged exchange-traded fund designed to provide twice the daily percentage change in the share price of Rocket Lab USA, Inc. (RKLB).

This means that if RKLB's stock price increases by 1% on a given day, RKLX aims to increase by 2%, and vice versa.

What is the expense ratio for RKLX?

The expense ratio for RKLX is 1.31%. This means that for every $10,000 invested in the fund, $131 is used to cover the fund's operating expenses annually.

This expense ratio is considerably higher than the average expense ratio for equity ETFs, which is around 0.44%. The higher expense ratio reflects the costs associated with the fund's leveraged strategy and active management.

What are the top holdings in RKLX?

As a leveraged ETF focused on a single stock, RKLX's primary exposure is to Rocket Lab USA, Inc. However, the fund also holds other assets for operational and collateral purposes.

The top holding listed is First American Government Obligs X (FGXXX) at 1.86%. The fund's sector allocation is 100% in Industrials, reflecting the nature of Rocket Lab's business. The fund holds a total of 10 holdings.

Is RKLX a good long-term investment?

RKLX is generally not considered a suitable long-term investment due to its leveraged nature and focus on daily results.

The fund is designed to provide twice the daily percentage change in the price of Rocket Lab USA, Inc., which means that its performance over longer periods can be highly volatile and unpredictable.

How does RKLX compare to similar ETFs?

RKLX is unique in its approach, offering a leveraged bet on a single stock (Rocket Lab USA, Inc.). Most similar ETFs are either broad-based equity ETFs or sector-specific ETFs that invest in a basket of companies.

RKLX's expense ratio of 1.31% is significantly higher than most non-leveraged ETFs.

Does RKLX pay dividends?

According to the provided data, RKLX has a dividend yield of 0.00%. This indicates that the fund does not currently distribute any dividends to its shareholders.

The fund's focus is on capital appreciation through its leveraged exposure to Rocket Lab USA, Inc., rather than generating income through dividends. Investors seeking dividend income should consider alternative investment options.