Defiance Daily Target 2x Short MSTR ETF (SMST)

Defiance Daily Target 2x Short MSTR ETF (SMST) seeks daily investment results, before fees and expenses, equal to two times the inverse (opposite) of the daily performance of the common stock of Strategy Inc (formerly MicroStrategy). It is a single-stock inverse fund sponsored by Defiance ETFs, and it targets the return of one trading day only.

The fund obtains its exposure mainly through swap agreements and other derivatives on the underlying shares rather than simply holding the stock, keeping the remaining assets in cash and short-term instruments as collateral. Because the multiple applies to each day separately, results over periods longer than one day can differ meaningfully from two times the stock's inverse return over the same period.

The underlying company: Strategy, formerly known as MicroStrategy, pairs an enterprise analytics software business with a corporate treasury strategy centered on holding bitcoin.