Defiance Daily Target 2X Long SMCI ETF (SMCX)

ETF Defiance Daily Target 2X Long SMCI ETF (TGLO)

Profile:

TGLO is an exchange-traded fund (ETF) that seeks to deliver twice the daily performance of the Solactive GBS Commodity Index Total Return (TR), which tracks the performance of a broad-based basket of commodity futures contracts. It focuses on delivering leveraged exposure to diversified commodities across energy, agriculture, industrial metals, and precious metals sectors.

Objective:

The primary goal of TGLO is to provide investors with magnified daily returns on their investment, aligned with the performance of the underlying commodities index. It targets investors seeking short-term, amplified exposure to the commodity market.

Issuer:

Defiance ETFs is a relatively new ETF issuer founded in 2021, with a focus on thematic and innovative ETF products. While they are not as established as some larger ETF providers, Defiance ETFs has quickly gained recognition for its unique ETF offerings.

Market Share:

TGLO is a niche ETF within the broader commodity ETF landscape. As of October 26, 2023, it holds a relatively small market share compared to larger commodity-focused ETFs. However, it distinguishes itself by offering leveraged exposure, making it attractive to investors seeking amplified gains.

Total Net Assets:

As of October 26, 2023, TGLO has approximately $42 million in total net assets. This figure might change over time, so be sure to consult current data for accurate information.

Moat:

The unique selling points of TGLO include:

• Leveraged exposure: Offering twice the daily return of the underlying index provides amplified gains, potentially maximizing the impact of bullish market movements.
• Diversification: Investing in a broad basket of commodities across different sectors mitigates risks associated with individual commodity price fluctuations.

Financial Performance:

TGLO is a relatively new ETF with limited historical performance data. However, analyzing its recent performance reveals its volatility compared to the underlying index.

Benchmark Comparison:

TGLO aims to outperform its benchmark index, the Solactive GBS Commodity Index Total Return (TR). While it may achieve higher returns during bullish market phases, it may also experience amplified losses during downturns.

Growth Trajectory:

Given the increasing demand for innovative investment solutions and growing investor interest in commodities, TGLO presents potential for future growth, especially as the global commodities market evolves.

Liquidity:

TGLO's average daily trading volume is moderate compared to other commodity ETFs. The bid-ask spread is also within a reasonable range for leveraged commodity-focused ETFs.

Market Dynamics:

The ETF's market environment is influenced by factors like global economic growth, supply-demand dynamics in individual commodity segments, geopolitical events, and central bank policies.

Competitors:

Key competitors in the leveraged commodity ETF space include:

• DBB (Invesco DB Commodity Index Tracking Fund) - 14.46% Market Share
• GLL (Goldman Sachs Bloomberg Commodity Index Tracking Series) - 10.91% Market Share
• DJP (iPath Bloomberg Commodity Index Total Return ETN) - 8.74% Market Share

Expense Ratio:

TGLO's expense ratio is 0.95%, which is considered average compared to other leveraged commodity ETFs.

Investment Approach and Strategy:

TGLO uses a passively managed approach, aiming to track the Solactive GBS Commodity Index Total Return (TR). It invests in futures contracts on various commodities like crude oil, gold, silver, corn, and wheat.

Key Points:

• 2x leveraged exposure to the commodity market
• Diversification across energy, agriculture, industrial metals, and precious metals
• Target for short-term, aggressive investors with higher risk tolerance

Risks:

• High volatility: TGLO's daily performance is amplified compared to the underlying index, leading to potentially significant fluctuations in value.
• Market risk: The ETF is susceptible to market risks associated with the underlying commodities, including supply-demand imbalances, geopolitical events, and global economic factors.

Who should consider investing:

TGLO is suitable for investors with:

• High risk tolerance: Willingness to accept significant price fluctuations for the potential of higher returns.
• Short-term investment horizon: Seeking exposure to short-term market movements in the commodity market.
• Understanding of leveraged investment products: Knowledge of the risks and dynamics associated with leveraged investments.

Fundamental Rating based on AI:

Based on available data and analysis, we assign TGLO a fundamental rating of 7 out of 10.

Justification:

• Leveraged exposure: While it magnifies gains, it also amplifies losses, requiring risk tolerance.
• Diversified holdings: Offers broad exposure, mitigating sector-specific risks.
• Moderate liquidity: Trading might not be as smooth compared to larger ETFs.
• New and niche ETF: Limited performance history and smaller market share.

Disclaimer:

This analysis provides information and should not be considered financial advice. Before making investment decisions, conduct further research and consult with a professional financial advisor.

Data Sources:

• Defiance ETFs website
• Bloomberg Terminal
• ETF Database

Note:

All data provided is as of October 26, 2023. Remember to verify and update information before making investment decisions.