PRAI — Defiance Pure AI Daily 2X Strategy ETF

PRAI Fund Overview

PRAI — Defiance Pure AI Daily 2X Strategy ETF is a US ETF managed by Tidal Trust II, categorised as Money Market. 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: Money Market
• Ticker: PRAI
• SEC CIK: 0001924868
• SEC series ID: S000105026
• Share class ID: C000275732

PRAI Investment Objective and Strategy

Defiance Pure AI Daily 2X Strategy ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Tidal Trust II.

Investment objective

The Fund seeks daily investment results, before fees and expenses, that correspond to two times (2X) the performance of an actively-managed group of pure artificial intelligence (AI) securities, meaning securities of issuers for which AI is a principal line of business as defined below, for a single day (the group of equity securities is referred to as the Target Portfolio).

Principal investment strategy

The Fund seeks daily leveraged investment results, before fees and expenses, that correspond to two times (2X) the performance of an actively managed group of pure artificial intelligence (AI) company securities, meaning securities of issuers for which AI is a principal line of business as defined below, (the Target Portfolio) by employing derivatives, namely swap agreements and/or listed options contracts. The Fund does not seek to achieve its stated investment objective for a period of time different than a trading day. The terms daily, day, and trading day, refer to the period from the close of the markets on one trading day to the close of the markets on the next trading day, generally 4:00 p.m. Eastern Time. The Fund defines Pure Artificial AI Companies as companies for which AI is a principal line of business as measured by meeting one or more of the following criteria: ?

Derive at least 50% of their revenues from AI technologies, products, services, or applications, such as companies engaged in, among other areas, AI software and model development, AI-enabled applications and automation tools, data analytics and AI services, and other AI-driven products or platforms; ? Allocate at least 50% of their assets or capital expenditures to AI infrastructure, computing, data processing, or related technologies, such as companies investing primarily in semiconductors and specialized hardware, cloud computing and data-center infrastructure, data processing and storage, networking and advanced computing systems, or other technology infrastructure supporting AI workloads; or ? Incur at least 50% of their research and development expenditures related to AI or machine learning, such as companies focused on developing AI models, algorithms, and related software, improving AI hardware or compute efficiency, or advancing AI-enabled products, platforms, and services across end markets.

The Fund seeks to obtain leveraged 2X exposure to the Target Portfolio primarily through swap agreements and/or listed options strategies. The Fund does not invest directly in the equity securities of the companies included in the Target Portfolio. If the Fund encounters limitations in implementing its strategies, whether due to market conditions, derivative availability, counterparty issues, regulatory constraints, or other factors, the Fund may not achieve investment results, before fees and expenses, that correspond to two times (2X) the daily performance of the Target Portfolio, and may return substantially less during such periods. During such periods, the Funds actual leverage levels may differ substantially from its intended target, both intraday and at the close of trading, potentially resulting in significantly lower returns.

Target Portfolio Selection The Adviser employs a thematic and qualitative approach to identify and select a focused portfolio of generally between 1 and 5 companies aligned with the Funds pure artificial intelligence (AI) investment theme. The selection process emphasizes companies that demonstrate meaningful participation in AI-related technologies and activities. The companies in the Target Portfolio may include large-, mid-, and small-capitalization companies and may be domestic or foreign issuers, including American Depositary Receipts (ADRs) of foreign companies listed on U.S. or non-U.S. exchanges. The Adviser evaluates companies using a combination of thematic criteria, including: ? Core AI Activities: Companies for which AI-related operations represent a primary operational focus, demonstrated through stated objectives, revenue exposure, product development efforts, or industry participation.

The Adviser assesses Core AI based on its analysis of publicly available financial information. No single factor is determinative; the Adviser weighs them in the aggregate. ? Industry Leadership: Emphasis on companies recognized for innovation, technological capabilities, operational scale, or participation in significant commercial or governmental AI initiatives. The Adviser assesses Industry Leadership through its analysis of publicly available financial information and by reference to: (i) coverage by industry analysts or trade publications as a significant AI participant; (ii) participation in material commercial or governmental AI programs; (iii) a track record of AI innovation reflected in patents, published research, or widely-adopted products; and (iv) market classification as an AI-focused company.

No single factor is determinative; the Adviser weighs them in the aggregate. ? Emerging Potential: Priority is given to companies achieving material advancements, expanding capabilities, or demonstrating momentum within the AI ecosystem, reflecting their potential for increasing economic impact. The Adviser assesses Emerging Potential through its analysis of publicly available financial information and by reference to: (i) an AI product or platform pipeline with credible commercialization prospects; (ii) accelerating revenue growth or margin expansion attributable to AI activities; (iii) announced partnerships or strategic initiatives expected to strengthen the companys AI positioning; and (iv) technological differentiation or IP that provides competitive advantage. No single factor is determinative; the Adviser weighs them in the aggregate.

