ETF issuer Defiance ETFs launched the Defiance Pure Space Daily 2X Strategy ETF (XAIL) on Wednesday, listing it on Cboe Exchange as what the firm describes as the world’s first 2X leveraged pure-space ETF.
The product combines two features that separate it from existing space-themed funds: a narrow “pure space” mandate and daily 2X leverage. That packaging is designed for short-term, bullish traders rather than long-term allocators, according to Defiance.
How XAIL works
The fund seeks daily investment results, before fees and expenses, that correspond to 200% of the performance of an actively managed portfolio of pure-space securities for a single day.
In simple terms, the portfolio resets daily, so returns over periods longer than one day will likely differ from 200% of the underlying basket’s return because of compounding effects.
The portfolio is actively selected and typically weighted approximately equally on a daily basis. Defiance says the strategy targets companies involved in spacecraft, launch vehicle and satellite manufacturing; satellite communications and space-based infrastructure; in-orbit services, logistics and space platforms; space-enabled data, analytics and applications; and enabling components and materials for space systems.
Cboe’s new issue notice confirms one exchange traded product began trading on Wednesday, with a single New Issue Auction to open trading at approximately 9:30 am Eastern Time.
