MIAMI, June 15, 2026 (GLOBE NEWSWIRE) -- Defiance ETFs today announced the launch of the Defiance Daily Target 2X Short SpaceX ETF (SPCQ), expanding its lineup of single-stock leveraged ETFs designed for active traders seeking amplified exposure to innovative growth companies. SPCQ is designed for traders seeking magnified, short-term inverse exposure to Space Exploration Technologies Corporation (“SpaceX”) (NASDAQ: SPCX), a leading aerospace and satellite communications company that recently completed its initial public offering and is focused on reusable launch systems, commercial space transportation, and global broadband connectivity through its Starlink network.
By seeking to deliver -200% of the daily percentage change in the share price of SpaceX, the Fund allows investors to express tactical bearish views on the company within the accessibility and transparency of an exchange-traded fund.
Investment Objective
The Fund seeks daily inverse investment results, before fees and expenses, of -2 times (-200%) the daily percentage change in the share price of Space Exploration Technologies Corporation (NASDAQ: SPCX). The Fund does not seek to achieve its stated investment objective for a period other than a single trading day.
Underlying Company: Space Exploration Technologies Corporation (“SpaceX”)
Space Exploration Technologies Corporation is a company listed on the Nasdaq Stock Market under the ticker SPCX, which recently completed its initial public offering, and that designs, manufactures, and launches advanced rockets and spacecraft. Founded in 2002 by Elon Musk, SpaceX develops and operates launch vehicles for commercial, government, and defense customers, and provides satellite-based broadband services through its Starlink network. The company is a leading participant in the commercial space industry, contributing to the expansion of global satellite communications and orbital launch capabilities.
An investment in the ETF is not a direct investment in SpaceX.
The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged inverse (-2X) investment results, understand the risks associated with the use of leverage, and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. The Fund pursues daily leveraged investment objectives, which means it is riskier than alternatives that do not use leverage. The Fund magnifies the inverse performance of the Underlying Security and is designed strictly for short-term use. For periods longer than a single day, the Fund's performance will be the result of compounded daily returns, which is very likely to differ from -200% of the return of SpaceX over the same period. It is possible investors could lose their entire principal within a single trading day.
Media Contact:
Sylvia Jablonski
[email protected]
833.333.9383
IMPORTANT DISCLOSURES
Defiance ETFs LLC is the ETF sponsor. The Fund’s investment adviser is Tidal Investments, LLC (“Tidal” or the “Adviser”).
The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary prospectus contain this and other important information about the investment company. Please read the prospectus and/or summary prospectus carefully before investing. Hard copies can be requested by calling 833.333.9383.
Investing involves risk. Principal loss is possible. As an ETF, the Fund may trade at a premium or discount to NAV. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. A portfolio concentrated in a single issuer or sector may be subject to a higher degree of risk. There is no guarantee the Fund’s strategy will be properly implemented, and an investor may lose some or all of its investment.
SPCX Price Appreciation Risk. As part of the Fund’s inverse investment strategy, the Fund enters into swap agreements and options contracts based on the share price of Space Exploration Technologies Corporation (NASDAQ: SPCX) (the “Underlying Security”). This strategy subjects the Fund to certain of the same risks as if it shorted shares of the Underlying Security, even though it does not. By virtue of the Fund’s indirect -2X exposure to changes in the share price of the Underlying Security, the Fund is subject to the risk that the Underlying Security’s share price increases. If the share price of the Underlying Security increases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses. The Fund may also be subject to the following risks:
Indirect Investment in SpaceX Risk. SpaceX is not affiliated with the Trust, the Fund, the Adviser, or their respective affiliates, and is not involved with this offering in any way. SpaceX has no obligation to consider the Fund or its shareholders in taking any corporate actions that might affect the value of Fund shares. Investors in the Fund will not have voting rights or other ownership privileges associated with holding shares of SpaceX.
SpaceX Performance Risk. SpaceX may fail to meet publicly announced expectations about its business, launch operations, satellite deployments, or commercial growth initiatives, which could cause the value of the Underlying Security to decline. SpaceX operates in a highly capital-intensive and technologically complex industry where launch failures, manufacturing defects, delays in deployment schedules, or operational disruptions could materially affect its business and financial condition.
