Defiance Daily Target 2x Short MSTR ETF

SMST uses swap agreements to make bearish bets on MicroStrategy Incorporateds NYSE MSTR share price MSTR was originally known for its enterprise analytics software It has then pivoted to include acquiring and holding Bitcoin BTC as another operational business The fund maintains a daily leveraged exposure equivalent to 200 of the funds net assets through daily rebalancing As a geared product the fund is intended as a shortterm tactical tool rather than as a longterm investment vehicle As a result returns may deviate from the expected 2x if held for longer than a single day due to compounding This strategy is highrisk and does not include a defensive position as part of its overall process Additionally the fund could potentially lose money over time even if MSTRs performance strengthens The fund is expected to invest in cashlike instruments as collateral Following October 29 2024 the fund adjusted its leverage ratio from 15x to 2x