Daily Target 2X Long MSTR ETF

Frequently Asked Questions About MSTX

What does MSTX invest in?

The Defiance Daily Target 2X Long MSTR ETF (referred to as "the Fund") is designed to deliver daily investment returns that are two times (200%) the daily percentage change in the share price of MicroStrategy Incorporated (Nasdaq: MSTR). Distinct from most traditional exchange-traded funds, this Fund employs a leveraged, daily-resetting strategy, and there is no guarantee it will consistently meet its stated daily objective. Investors should be aware that its cumulative performance over periods longer than a single day will very likely not be double the cumulative return of MSTR.

What is the expense ratio of MSTX?

Daily Target 2X Long MSTR ETF (MSTX) charges an expense ratio of 1.31%. This is the annual fee deducted from fund assets to cover management and operations.

Is MSTX a good long-term hold?

MSTX is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple, typically with negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does MSTX's daily reset work?

MSTX rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level, so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is MSTX?

Daily Target 2X Long MSTR ETF (MSTX) manages $384.3M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is MSTX actively managed or an index fund?

MSTX's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.