MIAMI, March 03, 2026 (GLOBE NEWSWIRE) -- Defiance ETFs today announced the launch of the Defiance 2X Daily Long Pure Drone and Aerial Automation ETF (DRNL), expanding its lineup of leveraged thematic ETFs designed for active traders seeking amplified exposure to the rapidly growing drone and aerial automation industry.
DRNL is designed for traders seeking magnified, short-term bullish exposure to the BITA Pure Drone and Aerial Automation Index, a rules-based index focused on companies directly involved in drone manufacturing, drone technology, aerial automation, autonomous flight systems, and electric vertical take-off and landing (eVTOL) aircraft. By seeking to deliver 200% of the daily percentage change of the Index, the Fund allows investors to express tactical upside views on the drone and advanced air mobility ecosystem within the accessibility and transparency of an exchange-traded fund structure.
Investment Objective
The Fund seeks daily investment results, before fees and expenses, that correspond to two times (2X) the daily performance of the BITA Pure Drone and Aerial Automation Index (the “Index”).
Underlying Index: BITA Pure Drone and Aerial Automation Index
The Index is designed to track companies that derive a majority of their revenue from drone and aerial automation-related activities, including:
- Drone & UAV manufacturing
- Drone software and avionics systems
- Drone services and “Drone-as-a-Service” solutions
- Autonomous drone technologies, including AI-driven flight systems
- Electric and urban air mobility (eVTOL) platforms
The Index includes U.S.-listed companies meeting minimum market capitalization and liquidity requirements and is equal-weighted. It is reconstituted and rebalanced annually.
The Index is expected to have significant exposure to companies within the Aerospace & Defense and Electronic Equipment, Instruments & Components industries.
An investment in DRNL is not a direct investment in the Index.
The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) investment results, understand the risks associated with the use of leverage, and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. The Fund pursues daily leveraged investment objectives, which means it is riskier than alternatives that do not use leverage. The Fund magnifies the performance of the Index and is designed strictly for short-term use. For periods longer than a single day, the Fund’s performance will be the result of compounded daily returns, which is very likely to differ from 200% of the return of the Index over the same period. It is possible that investors could lose their entire principal within a single trading day.
IMPORTANT DISCLOSURES
Defiance ETFs LLC is the ETF sponsor. The Fund's investment adviser is Tidal Investments, LLC ("Tidal" or the "Adviser").
The Fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary prospectus contain this and other important information about the investment company. Please read the prospectus and/or summary prospectus carefully before investing. Hard copies can be requested by calling 833.333.9383.
Investing involves risk. Principal loss is possible. As an ETF, the Fund may trade at a premium or discount to NAV. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. A portfolio concentrated in a single theme or industry may be subject to a higher degree of risk. There is no guarantee the Fund's strategy will be properly implemented, and an investor may lose some or all of its investment.
Index Price Decline Risk. As part of the Fund's leveraged investment strategy, the Fund enters into swap agreements and options contracts based on the performance of the BITA Pure Drone and Aerial Automation Index (the "Index"). This strategy subjects the Fund to certain of the same risks as if it owned securities included in the Index, even though it does not. By virtue of the Fund's indirect 2X exposure to changes in the value of the Index, the Fund is subject to the risk that the Index declines. If the Index decreases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses. The Fund may also be subject to the following risks:
Indirect Investment Risk. The Index is maintained by an independent index provider that is not affiliated with the Trust, the Fund, the Adviser, or their respective affiliates, and is not involved with this offering in any way. The Index Provider has no obligation to consider the Fund or its shareholders in taking any actions that might affect the value of Fund shares.
Index Poor Performance Risk. The market value of the Index may decline due to adverse developments affecting companies involved in drone manufacturing, drone software, aerial automation, autonomous systems, or electric vertical take-off and landing (eVTOL) technologies. The drone and aerial automation industry can be significantly affected by technological disruption, regulatory changes, defense spending priorities, supply chain constraints, competition, and global economic conditions. Adverse developments specific to these industries could negatively impact the Fund's performance.
