In the high-risk product-oriented American ETF market, there is always a higher preference for risk. A newly emerged ETF is regarded as an outstanding high-risk volatility investment.

Defiance, which manages assets worth $1.4 billion, launched an ETF with the trading code MSTX - Defiance Daily Target 1.75X Long MSTR ETF. As the name suggests, the fund aims to provide daily leveraged returns by betting on the US business intelligence and mobile software company with the stock code MSTR.$MicroStrategy (MSTR.US)$ MicroStrategy, which is known as the "Bitcoin shadow stock" because of its significant holdings, invested nearly $822 million in buying 0.012 million bitcoins, which was announced on March 11 this year. Since MicroStrategy is seen as a Bitcoin substitute, the volatility of this stock over 90 days is about 97%. Therefore, it is estimated by the media that Defiance's new ETF MSTX may become the most volatile ETF in the US market. In comparison, another stock that is prone to large fluctuations has a 90-day volatility of 66%, while the volatility of the SPY fund, which tracks large-cap stocks, is only 14%.

Over the past two quarters, the assets of single stock ETFs have nearly doubled, reaching about $8.5 billion. Such ETFs have also performed well this year. For example, two ETFs that have leveraged Nvidia's performance have returned 330% and 290%, respectively. Among them, the assets of the NVDL ETF have soared from about $0.2 billion at the beginning of the year to $5 billion.$Bitcoin (BTC.CC)$assets

Bitcoin shadow stock$Tesla (TSLA.US)$fluctuations have exceeded those of Bitcoin$NVIDIA (NVDA.US)$volatility index$S&P 500 Index (.SPX.US)$large-cap

Most of the time this year, the US stock market has been in a rising trend, and the popularity of ETFs that provide high or reverse returns on individual stocks using derivatives has skyrocketed, attracting billions of dollars in funds as a series of issuers launch new products. MSTX is a new member of this type of fund, and its investors may face the most dramatic volatility of any ETF. Some commentators have said that the high-risk ETF market is in an intense "arms race", with more and more issuers hoping to break the limit of volatility because there is a market for such products.

In July 2022, the first leveraged single stock ETF in the US was officially launched, marking the entry of the US ETF into the "stock era". These ETFs innovatively apply the mechanism of leveraged investment multiples to single stocks, allowing investors to engage in leveraged investment in long or short positions on the underlying stocks by buying such products.

Officials from the US Securities and Exchange Commission (SEC) have warned about these ETFs that profit from volatility, especially with regard to risks for individual investors. However, the warnings have not dampened the enthusiasm of Wall Street and investors. Leveraged funds cover various assets, strategies and themes. Many companies can also charge relatively higher fees for related products than general ETFs, as large ETF issuers with low fees do not enter the market for leveraged and inverse funds. Todd Sohn, an ETF strategist at Strategas, said that leveraged single-stock ETFs have obviously resonated with traders. This is a new frontier, especially for small issuers trying to gain a foothold in the industry.

It is estimated by the media that the assets of single stock ETFs have nearly doubled over the past two quarters, reaching about $8.5 billion. Such ETFs have also performed well this year. For example, two ETFs that have leveraged Nvidia's performance have returned 330% and 290%, respectively. Among them, the assets of the NVDL ETF have soared from about $0.2 billion at the beginning of the year to $5 billion.$T-REX 2X LONG NVIDIA DAILY TARGET ETF (NVDX.US)$and $GraniteShares 2x Long NVDA Daily ETF (NVDL.US)$ fund

Editor/Somer