Defiance Daily Target 2X Long LLY ETF (LLYX)

Defiance Daily Target 2X Long LLY ETF is a leveraged single-stock fund sponsored by Defiance ETFs. It seeks to deliver twice (200%) the daily percentage change in the share price of Eli Lilly and Company, the Indianapolis-based pharmaceutical maker whose products span diabetes, obesity, oncology, immunology and neuroscience.

To reach that target, the fund primarily uses swap agreements and may also hold shares of Eli Lilly or options, with cash and Treasury collateral backing the derivatives. Exposure is reset every trading day so that each day's leverage starts fresh.

Because the 2X objective applies to a single day, the fund's results over longer stretches compound daily and can diverge significantly from twice the return of Eli Lilly stock over the same period, especially in volatile markets. It is designed as a short-term trading tool rather than a long-term holding.