The Strategic Case for Leveraged Exposure to Ondas Holdings via ONDL

The emerging wireless technology sector has become a focal point for investors seeking to capitalize on the rapid digitization of global infrastructure, particularly in defense and homeland security. Among the most dynamic players in this space is Ondas Holdings Inc. (ONDS), whose aggressive expansion, technological innovation, and robust financials have positioned it as a standout performer. For short-term traders, the Defiance Daily Target 2X Long ONDS ETF (ONDL) offers a compelling vehicle to amplify exposure to Ondas' growth trajectory. This article examines the strategic rationale for leveraging ONDL, emphasizing its alignment with the sector's volatility and Ondas' operational momentum.

Ondas Holdings: A Catalyst for Sector Growth

Ondas' Q3 2025 results underscore its meteoric rise. The company reported revenue of $10.1 million, a 6-fold year-over-year increase and 60% quarter-over-quarter growth, driven by its Ondas Autonomous Systems (OAS) segment. This segment alone generated $10.0 million in revenue, reflecting a more than 8-fold surge compared to 2024. Strategic acquisitions, including Apeiro Motion and Rift Dynamics, have expanded Ondas' capabilities in ground robotics, drone threat mitigation, and multi-domain ISR systems. These moves, coupled with a pro-forma cash balance of $840.4 million, enable the company to pursue a $36 million 2025 revenue target and a $110 million 2026 goal.

The company's product pipeline further strengthens its market position. The Iron Drone Raider and Optimus System have secured high-value contracts, including a $2.7 million order for the former and a $3.5 million deal for Apeiro's rugged UGVs. Meanwhile, Ondas' dot16 platform is emerging as a key solution for private network modernization in the rail industry. These developments highlight Ondas' ability to monetize its technological edge in mission-critical applications, a sector poised for sustained demand amid geopolitical tensions and infrastructure modernization efforts.

ONDL: Amplifying Exposure in a Volatile Sector

The Defiance Daily Target 2X Long ONDS ETF (ONDL) is designed to deliver 200% of the daily percentage change in ONDS' share price, making it a high-conviction tool for short-term traders. With an expense ratio of 1.31% and daily rebalancing, ONDL magnifies both gains and losses, a structure ideal for capitalizing on Ondas' volatility. In 2025, ONDL demonstrated its potential, surging 153.40% in the last month of the year and delivering a 49.87% net asset value (NAV) return. This performance outpaced diversified tech ETFs like the Vanguard Information Technology ETF (VGT) and iShares U.S. Technology ETF (IYW), which offer broader but less concentrated exposure.

ONDL's volatility is inherent to its design. Unlike VGT and IYW-diversified funds with 322 and 141 holdings, respectively-ONDL's focus on a single issuer amplifies its sensitivity to Ondas' stock movements. For instance, Ondas' 365% surge over the past 12 months has translated into outsized returns for ONDL, albeit with higher risk. This dynamic aligns with the strategic imperative of short-term traders seeking to exploit rapid price swings in a sector characterized by high growth and regulatory tailwinds.

Risk Considerations and Strategic Positioning

While ONDL's leverage offers significant upside, it is not without risks. Compounding effects over multi-day periods can erode returns, particularly in volatile markets. Additionally, Ondas' reliance on defense contracts and geopolitical demand introduces sector-specific risks. However, these challenges are mitigated by the company's strong balance sheet, growing backlog ($22.2 million as of September 2025), and strategic partnerships, such as its collaboration with Nammo Raufoss AS to integrate advanced munitions with Rift's Wasp drone platform.

For traders, the key lies in timing and discipline. ONDL is best suited for tactical positions aligned with Ondas' earnings cycles, product launches, or macroeconomic catalysts. Its daily rebalancing mechanism ensures that exposure remains tightly calibrated to ONDS' performance, reducing the need for frequent manual adjustments.

Conclusion: A High-Conviction Play in a High-Growth Sector

The strategic case for ONDL rests on Ondas' unparalleled growth, technological differentiation, and the structural advantages of leveraged exposure. While the product's risks are non-trivial, its alignment with the emerging wireless tech sector's volatility and Ondas' operational momentum makes it a compelling tool for short-term traders. As the defense and homeland security markets expand, ONDL offers a focused, amplified pathway to participate in a company that is redefining the boundaries of autonomous systems and wireless innovation.