{"id":4668,"date":"2024-12-24T11:06:41","date_gmt":"2024-12-24T11:06:41","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=4668"},"modified":"2024-12-24T11:06:41","modified_gmt":"2024-12-24T11:06:41","slug":"microstrategy-etfs-face-tracking-error-because-of-volatility-here-are-the-potential-risks-investors-face","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=4668","title":{"rendered":"MicroStrategy ETFs Face Tracking Error Because Of Volatility: Here Are The Potential Risks Investors Face"},"content":{"rendered":"<div>\n<p>Sharp deviations have been witnessed in the exchange-traded funds tracking <strong>Michael Saylor<\/strong>\u2018s <strong>MicroStrategy Inc.<\/strong> (NASDAQ:<a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/stock\/MSTR#NASDAQ\">MSTR<\/a>), likely stemming from the exposure to its volatile swaps and options.<\/p>\n<p><strong>What Happened: <\/strong>The <strong>T-Rex 2X Long MSTR Daily Target ETF<\/strong> (BATS:<a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/stock\/MSTU#BATS\">MSTU<\/a>) launched on Sept. 18, 2024, and <strong>Defiance Daily Target 2x Long MSTR ETF <\/strong>(NASDAQ:<a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/stock\/MSTX#NASDAQ\">MSTX<\/a>) launched on Aug. 14, 2024, are the two U.S.-listed leveraged ETFs which aim to provide twice the daily returns of MicroStrategy.<\/p>\n<p>However, these ETFs have shown significant tracking errors to their underlying asset, MicroStrategy, highlighting potential risks for investors.<\/p>\n<ul>\n<li><strong>MSTU<\/strong>: On No. 21, MSTU declined 25.3%, 7% less than expected given MicroStrategy\u2019s 16% drop. However, on Nov. 25, MSTU fell 11.3%, exceeding the expected 8.7% decline based on MicroStrategy\u2019s 4.4% fall.<\/li>\n<li><strong>MSTX<\/strong>: This fund also displayed tracking error, most notably on Nov. 25, when it plummeted 13.4%, 4.7% more than anticipated.<\/li>\n<\/ul>\n<p>This underscores a potential for significant deviations in leveraged ETFs like MSTU and MSTX from their intended two times daily performance, &#8230;<\/p>\n<p><a href=\"https:\/\/www.benzinga.com\/24\/12\/42667093\/microstrategy-etfs-face-tracking-error-because-of-volatility-here-are-the-potential-risks-investors-face\" alt=\"MicroStrategy\" etfs face tracking error because of volatility: here are the potential risks investors>Full story available on Benzinga.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Sharp deviations have been witnessed in the exchange-traded funds tracking Michael Saylor\u2018s MicroStrategy Inc. (NASDAQ:MSTR), likely stemming from the exposure to its volatile swaps and options. What Happened: The T-Rex 2X Long MSTR Daily Target ETF (BATS:MSTU) launched on Sept. 18, 2024, and Defiance Daily Target 2x Long MSTR ETF (NASDAQ:MSTX) launched on Aug. 14, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-4668","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/4668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4668"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/4668\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}