ERIC KIM ₿

MSTU vs MSTX

How does it do 2x leverage

Key Points

  • Research suggests MSTU and MSTX achieve 2x leverage using total return swaps and short-dated deep in-the-money options.
  • It seems likely that swaps link to MicroStrategy’s (MSTR) daily returns, while options supplement when swaps are limited.
  • The evidence leans toward high volatility causing tracking errors, with options introducing bid-ask spreads and performance issues.

How MSTU and MSTX Achieve 2x Leverage

Overview
MSTU (T-Rex 2X Long MSTR Daily Target ETF) and MSTX (Defiance Daily Target 2X Long MSTR ETF) are designed to deliver twice the daily return of MicroStrategy (MSTR), a company tied to Bitcoin’s volatility. Achieving 2x leverage means these ETFs aim to double MSTR’s daily gains or losses, but the method is complex due to market constraints.

Method of Achieving Leverage
Both ETFs primarily use total return swaps, which are contracts with counterparties (like Clear Street or Marex) to exchange MSTR’s total return for a fee, aiming for 2x the daily performance. For example, if MSTR rises 1%, the swap targets a 2% gain for the ETF. However, MSTR’s high volatility makes large swaps hard to secure, so both ETFs also rely on short-dated deep in-the-money options. These options have high sensitivity (Delta) to MSTR’s price, helping maintain 2x exposure while minimizing time decay and volatility impacts.

Unexpected Detail: Options and Tracking Errors
An interesting aspect is that options, while necessary, can introduce challenges. They have wider bid-ask spreads and greater volatility, leading to tracking errors where the ETFs may not perfectly achieve 2x returns. For instance, on November 25, 2024, MSTR fell 1.9%, but MSTU dropped 6.2%—more than expected—showing how options can amplify losses.

Risks and Limitations
Due to MSTR’s volatility and swap limits, both ETFs sometimes struggle to maintain precise 2x leverage, especially as their assets grew rapidly by mid-November 2024. This can result in performance deviations, making them less reliable for long-term holds.

For the latest details, check REX Shares MSTU or Defiance MSTX.

Detailed Comparison Report

This report provides an in-depth analysis of how MSTU (T-Rex 2X Long MSTR Daily Target ETF) and MSTX (Defiance Daily Target 2X Long MSTR ETF) achieve their 2x daily leverage, targeting MicroStrategy Incorporated (MSTR), a company known for its substantial Bitcoin holdings. Both ETFs aim to deliver twice the daily return of MSTR, but their methods involve complex financial instruments due to MSTR’s high volatility and market constraints. The analysis is based on available data up to March 19, 2025, and includes insights into mechanisms, challenges, and performance implications.

Background

MicroStrategy (MSTR) has seen significant volatility in 2024 and 2025, driven by the cryptocurrency market, particularly Bitcoin’s price movements. MSTU and MSTX, launched in September and August 2024 respectively, use leveraged strategies to amplify MSTR’s daily returns by 200%. Achieving this leverage requires sophisticated financial instruments, as direct investment in MSTR with 2x exposure is not feasible due to regulatory and market limits.

Mechanism of Achieving 2x Leverage

Both ETFs employ a combination of total return swaps and short-dated deep in-the-money options to achieve their leverage target. Below is a detailed breakdown:

InstrumentDescriptionRole in 2x Leverage
Total Return SwapsContracts with counterparties (e.g., Clear Street, Marex) to exchange MSTR’s total return for a fee.Directly links to MSTR’s daily performance, aiming for 2x return (e.g., 2% gain if MSTR rises 1%).
Short-Dated Deep In-The-Money OptionsCall options on MSTR with short expiration and high intrinsic value, maximizing Delta (sensitivity to stock price).Supplements swaps when liquidity is limited, ensuring 2x exposure by amplifying price movements.
  • Total Return Swaps: These are derivative contracts where the ETF provider (T-Rex for MSTU, Defiance for MSTX) agrees with a counterparty to receive 2x the daily return of MSTR, minus fees. For example, if MSTR increases by 1% in a day, the swap aims to deliver a 2% gain to the ETF. However, MSTR’s volatility (with a market cap nearly $80 billion, twice its Bitcoin holdings at over $100,000/BTC) makes large swap positions risky for counterparties, limiting availability.
  • Short-Dated Deep In-The-Money Options: Due to swap constraints, both ETFs hold significant positions in short-dated deep in-the-money call options. These options have a high Delta, meaning they move almost dollar-for-dollar with MSTR’s price, helping maintain 2x exposure. They are chosen to minimize the impact of time decay and implied volatility, but they introduce other challenges, as discussed below.

