The Defiance Daily Target 2x Short RGTI ETF (RGTZ) seeks to deliver -200% of the daily performance of Rigetti Computing (RGTI), a quantum computing company. This inverse leveraged ETF provides magnified exposure to declines in RGTI stock price through derivatives and short positions.
How It Works
RGTZ uses derivatives including swaps and futures contracts to achieve -2x daily exposure to RGTI's stock movements. The fund rebalances daily to maintain its -200% target, meaning it resets its leverage ratio each trading day. As a single-stock inverse ETF, it holds derivatives rather than physical shares, with positions managed actively to track the inverse performance of the underlying quantum computing stock.
Key Features
- Provides -200% daily exposure to Rigetti Computing, allowing investors to profit from declines in this quantum computing stock
- Daily rebalancing ensures precise -2x leverage ratio is maintained each trading session for consistent inverse exposure
- Recently launched in October 2025, offering timely access to bet against quantum computing sector volatility
Risks
- This ETF can lose significant value if RGTI stock rises, with potential for 40-60% daily losses during strong upward moves in the underlying stock
- Daily rebalancing causes compounding decay over multiple days—even if RGTI returns to original price, this ETF may show permanent losses
- Single-stock concentration creates extreme volatility risk, as the fund's entire performance depends on one quantum computing company's stock movements
Who Should Own This
Suitable only for sophisticated traders with very high risk tolerance seeking short-term (hours to days) tactical positions against Rigetti Computing. Requires active monitoring and should represent less than 5% of portfolio. Not appropriate for buy-and-hold investors due to daily reset mechanics and extreme volatility.