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Defiance Launches VIXI: Enhanced Long Volatility ETF with Leveraged Short S&P 500 Exposure

1. Defiance launches VIXI, a leveraged volatility ETF targeting market uncertainty. 2. VIXI combines long VIX futures with a short position on the S&P 500. 3. The fund aims to benefit during market stress and equity downturns. 4. Investors should prepare for significant risks and potential losses. 5. VIXI primarily suits sophisticated investors capable of daily monitoring.

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Why Neutral?

While VIXI targets volatility, it may not directly influence QPUX’s performance. Historical data shows market volatility can affect growth stocks like those associated with QPUX, but correlation is weak.

How important is it?

The launch of VIXI highlights market volatility dynamics which may affect stocks like QPUX. Its relevance is moderate as increased volatility can influence investor sentiment towards tech and growth stocks.

Why Short Term?

The immediate launch of VIXI may lead to short-term volatility, facing QPUX's prices. However, its long-term impact will depend on broader market conditions.

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MIAMI, Aug. 08, 2025 (GLOBE NEWSWIRE) -- Defiance ETFs, a pioneer in thematic and leveraged investment solutions, today announced the launch of the Defiance Enhanced Long Vol ETF (VIXI). The Fund seeks enhanced total return by combining approximately 0.75x to 1x long exposure to VIX futures with 1.5x to 2x leveraged short exposure to the S&P 500 Index. Through this dual-strategy approach, VIXI is designed to benefit from periods of heightened volatility and declining equity markets. VIXI offers a way for active investors to gain targeted exposure to market volatility while simultaneously hedging against U.S. equity downturns. By pairing long VIX futures exposure with a leveraged short position on the S&P 500, the Fund provides a distinct tool to help navigate uncertain markets and potentially capitalize on volatility spikes. Why Long Volatility and Short Equities? The VIX Index, which measures expected 30-day volatility in the S&P 500, tends to rise sharply during periods of market stress or uncertainty. VIXI’s long position in VIX futures is designed to benefit from such spikes, while its leveraged short exposure to the S&P 500 is designed to enhance downside preservation during equity sell-offs. This combined structure leverages the historically inverse relationship between equity markets and volatility. An investment in the Fund is not an investment in the VIX Index or the S&P 500 Index directly. The Fund’s strategy may underperform significantly during extended bull markets or during periods of low volatility, and investors should be prepared for the potential of substantial losses in such conditions. This fund is for sophisticated investors that can monitor the investment as frequently as daily. If the Fund achieves leverage through the use of derivative instruments, the Fund has the risk that losses may exceed the net assets of the Fund. About Defiance Founded in 2018, Defiance is at the forefront of ETF innovation. Defiance is a leading ETF issuer specializing in thematic, leveraged, and volatility-based ETFs. Our first-mover leveraged single-stock ETFs enable investors to pursue amplified positions in high-growth companies, delivering precise leverage without margin accounts. IMPORTANT DISCLOSURES 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 carefully before investing. A hard copy of the prospectuses can be requested by calling 833.333.9383. Defiance ETFs LLC is the ETF sponsor. The Fund's investment adviser is Tidal Investments, LLC ("Tidal" or the "Adviser"). Investing involves risk. Principal loss is possible. As an ETF, the funds may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. A portfolio concentrated in a single industry or country, may be subject to a higher degree of risk. There is no guarantee that the Fund's investment strategy will be properly implemented, and an investor may lose some or all of its investment. VIX Futures Contract Volatility Risk. The Fund invests in futures contracts on the VIX, which are highly volatile and may subject the Fund to significant investment risk. VIX futures contracts derive their value from expectations of future volatility in the S&P 500 Index and do not directly track the spot level of the VIX. As such, the performance of VIX futures contracts can deviate significantly from the actual changes in the VIX, particularly over short periods. Leverage Risk: If the Fund achieves leverage through the use of derivative instruments, the Fund has the risk that losses may exceed the net assets of the Fund. As part of the Fund’s principal investment strategy, the Fund will make investments in futures contracts, swap contracts and options. These derivative instruments provide the economic effect of financial leverage by creating additional investment exposure to the VIX or the Index (as the case may be), as well as the potential for greater loss. The net asset value of the Fund while employing leverage will be more volatile and sensitive to market movements. Inverse and Inverse Leveraged ETF Risks. Inverse ETFs seek to provide investment results that correspond to the inverse (or opposite) of the performance of a benchmark index, often on a daily basis. Leveraged inverse ETFs seek to provide a multiple of the inverse performance (e.g., -2x or -3x) of a benchmark index for a single day. Because the Fund may invest in inverse ETFs to achieve short exposure to the Index, it may experience losses when the Index rises. These losses can be significantly magnified when the Fund invests in leveraged inverse ETFs. As a result, even modest gains in the Index can lead to disproportionately large losses for the Fund. Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs and ETPs), interest rates or indexes. 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 risk related to the market, imperfect correlation with underlying investments, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions. Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in options contracts. Transactions in some types of derivatives, including options, are required to be centrally cleared (“cleared derivatives”). In a transaction involving cleared derivatives, the Fund’s counterparty is a clearing house rather than a bank or broker. Since the Fund is not a member of clearing houses and only members of a clearing house (“clearing members”) can participate directly in the clearing house, the Fund will hold cleared derivatives through accounts at clearing members. New Fund Risk: The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions. 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. Cayman Subsidiary Risk. By investing in the Fund’s Cayman Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The futures contracts and other investments held by the Subsidiary are subject to the same economic risks that apply to similar investments if held directly by the Fund. The Subsidiary is not registered under the 1940 Act, and, unless otherwise noted in the Fund’s Prospectus, is not subject to all the investor protections of the 1940 Act. VIX Index: A leading measure of expected 30-day volatility in the U.S. stock market, derived from real-time prices of S&P 500® Index options. It’s widely used by investors and media as a key indicator of market sentiment and uncertainty. The S&P 500 Index is a widely recognized benchmark index that tracks the performance of 500 of the largest U.S.-based companies listed on the New York Stock Exchange or Nasdaq. These companies represent approximately 80% of the total U.S. equities market by capitalization, making it a large-cap index. Brokerage commissions may apply. 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/9bae132b-f9d0-4456-a7c8-967d8adb00a4 Defiance Launches VIXI: Enhanced Long Volatility ETF with Leveraged Short S&P 500 Exposure Defiance ETFs, a pioneer in thematic and leveraged investment solutions, today announced the launch ...

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