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Defiance Launches LMNX: The First 2X Long ETF for Lemonade, Inc.

1. Defiance ETFs launched the 2X Long LMND ETF for active traders. 2. The fund aims for 200% daily return of Lemonade's shares. 3. Investors need to understand the risks of leveraged ETFs. 4. LMND's price performance affects this fund's value significantly. 5. Market sentiment around Lemonade may influence LMNX's attractiveness.

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FAQ

Why Bullish?

The launch of a 2X leveraged ETF indicates positive investor sentiment towards LMND, similar to past ETF launches, which often correlate with price increases due to heightened trading volume and interest.

How important is it?

The launch provides new avenues for trading and investment in LMND, potentially increasing liquidity and interest in the stock.

Why Short Term?

The ETF is designed for daily tactical trading, meaning its impact is likely going to be felt in the short term rather than providing long-term stability or growth.

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MIAMI, Oct. 16, 2025 (GLOBE NEWSWIRE) -- Defiance ETFs is proud to announce the launch of the Defiance Daily Target 2X Long LMND ETF (Ticker: LMNX), expanding its suite of single-stock leveraged ETFs designed for active traders seeking amplified exposure to innovative, high-growth companies. The newest addition, LMNX, is designed for traders who seek magnified, short-term bullish exposure to Lemonade, Inc. (NYSE: LMND), the disruptive insurance technology company. By seeking to deliver 200% of the daily percentage change in the share price of LMND, the fund allows investors to express tactical upside views on Lemonade’s stock performance, within the accessibility and transparency of an ETF. Investment Objective The Fund seeks daily investment results, before fees and expenses, of two times (200%) the daily percentage change in the share price of Lemonade, Inc. (NYSE: LMND). The Fund does not seek to achieve its stated investment objective for any period other than a single trading day. Underlying Stock: Lemonade, Inc. Lemonade, Inc. is a fully digital insurance company offering renters, homeowners, car, pet, and life insurance through its own licensed carriers across the U.S. and Europe. Using proprietary AI-driven software and automation, Lemonade issues policies, manages claims, and interacts with customers efficiently—redefining the traditional insurance experience. The company employs a fixed-fee business model and relies on reinsurance agreements to manage underwriting risk and stabilize financial results. An investment in LMNX is not an investment in Lemonade, Inc. 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 (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 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 LMND over the same period. It is possible investors could lose their entire principal within a single trading day. About Defiance ETFs Founded in 2018, Defiance ETFs is a leader in ETF innovation, focusing on thematic, income, and leveraged ETFs. Defiance pioneered single-stock leveraged ETFs, enabling investors to take amplified positions in high-growth, disruptive companies without the need for margin accounts. 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. LMND Price Decline Risk: As part of the Fund’s leveraged investment strategy, the Fund purchases and sells swap contracts and options contracts that are based on the share price of Lemonade, Inc. (NYSE: LMND) common stock (the “Underlying Security”). This strategy subjects the Fund to certain of the same risks as if it owned 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 declines. If the share price of the Underlying Security decreases, 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 LMND Risk. Lemonade, Inc. is not affiliated with the Trust, the Fund, the Adviser, or their respective affiliates and is not involved with this offering in any way and has no obligation to consider your Shares in taking any corporate actions that might affect the value of Shares. LMND Poor Performance Risk. The market value of LMND may decline if the company fails to meet or maintain its publicly announced business expectations and may be further affected by adverse industry sentiment, reduced analyst coverage, downgrades, or unfavorable forecasts that negatively impact investor confidence. 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 value of the Fund, which focuses on an individual security, may fluctuate more sharply than a diversified investment or the market as a whole and may perform differently from such investments. 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, before fees and expenses. Compounding has a significant impact on funds that are leveraged and that rebalance daily. Daily Correlation/Tracking Risk. There is no guarantee that the Fund will achieve a high degree of leveraged correlation to the Underlying Security and therefore achieve 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 a decline in the value of the Underlying Security will be magnified. Leverage increases the Fund’s volatility and losses may be significantly greater than the Underlying Security’s decline on any given day. Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in derivatives, which exposes the Fund to the risk that the counterparty will not fulfill its obligation to the Fund. Derivatives Risk. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risks related to the market, leverage, imperfect daily correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation, and legal restrictions. 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. These risks may prevent the Fund from achieving its leveraged investment objective, even if the Underlying Security later recovers all or a portion of its losses. Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, including anticipated volatility, which may be affected by fiscal and monetary policies and national or international events. The value of the options contracts in which the Fund invests is substantially influenced by the value of the Underlying Security. 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. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund. Rebalancing Risk. If for any reason the Fund is unable to rebalance all or a portion of its portfolio, or if all or a portion of the portfolio is rebalanced incorrectly, the Fund’s investment exposure may not be consistent with the Fund’s investment objective. Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, a decline in the value of an investment in a single issuer or a smaller number of issuers could cause the Fund’s overall value to decline to a greater degree than if the Fund held a more diversified portfolio. New Fund Risk. The Fund is a recently organized management investment company with a limited operating history. As a result, prospective investors have only a limited track record or history on which to base their investment decisions. Diversification does not ensure a profit nor protect against loss in a declining market. Brokerage commissions may be charged on trades. Distributed by Foreside Fund Services, LLC David Hanonoinfo@defianceetfs.com833.333.9383 A photo accompanying this announcement is available at:https://www.globenewswire.com/NewsRoom/AttachmentNg/3396d472-1dce-4d33-96bb-5f6dd8bfe14a Defiance Launches LMNX: The First 2X Long ETF for Lemonade, Inc. Defiance ETFs is proud to announce the launch of the Defiance Daily Target 2X Long LMND ETF (Ticker:...

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