Defiance Daily Target 2X Short QBTS ETF

Frequently Asked Questions About QBTZ

What does QBTZ invest in?

This fund's core strategy dictates that at least 80% of its net assets, combined with any borrowed capital utilized for investment, will be deployed into financial instruments. These instruments are specifically engineered to deliver daily investment outcomes that are two times the inverse (or opposite) of the underlying benchmark's daily performance. For the purpose of assessing compliance with this 80% allocation policy, derivative holdings are calculated based on their full notional value. Investors should also note that the fund operates as a non-diversified investment vehicle.

What is the expense ratio of QBTZ?

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

Is QBTZ a good long-term hold?

QBTZ 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 QBTZ's daily reset work?

QBTZ 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 QBTZ?

Defiance Daily Target 2X Short QBTS ETF (QBTZ) manages $3.9M 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 QBTZ actively managed or an index fund?

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