Share-split context: A reverse split was recorded on Mar 19, 2026 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.

What this ETF is trying to do

SOUX (DEFIANCE DAILY TARGET 2X LONG SOUN ETF) is a leveraged ETF. It is designed to provide a daily target of 2x long exposure. This means it aims to move with twice the daily movement of its target, though this does not guarantee performance over longer periods.

What the numbers show

The data shows a significant share-price decline for this ETF. The one-year price return was -96.74%, while the one-year total return was -96.08%. Year-to-date (YTD), the price return was -83.57%.

This ETF has a history of reverse splits. Most recently, on March 19, 2026, a reverse split occurred. In a reverse split, multiple old shares are combined into fewer new shares. This causes the per-share price to rise mechanically, but this mechanical increase does not restore lost investment value.

Income and distribution explanation

SOUX has a distribution yield of approximately 30.88%. However, these distributions are described as "irregular" and "less frequent."

It is important for new investors to understand that a high distribution yield does not mean an investor earned that percentage as total return. While distributions provide cash income, they do not guarantee the preservation of your principal (the original money you put in). A high distribution rate can exist even while the share price is falling.

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 fund has a severe erosion-risk flag. This flag was triggered by the split-adjusted price trend and an erosion score of 10, which is labeled as "Severe price erosion." These are measurements used to identify risks related to price deterioration.

Pros

• The ETF provides a high distribution yield of approximately 30.88%.

Cons

• There has been a very large share-price decline over the past year.

• The fund has a severe erosion-risk flag and a "severe" erosion label.

• Distributions are irregular and not frequent.

• The ETF has a history of reverse splits.

Beginner takeaway

When researching ETFs, especially those with high yields, it is important to look at more than just the distribution percentage. You should also look at the price return and the total return. A high yield can be accompanied by a significant decline in the share price. Always check if an ETF has an erosion-risk flag or a history of reverse splits to understand its price trends.

Top Holdings:

• FIRST AMERICAN GOVERNMENT OBLIGS X (FGXXX): 8.03%

*Note: Holdings can change over time. This list is partial.*