Defiance Daily Target 2x Long AVAV ETF (AVXX)

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 AeroVironment (AVAV). 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 AeroVironment common stock, along with cash and short-term instruments held as collateral.

The underlying company: AeroVironment develops unmanned aircraft systems, loitering munitions such as the Switchblade family, and related defense technologies for military and government customers.

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.