Commercial Space Industry Risks. Companies engaged in the commercial space industry operate in an environment characterized by rapid innovation, high development costs, evolving regulatory oversight, and uncertain demand. The success of these businesses depends on their ability to maintain technological competitiveness, execute reliable launches, and secure ongoing funding and customer demand. Increased competition, regulatory changes, launch failures, or reductions in government spending could adversely affect SpaceX and the Fund’s performance.
Satellite Communications Industry Risks. Companies involved in satellite communications and broadband services face significant operational, technological, and competitive risks. These businesses require substantial investment in satellite constellations, infrastructure, and network operations, and depend on continued regulatory approval for spectrum access and orbital positioning. Competition from terrestrial broadband providers and other satellite operators may limit growth opportunities and negatively impact the Underlying Security.
Elon Musk Influence Risk. The value of SpaceX may be significantly impacted by the actions, decisions, and public statements of Elon Musk. Public perception regarding Mr. Musk, his leadership, or involvement in other ventures may materially affect investor sentiment and the performance of the Underlying Security.
Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment that diversifies risk or tracks the market generally. The Fund’s value may fluctuate more sharply in response to events affecting SpaceX than funds that invest in a broader range of issuers.
Recent IPO and Derivatives Capacity Constraints Risk. The Fund’s ability to achieve its daily leveraged investment objective depends, in part, on the availability of swaps, options, and other financial instruments that provide exposure to the Underlying Security. For a recently public company, these instruments may be limited, illiquid, costly, or unavailable, particularly shortly after an IPO or during periods of significant volatility or market demand.
Compounding and Market Volatility Risk. The Fund’s performance for periods greater than a trading day will be the result of each day’s returns compounded over the period, which is likely to differ from 200% of the Underlying Security’s performance. During periods of higher volatility, compounding effects may cause the Fund to lose value even if the Underlying Security’s share price increases over the longer term.
Daily Correlation/Tracking Risk. There is no guarantee that the Fund will achieve a high degree of leveraged correlation to the Underlying Security. Market disruptions, volatility, or limitations in the availability of derivatives may cause the Fund’s performance to deviate from its daily leveraged investment objective.
Leverage Risk. The Fund will seek 2X long exposure through financial instruments, which exposes the Fund to the risk that losses may be magnified. Leverage increases the Fund’s volatility, and a relatively small movement in the Underlying Security’s share price may result in significant losses for the Fund.
Counterparty Risk. The Fund is subject to counterparty risk due to its use of derivatives. If a counterparty fails to meet its contractual obligations, the Fund may experience delays or losses, which could negatively affect its performance.
Derivatives Risk. The Fund’s investments in derivatives may pose risks greater than those associated with directly investing in securities. These risks include increased volatility, imperfect correlation with the Underlying Security, liquidity constraints, valuation challenges, and the potential for losses exceeding the amount initially invested.
Rebalancing Risk. If the Fund is unable to rebalance its portfolio correctly or in a timely manner, its exposure may not be consistent with its investment objective. This may increase the Fund’s risk exposure and cause its performance to diverge from its intended daily leveraged results.
Non-Diversification Risk. Because the Fund is non-diversified, it may invest a greater percentage of its assets in a single issuer. As a result, the Fund may be more sensitive to adverse events affecting SpaceX than a diversified fund.
Swap Agreements. The use of swap transactions is a highly specialized activity, which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions.
Fixed Income Securities Risk. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates.
High Portfolio Turnover Risk. Daily rebalancing is expected to result in high portfolio turnover. High portfolio turnover may increase transaction costs, which could reduce the Fund’s returns and potentially result in higher taxable distributions for shareholders.
Liquidity Risk. Some securities or financial instruments held by the Fund may be difficult to sell, particularly during periods of market stress or volatility. Reduced liquidity may make it difficult for the Fund to adjust its exposure or meet its investment objective.
New Fund Risk. The Fund is a recently organized management investment company with a limited operating history. As a result, there is limited performance history upon which investors can evaluate the Fund.
Distributed by Foreside Fund Services, LLC.
A photo accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/ab71dab4-a168-4a8c-98b0-f191b922e095
