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Defiance Hotel, Airline, and Cruise ETF (CRUZ) and the Defiance Next Gen H2 ETF (HDRO) Closure

1. CRUZ and HDRO Funds to liquidate on April 29, 2025. 2. Trading will halt before liquidation; market for shares may be uncertain. 3. Liquidation will result in cash distributions to shareholders, including capital gains. 4. Shareholders advised to consult tax advisors regarding taxable distributions. 5. Funds' investment objectives will change as they increase cash holdings.

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FAQ

Why Very Bearish?

The imminent liquidation of CRUZ will likely lead to panic selling, resulting in a drop in value, similar to previous ETF closures where prices fell sharply amid uncertainty.

How important is it?

The liquidation directly affects CRUZ, making this news highly relevant and significant for its investors.

Why Short Term?

The announcement of liquidation creates immediate pressure on investor sentiment, causing short-term negative impact, consistent with other funds that closed abruptly.

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HDRO
April 10, 2025 14:01 ET  | Source: Defiance ETFs MIAMI, April 10, 2025 (GLOBE NEWSWIRE) -- The Board of Trustees of ETF Series Solutions, upon recommendations from Defiance ETFs, LLC, the investment adviser to the Defiance Hotel, Airline, and Cruise ETF (CRUZ) and the Defiance Next Gen H2 ETF (HDRO) (each, a “Fund,” and together, the “Funds”), has determined to close and liquidate the Funds immediately after the close of business on April 29, 2025. Shares of the Funds are listed on the New York Stock Exchange (NYSE). Effective on or about April 18, 2025, the Funds will begin liquidating their portfolio assets. This will cause the Funds to increase their cash holdings and deviate from the investment objectives and strategies stated in each Fund’s prospectus. The Funds will no longer accept orders for new creation units after the close of business on the business day prior to the Liquidation Date, and trading in shares of the Funds will be halted prior to market open on the Liquidation Date. Prior to the Liquidation Date, shareholders may only be able to sell their shares to certain broker-dealers, and there is no assurance that there will be a market for the Funds’ shares during that time period. Customary brokerage charges may apply to such transactions. On or about the Liquidation Date, the Funds will liquidate their assets and distribute cash pro rata to all remaining shareholders. These distributions are taxable events. Shareholders should contact their tax advisor to discuss the income tax consequences of the liquidations. In addition, these payments to shareholders will include accrued capital gains and dividends, if any. As calculated on the Liquidation Date, each Fund’s net asset value will reflect the costs of closing the Fund, if any. Once the distributions are complete, the Funds will terminate. Proceeds of the liquidations will be sent to shareholders promptly after the Liquidation Date. For additional information, please call +1 833.333.9383 or email info@defianceetfs.com. The Funds’ 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 companies. The prospectus can be obtained by calling +1 833.333.9383. Please read it carefully before investing. Investing involves risk. Principal loss is possible. A commission may apply when buying or selling an ETF. Defiance ETFs are distributed by Foreside Fund Services, LLC. Contact Information:David Hanono833.333.9383info@defianceetfs.com

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