Daily Target 2X Long AVGO ETF

Frequently Asked Questions About AVGX

What does AVGX invest in?

The Defiance Daily Target 2X Long AVGO ETF (AVGX) is engineered to provide magnified daily investment outcomes. Specifically, it aims to mirror, at a two-hundred percent (200%) rate, the daily percentage movements in the stock price of Broadcom Inc. (NASDAQ: AVGO), referred to as the "Underlying Security" or "AVGO". It is crucial to note that AVGX does not invest directly in AVGO shares. Due to its strategy of seeking daily leveraged returns, this Fund operates distinctly from most conventional exchange-traded funds. Consequently, it presents a heightened risk profile compared to investment vehicles that do not employ leverage. There is no assurance that AVGX will consistently achieve its stated objective. Moreover, investors should not expect the Fund to deliver twice the cumulative return of AVGO over periods exceeding a single day, as its design is exclusively focused on daily performance.

What is the expense ratio of AVGX?

Daily Target 2X Long AVGO ETF (AVGX) charges an expense ratio of 1.29%. This is the annual fee deducted from fund assets to cover management and operations.

Is AVGX a good long-term hold?

AVGX is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple — typically negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does AVGX's daily reset work?

AVGX rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level — so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is AVGX?

Daily Target 2X Long AVGO ETF (AVGX) manages $257.4M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is AVGX actively managed or an index fund?

AVGX's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.