Defiance Leveraged Long Plus Income Ethereum ETF

C000263883 Fund Overview

Defiance Leveraged Long Plus Income Ethereum ETF is a US ETF managed by Tidal Trust II, categorised as United States Value Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Tidal Trust II
• Category: United States Value Equity
• Assets under management: $4.30M
• SEC CIK: 0001924868
• SEC series ID: S000095195
• Share class ID: C000263883

C000263883 Investment Objective and Strategy

Defiance Leveraged Long Plus Income Ethereum ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Tidal Trust II.

Investment objective

The Defiance Leveraged Long + Income Ethereum ETF (the Fund) seeks long-term capital appreciation

Principal investment strategy

The Fund is an actively-managed exchange-traded fund (ETF) that seeks to achieve its investment objective through a combination of a Leveraged Strategy and an Income Generation Strategy. The Leveraged Strategy aims to amplify returns by employing derivatives to achieve exposure to the share price ( i.e., the price returns) of one or more select U.S.-listed exchange-traded products (ETPs) that seek exposure to ether, which is a digital asset (each an Underlying ETP and collectively, the Underlying ETPs) at daily levels ranging from 150% to 200% of the performance of the Underlying ETPs. In pursuing the Leveraged Strategy, the Fund will invest primarily in swap agreements or option contracts on shares of the Underlying ETPs. The Fund may also invest directly in certain Underlying ETPs only to the extent that they (i) do not hold ether directly and (ii) achieve exposure to ether indirectly via derivatives.

The Income Generation Strategy complements the Leveraged Strategy by utilizing credit call spreads to seek to generate premium income and manage risk associated with the Funds leveraged exposure. While these strategies are designed to enhance potential returns and mitigate certain risks, the Income Generation Strategy may limit the upside performance of the Leveraged Strategy on the portion of exposure covered by the credit call spreads. The Fund does not invest directly in ether or any other digital assets. The Fund does not invest directly in derivatives that track the performance of ether or any other digital assets. The Fund does not invest in or seek direct exposure to the current spot or cash price of ether. Investors seeking direct exposure to the price of ether should consider an investment other than the Fund.

? Leveraged Strategy: The Fund seeks to achieve its investment objective by entering into derivatives transactions ( i.e., swap agreements and options contracts) to gain long exposure to the Underlying ETPs. The Fund uses leverage to seek to provide daily returns of approximately 150% to 200% of the performance of the Underlying ETPs, before fees and expenses. Although the Funds leverage will vary, its base, daily target leverage level will be approximately 200%. The Funds investment adviser will determine the Funds actual leverage level based on market conditions and other factors described below. For example, if volatility in the Underlying ETPs increases significantly, the Fund may adjust its leverage level to seek to manage risk. Leverage adjustments may also be influenced by operational considerations, such as the availability and cost of derivatives, regulatory constraints, or the overall liquidity of the Underlying ETPs and associated derivatives markets.

The Funds dynamic approach to leverage allows it to remain responsive to market conditions while striving to achieve its stated investment objective. If the Fund encounters limitations in implementing its strategies, whether due to market conditions, derivative availability, counterparty issues, or other factors, the Fund may not achieve daily investment results, before fees and expenses, that correspond to 150% to 200% the performance of the Underlying ETPs, and may return substantially less during such periods. During such periods, the Funds actual leverage levels may differ substantially from its intended leverage target range, both intraday and at the close of trading, potentially resulting in significantly lower returns. The Fund employs leverage to enhance the total return of its long exposure to the Underlying ETPs.

Under normal market conditions, the Funds daily exposure to the Underlying ETPs is expected to range from approximately 150% to 200% of the Funds net assets. This means that for each dollar invested in the Fund, the investors exposure to the performance of the Underlying ETPs will be equivalent to approximately one and a half to two dollars, magnifying the potential gains or losses associated with fluctuations in the price of the Underlying ETPs. The term exposure refers to the extent to which the Funds performance is influenced by changes in the Underlying ETPs value. As a result of the Funds leveraged strategy, an investment in the Fund is effectively amplified, allowing investors to potentially benefit from (or incur losses related to) the price movements of the Underlying ETPs. This approach seeks to provide enhanced returns, though it also carries commensurate risks, including the possibility of amplified losses.

The Fund may utilize swap agreements (bilateral contracts in which the Fund agrees to exchange cash flows or returns with a counterparty based on the performance of the Underlying ETPs over a specified period) and/or listed options contracts (standardized financial derivatives that give the Fund the right, but not the obligation, to buy or sell the Underlying ETPs at a predetermined price within a specified timeframe) to achieve leveraged exposure. Swap agreements may be entered into with financial institutions for periods ranging from one day to over a year. These agreements involve exchanging the return (or rate-of-return differentials) on the Underlying ETPs share price. The return to be exchanged is calculated with respect to a notional amount (the face value of the instrument), such as the return on or change in value of a specific dollar amount representing the Underlying ETPs.

The swap agreements the Fund may utilize will typically reset on a monthly basis or upon the occurrence of mutually agreed-upon conditions, such as when receivable or payable amounts reach predetermined thresholds relative to the principal. These resets effectively lock in the accumulated performance of the swap agreement up to that point. The Fund may also employ listed options, such as short-dated (a month or less) in-the-money call options (options with strike prices below the current market price of the Underlying ETPs, offering immediate intrinsic value), to achieve or supplement its leveraged exposure. These options allow the Fund to dynamically adjust its leverage strategy based on market conditions, liquidity constraints, or pricing considerations for swaps. The ability to incorporate options provides additional flexibility in pursuing the Funds daily investment objective, enhancing the Funds capacity to respond to various market dynamics.

