Defiance Daily Target 2X Long B ETF

Frequently Asked Questions About BU

What does BU invest in?

The Defiance Daily Target 2X Long BU ETF (BU) is engineered to deliver amplified returns, specifically two times (200%) the daily percentage change of Barrick Mining Corporation (NYSE: B) shares. Barrick Mining is a major player in gold and copper production, as well as exploration and mining development. This objective is achieved through the use of swap agreements and daily rebalancing to consistently target this leveraged exposure. As a leveraged financial instrument, BU is explicitly structured for short-term, tactical trading rather than functioning as a long-term investment vehicle. Investors should be aware that holding periods extending beyond a single day can lead to significant deviations from the intended 2x daily return, primarily due to the detrimental effects of market volatility and compounding. This strategy inherently carries a high degree of risk and lacks any built-in defensive mechanisms. Consequently, BU's value could deteriorate over time, even during periods when Barrick Mining's underlying stock performance is positive. To back its positions, the fund primarily holds a portfolio of collateral assets, including U.S. Government securities, money market funds, short-term bond ETFs, and corporate debt.

What is the expense ratio of BU?

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

Is BU a good long-term hold?

BU 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 BU's daily reset work?

BU 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 BU?

Defiance Daily Target 2X Long B ETF (BU) manages $543,773 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 BU actively managed or an index fund?

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