(SMCX) Defiance Daily Target 2X - Ratings and Ratios

The Defiance Daily Target2X Long SMCI ETF (NASDAQ:SMCX) is an actively managed ETF that seeks to achieve a 200% daily return of the underlying security, Super Micro Computer Inc. (SMCI), through swap agreements. This non-diversified fund is designed for traders looking to amplify their gains, but it comes with higher risks.

As a Trading--Leveraged Equity ETF, SMCX is geared towards investors who are willing to take on more risk in pursuit of higher returns. The funds underlying asset is SMCI, a company that has shown significant volatility, as indicated by its 52-week high and low prices. The ETFs Assets Under Management (AUM) stand at $318.34M USD, suggesting a moderate level of investor interest.

To evaluate the performance of SMCX, key performance indicators (KPIs) such as the funds tracking error, leverage ratio, and expense ratio should be considered. A high tracking error could indicate that the fund is not effectively achieving its stated objective, while a high leverage ratio may amplify potential losses. Additionally, the expense ratio, which includes management fees and other operational costs, can eat into the investors returns. It is essential to monitor these KPIs to ensure that the fund is meeting its investment objectives and to make informed investment decisions.

Further analysis of SMCXs market dynamics reveals that its price movements are closely tied to SMCIs share price. As such, investors should be aware of the potential risks associated with SMCIs stock, including market volatility, industry trends, and company-specific factors. A thorough understanding of these factors is crucial to making informed investment decisions about SMCX.