Defiance ETFs Unveils VSTL: 2X Leveraged ETF Tracking Vistra Corp.

Defiance ETFs, a recognized innovator in thematic and leveraged exchange-traded funds, has announced the launch of the Defiance Daily Target 2X Long VST ETF, trading under the symbol VSTL. This new ETF is designed to offer investors 200% of the daily performance of Vistra Corp. (VST), a leading name in integrated retail electricity and power generation, enabling retail investors to access high-growth energy opportunities without the need for a margin account.

Key Features of VSTL

VSTL aims to deliver double the daily return of Vistra Corp. by using financial derivatives like swaps and options. This structure gives traders an efficient way to gain magnified exposure to the moves of a significant energy sector company.

Sylvia Jablonski, CEO of Defiance ETFs, highlighted that the VSTL ETF showcases Defiance’s dedication to innovative leveraged products, especially those targeting high-impact sectors experiencing rapid transformation. Vistra’s prominent position in clean energy makes it a strategic addition, particularly for active investors seeking growth within the resilient energy market.

Why Focus on Vistra Corp.?

Vistra Corp. stands out at the forefront of the clean energy movement in the US, running one of the largest zero-carbon nuclear and solar energy fleets. With growing demand for reliable, sustainable power sources, Vistra’s emphasis on renewables, battery storage, and grid modernization offers investors unique exposure to the expanding green energy industry.

Important Note: Investing in VSTL is not the same as owning shares of Vistra Corp.

Risks and Considerations

VSTL is designed for knowledgeable investors who understand the complexities and potential risks of daily leveraged investments. This fund is not appropriate for those unwilling or unable to monitor their investments regularly. Leveraged ETFs such as VSTL can experience significant losses, even over short periods, especially if Vistra Corp.’s stock price remains flat or declines. Investors should be aware there is the potential to lose the entire principal invested within a single trading day.

Detailed Risks:

• Market and Stock-Specific Risk: VSTL is tied closely to the performance of Vistra Corp. shares, which can be highly volatile.
• Energy Sector Risk: The fund exposes investors to the energy industry, which is subject to fluctuations due to commodity prices, regulations, environmental concerns, and evolving demand for renewable solutions.
• Derivatives and Leverage Risks: The fund’s use of swaps and options introduces specific risks such as imperfect correlation and the potential for amplified losses.
• Compounding Effect: The daily reset mechanism can result in returns that diverge from the expected 2X multiple over periods longer than one day due to compounding.
• Non-Diversification and Issuer Risk: VSTL focuses on a single company, making it more volatile than diversified funds.
• High Turnover and Tax Impact: Frequent trading may raise costs and introduce unwanted tax consequences.
• New Fund Risk: As a new ETF, VSTL has limited operational history, adding uncertainty for investors.

ETF shares may trade at a premium or discount relative to their net asset value (NAV), and brokerage fees can apply to trades. There is no assurance that the fund’s strategy will meet its objectives or that it will prevent losses.

About Defiance ETFs

Founded in 2018, Defiance ETFs is a leader in the creation of thematic, income, and leveraged exchange-traded funds. The company was among the first to launch leveraged single-stock ETFs, allowing investors to precisely target exposure to major growth companies without the need for a margin account.

Disclaimer

This content is for informational purposes only and does not constitute financial advice.