SMST ETF Plummets 82% This Year: A Look at Inverse Leveraged ETFs

A small leveraged exchange-traded fund (ETF), Defiance Daily Target 2x Short MSTR ETF (SMST), has experienced a dramatic decline this year, plummeting over 82% from its January levels to reach a record low of $29. This sharp drop coincides with the stock price of Strategy, the underlying asset for SMST, experiencing both a growth spurt and an inverse-leveraged portfolio design.