Defiance Launches NVOX, the First 2X Leveraged Single-Stock ETF on Novo Nordisk
MIAMI, Dec. 03, 2024 (GLOBE NEWSWIRE) -- Defiance ETFs today launched NVOX, the world's first single-stock leveraged ETF for the pharmaceutical stock Novo Nordisk (NYSE:NVO). As the weight loss market continues to expand and Novo Nordisk is a key provider in that space, NVOX offers retail investors 2X daily long leveraged exposure to the change in the daily share price of Novo Nordisk without the need for a margin account. This provides a unique tool for tactical traders. NVOX does not invest directly in Novo Nordisk and has a higher degree of risk due to tracking a single stock.
Novo Nordisk is a leading global healthcare company, founded in 1923 and headquartered in Denmark, seeking to drive change to defeat serious chronic diseases, built upon their heritage in diabetes. The company does so by pioneering scientific breakthroughs, expanding access to their medicines, and working to prevent and ultimately cure disease. Novo Nordisk employs about 69,000 people in 80 countries and markets its products in around 170 countries.
"For investors who want to gain enhanced exposure to the share price movement of Novo Nordisk stock, NVOX is a great choice," said Sylvia Jablonski, CEO of Defiance ETFs. "As people worldwide are losing weight using products like Ozempic and Wegovy, their maker Novo Nordisk represents a multi-trillion-dollar opportunity, and we are excited to provide investors with a groundbreaking trading tool to participate in this transformative sector."
About Defiance ETFs
Founded in 2018, Defiance stands as a leading ETF issuer dedicated to income and thematic investing. Defiance also pioneers leveraged ETFs designed for traders seeking tactical opportunities.
Our suite of first-mover leveraged & thematic ETFs empowers investors to express targeted views on disruptive innovations, including artificial intelligence, machine learning, and quantum computing, while our actively managed options ETFs are designed to seek current income.
Important Disclosures
The fund attempts to provide daily investment results that correspond to two times (200%) the share price performance of an underlying exchange-traded fund (an "Underlying Security"). The Fund is not intended to be used by, and are not appropriate for, investors who do not intend to actively monitor and manage their portfolios. The Fund is very different from most mutual funds and exchange-traded funds.
The Fund's investment adviser will not attempt to position a Fund's portfolio to ensure that the Fund does not gain or lose more than a maximum percentage of its net asset value on a given trading day. As a consequence, if an Underlying Security's share price referenced by a Fund decreases by more than 50% on a given trading day, the corresponding Fund's investors could lose all of their money.
NVOX Disclosure: 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 funds may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. A portfolio concentrated in a single industry or country, may be subject to a higher degree of risk.
There is no guarantee that the Fund's investment strategy will be properly implemented, and an investor may lose some or all of its investment.
Total return represents changes to the NAV and accounts for distributions from the fund.
Median 30 Day Spread is a calculation of Fund's median bid-ask spread, expressed as a percentage rounded to the nearest hundredth, computed by: identifying the Fund's national best bid and national best offer as of the end of each 10 second interval during each trading day of the last 30 calendar days; dividing the difference between each such bid and offer by the midpoint of the national best bid and national best offer; and identifying the median of those values.
Underlying Security Risk. The underlying security is subject to many risks that can negatively impact the Fund.
Indirect Investment in NVO Nordisk Risk. NVO Nordisk is not affiliated with the Trust, the Fund, or the Adviser, or their respective affiliates and is not involved with this offering in any way and has no obligation to consider your Shares in taking any corporate actions that might affect the value of Shares.
NVO Trading Risk. The trading price of the Underlying Security may exhibit volatility and significant fluctuations due to various factors inherent in the semiconductor industry. This sector is susceptible to price and volume fluctuations, which may not always correlate with the companies' operational performance. Short sellers may exert influence on trading dynamics, potentially impacting supply and demand dynamics and contributing to market price volatility.
NVO Performance Risk. NVO may fail to meet its publicly announced guidelines or other expectations about its business, which could cause the price of NVO to decline. NVO provides guidance regarding its expected financial and business performance, such as projections regarding sales and production, as well as anticipated future revenues, gross margins, profitability and cash flows.
Pharmaceutical Industry Risks. Pharmaceutical research and development are very costly and highly uncertain; NVO may not succeed in developing, licensing, or acquiring commercially successful products sufficient in number or value to replace revenues of products that have lost or will lose intellectual property protection or are displaced by competing products or therapies. NVO and NVO's products face intense competition from multinational pharmaceutical companies, biotechnology companies, and lower-cost generic and biosimilar manufacturers, and such competition could have a material adverse effect on NVO's business.
Fixed Income Securities Risk. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund.
Leverage Risk. Leverage may increase the risk of loss and cause fluctuations in the market value of the Fund's portfolio to have disproportionately large effects or cause the NAV of the Fund generally to decline faster than it would otherwise.
Derivatives Risk. Derivatives may be more sensitive to changes in market conditions and may amplify risks.
Foreign and Emerging Markets Risks. Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.
Effects of Compounding and Market Volatility Risk. The Fund has a daily leveraged investment objective and 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 very likely to differ from the Fund performance, before fees and expenses.
Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment which diversifies risk or the market generally. The value of the Fund, which focuses on an individual security, may be more volatile than a traditional pooled investment or the market as a whole and may perform differently from the value of a traditional pooled investment or the market as a whole.
Swap Agreements. The use of swap transactions is a highly specialized activity, which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. These risks may prevent the Fund from achieving its leveraged investment objective, even if the Underlying Security later reverses all or a portion of its movement.
Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in derivatives which exposes the Fund to the risk that the counterparty will not fulfill its obligation to the Fund.
Non-Diversification Risk. Because the Fund is "non-diversified," it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund. As a result, a decline in the value of an investment in a single issuer or a smaller number of issuers could cause the Fund's overall value to decline to a greater degree than if the Fund held a more diversified portfolio.
New Fund Risk. As of the date of this prospectus, the Fund has no operating history and currently has fewer assets than larger funds. Like other new funds, large inflows and outflows may impact the Fund's market exposure for limited periods of time.
Diversification does not ensure a profit nor protect against loss in a declining market.
Brokerage Commissions may be charged on trades.
NVOX is distributed by Foreside Fund Services, LLC.
Media Contacts:
Frank Taylor/Sarah Lazarus
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/023469e4-ef3a-4346-aa78-369588be7e25
