Share-split context: A reverse split was recorded on Sep 10, 2026 with coefficient 0.5. 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

The Defiance Daily Target 2X Short TSM ETF (STSM) is a specialized fund. It is both "leveraged" and "inverse." This means it is designed to move in the opposite direction of a specific target. Specifically, it aims for 2X the opposite daily return of its target.

What the numbers show

As of October 7, 2026, the share price is $27.37. The data shows a significant share-price decline so far this year. The year-to-date (YTD) price return is -72.67%. Because there were no distributions, the YTD total return is also -72.67%.

This ETF has a history of reverse splits. A reverse split happens when multiple old shares are combined into fewer new shares. This causes the quoted per-share price to rise mechanically, but it does not restore any lost investment value. The most recent reverse split occurred on September 10, 2026, with a coefficient of 0.5.

Income and distribution explanation

This ETF is not designed to provide regular income. There have been no distributions detected, and the distribution yield is 0%. Because of this, it has an income rating grade of "F."

NAV erosion explanation

NAV erosion happens when the value of the fund's underlying assets declines over time. While the share price has fallen significantly this year, the "severe erosion-risk flag" is currently false. However, the erosion score is not available because there is not enough verified price history to calculate it.

Pros

• Specific Strategy: It provides a way for investors to bet against a specific target with 2X leverage.

• Transparency: The fund's holdings are clearly listed.

Cons

• High Price Decline: The YTD price return shows a loss of approximately 72.67%.

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

• Structural Changes: The fund has undergone two reverse splits, which is often a sign of significant price pressure.

Beginner takeaway

STSM is a high-risk tool, not a traditional long-term investment. It uses leverage and an inverse strategy, which can lead to fast and large price drops. Investors should note that a high distribution yield is often what income seekers look for, but this fund provides no yield. Additionally, reverse splits can make a share price look higher, but they do not create profit.

Top Holdings

As of October 8, 2026, the fund holds:

• First American Government Obligs X: 16.52%