Underlying Index Risk. Securities included in the Index are subject to many risks that can negatively impact the Fund. In addition to ETF Risks, Market Risks, Operational Risks, and Tax Risks, companies in the Index may be subject to the following risks (among other risks):
Aerospace & Defense Industry Risks: Companies in the aerospace and defense industry are subject to risks stemming from their reliance on government budgets and spending priorities, geopolitical tensions, regulatory changes, and export controls. These companies often operate under long-term fixed-price contracts and rely on complex supply chains. Disruptions, cybersecurity incidents, cost overruns, or changes in defense policy may adversely affect profitability and share prices.
Electronic Equipment, Instruments & Components Industry Risks: Companies in this industry face risks including rapid technological change, component shortages, semiconductor supply constraints, geopolitical tensions, trade restrictions, and intense competition. These companies may be dependent on a limited number of suppliers and may face production delays, pricing pressures, or obsolescence risks.
Autonomous & Advanced Mobility Risks: Companies developing autonomous drone technologies or eVTOL platforms face regulatory approval uncertainty, certification risk, high research and development costs, capital intensity, commercialization challenges, and evolving airspace management frameworks. There is no assurance that these technologies will achieve broad adoption or commercial viability.
Foreign Securities Risks: To the extent Index constituents include ADRs or foreign issuers listed in the United States, investments may involve risks greater than those associated with U.S. securities, including political, economic, and regulatory risks.
Leverage Risk. The Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage.
Concentration Risk. Because the Fund expects to concentrate its investments in industries such as Aerospace & Defense and Electronic Equipment, Instruments & Components, it may be more volatile than funds that invest in a broader range of industries.
Compounding and Market Volatility Risk. The Fund's performance for periods greater than a trading day will be the result of each day's returns compounded over the period, which is likely to differ from 200% of the Index's performance.
Daily Correlation and Tracking Risk. There is no guarantee that the Fund will achieve a high degree of correlation with 200% of the daily performance of the Index. Market disruptions, extreme volatility, liquidity constraints, or limitations in the availability of derivatives may cause the Fund's performance to deviate from its daily leveraged investment objective.
Derivatives Risk. The Fund's use of swap agreements and options contracts involves risks different from, and potentially greater than, those associated with direct investments in securities. These risks include increased volatility, imperfect correlation with the Index, liquidity constraints, valuation challenges, and the potential for losses exceeding the amount initially invested.
Counterparty Risk. The Fund is subject to counterparty risk due to its use of derivatives. If a counterparty to a swap agreement or other derivative instrument fails to meet its contractual obligations, the Fund may experience losses, delays in recovering assets, or reduced exposure, which could negatively impact its performance.
Rebalancing Risk. The Fund seeks to rebalance its exposure daily to maintain its target leveraged exposure. If the Fund is unable to rebalance properly or in a timely manner due to market conditions, operational issues, or regulatory constraints, the Fund's exposure may differ materially from its intended objective, increasing risk and potential losses.
Non-Diversification Risk. The Fund is classified as non-diversified and may invest a greater percentage of its assets in a smaller number of issuers than a diversified fund. As a result, the Fund may be more sensitive to adverse economic, regulatory, or market developments affecting Index constituents.
High Portfolio Turnover Risk. Daily rebalancing of the Fund's holdings is expected to result in high portfolio turnover, which may increase transaction costs and potentially result in higher taxable distributions for shareholders.
Liquidity Risk. During periods of market stress or volatility, certain financial instruments held by the Fund may become less liquid, making it difficult to adjust exposure or meet the Fund's investment objective. Reduced liquidity may also result in wider bid-ask spreads and increased trading costs for investors.
New Fund Risk. The Fund is recently organized and has a limited operating history. As a result, there is limited performance history upon which investors can evaluate the Fund's ability to achieve its investment objective.
Diversification does not ensure a profit nor protect against loss in a declining market. Brokerage commissions may be charged on trades.
Distributed by Foreside Fund Services, LLC.
Media Contact:
Sylvia Jablonski
info@defianceetfs.com
833.333.9383
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/31631b26-874f-41cc-b36c-d920bd124118
