Defiance CEO Sylvia Jablonski says investor demand for single-stock leveraged ETFs has been growing rapidly, particularly among traders looking for amplified exposure to high-growth stocks without engaging in margin trading.

“We’ve seen the single-name leveraged market grow to an all-time high, doubling in size from 2024 to around $20 billion,” Jablonski told Benzinga.

Defiance Daily Target 2X Long ORCL ETF is the latest addition to Defiance's suite of single-stock ETFs. It offers an opportunity for investors who have strong convictions about Oracle's short-term stock movements.

Unlike broad-based leveraged ETFs that track multiple tech stocks, Defiance's single-stock leveraged ETFs are designed to provide precise exposure to individual companies.

“We also know that there are certain stocks that investors really follow, like MicroStrategy ( MSTR ) , Riot , and Broadcom ( AVGO ) , and try to put out products that investors are excited about trading,” said Jablonski.

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Oracle And AI/Quantum Computing

Oracle's cloud services division has shown strong growth, with Oracle Cloud Infrastructure revenue increasing by 52% year-over-year to $2.4 billion, driven by rising demand for AI capabilities, as noted by Jablonski. “They are a leader in AI and infrastructure and even quantum computing R&D. Oracle is also a member of Stargate, a potential $500 billion investment,” Jablonski highlighted.

“Oracle’s participation in significant government-backed initiatives, such as the Stargate Project, underscores its expanding role in AI infrastructure. This involvement is expected to enhance their business prospects and potentially provide a sustained boost to its revenue streams,” she said.

Oracle's investments in AI have also contributed to revenue growth and enhanced its competitive edge. “They could have a 50% CAGR in years to come,” Jablonski noted, stressing the company's potential for sustained expansion as AI adoption increases.

Expanding Access To Disruptive Technologies

With ORCX, Defiance further strengthens its commitment to providing investors with access to high-growth industries. The firm's growing suite of thematic ETFs, spanning quantum computing, artificial intelligence, space exploration, and now leveraged single-stock strategies, demonstrates its focus on market innovations that have long-term investment potential.

Defiance ETFs has been making waves in the thematic investing space, particularly in cutting-edge technology sectors. Just last month, the Defiance Quantum ETF ( QTUM ) surpassed $1 billion in assets under management (AUM), reflecting the growing interest in quantum computing's transformative potential. The ETF, which focuses on leading quantum computing firms like D-Wave Quantum, IonQ, and Rigetti Computing, delivered over 50% returns in 2024.

Notably, D-Wave Quantum recently announced its Leap Quantum LaunchPad program, designed to accelerate the adoption of quantum computing applications. With increasing commercial interest in quantum technologies, Defiance's Quantum ETF continues to benefit from strong tailwinds in the industry.

While Jablonski remained tight-lipped on future products, she hinted at the firm's ongoing expansion into AI and quantum computing. “The firm continues to explore opportunities in emerging sectors, including AI and quantum computing, to meet investor demand. We are also exploring several popular and much-requested single-stock leveraged ETFs.”

Outlook For The Semiconductor Sector

The semiconductor industry plays a crucial role in AI and cloud computing, with companies making substantial investments to strengthen AI infrastructure.

“With substantial investments from major tech companies in AI infrastructure, the demand for advanced semiconductors is expected to remain strong, supporting growth in the sector. It is also a key part of quantum computing. As tech advances, so will break through in that sector,” Jablonski remarked.

Strong demand for advanced semiconductors is expected to persist, supporting long-term growth in the industry.

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