Daily Target 2X Long SMCI ETF

Frequently Asked Questions About SMCX

What does SMCX invest in?

The Defiance Daily Target 2X Long SMCI ETF (referred to as “the Fund”) aims to deliver investment returns that are twice (200%) the daily percentage change in the share price of Super Micro Computer, Inc. (NASDAQ: SMCI). Due to its design for achieving daily leveraged results, this Fund operates distinctly from most other exchange-traded funds, and there is no guarantee that it will consistently meet its specified daily objective. It is important for investors to understand that the Fund is not expected to yield two times the cumulative return of SMCI for any duration longer than a single trading day.

What is the expense ratio of SMCX?

Daily Target 2X Long SMCI ETF (SMCX) charges an expense ratio of 1.29%. This is the annual fee deducted from fund assets to cover management and operations.

Is SMCX a good long-term hold?

SMCX 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 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 SMCX's daily reset work?

SMCX 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 SMCX?

Daily Target 2X Long SMCI ETF (SMCX) manages $130.0M 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 SMCX actively managed or an index fund?

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