Defiance Daily Target 2X Long MP ETF

Frequently Asked Questions About MPL

What does MPL invest in?

MPL uses swap agreements and short-dated listed call options to make bullish bets on the share price of MP Materials Corp. (NYSE: MP). MP Materials Corp. produces and processes rare earth materials, primarily used in magnets and other advanced technologies. The company operates the Mountain Pass mine in California, one of the only integrated rare earth facilities in the Western Hemisphere. The fund seeks to maintain daily leveraged exposure equivalent to 200% of the daily percentage change in MPs price through daily rebalancing. Returns may deviate from the expected 2x if held for longer than a single day due to factors such as volatility, compounding, or rebalancing effects. MPL may also hold US government securities, money market funds, short-term bond ETFs, and investment-grade corporate debt as collateral for its derivatives positions.

What is the expense ratio of MPL?

Defiance Daily Target 2X Long MP ETF (MPL) charges an expense ratio of 1.31%. This is the annual fee deducted from fund assets to cover management and operations.

What is the duration of MPL?

Effective duration measures MPL's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. MPL's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of MPL?

MPL's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of MPL?

Yield to maturity (YTM) is the total return you'd earn from MPL if every bond in the portfolio is held to maturity at the current price. MPL's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.

Is MPL a good long-term hold?

MPL 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.