Share-split context: A reverse split was recorded on Mar 19, 2026 with coefficient 0.1. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Report: Defiance Daily Target 2x Long MSTR ETF (MSTX)

The Defiance Daily Target 2x Long MSTR ETF (MSTX) is a leveraged, single-stock ETF designed to provide twice the daily return of MicroStrategy Inc. (MSTR). It is a crypto-related fund that uses leverage to amplify price movements.

What this ETF is trying to do

MSTX aims to track the daily performance of one specific company, MicroStrategy Inc. Because it is a "2x Long" ETF, it seeks to double the daily gains of that stock. However, this also means that daily losses are amplified.

What the numbers show

The recent performance of MSTX has been significantly negative. The split-adjusted price return for the last year is -91.71%. For the current year to date (YTD), the price return is -53.01%.

Because this fund does not pay distributions, the total return is the same as the price return: -91.71% over one year and -53.01% YTD.

The fund has a history of a reverse split. On March 19, 2026, the fund had a split coefficient of 0.1. In a reverse split, multiple old shares are combined into fewer new shares, which mechanically raises the per-share price. This mechanical increase does not restore lost investment value.

Income and distribution explanation

MSTX is not designed for income. The data shows:

• Distribution Yield: 0%

• Payouts: No distributions detected in the last 12 months.

• Income Grade: F

Investors seeking regular cash payments will find that this ETF provides no income.

Price and NAV erosion explanation

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, the data shows a severe erosion-risk flag. This warning was triggered because of the fund's split-adjusted price trend and an erosion score of 10, which is labeled as "Severe price erosion." This indicates a substantial decline in the market price of the shares over time.

Top Holdings

As of October 8, 2026, the fund holds three assets:

• First American Government Obligs X (FGXXX): 3.86%

• Strategy Inc Class A (MSTR): 1.30%

• Dreyfus Government Cash Mgmt Instl (DGCXX): 1.19%

Pros

• Provides a way to get leveraged exposure to MicroStrategy (MSTR) without owning the stock directly.

Cons

• High Risk: Leveraged ETFs can experience extreme price drops.

• Severe Price Erosion: The fund has lost a vast majority of its value over the last year.

• No Income: There are no distributions for investors.

Beginner takeaway

MSTX is a high-risk tool used for short-term bets on a single stock. It is not a traditional "buy and hold" investment. The severe price erosion and the use of a reverse split show that the share price has fallen drastically. New investors should be aware that leverage amplifies both gains and losses.