Defiance Daily Target 2x Short MSTR ETF
Key Statistics
Historical Performance
Total return including reinvested distributions, from adjusted closing prices.
Price History
Price history is being compiled for this fund.
Top Holdings
Top 6 holdings as of Jan 31, 2026 · source: SEC N-PORT. Full holdings & prospectus →
About SMST
TheFund is an actively managed exchange traded fund that attempts to achieve 2 times the inverse (-200%) of the daily percentagechange in the price of the Underlying Security by employing derivatives, namely swap agreements and/or listed options contracts.The Fund aims to generate 2 times the inverse of the daily performance of the Underlying Security for a single day, and not forany other period. A “single day” is defined as being calculated “from the close of regular trading on one tradingday to the close on the next trading day.” The Fund is classified as “non-diversified” under the 1940 Act. TheFund’s investment strategy is expected to result in a high annual portfolio turnover rate. Ifthe Fund encounters limitations in implementing its strategies, whether due to market conditions, derivative availability, counterpartyissues, or other factors, the Fund may not achieve investment results, before fees and expenses, that correspond to 2 timesthe inverse (-2x) the daily performance of the Underlying Security, and may return substantially less during such periods. Duringsuch periods, the Fund’s actual leverage levels may differ substantially from its intended target, both intraday and atthe close of trading, potentially resulting in significantly lower returns. TheFund may enter into swap agreements as a substitute for directly shorting the Underlying Security. The Fund will enter into oneor more swap agreements with major financial institutions for a specified period ranging from one day to more than one year wherebythe Fund and the financial institution will agree to exchange the return (or differentials in rates of return) earned or realizedon the Underlying Security. The gross return (meaning the return before deducting any fees or expenses) to be exchanged or “swapped”between the parties is calculated with respect to a “notional amount,” (meaning the face amount of the instrument)e.g., the return on or change in value of a particular dollar amount representing the Underlying Security. At the end of eachday, the Fund’s swaps are valued using market valuations and the Fund’s investment adviser rebalances the Fund’sholdings in an attempt to maintain short exposure for the Fund equal to -200% of the Underlying Security. TheFund may also utilize listed options to seek to achieve leveraged -2X exposure to the Underlying Security. The Fund will primarilyemploy short-dated (a month or less) in-the-money call options (options with strike prices below the current market price of theUnderlying Security, offering immediate intrinsic value). Additionally, the Fund may use other option strategies to produce similarexposure to the Underlying Security, like buying calls and selling puts with identical strike prices. These options allow theFund to adjust its leverage strategy in response to market conditions, liquidity constraints, or other factors that may affectthe availability or pricing of swap agreements. The use of listed options provides additional flexibility in pursuing the Fund’sdaily investment objective. In situations where swap availability is constrained, the Fund may rely more heavily on options contracts.Additionally, the Fund may use options in response to changing market dynamics. However, the use of option contracts is typicallyless efficient than swaps and may increase the likelihood that the Fund is unable to achieve its daily -2X objective. Forexamples of a hypothetical investment in the Fund, see the section in the Fund’s Prospectus titled “AdditionalInformation About the Fund – Principal Investment Strategies.” Fundperformance for periods greater than one single day is primarily (but not solely) a function of the following factors: a) theUnderlying Security volatility; b) the Underlying Security performance; c) period of time; d) financing rates associated withinverse exposure; and e) other Fund expenses. TheFund may invest in (1) U.S. Government securities, such as bills, notes and bonds issued by the U.S. Treasury; (2) money marketfunds; (3) short term bond ETFs; and/or (4) corporate debt securities, such as commercial paper and other short-term unsecuredpromissory notes issued by businesses that are rated investment grade or of comparable quality as determined by the investmentadviser as collateral for the Fund’s swap agreements. TheFund has adopted a policy to have at least 80% of its investment exposure to financial instruments with economic characteristicsthat should provide 2 times the inverse exposure to the daily performance of the Underlying Security. For purposes of the 80%policy, derivatives will be valued at notional value. Dueto the Fund’s investment strategy, the Fund’s investment exposure is concentrated in the industry assigned to theUnderlying Security. As of the date of