EXCLUSIVE: Thrill Ride With A Dividend? New ETF Marries MicroStrategy Leverage With Income
In a leveraged gamble-driven ETF space, Defiance ETFs is walking a line that few knew was there.
The firm’s newest product, the Defiance Leveraged Long + Income MSTR ETF (NASDAQ:MST), combines heightened exposure to MicroStrategy (NASDAQ:MSTR) shares with weekly income dividends. The result is a high-power instrument designed for risk-conscious investors looking for momentum plus cash flow.
Sylvia Jablonski, CEO of Defiance ETFs, spoke to Benzinga about the high-stakes logic behind her firm’s latest creation — the MST fund.
“MST was born from two key observations: first, retail traders are drawn to leverage for its potential to enhance short term performance directionally; second, many also want income and cash flow. By merging these features, MST offers a differentiated product that’s designed to deliver what investors have been asking for,” said Jablonski.
The fund aims 1.5x to 2x MicroStrategy’s intraday price action and employs a credit call spread strategy to pursue steady options income. It’s the first ETF of its kind to try this blend, really synergizing a volatility hound trader with an income-seeker requiring regular payments. But like anything trying to corral a beast like MicroStrategy, whose 4,000% rally since late 2022 tracks the ebbs and flows of Bitcoin, the fund is not without its risks.
“The credit call spread strategy looks …
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