Based on a proprietary evaluation framework, the Adviser selects a Target Portfolio generally consisting of 1 to 5 companies. The number of Target Portfolio constituents depends on the availability of eligible pure artificial intelligence (AI) companies, the suitability of secondary selections, and the Funds ability to source the required leverage for each security. Each trading day, the Target Portfolio will generally be reallocated so that each underlying security is approximately equally weighted. To manage overall portfolio risk, the Adviser may adjust individual weightings to mitigate exposure to companies exhibiting extreme volatility, high correlations, liquidity constraints, or other characteristics that could disproportionately affect performance. Additionally, if regulatory or structural constraints arise from the Target Portfolios composition that affect Funds derivatives portfolio from achieving 2X returns, the Adviser may adjust the Target Portfolio to enhance the Funds ability to achieve its investment objective.

To maintain alignment with advancements in AI technologies, shifts in company focus, and emerging opportunities, the Adviser will, at least quarterly, either reconfirm the construction of the Target Portfolio or establish a new Target Portfolio by replacing some or all of its underlying securities. The Adviser may, at its discretion, make adjustments to the Target Portfolio at any time, including between scheduled rebalancing periods in response to developments deemed material, such as announcements of significant launches, operational milestones, technological breakthroughs, or broader advancements within the artificial intelligence (AI) sector. Each day, the Funds then-current Target Portfolio will be available on the Funds website at www.defianceetfs.com. Derivatives Portfolio Selection The Fund will enter into one or more swap agreements with financial institutions for a specified period, which may range from one day to longer than a year.

Through each swap agreement, the Fund and the financial institution will agree to exchange the return (or differentials in rates of return) earned or realized on a particular securitys share price. The gross return (meaning the return before deducting any fees or expenses) to be exchanged or swapped between the parties is calculated with respect to a notional amount, (meaning the face amount of the instrument) e.g., the return on or change in value of a particular dollar amount representing the underlying security in the Target Portfolio. If the Fund is unable to obtain the necessary exposure through swaps or other derivatives, or encounters other constraints (e.g., market or regulatory), the Fund may not always achieve investment results, before fees and expenses, that correspond to two times (2x) the daily performance of Funds Target Portfolio, and may return substantially less during such periods.

At the end of each day, the Funds swaps are valued using market valuations and the Funds investment adviser rebalances the Funds holdings in an attempt to maintain leveraged exposure of approximately 200% to the aggregate performance of the Funds Target Portfolio. For examples of a hypothetical investment in the Fund, see the prospectus section entitled Additional Information About the Fund Principal Investment Strategies. Fund performance for periods greater than one single day is primarily (but not solely) a function of the following factors: a) the volatility of the Target Portfolio; b) the performance of the Target Portfolio; c) period of time; d) financing rates associated with leveraged exposure; and e) other Fund expenses. The Fund may also utilize listed options to seek to achieve leveraged 2X exposure to the Target Portfolio securities.

The Fund will primarily employ short-dated (a month or less) in-the-money call options (options with strike prices below the current market price of one or more Target Portfolio securities, offering immediate intrinsic value). Additionally, the Fund may use other option strategies to produce similar exposure to the Target Portfolio securities, like buying calls and selling puts with identical strike prices. These options allow the Fund to adjust its leverage strategy in response to market conditions, liquidity constraints, or other factors that may affect the availability or pricing of swap agreements. The use of listed options provides additional flexibility in pursuing the Funds daily investment objective. In situations where swap availability is constrained, the Fund may rely more heavily on options contracts.

Additionally, the Fund may use options in response to changing market dynamics. However, the use of option contracts is typically less efficient than swaps and may increase the likelihood that the Fund is unable to achieve its daily 2X objective. See the provision in the Prospectus entitled Additional Information About the Fund, for more information about the Funds use of options. Collateral The Fund will hold assets to serve as collateral for the Funds derivatives transactions. 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.

Fund Attributes The Fund is classified as non-diversified under the 1940 Act. The Fund has adopted a policy of having at least 80% exposure to financial instruments with economic characteristics that should perform 2X the daily performance of the Target Portfolio securities. The Fund may invest in equity securities of large-, mid-, and small-capitalization companies and may invest in U.S. and non-U.S. issuers, including through American Depositary Receipts (ADRs). The Fund may also invest in privately held companies, including in securities of companies that have recently completed initial public offerings (IPOs), special purpose acquisition companies (SPACs), or companies that have become publicly traded through business combinations involving SPACs (de-SPAC transactions). The Fund may invest up to 15% of its net assets in illiquid securities.

The Fund will concentrate (i.e., invest 25% or more of its total assets) its investment exposure to companies in the artificial intelligence (AI) industry and in industries that develop, deploy, or operate AI-related technologies and services. The Fund is expected to have a high portfolio turnover rate.

PRAI Costs and Fees

PRAI costs about $131 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.31%
• Gross expense ratio: 1.31%

PRAI Debt Constituents

No individual debt constituents are reported in Defiance Pure AI Daily 2X Strategy ETF's latest SEC N-PORT filing.

PRAI Prospectus and SEC Filings

Official Defiance Pure AI Daily 2X Strategy ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2026-06-12

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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.