Defiance Daily Target 2X Long HOOD ETF (HOOX)

The Defiance Daily Target 2X Long HOOD ETF (HOOX) is a single-stock leveraged exchange-traded fund that seeks daily investment results, before fees and expenses, equal to two times (2x) the daily percentage change in the share price of Robinhood Markets (HOOD). Robinhood Markets operates a commission-free online brokerage platform offering trading in stocks, options, ETFs and cryptocurrencies.

To build its leveraged exposure, the fund generally uses swap agreements and may also hold shares of the underlying stock along with cash and short-term instruments as collateral. The 2x target applies to a single trading day only, so the fund resets its exposure daily. Over periods longer than one day, compounding can cause the fund's results to differ significantly from twice the stock's return over the same period.

The fund is sponsored by Defiance ETFs. It holds exposure to just one company, so it is not diversified, and its performance depends entirely on the daily moves of Robinhood Markets shares.