Tesla
Dividend Calendar
Stock Rankings
ETF Rankings
Crypto Rankings
4.0
Defiance Daily Target 2X Long MSTR ETF (MSTX) is an exchange-traded fund designed to deliver two times the daily return of shares of MicroStrategy Incorporated (MSTR). The ETF is managed by Defiance ETFs and trades under the ticker MSTX on the NASDAQ.
Classified as a leveraged single-stock equity ETF, MSTX seeks to reflect, before fees and expenses, two times the daily percentage change in the price of MicroStrategy shares.
The fund follows an actively managed approach and utilizes derivative instruments, including swaps and other financial contracts, to achieve its targeted daily leveraged exposure. The portfolio is rebalanced on a recurring basis to maintain the stated daily return objective.
MSTX does not replicate a traditional benchmark index. Its objective is exclusively linked to the daily performance of MicroStrategy Incorporated common stock.
The structure involves derivatives and other financial instruments intended to provide exposure equivalent to two times the daily movement of the underlying asset. Frequent rebalancing is integral to the fund’s methodology.
Diversification and sector exposure
MSTX provides highly concentrated exposure, characteristic of leveraged single-stock ETFs. The structure involves:
- MicroStrategy Incorporated common stock.
- Derivative instruments used to obtain daily leverage.
- A daily amplified return strategy.
Exposure is directly tied to the price behavior of the underlying company’s shares.
Structure and costs
MSTX shares trade on the secondary market on the NASDAQ throughout regular trading hours. Creation and redemption occur through authorized participants, helping maintain alignment between market price and net asset value.
The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. MSTX is not designed to distribute income, as its objective is to deliver amplified daily returns linked to the underlying stock.
History and evolution of the ETF
Defiance Daily Target 2X Long MSTR ETF was launched in 2024 during a period of expansion in single-stock leveraged ETFs in the U.S. market. Since inception, the fund has been used as a tactical short-term exposure vehicle due to its daily leveraged structure.
In the periods following its launch, the ETF reflected the volatility associated with MicroStrategy shares, whose dynamics are influenced by technology sector conditions and the company’s exposure to Bitcoin.
