SMCX ETF: What Is It? A Complete Guide to Returns, Fees, Holdings and Alternative ETFs
The Defiance 2x Long SMCI ETF (SMCX) seeks to deliver twice the daily price move of a single stock, Super Micro Computer. It builds its exposure through swap-based derivatives, so understanding the compounding effect of daily resets and the risk of single-stock concentration is the key selection criterion.
SubscribeWhat Is the Defiance 2x Long SMCI ETF?
It is a single-stock leveraged ETF that seeks to deliver twice the daily percentage price change of one stock, Super Micro Computer. It creates its 2x exposure mainly through swap contracts, and when availability is limited, the share of option contracts may increase.
It suits short-term investors who understand leverage and the daily reset structure and review their portfolios frequently.
It is an actively managed ETF run by Defiance.
How Does the Defiance 2x Long SMCI ETF Invest?
| Item | Details |
|---|---|
| Underlying exposure | Super Micro Computer (SMCI), 2x daily |
| Management style | Active (derivatives-based leverage) |
| Rebalancing frequency | Reset daily on every trading day |
| Distribution frequency | No regular distributions |
| Total expense ratio | 1.32% |
The fund mainly uses swap contracts, supplemented by option contracts when needed, so that it tracks twice the daily percentage move of the underlying asset, Super Micro Computer's stock price. Because exposure is reset on every trading day, cumulative returns over periods longer than one day can differ significantly from twice the return of the underlying stock.
- 2x daily leverage concentrated in a single stock
- Derivatives-based management using swaps and options
Defiance 2x Long SMCI ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) are $166.4M, and the total expense ratio is 1.32% per year.
Defiance 2x Long SMCI ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeBecause the fund amplifies the price moves of its underlying stock, Super Micro Computer, by a factor of two, gains expand sharply in rising markets and losses also grow quickly in falling markets, resulting in high volatility. The size of price swings, rather than direction, drives returns.
Short-term money tends to flow in and out sensitively in response to expectations for AI server demand and company-specific events. Given the nature of leveraged products, short-term trading demand is the main driver of fund flows.
Defiance 2x Long SMCI ETF Pros and Cons
Amplifying a single stock's gains by 2x is its strength, but the compounding effect of daily resets and the risk of single-stock concentration are major drawbacks.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the Defiance 2x Long SMCI ETF
The TQQQ, SOXL, QLD and SSO shown in the table are leveraged ETFs that track indexes, and they differ from SMCX in that they apply leverage to a diversified index instead of a single stock. Within the same single-stock leveraged category, NVDX (2x Nvidia) and TSLL (2x Tesla) are direct comparison candidates that differ only in the stock they are exposed to, and investors who want to bet on the opposite direction can also consider inverse products.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 TQQQ | ProShares UltraPro QQQ 3x Shares | $72.36 | +1.9% | $36.7B | 0.78% | 0.67% | +21.5% |
 SOXL | Direxion Daily Semiconductor Bull 3X ETF | $107.35 | +6.2% | $25.6B | 0.75% | 0.09% | +128.6% |
 QLD | ProShares Ultra QQQ 2x Shares | $91.39 | +1.2% | $15.2B | 0.89% | 0.14% | +20.7% |
 SSO | ProShares Ultra S&P500 2x Shares | $70.77 | +0.7% | $8.8B | 0.84% | 0.67% | +19.4% |
 SPXL | Direxion Daily S&P 500 Bull 3X ETF | $288.95 | +1.0% | $7.1B | 0.84% | 0.5% | +25.9% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 USLM | United States Lime & Minerals Inc | 0.44% | $109.30 | -0.7% | $3.1B | 23.4 | 0.22% |
 FAF | First American Financial Corp | 0.16% | $63.55 | -1.3% | $6.5B | 8.9 | 3.65% |
 BNO | United States Brent Oil Fund LP | 0.08% | $70.14 | +0.7% | $0.0M | - | - |
Defiance 2x Long SMCI ETF Investor Checkpoints
Here are the points to review before investing in SMCX. A single-stock leveraged ETF is a short-term trading tool, but holding it for the long term carries a high risk of structural losses, so understanding it in advance is important.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| ⚡ Leverage structure | Understand the 2x daily reset method and the compounding effect | Needs confirmation |
| 💵 Expense ratio | Cumulative impact of derivatives management costs | Somewhat high |
| 📊 Single-stock risk | Concentration in the underlying stock and its volatility | Very high |
| ⏱️ Holding period | Whether short-term trading is assumed | Short-term assumed |
The key risks are compounding erosion from daily resets, single-stock concentration, and amplified losses from leverage. If you hold through a highly volatile period for a long time, losses can remain even after the underlying stock recovers.
SMCX is suited as a short-term bullish bet on Super Micro Computer and is recommended only for investors who understand its structure and review their positions frequently. It is not suitable as a long-term core holding.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 23, 2026.
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