Defiance Daily Target 2X Short RKLB ETF

Frequently Asked Questions About RKLZ

What does RKLZ invest in?

This actively managed Exchange Traded Fund (ETF) is designed to generate a daily return equivalent to two times the inverse (-200%) of the daily percentage change in the price of its designated underlying security. The fund accomplishes this objective by strategically employing financial derivatives, specifically utilizing instruments like swap agreements and/or listed options contracts. Investors should note that this ETF is non-diversified.

What is the expense ratio of RKLZ?

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

Is RKLZ a good long-term hold?

RKLZ 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 RKLZ's daily reset work?

RKLZ 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 RKLZ?

Defiance Daily Target 2X Short RKLB ETF (RKLZ) manages $4.6M 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 RKLZ actively managed or an index fund?

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