Share-split context: A reverse split was recorded on Dec 9, 2025 with coefficient 0.25. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: PLTZ

The Defiance Daily Target 2x Short PLTR ETF (PLTZ) is a specialized fund designed to bet against a single stock. It is an inverse, leveraged ETF that targets 2x the opposite of the daily performance of Palantir (PLTR).

What this ETF is trying to do

PLTZ is a "single-stock" ETF. Unlike most funds that hold many companies, this one focuses on one. Because it is inverse, it aims to make money when the target stock's price goes down. Because it is leveraged (2x), it tries to multiply those daily moves by two. This makes it a high-risk tool typically used for short-term trading rather than long-term investing.

What the numbers show

The recent performance of PLTZ has been significantly negative:

• Year-to-Date (YTD) Price Return: -70.27%

• One-Year Price Return: -73.71%

Because this fund does not pay distributions, the total return is the same as the price return. This means the overall value for investors has declined by approximately 73.72% over the last year.

Income and distribution explanation

PLTZ is not designed to provide income. The data shows a distribution yield of 0%, and no distributions have been detected in the last 12 months. It has an income rating grade of "F."

Price and NAV erosion explanation

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, the price-based evidence shows significant decline. PLTZ has a severe erosion-risk flag and an erosion score of 10, which is labeled as "Severe price erosion."

Additionally, the fund has a history of a reverse split (most recently on December 9, 2025). In a reverse split, multiple old shares are combined into fewer new shares, which mechanically raises the price per share. This mechanical increase does not restore lost investment value.

Top Holdings

As of October 8, 2026, the fund's holdings are very limited. The only listed holding is:

• First American Government Obligs X (FGXXX): 3.64%

Pros

• Provides a way to bet against a specific stock without needing a margin account.

• Leverage can amplify gains if the target stock price drops sharply.

Cons

• High Risk: Leveraged inverse funds can lose value very quickly.

• Severe Price Decline: The fund has seen a share-price decline of over 70% recently.

• No Income: There are no cash distributions for investors.

Beginner takeaway

PLTZ is a complex tool, not a traditional investment. It is designed for daily moves, not for holding over years. The severe price erosion and the use of a reverse split indicate that the share price has struggled significantly. New investors should be aware that high-leverage inverse funds can lead to rapid losses of principal.