At the end of each trading day, the Funds swaps and options are marked to market (valued based on current market prices), and the Funds investment adviser rebalances the portfolio to maintain leveraged exposure of approximately 150% to 200% of the Underlying ETPs share price. This rebalancing ensures alignment with the Funds investment objective. The performance of the Fund over periods exceeding a single day is influenced by several factors, including: a) the volatility of the Underlying ETPs; b) the Underlying ETPs overall performance; c) the duration of the investment period; d) financing rates associated with leveraged exposure; and e) other Fund expenses. ? Income Generation Strategy: The Fund will write (sell) credit call spreads (described below) to generate premium income and manage risk associated with its leveraged exposure to the Underlying ETPs share price.

A credit call spread involves selling a call option while simultaneously buying a call option with a higher strike price, both with the same expiration date. By writing credit call spreads, the Fund can potentially offset losses incurred from its short call positions if the Underlying ETPs share price rises above the upper strike price. The Funds credit call spreads are generally implemented on approximately 100% of the Funds net notional exposure to the Underlying ETPs. For instance, if the Fund employs leverage of 200%, half of the Funds effective exposure to the Underlying ETPs will be offset by the call spread, limiting upside participation for that portion of the exposure. While the strategy reduces the potential for gains from leveraged increases in the Underlying ETPs price, it generates premium income and mitigates risk through predefined limits on losses.

Portfolio Attributes The Fund will seek to provide income distributions at least monthly in the form of cash. The Fund will hold assets to serve as collateral for the Funds derivatives investments. For those collateral holdings, the Fund may invest in (1) U.S. Government securities, such as bills, notes and bonds issued by the U.S. Treasury; (2) money market funds; (3) short term bond ETFs; and/or (4) corporate debt securities, such as commercial paper and other short-term unsecured promissory notes issued by businesses that are rated investment grade or of comparable quality. The Fund has adopted a policy to have at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments that provide financial exposure to the Underlying ETPs. For purposes of compliance with this 80% policy, derivatives will be valued at notional value.

The Fund is expected to have a high annual portfolio turnover rate. The Fund is classified as non-diversified under the 1940 Act. There is no guarantee that the Funds investment strategy will be properly implemented, and an investor may lose some or all of its investment. Due to the Funds investment strategy, the Funds will have economic exposure that is concentrated ( i.e., more than 25% of its total assets) to the industry or group of industries, if any, assigned to Ethereum. Information About Ether As noted above, the Fund does not invest directly in ether or any other digital assets. The Fund does not invest directly in derivatives that track the performance of ether or any other digital assets. The Fund does not invest in or seek direct exposure to the current spot or cash price of ether.

Investors seeking direct exposure to the price of ether should consider an investment other than the Fund. However, the Underlying ETPs may invest directly or indirectly ( e.g., via futures) in ether. The following provides an overview of ether, the Ethereum Blockchain, the relationship between the two, as well as their use cases. Ether Description Ether is a digital asset which serves as the unit of account on an open-source, decentralized, peer-to-peer computer network. Ether may be used to pay for goods and services, stored for future use, or converted to a government-issued currency. As of the date of this Prospectus, the adoption of ether for these purposes has been limited. The value of ether is not backed by any government, corporation, or other identified body. The value of ether is determined in part by the supply of and demand for, ether in the markets for exchange that have been organized to facilitate the trading of ether.

Ether is the second largest digital asset by market capitalization behind bitcoin. Ether is maintained on the decentralized, open source, peer-to-peer computer network (Ethereum Network). No single entity owns or operates the Ethereum Network. The Ethereum Network is accessed through software and governs the creation and movement of ether. The source code for the Ethereum Network is open-source, and anyone can contribute to its development. Ethereum Network The infrastructure of the Ethereum Network is collectively maintained by participants in the Ethereum Network, which include validators, developers, and users. Validators validate transactions and are currently compensated for that service in ether, as determined by the Ethereum Protocol. Developers maintain and contribute updates to the Ethereum Networks source code.

Users access the Ethereum Network using open-source software. Anyone can be a user, developer, or validator. Ether is maintained on a digital transaction ledger commonly known as a blockchain. A blockchain is a type of shared and continually reconciled database, stored in a decentralized manner on the computers of certain users of the digital asset and is protected by cryptography.

C000263883 Holdings

Top 3 holdings of Defiance Leveraged Long Plus Income Ethereum ETF by percentage of net assets, from the fund's latest SEC N-PORT filing.

View all C000263883 holdings

C000263883 Portfolio Allocation

Asset-class allocation of Defiance Leveraged Long Plus Income Ethereum ETF by percentage of net assets, from the latest SEC N-PORT filing.

C000263883 Costs and Fees

C000263883 costs about $151 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.51%
• Gross expense ratio: 1.51%

C000263883 Cashflows

Over the 12 months to 2025-12, Defiance Leveraged Long Plus Income Ethereum ETF had net inflows of $8.47M, from monthly SEC N-PORT filings.

C000263883 Debt Constituents

Largest debt holdings of Defiance Leveraged Long Plus Income Ethereum ETF by percentage of net assets, from the latest SEC N-PORT filing.

C000263883 Prospectus and SEC Filings

Official Defiance Leveraged Long Plus Income Ethereum ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2025-09-09
• Portfolio holdings (N-PORT) — filed 2026-02-24
• Portfolio holdings (N-PORT) — filed 2025-11-26

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• HCM Dividend Sector Plus Fund (HCMNX)
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Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.