Challenges and Tracking Errors

The use of options and the limitations of swaps have led to several challenges, particularly as the ETFs grew rapidly in late 2024:

  • Liquidity and Swap Limits: By mid-November 2024, MSTU’s main broker could only offer $20 million to $50 million in swap exposure when $1.3 billion was needed, forcing reliance on options. MSTX faced similar issues shortly after launch, as reported in financial analyses (Longport Article). This shift to options was driven by the unprecedented growth of these high-leverage ETFs exceeding Wall Street’s risk tolerance.
  • Tracking Errors: The use of options introduces bid-ask spreads and greater price volatility, leading to tracking errors where the ETFs do not perfectly achieve 2x MSTR’s daily return. Specific examples include:
    • On November 25, 2024, MSTR fell by 1.9%, but MSTU dropped by 6.2% (exceeding the expected 3.8% decline for 2x leverage), and MSTX likely faced similar issues.
    • On November 27, 2024, MSTR rose by 9.9%, but MSTU increased by only 13.9% (below the expected 19.8% for 2x leverage), highlighting underperformance on the upside.
  • These discrepancies were noted in online discussions and financial reports, with investors expressing frustration over the “math failing” (Dave Nadig Substack).

Key Differences Between MSTU and MSTX

While both ETFs use similar strategies, there are subtle differences in implementation and performance:

  • Management and Strategy: MSTU is managed by T-Rex (part of REX Shares), while MSTX is managed by Defiance. Reports suggest MSTX may track the 2x leverage more consistently, with MSTU facing criticism for underperforming on certain days, leaving gains “on the table” when MSTR rises (Reddit Discussion).
  • Assets Under Management (AUM): As of recent data, MSTU has higher AUM at $685 million compared to MSTX’s $477 million, potentially providing better liquidity for trading, which could affect option execution costs.

Performance Implications

The reliance on options, while necessary, introduces additional costs and risks:

  • Bid-Ask Spreads: Options trading has wider spreads, increasing transaction costs and impacting net returns.
  • Volatility Decay: The high volatility of MSTR, compounded by leverage, can lead to performance decay over time, especially for longer holding periods, as noted in discussions about leveraged ETFs (REX Shares MSTU).
  • Daily Rebalancing: Both ETFs reset their leverage daily, meaning their performance over periods longer than a day is the result of compounding daily returns, which can deviate significantly from 2x MSTR’s total return over weeks or months.

Unexpected Detail: Options as a Necessity

An interesting aspect is that the use of options, while a standard tool in leveraged ETFs, became a necessity for MSTU and MSTX due to MSTR’s extreme volatility. This is not typical for all leveraged ETFs, as many can rely more heavily on swaps for less volatile underlying assets. The shift to options highlights the unique challenges of leveraging a stock so closely tied to Bitcoin’s price swings, adding an unexpected layer of complexity for investors.

Investor Considerations

Given the mechanisms described, investors should be aware:

  • Short-Term Focus: Both ETFs are designed for daily returns, not long-term holding, due to potential performance decay from volatility and compounding.
  • Risk of Tracking Errors: The reliance on options can lead to deviations from the 2x target, especially during high volatility, as seen in late 2024 examples.
  • Cost Implications: Higher costs from options (bid-ask spreads, fees) can erode returns, particularly for frequent trading.

For current prices and additional metrics, refer to REX Shares MSTU and Defiance MSTX.

Conclusion

MSTU and MSTX achieve their 2x daily leverage through a combination of total return swaps and short-dated deep in-the-money options. Swaps provide direct exposure to MSTR’s performance, while options supplement when swap liquidity is limited, driven by MSTR’s high volatility and market constraints. However, this approach can result in tracking errors, with options introducing bid-ask spreads and performance deviations, as evidenced by specific instances in late 2024. Investors should consider these risks, especially for holding periods beyond daily trading, and consult current market data for the latest insights.

