Defiance Pure Space Daily 2X Strategy ETF

Overview

The Defiance Pure Space Daily 2X Strategy ETF (SPCL) provides investors with amplified long exposure to the global space economy, a rapidly evolving ecosystem spanning satellite infrastructure, launch systems, space-enabled data, and next-generation orbital technologies.

SPCL is designed for traders seeking magnified, short-term bullish exposure to a concentrated portfolio of companies directly engaged in space-related technologies and services. By targeting 200% of the daily performance of an actively managed portfolio of “pure space” companies, the Fund enables investors to express tactical upside views on the commercialization and expansion of the space economy—all within the accessibility and transparency of an exchange-traded fund.

Investment Objective

The Fund seeks daily investment results, before fees and expenses, that correspond to two times (2X) the performance of an actively managed group of “pure space” securities (described below) for a single day (the group of equity securities is referred to as the “Target Portfolio”).

Underlying Strategy: Pure Space Portfolio

The Fund is designed to provide leveraged exposure to companies that derive a significant portion of their revenue or operations from the space economy, including:

• Spacecraft, launch vehicle, and satellite manufacturing
• Satellite communications and space-based infrastructure
• In-orbit services, logistics, and space platforms
• Space-enabled data, analytics, and applications
• Enabling components and materials for space systems

The Target Portfolio is actively selected and typically consists of a focused group of companies aligned with the space theme and weighted approximately equally on a daily basis.

The portfolio may include U.S. and non-U.S. issuers across market capitalizations, including companies involved in emerging space technologies and infrastructure.

An investment in SPCL is not a direct investment in the underlying securities.

The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) investment results, understand the risks associated with the use of leverage, and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. The Fund pursues daily leveraged investment objectives, which means it is riskier than alternatives that do not use leverage. The Fund magnifies the performance of the Target Portfolio and is designed strictly for short-term use. For periods longer than a single day, the Fund’s performance will be the result of compounded daily returns, which is very likely to differ from 200% of the return of the Target Portfolio over the same period. It is possible that investors could lose their entire principal within a single trading day.