At a glance
SMST charges 1.38% a year. It has $28.4M in assets. Over the past year it returned −56.3% with distributions reinvested (S&P 500: +11.5%).
The short version
Defiance Daily Target 2x Short MSTR ETF (SMST) aims to deliver twice the opposite of each day's move in Strategy Inc. (MSTR) stock, a bet against a company whose share price is closely tied to bitcoin. Because it resets daily, results over weeks or months can differ sharply from -2x MSTR's return. It charges 1.38% a year, is built for short-term trading, and fell about 85% in 2026 through October 27.
Price history
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SMST -56.3% 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 | |
|---|---|---|---|---|---|---|
| SMST official prospectus, to Dec 31, 2025 | — | -44.27% | — | — | — | -89.45% |
| SMST price data to Oct 27, 2026 | -85.0% | -56.3% | — | — | — | -69.3% |
- Over the year to Oct 27, 2026, SMST returned -56.3%.
- Its worst full calendar year was 2025 (-44.4%); its best was 2025 (-44.4%).
- The deepest fall in its price history was 95.3% (Sep 6, 2024 to Sep 21, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -85.0% | — |
| 2025 | -44.4% | -44.27% |
| 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 |
What's inside
As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (0.74% of net assets), with its exposure coming from 5 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight | |
|---|---|---|
| TREASURY BILL Bonds and notes | 7.72% |
By country
United States 7.72%By asset type
Bonds and notes 7.72%What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $35.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -2.67%, +154.33%, -24.38%.
How it works
SMST follows no index. It is actively managed with one goal: -200%, or twice the opposite, of the daily percentage change in Strategy Inc. (MSTR) shares, before fees. The prospectus says MSTR has two main strategies: acquiring and holding bitcoin, and growing its enterprise analytics software business. The fund is non-diversified, so its results hinge on one stock.
Rather than shorting MSTR shares, the fund mainly uses swap agreements, contracts with financial institutions to exchange returns based on MSTR's share price. As of July 31, 2026, it held swaps with five firms, listed as JNST, CS, BMO, Cantor and Marex. It may also use listed options, which the prospectus says are less efficient. It expects to use 40% to 75% of assets as swap collateral or to pay for options. Collateral sits in short-term holdings such as Treasury bills; one made up 7.7% of net assets on that date.
At each close, the adviser rebalances to restore -200% exposure. Over longer periods, returns compound day by day, so they will very likely differ from -2x MSTR's move. The prospectus says the fund will lose money if MSTR is flat over time, and can lose money even when MSTR falls, because of volatility and compounding. It warns against holding shares unmonitored beyond one trading day.
What it really costs
- SMST charges 1.38% 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 $140 in the first year and $1,657 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SMST | $140 | $437 | $755 | $1,657 |
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
It seeks -2x Strategy Inc.'s move one day at a time, and it lost as much as 95.3% from peak to trough after its 2024 launch.
SMST offers a short-term bet against one stock, not lasting diversification, income or protection. It launched on August 20, 2024, so it has no record in the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, ended with a 44.27% loss. Its deepest drop was 95.3%, from September 6, 2024 to September 21, 2026, and it had not recovered as of October 27, 2026. Its strongest quarter gained 217.29% and its weakest lost 70.58%, so anyone forced to cash out in a bad stretch could lock in most of a loss. It has recorded no distributions, and it charges 1.38% a year, or $140 in the first year on $10,000 under the SEC's standard example.
Past results don't predict future returns, and a retirement plan needs to look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders seeking a one-day bet against Strategy Inc. (MSTR) shares who can monitor positions daily, as the prospectus urges.
- Experienced investors who understand swaps, daily resets and compounding, and can tolerate swings like its 95.3% drop from September 2024 to September 2026.
- MSTR shareholders wanting a brief offset against a drop in the stock without shorting shares in a margin account.
Look elsewhere if
- Retirees and long-term holders: SMST targets -2x MSTR's move for a single day and fell about 85% in 2026 through October 27.
- Investors wanting income or low fees: it has recorded no distributions, and 1.38% a year totals $1,657 over 10 years on $10,000 (SEC example).
- Investors wanting diversification: its results hinge on one stock, Strategy Inc., reached through swaps with five financial firms as of July 31, 2026.
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
What does SMST track?
SMST tracks the daily price moves of one stock, Strategy Inc. (Nasdaq: MSTR), in reverse and doubled. It seeks -200% of MSTR's daily percentage change, before fees, mainly through swap agreements, which are contracts with financial institutions that exchange returns tied to MSTR. It follows no index and is actively managed. The fund trades under the Defiance name, with Tidal Financial Group listed as issuer. It launched on August 20, 2024, and had net assets of about $28.4 million as of July 31, 2026.
Is SMST good for long-term investors?
It isn't built for that. SMST seeks -2x MSTR's move for a single day, and the prospectus warns against holding it unmonitored for longer. Daily resets and compounding mean it can lose money even when MSTR falls over time. Its 2025 return was -44.27%, and its average annual return from its August 20, 2024 launch through December 31, 2025 was -89.45%. It then fell about 85% in 2026 through October 27.
What's the difference between SMST and shorting MSTR stock?
SMST offers doubled short exposure that resets daily, through swaps, while shorting MSTR directly means borrowing shares to profit if the price falls, with losses that can exceed the money put up. The prospectus says SMST carries some of the same risks as a short position without actually shorting. An SMST holder can lose no more than the amount invested, but pays 1.38% a year and relies on the swap counterparties, the firms on the other side of each contract.
Does SMST pay dividends?
No. SMST has recorded no distributions, so any return comes from changes in its share price. Holders still bear costs: the expense ratio, the yearly fee taken from fund assets, is 1.38%, including a 1.29% management fee, per the prospectus filed August 26, 2026. In the SEC's standard example, $10,000 earning 5% a year would incur about $140 in costs after one year, $437 after three, $755 after five and $1,657 after 10.
Is SMST a way to bet against bitcoin?
Only indirectly. SMST holds no bitcoin and does not track its price. It targets -2x the daily move in Strategy Inc. shares, and the prospectus says the company's large bitcoin holdings have become a key driver of its stock price. But MSTR also runs an enterprise analytics software business and can move on company news, earnings guidance and analyst views, so the stock and bitcoin can diverge. The prospectus lists rising bitcoin prices as a risk for the fund.