Share-split context: A forward split was recorded on Dec 9, 2025 with coefficient 3. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

What this ETF is trying to do

The Defiance Daily Target 2X Long RKLB ETF (RKLX) is a leveraged, single-stock ETF. It is designed to provide twice (2X) the daily return of Rocket Lab Corp (RKLB). This means it uses leverage to amplify the daily price movements of that specific company.

What the numbers show

The current price of RKLX is $18.01 as of October 7, 2026. The fund has experienced a significant share-price decline. Its year-to-date (YTD) price return is -54.74%, and its one-year price return is -60.33%.

The one-year total return, which includes distributions, is -54.53%. This shows that while distributions provided some value, the overall return remained deeply negative over the last year.

RKLX has a history of share splits. On December 9, 2025, it had a forward split with a coefficient of 3. In a forward split, each old share became multiple new shares, and the price per share fell proportionally. This event does not create a gain or loss; it simply changes the number of shares an investor holds.

Income and distribution explanation

RKLX has a distribution yield of approximately 33.02%. However, the payout frequency is irregular and less frequent, with only one payout in the last 12 months.

It is important for beginners to remember that a high distribution yield can be misleading. In this case, the high yield exists alongside a severe decline in share price.

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.

Based on price-based evidence, RKLX has a severe erosion-risk flag. It has an erosion score of 10, which is labeled as "Severe price erosion." This means the split-adjusted price trend and the erosion score have triggered a warning about the decline in the fund's market price.

Top Holdings

As of October 8, 2026, the fund's holdings are:

• Rocket Lab Corp (RKLB): 96.77%

• First American Government Obligs X (FGXXX): 1.00%

Pros

• Provides a way to get amplified (2X) exposure to a single company (Rocket Lab Corp).

• Has provided a high distribution yield recently.

Cons

• High volatility due to 2X leverage.

• Severe share-price decline over the last year.

• Irregular distribution schedule.

• Severe price erosion-risk flag.

Beginner takeaway

RKLX is a high-risk tool used to bet on the daily movement of one company. While it offers a high distribution yield, the total return has been significantly negative. Income investors generally care about principal stability, but this ETF has shown severe price erosion.