Defiance ETFs Launches Two Single-Stock Leveraged ETFs with Income Strategies

Defiance ETFs has launched two single-stock leveraged ETFs with income strategies: AMDU and SMCC. These funds offer leveraged exposure to Advanced Micro Devices and Super Micro Computer, respectively, with an options-based credit call spread income strategy designed to amplify growth potential and generate consistent cash flow. The ETFs provide approximately 150%-200% leveraged exposure to their underlying stocks.

Defiance ETFs has introduced two new single-stock leveraged ETFs with income strategies: Defiance Leveraged Long + Income AMDU ETF and Defiance Leveraged Long + Income SMCC ETF. These funds aim to provide investors with amplified growth potential and consistent cash flow through an options-based credit call spread income strategy. Each ETF offers approximately 150%-200% leveraged exposure to Advanced Micro Devices (AMD) and Super Micro Computer (SMCI), respectively.

The Defiance Leveraged Long + Income AMDU ETF (NASDAQ: AMDU) focuses on AMD, a leading manufacturer of semiconductor products. AMD's products are widely used in computing, gaming, and data centers. The ETF combines leveraged exposure to AMD's stock with an income strategy that seeks to generate premium income and manage risk.

Similarly, the Defiance Leveraged Long + Income SMCC ETF (NASDAQ: SMCC) is designed to provide leveraged exposure to SMCI, a major player in the data center and AI infrastructure market. SMCI's liquid-cooling technology and growing global footprint make it a key player in the AI infrastructure sector. The ETF also incorporates an income strategy to generate premium income and mitigate risk associated with leverage.

Both ETFs aim to deliver long-term capital appreciation as their primary objective, with a secondary objective of current income. However, it is important to note that the Fund may not achieve daily investment results that correspond to 150% to 200% the performance of the Underlying Security, and may return substantially less during such periods. Additionally, the Funds’ investment objectives, risks, charges, and expenses must be considered carefully before investing.

Investors should be aware of the risks associated with these ETFs, including the potential for significant losses if the underlying stocks decline in value. The Funds invest in swap contracts and options that are based on the share price of AMD and SMCI, respectively. If the share price of these stocks decreases, the Funds will likely lose value and may suffer significant losses.

Investors should also be aware of the high portfolio turnover risk associated with these ETFs, as well as the non-diversification risk, given that the Funds are non-diversified and may invest a greater percentage of assets in a single issuer or a smaller number of issuers.

References:
[1] https://www.globenewswire.com/news-release/2025/08/19/3135582/0/en/Defiance-ETFs-Launches-Leveraged-Income-ETFs-for-Palantir-PLT-Hims-Hers-Health-HIMY-and-Robinhood-Markets-HOOI.html
[2] https://seekingalpha.com/article/4814804-super-micro-computer-the-hidden-winner-in-the-ai-factory-race