Stock Track | Defiance Daily Target 2X Long MSTR ETF Surges 5.1% in Pre-market Amid Tracking Challenges

Stock Track

Dec 24, 2024

The Defiance Daily Target 2X Long MSTR ETF (MSTX) rose 5.1% in pre-market trading on Tuesday, tracking the performance of MicroStrategy (MSTR), a software company that has invested heavily in Bitcoin and currently holds over $20 billion worth of the cryptocurrency.

However, MSTX and its peer T-Rex 2X Long MSTR Daily Target ETF (MSTU) have recently faced challenges in accurately tracking their intended 2x daily returns of MSTR. Both funds have exhibited noticeable tracking errors, with returns deviating significantly from the expected levels on certain trading days.

Experts cite several potential reasons for this phenomenon. Firstly, the massive size of MSTX and MSTU relative to MSTR's market capitalization makes it difficult for the ETF issuers to properly hedge their exposure using total return swaps and options. Additionally, MSTR's high volatility renders options less effective as a hedging tool, contributing to the tracking discrepancies.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/1110889412"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"1110889412\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/1110889412?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-12-24 21:50","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1110889412","market":"hk","top_or_hot":-1,"title":"Stock Track | Defiance Daily Target 2X Long MSTR ETF Surges 5.1% in Pre-market Amid Tracking Challenges","media":"Stock Track","content":"<p>The Defiance Daily Target 2X Long MSTR ETF (MSTX) rose 5.1% in pre-market trading on Tuesday, tracking the performance of MicroStrategy (MSTR), a software company that has invested heavily in Bitcoin and currently holds over $20 billion worth of the cryptocurrency.</p>\n\n<p>However, MSTX and its peer T-Rex 2X Long MSTR Daily Target ETF (MSTU) have recently faced challenges in accurately tracking their intended 2x daily returns of MSTR. Both funds have exhibited noticeable tracking errors, with returns deviating significantly from the expected levels on certain trading days.</p>\n\n<p>Experts cite several potential reasons for this phenomenon. Firstly, the massive size of MSTX and MSTU relative to MSTR's market capitalization makes it difficult for the ETF issuers to properly hedge their exposure using total return swaps and options. Additionally, MSTR's high volatility renders options less effective as a hedging tool, contributing to the tracking discrepancies.</p>","source":"ai_movement_en","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Stock Track | Defiance Daily Target 2X Long MSTR ETF Surges 5.1% in Pre-market Amid Tracking Challenges</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nStock Track | Defiance Daily Target 2X Long MSTR ETF Surges 5.1% in Pre-market Amid Tracking Challenges\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1086803395\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/a81accab1e7ee4144dc051f71903a390);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Stock Track </p>\n<p class=\"h-time\">2024-12-24 21:50</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>The Defiance Daily Target 2X Long MSTR ETF (MSTX) rose 5.1% in pre-market trading on Tuesday, tracking the performance of MicroStrategy (MSTR), a software company that has invested heavily in Bitcoin and currently holds over $20 billion worth of the cryptocurrency.</p>\n\n<p>However, MSTX and its peer T-Rex 2X Long MSTR Daily Target ETF (MSTU) have recently faced challenges in accurately tracking their intended 2x daily returns of MSTR. Both funds have exhibited noticeable tracking errors, with returns deviating significantly from the expected levels on certain trading days.</p>\n\n<p>Experts cite several potential reasons for this phenomenon. Firstly, the massive size of MSTX and MSTU relative to MSTR's market capitalization makes it difficult for the ETF issuers to properly hedge their exposure using total return swaps and options. Additionally, MSTR's high volatility renders options less effective as a hedging tool, contributing to the tracking discrepancies.</p>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MSTX","symbol_name":"2倍做多MSTR ETF-Defiance","start_time":0,"source_url":"","article_id":"1110889412","we_media_id":"1086803395","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1110889412","pubTimestamp":1735048227,"columns":[],"sourceInfo":{"source_id":"ai_movement_en","name":"Stock Track"},"weMediaInfo":{"media_name":"Stock Track","introduction":"Track stock‘s movements and relevant news","home_visible":1,"id":"1086803395","head_image":"https://static.tigerbbs.com/a81accab1e7ee4144dc051f71903a390"},"summary":"The Defiance Daily Target 2X Long MSTR ETF  rose 5.1% in pre-market trading on Tuesday, tracking the performance of MicroStrategy , a software company that has invested heavily in Bitcoin and currently holds over $20 billion worth of the cryptocurrency.However, MSTX and its peer T-Rex 2X Long MSTR Daily Target ETF  have recently faced challenges in accurately tracking their intended 2x daily returns of MSTR. Both funds have exhibited noticeable tracking errors, with returns deviating significant","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"MSTX":"2倍做多MSTR ETF-Defiance"},"translate_title":"股票跟踪Defiance Daily Target 2倍多头MSTR ETF在跟踪挑战中盘前飙升5.1%","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MSTX":1},"content_text":"The Defiance Daily Target 2X Long MSTR ETF (MSTX) rose 5.1% in pre-market trading on Tuesday, tracking the performance of MicroStrategy (MSTR), a software company that has invested heavily in Bitcoin and currently holds over $20 billion worth of the cryptocurrency.\nHowever, MSTX and its peer T-Rex 2X Long MSTR Daily Target ETF (MSTU) have recently faced challenges in accurately tracking their intended 2x daily returns of MSTR. Both funds have exhibited noticeable tracking errors, with returns deviating significantly from the expected levels on certain trading days.\nExperts cite several potential reasons for this phenomenon. Firstly, the massive size of MSTX and MSTU relative to MSTR's market capitalization makes it difficult for the ETF issuers to properly hedge their exposure using total return swaps and options. Additionally, MSTR's high volatility renders options less effective as a hedging tool, contributing to the tracking discrepancies.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"movement","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}