The folks at a thematic fund firm in Florida and an ETF-in-a-box shop are preparing to shutter a leveraged index ETF, less than one year after its debut.

Sylvia M. Jablonski Kampaktsis Defiance ETFs CEO, Chief Investment Officer

On Monday (April 7), the Defiance ETFs and Tidal Financial Group teams revealed plans to shut down the Defiance Daily Target 2x Long Uranium ETF (URAX on the NYSE Arca, Inc.). Miami-based Defiance Group Holdings LLC sponsors URAX, while Milwaukee-based Tidal Investments LLC serves as investment advisor.

"The Board of Trustees of Tidal Trust II and Defiance ETFs made this decision as part of Defiance's ongoing review of its product lineup and commitment to offering investors a focused suite of funds that best serve their evolving needs," the Defiance and Tidal teams explain in a public statement on the planned liquidation.

Trading and creation orders for URAX will cease on April 16. It is scheduled to be liquidated on April 21.

URAX comes with an expense ratio of 95 basis points. As of yesterday (April 8), the ETF had $3.35 million in AUM. It is PMed by Tidal portfolio managers Qiao Duan and Christopher Mullen.

URAX is designed to generate 200 percent of the daily returns of another fund: the 15-year-old, $2.35-billion-AUM Global X Uranium ETF (URA). Since URAX's inception on May 23, 2024, URA's shares have fallen 33.7 percent. URAX's shares are down 67.6 percent in that time.

URAX is an actively managed, non-diversified series of Tidal Trust II. The ETF's other service providers include:

Cohen & Company, Ltd. as independent accounting firm;

ACA's Foreside Fund Services, LLC as distributor;

Sullivan & Worcester LLP as counsel;

Tidal ETF Services LLC as administrator;

U.S. Bancorp Fund Services, LLC (dba U.S. Bank Global Fund Services) as fund accountant, sub-administrator, and transfer agent; and

U.S. Bank National Association as custodian.

 

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