Defiance ETFs, a leading innovator in exchange-traded funds, is
excited to announce the launch of SMST: Defiance Daily Target 1.5X
Short MSTR ETF. We believe this is a groundbreaking ETF—the first
of its kind in the U.S. market—providing investors with 150%
inverse daily exposure to MicroStrategy (NASDAQ: MSTR), a company
renowned for its substantial investment in Bitcoin.
SMST seeks 1.5X the inverse performance of MicroStrategy's daily
returns, catering to experienced traders looking to hedge or
speculate on short-term market movements. This ETF is tailored for
sophisticated traders seeking to capitalize on short-term price
declines.
Sylvia Jablonski, CEO of Defiance ETFs, commented on the launch:
"Following the tremendous success of the Defiance Daily 1.75X Long
MicroStrategy ETF (MSTX), one of the most successful ETF launches
to date, we're thrilled to introduce SMST. SMST offers a strategic
tool for investors to manage risk or capitalize on downward trends
in the Bitcoin. Whether you're looking to hedge or to profit from
short-term downturns, SMST is a powerful tool in your investment
arsenal."
The Fund is not intended to be used by, and is not
appropriate for, investors who do not intend to actively monitor
and manage their portfolios. The Fund pursues a daily leveraged
investment objective, which means that the Fund is riskier than
alternatives that do not use leverage because the Fund magnifies
the performance of its Underlying Security. The Fund is not
suitable for all investors. The Fund is designed to be utilized
only by sophisticated investors, such as traders and active
investors employing dynamic strategies. Investors
who do not understand the Funds, or do not intend to actively
manage their funds and monitor their investments should not buy
shares of the Funds.
About Defiance ETFs
Founded in 2018, Defiance stands as a leading ETF issuer
dedicated to income and thematic investing. Defiance also pioneers
leveraged ETFs designed for traders seeking tactical
opportunities.
Our suite of first-mover leveraged & thematic ETFs
empowers investors to express targeted views on disruptive
innovations, including artificial intelligence, machine learning,
and quantum computing, while our actively managed options ETFs are
designed to seek current income.
Important Disclosures
The Funds' investment objectives, risks, charges, and expenses
must be considered carefully before investing. The prospectus
contains this and other important information about the investment
company. Please read carefully before investing. A hard copy of the
prospectuses can be requested by calling 833.333.9383.
Defiance ETFs LLC is the ETF sponsor. The Fund’s investment
adviser is Tidal Investments, LLC (“Tidal” or the “Adviser”).
Investing involves risk. Principal loss is
possible.
There is no guarantee that the Fund’s investment strategy will
be properly implemented, and an investor may lose some or all of
its investment.
Underlying Security Risk. The underlying
security is subject to many risks that can negatively impact the
Fund.
Leverage Risk. Leverage may increase the risk
of loss and cause fluctuations in the market value of the Fund’s
portfolio to have disproportionately large effects or cause the NAV
of the Fund generally to decline faster than it would
otherwise.
Compounding and Market Volatility Risk. The
Fund’s performance for periods greater than a trading day will be
the result of each day’s returns compounded over the period, which
is likely to differ from -150% of the Underlying Security’s
performance, before fees and expenses. Compounding has a
significant impact on funds that are inverse leveraged and that
rebalance daily.
Derivatives Risk. Derivatives may be more
sensitive to changes in market conditions and may amplify
risks.
Single Issuer Risk. Issuer-specific attributes
may cause an investment in the Fund to be more volatile than a
traditional pooled investment which diversifies risk or the market
generally. The value of the Fund, which focuses on an individual
security, may be more volatile than a traditional pooled investment
or the market as a whole and may perform differently from the value
of a traditional pooled investment or the market as a whole.
New Fund Risk. The Fund is a recently organized
management investment company with no operating history. As a
result, prospective investors do not have a track record or history
on which to base their investment decisions.
MSTR Price Appreciation Risk. As part of the
Fund’s inverse investment strategy, the Fund purchases and sells
swap contracts that are based on the share price of MSTR common
stock (the “Underlying Security”). This strategy subjects the Fund
to certain of the same risks as if it shorted shares of the
Underlying Security, even though it does not. By virtue of the
Fund’s indirect -1.5X exposure to changes in the share price of the
Underlying Security, the Fund is subject to the risk that the
Underlying Security’s share price increases. If the share price of
the Underlying Security increases, the Fund will likely lose value
and, as a result, the Fund may suffer significant losses.
MSTR Good Performance Risk. MSTR may meet or
exceed its publicly announced expectations or guidelines regarding
its business, which could potentially lead to a rise in the share
price of the Underlying Security.
Bitcoin Positive Performance Risk. MSTR’s
significant investment in Bitcoin has become a key driver of its
stock price. Any positive movement in the price of Bitcoin, such as
reaching new all-time highs, increased institutional adoption, or
favorable regulatory developments, directly impacts MSTR’s balance
sheet and investor perception. With MSTR holding a substantial
amount of Bitcoin, its stock price tends to correlate with
Bitcoin’s performance.
Brokerage Commissions may be charged on trades.
SMST is distributed by Foreside Fund Services, LLC.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/dd034049-e048-4f5a-aa9b-85c3717e1af0
Contact Information:
David Hanono
Defiance ETFs
Tel: 833.333.9383