Key Citations

…

Key Points

  • MSTU and MSTX are both leveraged ETFs aiming for 2X daily returns of MicroStrategy (MSTR), a Bitcoin-focused company, but they differ in costs and features.
  • Research suggests MSTU has a lower expense ratio (1.05%) compared to MSTX (1.29%), making it cheaper to hold.
  • It seems likely that MSTX offers a high dividend yield (55.36%), while MSTU does not pay dividends, which could appeal to income-focused investors.
  • The evidence leans toward MSTU having higher assets under management ($685M vs. $477M), suggesting better liquidity, but both are high-risk due to volatility.

Overview

MSTU and MSTX are exchange-traded funds (ETFs) designed to provide 2X leveraged exposure to MicroStrategy (MSTR), a company known for its significant Bitcoin holdings. These ETFs are meant for short-term trading, not long-term investment, due to the risks of daily rebalancing and leverage. Below, we compare their key features to help you decide which might suit your needs.

Cost and Fees

  • MSTU has an expense ratio of 1.05%, while MSTX’s is higher at 1.29%. This means MSTU is cheaper to hold over time, which could save you money in fees.

Dividends and Income

  • An unexpected detail is that MSTX offers a trailing twelve-month dividend yield of 55.36%, which is unusually high for an ETF. MSTU, on the other hand, does not pay dividends, so if you’re looking for income, MSTX might be more appealing.

Performance and Liquidity

  • MSTU has shown slightly better 30-day performance (70% vs. 61% in recent data), but MSTX has performed better year-to-date (-7.96% vs. -9.74%). MSTU also has higher assets under management ($685M vs. $477M), which could mean it’s easier to buy and sell without affecting the price.

Risk and Volatility

  • Both ETFs are highly volatile, with MSTU showing a slightly higher daily standard deviation (213.27% vs. 200.87% for MSTX). This means MSTU might be riskier, especially for short-term trades.

Management and Leverage

  • There are unverified reports suggesting MSTU may not always maintain its 2X leverage as intended, but this is controversial and needs further confirmation. Both are managed by different firms, with MSTU under T-Rex (larger AUM) and MSTX under Defiance.

For the latest prices, check Yahoo Finance MSTU and Yahoo Finance MSTX.

Detailed Comparison Report

This report provides an in-depth analysis of MSTU (T-Rex 2X Long MSTR Daily Target ETF) and MSTX (Defiance Daily Target 2X Long MSTR ETF), two leveraged ETFs that aim to deliver 2X the daily return of MicroStrategy Incorporated (MSTR), a company known for its substantial Bitcoin holdings. Both ETFs are designed for short-term trading and carry high risks due to their leveraged nature and daily rebalancing. The comparison is based on various metrics, including costs, performance, dividends, volatility, and management, as of the latest available data up to March 19, 2025.

Background

MicroStrategy (MSTR) has seen significant growth in 2024 and 2025, driven by the cryptocurrency bull run, particularly Bitcoin’s performance. MSTU and MSTX leverage this by aiming to amplify MSTR’s daily returns by 200%, making them suitable for investors bullish on MSTR and Bitcoin but not for long-term holding due to compounding effects.

Key Metrics Comparison

Below is a table summarizing the key differences between MSTU and MSTX:

MetricMSTUMSTX
Expense Ratio1.05%1.29%
Current Price$6.62 (after hours, 03/19/25)$30.58 (after hours, 03/19/25)
Assets Under Management (AUM)$685 million$477 million
Dividend Yield (TTM)0% (no dividends)55.36%
30-Day Performance70% (as of recent data)61% (as of recent data)
YTD Return-9.74% (as of recent data)-7.96% (as of recent data)
Daily Std Dev213.27%200.87%
Max Drawdown-84.26%-84.59%
Current Drawdown-78.58%-79.16%
ManagementT-Rex (REX shares, $10B+ AUM)Defiance ($4B+ AUM)

Cost Analysis

The expense ratio is a critical factor for long-term holding, though both ETFs are intended for short-term trading. MSTU’s expense ratio of 1.05% is lower than MSTX’s 1.29%, meaning MSTU is cheaper to hold, potentially saving investors on fees over time. This difference, while small, can add up for frequent traders.