the Prospectus, MSTR is assigned to the software industry. TheFund is expected to allocate between 40% and 75% of its assets as collateral for swap agreements or as premiums for purchasedoptions contracts. Becauseof daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer thana single day will be the result of each day’s returns compounded over the period, which will very likely differ from -200%of the return of the Underlying Security over the same period. The Fund will lose money if the Underlying Security’s performanceis flat over time, and as a result of daily rebalancing, the Underlying Security volatility and the effects of compounding, theFund may lose money over time while the Underlying Security’s performance decreases over a period longer than a single day.As a consequence, investors should not plan to hold shares of a Fund unmonitored for periods longer than a single trading day. MicroStrategyIncorporated d/b/a Strategy (“MSTR”) MSTRhas two main strategies for its business operations. One is to acquire and hold bitcoin, while the other is to grow its enterpriseanalytics software business. MSTR is listed on the Nasdaq Global Select Market (“Nasdaq”). Per MSTR’s most recentForm 10-K filing, the aggregate market value of the voting and non-voting common equity held by non-affiliates of MSTR (basedon the last reported sale price of its class A common stock on June 28, 2024 on Nasdaq) was approximately $23.499 billion. Additionally,per MSTR’s most recent 10-Q filing, digital assets represented approximately 99% of its total assets. MSTRis registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Information provided toor filed with the SEC by MSTR pursuant to the Exchange Act can be located by reference to the SEC file number 001-42509 throughthe SEC’s website at www.sec.gov. In addition, information regarding MSTR may be obtained from other sources including,but not limited to, press releases, newspaper articles and other publicly disseminated documents. Thisdocument relates only to the securities offered hereby and does not relate to MSTR or other securities of MSTR. The Fund has derivedall disclosures contained in this document regarding MSTR from the publicly available documents. None of the Fund, the Trust,the Adviser, the Sub-Adviser, or their respective affiliates has participated in the preparation of such publicly available offeringdocuments or made any due diligence inquiry regarding such documents with respect to MSTR. None of the Fund, the Trust, the Adviser,the Sub-Adviser, or their respective affiliates makes any representation that such publicly available documents or any other publiclyavailable information regarding MSTR is accurate or complete. Furthermore, the Fund cannot give any assurance that all eventsoccurring prior to the date hereof (including events that would affect the accuracy or completeness of the publicly availabledocuments described above) that would affect the trading price of MSTR (and therefore the price of the Fund at the time we pricethe securities) have been publicly disclosed. Subsequent disclosure of any such events or the disclosure of or failure to disclosematerial future events concerning MSTR could affect the value received with respect to the securities and therefore the valueof the securities. Noneof the Fund, the Trust, the Adviser, the Sub-Adviser, or their respective affiliates makes any representation to you as to theperformance of MSTR. NONEOF THE FUND, TIDAL TRUST II, OR TIDAL INVESTMENTS LLC IS AFFILIATED, CONNECTED, OR ASSOCIATED WITH MICROSTRATEGY INCORPORATEDD/B/A STRATEGY. THE FUND WAS NOT DEVELOPED OR CREATED BY, AND IS NOT SPONSORED, ENDORSED, OR APPROVED BY, MICROSTRATEGY INCORPORATEDD/B/A STRATEGY. Moreover,MicroStrategy Incorporated d/b/a Strategy has not participated in the development of the Fund’s investment strategy. MicroStrategyIncorporated d/b/a Strategy does not select or approve the Fund’s portfolio holdings, nor does it participate in the construction,design, or implementation of the Fund. MicroStrategy Incorporated d/b/a Strategy does not provide any assurances, guarantees,or representations regarding the Fund or its performance. Nothing herein shall be construed as an offer of any security by MicroStrategyIncorporated d/b/a Strategy. Noneof the Fund, the Trust, the Adviser, or their respective affiliates claim any ownership interest in any trademarks owned by MSTRor its affiliates. All rights in the trademarks are reserved by their respective owners.
SMST News
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- Why (SMST) Price Action Is Critical for Tactical Trading
- Defiance Daily Target 1.5X Short MSTR ETF (NASDAQ:SMST) Short Interest Down 37.6% in June
- Big Shorts In Palantir, Rocket Lab, MSTR Crush S&P 500 In June's Hottest Trades
- Understanding Momentum Shifts in (SMST)
Data for SMST is aggregated from third-party providers (Tiingo, Nasdaq, Finnhub) and SEC filings, may be delayed at least 20 minutes, and may be incomplete or contain errors. Nothing here is investment advice. Verify with the official prospectus before investing.