Defiance ETFs has announced the launch of two single-stock leveraged exchange-traded funds (ETFs) with income features: the Defiance Leveraged Long + Income AMD ETF (NASDAQ: AMDU), which provides leveraged exposure to Advanced Micro Devices, and the Defiance Leveraged Long + Income SMCI ETF (NASDAQ: SMCC), offering leveraged exposure to Super Micro Computer. Both ETFs aim to combine approximately 150 percent to 200 percent daily leveraged exposure to their respective underlying stocks with an options-based income strategy.
The leveraged ETFs use credit call spreads to pursue premium income while also seeking to buffer against declines. According to Defiance ETFs, this design provides investors with amplified stock exposure without requiring a margin account. The primary investment objective of each ETF is long-term capital appreciation, with a secondary objective of current income, implemented through credit call spreads.
Advanced Micro Devices is noted for its central processing units (CPUs), graphics processing units (GPUs), and artificial intelligence computing, targeting markets for AI, gaming, and cloud computing. Super Micro Computer is highlighted for its data center and server hardware, supplying high-performance and scalable infrastructure often used in AI workloads and data center applications. Defiance ETFs states that these sectors are experiencing significant demand due to growth in artificial intelligence and cloud platforms.
Each ETF invests in swap contracts and options tied to the underlying stock price and is subject to risks including stock price volatility, possible significant losses if the underlying stock declines, and imperfect correlation between derivatives and underlying assets. Both funds are non-diversified and may experience high portfolio turnover, resulting in increased expenses. The funds are newly formed with no operating history, so past performance information is not available.
Defiance ETFs is the ETF sponsor, with Tidal Investments as the adviser. The company emphasizes that investing in these ETFs involves risk, including the potential loss of principal, and that investors will not have voting rights in Advanced Micro Devices or Super Micro Computer. The funds are not direct investments in the underlying companies, are not affiliated with them, and their performance depends on the trading and price performance of the underlying stocks and related derivatives.
For a full explanation of risks, charges, and expenses, Defiance ETFs advises interested parties to review the ETFs’ prospectuses before investing.
Source: Defiance ETFs
