Defiance Daily Target 2x Short RKLB ETF (RKLZ)

The Defiance Daily Target 2x Short RKLB ETF (RKLZ) is an exchange-traded fund from Defiance ETFs that seeks daily investment results equal to two times the inverse (-2x) of the daily percentage change in the share price of Rocket Lab (RKLB). It is designed to rise when the stock falls and decline when the stock rises over a single trading day.

Rocket Lab is a space company that builds and launches small rockets, including the Electron launch vehicle, and manufactures spacecraft and satellite components. The fund typically obtains its exposure through swap agreements and other derivatives rather than simply holding the shares, and it rebalances its exposure every trading day.

Because the leverage target resets daily, the fund's returns over periods longer than one day can differ substantially from the stated multiple of the stock's return for the same period, particularly when the share price is volatile.