Share-split context: A reverse split was recorded on Sep 9, 2026 with coefficient 0.2. 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.

Understanding the DEFIANCE DAILY TARGET 2X LONG RCAT ETF (RCAX)

What this ETF is trying to do

The RCAX ETF is a leveraged fund. This means it is designed to seek a specific daily target, often aiming for more movement than the underlying asset it tracks. Because it is a leveraged product, it carries different risks than a standard ETF.

What the numbers show

As of October 7, 2026, the current price of RCAX is $7.54.

It is important to note that this ETF has a history of reverse splits. The most recent event occurred on September 9, 2026. In a reverse split, multiple old shares are combined into fewer new shares. This causes the quoted per-share price to rise mechanically. However, this mechanical increase does not restore lost investment value.

Because the fund has a history of splits, we do not use an estimated price from one year ago. Instead, we look at split-adjusted returns. Currently, the supplied data does not include specific percentage returns for the year-to-date, one-year, or three-year periods.

Income and distribution explanation

Some investors look at ETFs for regular cash payments, known as distributions. For RCAX, no distributions have been detected over the last 12 months. The distribution yield is 0%, and there has been no payout frequency recorded. Because there are no distributions, the income rating for this fund is an "F" grade.

NAV erosion explanation

NAV erosion refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). 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.

The fund's erosion score is currently withheld because there is not enough verified price history available. There is no severe erosion-risk flag active at this time.

Pros

• Leveraged Strategy: The fund is designed for specific daily targets, which may appeal to traders looking for amplified movement.

Cons

• No Income: The fund does not currently provide distributions or a yield.

• Split History: The fund has undergone a reverse split, which changes the share structure and price mechanically.

• Limited Data: There is currently insufficient verified price history to provide a detailed erosion score or long-term return percentages.

Beginner takeaway

RCAX is a leveraged ETF that does not currently pay out distributions to investors. Because it uses leverage and has a history of reverse splits, its share price can move very differently than standard funds. Investors should be aware that a rising share price following a reverse split is a structural change and not necessarily a sign of increased investment value.