Defiance Daily Target 2X Long AVGO ETF (AVGX)

This exchange-traded fund from Defiance ETFs seeks daily investment results, before fees and expenses, equal to two times the daily percentage change in the share price of Broadcom (AVGO). It is a single-stock leveraged product: rather than holding a diversified portfolio, it obtains its exposure mainly through swap agreements and other derivatives referencing Broadcom common stock, along with cash and short-term instruments held as collateral.

The underlying company: Broadcom designs semiconductors used in data center networking, custom AI accelerators, broadband, storage and wireless devices, and also sells infrastructure software, including the VMware virtualization portfolio.

Because the fund resets its leverage every trading day, its stated two multiple applies only to one-day returns. Over longer holding periods, compounding of daily results means performance can differ substantially from two times the stock's cumulative return, particularly when the share price is volatile.