Daily Target 2X Long HOOD ETF

Frequently Asked Questions About HOOX

What does HOOX invest in?

The Defiance Daily Target 2X Long HOOD ETF (referred to as "the Fund") aims to achieve daily returns equivalent to two hundred percent (200%) of the daily movement in Robinhood Markets, Inc.'s share price (Nasdaq: HOOD). Due to its daily leveraged strategy, the Fund differs considerably from typical exchange-traded funds, and there's no guarantee it will consistently achieve its stated aim. Crucially, its design means it should not be expected to mirror two times the cumulative return of HOOD over timelines longer than a single trading day.

What is the expense ratio of HOOX?

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

Is HOOX a good long-term hold?

HOOX 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 HOOX's daily reset work?

HOOX 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 HOOX?

Daily Target 2X Long HOOD ETF (HOOX) manages $12.9M 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 HOOX actively managed or an index fund?

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