Defiance Enhanced Long Vol ETF(NASDAQ:VIXI)

VIXI seeks to generate returns during periods of heightened volatility and equity market declines through a two-part approach. One component takes long positions in short-term VIX futures with exposure generally around 0.75x to 1x, aiming to benefit from increases in expected market volatility. The other maintains leveraged short exposure of about 1.5x to 2x to the S&P 500, seeking gains when US stocks fall. These positions are implemented through derivatives such as futures, swaps, and options, and may be accessed indirectly via a Cayman subsidiary. The fund also holds cash or short-term US Treasuries as collateral. While this structure can respond strongly to market stress, it can also produce substantial losses during extended bull markets or prolonged low-volatility periods, when both components may detract from performance. The combined exposures result in a risk profile influenced by both volatility movements and equity market direction.