At a glance
SMCX charges 1.32% a year. It has $153.4M in assets; it paid 3.56% of its price in distributions over the past 12 months, annual. Over the past year it returned −65.0% with distributions reinvested (S&P 500: +11.5%).
The short version
Defiance Daily Target 2X Long SMCI ETF (SMCX) aims to deliver twice the daily percentage move in Super Micro Computer (SMCI) shares. It gets there with swaps and options and does not own the stock itself. The 2x target resets every day, so returns over weeks or months can end up far from double SMCI's. It charges 1.32% a year, and it lost 69.7% in 2025, its first full calendar year.
Price history
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SMCX -65.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| SMCX official prospectus, to Dec 31, 2025 | — | -69.70% | — | — | — | -92.43% |
| SMCX price data to Oct 27, 2026 | +23.2% | -65.0% | — | — | — | -62.7% |
- Over the year to Oct 27, 2026, SMCX returned -65.0%.
- Its worst full calendar year was 2025 (-69.7%); its best was 2025 (-69.7%).
- The deepest fall in its price history was 93.1% (Aug 23, 2024 to Jul 20, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +23.2% | — |
| 2025 | -69.7% | -69.70% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.3333 |
What's inside
As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (7.52% of net assets), with its exposure coming from 8 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight | |
|---|---|---|
| TREASURY BILL Bonds and notes | 43.78% |
By country
United States 43.78%By issuer
US Treasury 43.78%The bonds mature in 0.1 years on average (weighted by size), with an average coupon of 0%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $70.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +153.90%, -69.52%, -15.21%.
How it works
SMCX is an actively managed ETF tied to a single stock: Super Micro Computer, which makes servers, storage systems and networking gear for data centers, cloud providers and businesses. The fund does not track an index. It aims for about 200% exposure to SMCI mainly through swap agreements. A swap is a contract in which a financial institution agrees to pay the fund the return on a set dollar amount of SMCI stock. When swaps are hard to get, the fund may lean more on short-dated, in-the-money call options. The prospectus says options are usually less efficient. The fund's filing for July 31, 2026, listed eight derivative positions, mostly SMCI swaps with several counterparties. It also held a U.S. Treasury bill worth 43.8% of assets and 7.5% in cash, kept as collateral.
At the end of each trading day, the adviser values the swaps and options and rebalances to bring exposure back to about 200%. Because of this daily reset, returns over longer periods are each day's result compounded, not 2x SMCI's total move. The prospectus warns that the fund will lose money if SMCI is flat over time, and it can lose money even while SMCI rises. Constant rebalancing produced portfolio turnover of 8,386%. The fund is also classified as non-diversified.
What it really costs
- SMCX charges 1.32% a year.
- Of that, 1.29% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $134 in the first year and $1,590 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SMCX | $134 | $418 | $723 | $1,590 |
Structure and tax notes
- Resets its exposure every day. Over periods longer than a day, compounding means returns can differ sharply from 2× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
In a retirement portfolio
The prospectus says the fund targets 2x SMCI for a single day only and warns against holding it unmonitored for longer.
SMCX launched in August 2024, so it has no record in the 2008, 2020 or 2022 downturns. Its own history is severe. It lost 69.7% in 2025, its only full calendar year, and its worst quarter was a 69.4% drop at the end of 2025. From its peak on August 23, 2024, to July 20, 2026, it fell 93.1%, and it had not recovered as of October 27, 2026. Anyone forced to sell during a stretch like that could lock in near-total losses. Its trailing 12-month yield was 3.56% as of October 27, 2026, paid once a year, but income is not its purpose. Under the SEC's standard example, its 1.32% expense ratio comes to about $134 on $10,000 in the first year. Past results don't predict future results, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders who want a magnified one-day bet on Super Micro Computer shares and can check the position every trading day.
- Experienced investors who understand swaps, daily resets and compounding and can handle swings like its 176.4% one-year volatility as of October 27, 2026.
- Traders who want leveraged SMCI exposure without a margin account and accept the 1.32% expense ratio for short holding periods.
Look elsewhere if
- Retirees or savers who want a buy-and-hold fund; the prospectus warns against holding it unmonitored for longer than one trading day.
- Anyone who can't absorb near-total losses; it fell 93.1% from August 2024 to July 2026 and hadn't recovered by October 27, 2026.
- Investors who want diversification or steady income; it is tied to one company, and its 3.56% trailing yield is paid only once a year.
Close alternatives
Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).
No close alternatives found.
Questions investors ask
Is SMCX good for long-term investing?
Not by design. The prospectus says SMCX seeks twice SMCI's return for a single trading day only, and it warns against holding the fund unmonitored for longer. Its record shows the risk. SMCX lost 69.7% in 2025, and its average annual return since its August 2024 launch was -92.43% as of December 31, 2025. Its price fell 65% in the year ended October 27, 2026.
SMCX vs SMCI: what's the difference?
Buying SMCI means owning Super Micro Computer shares directly, with voting rights and returns that match the stock. SMCX owns no SMCI shares. It uses swaps and options to target twice SMCI's daily move and resets every day. That adds leverage, a 1.32% expense ratio and compounding effects. Both carry the company's own risks, including a Nasdaq notice dated September 17, 2024, about SMCI's late annual report.
What is the SMCX expense ratio?
SMCX's expense ratio is 1.32% a year, including a 1.29% management fee, according to the prospectus filed August 24, 2026. The SEC's standard example assumes $10,000 invested, a 5% yearly return and shares sold at the end of each period. On that basis, costs come to about $134 after one year, $418 after three, $723 after five and $1,590 after ten. Trading costs from its 8,386% turnover are not part of the expense ratio.
Does SMCX pay dividends?
Yes, once a year, but income is not the fund's purpose. SMCX paid $0.3333 per share over the trailing 12 months, a yield of 3.56% as of October 27, 2026. Payouts from leveraged funds like this usually come from interest on collateral, such as Treasury bills, or from trading gains, not from the underlying company's dividends. A sharp price drop can easily outweigh the payout.
Can SMCX lose money if SMCI goes up?
Yes. SMCX resets to 2x exposure every day, so its return over longer periods is each day's result compounded, not double SMCI's total gain. When a stock swings sharply up and down, losses build faster than gains. The prospectus says the fund will lose money if SMCI is flat over time and may lose money even while SMCI rises. Its one-year volatility was 176.4% as of October 27, 2026, which makes this drag more likely.