Defiance ETFs Unveils $MST: The First Leveraged MicroStrategy ETF that Seeks to Pay Income Weekly
MIAMI, May 02, 2025 (GLOBE NEWSWIRE) — Defiance ETFs has launched the Defiance Leveraged Long + Income MSTR ETF (MST), an innovative exchange-traded fund (ETF) that combines leveraged exposure to MicroStrategy Incorporated (NASDAQ: MSTR) aiming for a unique weekly income payout feature. This ETF is the first of its kind, designed to offer retail investors both amplified growth potential and consistent cash flow through an options-driven strategy.
Sylvia Jablonski, CEO of Defiance ETFs, stated: “Retail investors want the thrill of leverage and the comfort of income. $MST combines leveraged exposure to MicroStrategy’s momentum with weekly payouts to balance the journey. It’s a bold, tactical option for today’s market.”
What Makes $MST Stand Out?
- Leveraged Exposure: $MST aims to deliver approximately 150% to 200% of MicroStrategy’s daily price performance, capitalizing on its volatility and growth potential.
- Seeks Weekly Income: By utilizing a credit call spreads strategy, the ETF generates high income, which is distributed to investors every week, providing regular cash flow1 and a potential buffer against declines.
- Bitcoin Exposure: Through MicroStrategy—a company known for its significant Bitcoin holdings—$MST offers indirect access to Bitcoin’s market trends without the need to own cryptocurrency directly.
Investment Objective
The Defiance Leveraged Long + Income MSTR ETF (the “Fund”) seeks long-term capital appreciation, with a secondary objective to seek current income. The Income Generation Strategy complements the Leveraged Strategy by utilizing credit call spreads to seek to generate premium income and manage risk associated with the Fund’s leveraged exposure.
The Fund may not achieve daily investment results, before fees and expenses, that correspond to 150% to 200% the performance of the Underlying Security, and may return substantially less during such periods. During such periods, the Fund’s actual leverage levels may differ substantially from its intended leverage target range, both intraday and at the close of trading, potentially resulting in significantly lower returns.
Why MicroStrategy?
MicroStrategy has seen remarkable growth, rising over 4,000% since its December 2022 low, fueled by its Bitcoin-focused strategy and leadership in data analytics. Building on the success of Defiance’s earlier MSTR-based ETFs, which have surpassed $1 billion in combined assets, $MST takes this a step further with leverage and income generation.
About Defiance
Founded in 2018, Defiance is at the forefront of ETF innovation. Defiance is a leading ETF issuer specializing in thematic, income, and leveraged ETFs. Our first-mover leveraged single-stock ETFs empower investors to take amplified positions in high-growth companies, providing precise leverage exposure without the need to open a margin account.
1 Cash flow refers to the regular, tangible payouts (income distributions) made by the ETF to its shareholders.
Important Disclosures
The Funds’ investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary 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.
MSTR Risks. The Fund invests in swap contracts and options that are based on the share price of MSTR. This subjects the Fund to the risk that MSTR’s share price decreases. If the share price of MSTR decreases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses. Therefore, as a result of the Fund’s exposure to the value of MSTR, the Fund may also be subject to the following risks:
Indirect Investment in MSTR Risk. MSTR is not affiliated with the Trust, the Fund, the Adviser or their respective affiliates and is not involved with this offering in any way and has no obligation to consider your Shares in taking any corporate actions that might affect the value of Shares. Investors in the Fund will not have voting rights and will not be able to influence management of MSTR but will be exposed to the performance of MSTR (the underlying stock).
MSTR Trading Risk. The trading price of MSTR may be highly volatile and could continue to be subject to wide fluctuations in response to various factors.
MSTR Performance Risk. MSTR may fail to meet its publicly announced guidelines or other expectations about its business, which could cause the price of MSTR to decline.
Software Industry Risk. The software industry can be significantly affected by intense competition, aggressive pricing, technological innovations, and product obsolescence.
Bitcoin Risk. While the Fund will not directly invest in digital assets, it will be subject to the risks associated with bitcoin by virtue of its investments in options contracts that reference MSTR.
Blockchain Risk. Companies involved in the crypto asset industry are subject to the risks associated with blockchain technology, the occurrence of which could negatively impact the value of such companies.
Derivatives Risks. The Fund’s derivative investments carry risks such as an imperfect match between the derivative’s performance and its underlying assets or index, and the potential for loss of principal, which can exceed the initial investment.
Swap Agreements. The use of swap transactions is a highly specialized activity, which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions.
Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions.
Leverage Risk: As part of the Fund’s principal investment strategy, the Fund will make investments in swap contracts and options. These derivative instruments provide the economic effect of financial leverage by creating additional investment exposure to the Underlying Securities, as well as the potential for greater loss. If the Fund uses leverage through purchasing derivative instruments, the Fund has the risk that losses may exceed the net assets of the Fund.
Compounding and Market Volatility Risk. To achieve its objective, the Fund seeks to generate daily returns of approximately 150% to 200% of the performance of MSTR, before fees and expenses. However, due to the effects of compounding, the Fund’s performance over periods longer than a single trading day is likely to differ from this targeted range. Compounding impacts all investments, but the effects are more pronounced for funds that seek leveraged daily returns and rebalance daily.
High Portfolio Turnover Risk. A high portfolio turnover rate increases transaction costs, which may increase the Fund’s expenses and reduce performance. Frequent trading may also cause adverse tax consequences for investors in the Fund due to an increase in short-term capital gains.
Non-Diversification Risk. Because the Fund is non-diversified, it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund.
New Fund Risk: As a newly formed fund, it has no operating history, providing limited basis for investors to assess performance or management.
Brokerage Commissions may be charged on trades.
Distributed by Foreside Fund Services, LLC.
David Hanono
info@defianceetfs.com
833.333.9383
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/57de3272-466f-49db-a2eb-40c39ff90d7b
