The leveraged ETF market is not just getting more aggressive. It is getting faster.
Defiance ETFs has filed plans for a new batch of 2X single-stock ETFs that would reset their exposure six times during the trading day, effectively allowing investors to make leveraged bets over hourly windows instead of an entire session, according to Bloomberg.
The proposed products target some of the market’s hottest names, including Nvidia Corp (NASDAQ:NVDA), Meta Platforms Inc (NASDAQ:META), Microsoft Corp (NASDAQ:MSFT), Palantir Technologies Inc (NASDAQ:PLTR) and Tesla, Inc (NASDAQ:TSLA) along with Advanced Micro Devices Inc (NASDAQ:AMD), Micron Technology Inc (NASDAQ:MU), Marvell Technology (NASDAQ:MRVL), SpaceX (NASDAQ:SPCX) and other technology and semiconductor-linked names. SEC filings list 16 proposed hourly-reset ETFs.
The move marks a notable evolution in the leveraged ETF business. Traditional 2X single-stock ETFs seek to deliver twice the underlying stock’s move over one trading day. Defiance’s proposed funds would recalibrate their exposure roughly every hour, creating several separate 2X return periods within the same session.
In other words, the ETF’s clock would reset before the market does.
