Wall Street investors who want to turn up their bets on cloud networking now have a new weapon at their disposal. Defiance ETFs Thursday rolled out the Defiance Daily Target 2X Long ANET ETF (NASDAQ:ANEL), a fund that is designed to provide double the daily performance of Arista Networks, Inc. (NYSE:ANET).
Single-stock leveraged ETFs have been popular among sophisticated retail traders as they provide focused, short-term exposure without the use of margin accounts. ANEL fits that roster, focusing on a firm that is at the intersection of cloud infrastructure and enterprise networking.
Also Read: What’s Driving the Market Sentiment Around Arista Networks?
Arista Networks has been increasingly becoming a hyperscale data center, enterprise network, and leading cloud platform’s backbone provider.
Its software-focused strategy and AI-driven security capabilities have enabled it to take market share from traditional providers as workloads migrate in greater numbers to cloud-native architectures. That growth story has also inspired investor appetite, with Arista shares sharply higher in the last year, outperforming other tech benchmarks.
“ANEL provides investors with the opportunity to lever their opinion about a key participant in the cloud networking revolution,” Defiance ETFs said in a statement. The fund employs derivatives like swaps and options to hit its 200% daily exposure goal — a structure that keeps it more of a tactical vehicle than a long-term investment.
Leverage ETFs such as ANEL reset on a daily basis, so their performance may differ from the underlying stock over time, especially in active markets. Nonetheless, for those looking to trade momentum, the product provides a simplified alternative to more sophisticated strategies.
The launch emphasizes Defiance’s approach to defining a niche in the expanding arena of thematic and single-stock ETFs. As investors search for sharper, more focused tools to trade particular tech trends, products such as ANEL could experience increasing volumes with the sector’s continued growth.
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