Defiance ETFs launched its newest leveraged product on Sept. 3, the Defiance Daily Target 2X Short LLY ETF (NASDAQ:LLYZ). The new fund is designed for traders seeking to short pharmaceutical giant Eli Lilly and Co (NYSE:LLY).
The new fund offers investors -200% of Eli Lilly’s daily performance, before fees and expenses, in a straightforward manner, eliminating the need to short the stock or use a margin account. Through the use of derivatives like swaps and options, LLYZ creates single-stock, leveraged inverse access to one of the most closely followed names in healthcare with precision.
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A Targeted Bet Against A Pharma Leader
Eli Lilly is universally seen as a pharma giant, with best-in-class treatments for diabetes, oncology, immunology, and neuroscience. It has been propelled by weight-loss and diabetes blockbusters in recent years to become one of the largest healthcare market-capitalization companies.
LLYZ provides a gateway for advanced retail traders to bet on pullbacks or offset long positions in LLY. The leveraged inverse structure of the ETF makes it ideal for short-term tactical use, not for buy-and-hold investors, as returns are reset on a daily basis and compound unpredictably over time.
Leveraged Trading Finds New Ground
Defiance has been actively building out its range of single-stock leveraged and inverse ETFs to address a swelling base of retail and institutional investors wanting targeted exposure without familiar impediments. Offerings such as LLYZ allow market participants to take directional positions with accuracy, avoiding margin requirements and stock-borrowing difficulties that usually come with direct short-selling.
As with all leveraged ETFs, it is recommended that investors keep their positions close to the vest, as profits and losses can run rapidly. Nevertheless, for those interested in betting on short-term swings in Eli Lilly shares, LLYZ introduces a new, widely available tool to the trading arsenal.
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