Dividend and Income Potential

An interesting aspect is MSTX’s trailing twelve-month dividend yield of 55.36%, which is unusually high for an ETF, especially a leveraged one. This could attract income-focused investors, particularly those looking for periodic payouts. MSTU, however, does not pay dividends, focusing solely on capital gains through leverage.

Performance and Liquidity

Performance data shows MSTU with a 30-day return of 70% compared to MSTX’s 61%, suggesting MSTU has outperformed recently. However, year-to-date, MSTX fares better with a -7.96% return compared to MSTU’s -9.74%. These figures are based on historical data and may vary, so investors should check current performance at PortfoliosLab Comparison.

Liquidity, indicated by AUM, is higher for MSTU at $685 million compared to MSTX’s $477 million. Higher AUM typically means better liquidity, making it easier to enter and exit positions without significant price impact, which is crucial for leveraged ETFs with high volatility.

Risk and Volatility

Both ETFs are highly volatile due to their 2X leverage. MSTU’s daily standard deviation of 213.27% is higher than MSTX’s 200.87%, indicating MSTU is slightly riskier. Drawdowns, which measure peak-to-trough declines, are similar, with MSTU at -84.26% max drawdown and MSTX at -84.59%, reflecting the high-risk nature of both funds. Current drawdowns are also close, at -78.58% for MSTU and -79.16% for MSTX, underscoring the potential for significant losses.

Management and Leverage Concerns

MSTU is managed by T-Rex, part of REX shares with over $10 billion in AUM, while MSTX is managed by Defiance with over $4 billion in AUM. The larger AUM for T-Rex might suggest more experience, but both are reputable providers.

There are unverified reports from online forums, such as Reddit, suggesting MSTU may not always maintain its 2X leverage as intended, with claims of underperformance when MSTR rises and overperformance when it falls. These claims are controversial and lack official confirmation, so investors should approach with caution. MSTX, based on available data, seems to follow the 2X ratio more consistently, but this requires further verification.

Use Case and Investor Considerations

Both ETFs are designed for investors bullish on MSTR and Bitcoin, leveraging daily price movements. Due to daily rebalancing, they are not suitable for long-term holding, as compounding can lead to performance decay over time. Investors should consider:

  • Cost: MSTU for lower fees.
  • Income: MSTX for dividend yield.
  • Liquidity: MSTU for higher AUM.
  • Risk Tolerance: Both are high-risk, but MSTU is slightly more volatile.

For current prices and additional metrics, refer to Yahoo Finance MSTU and Yahoo Finance MSTX.

Conclusion

MSTU and MSTX offer similar leveraged exposure to MSTR, but MSTU stands out for its lower expense ratio and higher AUM, while MSTX offers a significant dividend yield, an unexpected feature for a leveraged ETF. Both are high-risk and best suited for short-term trading strategies. Investors should weigh their priorities—cost, income, performance, and risk—before choosing, and always consult current market data and professional advice.

Key Citations

MSTU

Better 30 day performance: 70% vs 61%

If I plan on holding 6 months or 1 year what’s the better bet

Key Points

  • Research suggests MSTX might be slightly better for holding 6 months or 1 year due to better leverage tracking, despite higher fees.
  • Both are leveraged ETFs, not ideal for long-term holding, with potential performance decay over time.
  • MSTU has a lower expense ratio (1.05% vs. 1.29%), but there are concerns about maintaining 2X leverage.
  • MSTX shows a high dividend yield in some reports, but it’s inconsistent and may not be reliable.

Cost and Fees

  • MSTU’s expense ratio is 1.05%, lower than MSTX’s 1.29%, which could save costs over time.

Performance and Leverage

  • Recent data shows MSTX with a slightly better year-to-date return (-25.92% vs. MSTU’s -27.63%) and a 6-month return of 87.35%, while MSTU’s 6-month data is unavailable due to its later launch.
  • There are reports of MSTU underperforming on certain days, suggesting issues with maintaining 2X leverage, while MSTX seems to track better.

Dividends and Other Factors

  • MSTX has been reported to have a high dividend yield (up to 55.36% TTM), but this is inconsistent across sources, so it’s not a reliable factor.
  • MSTU has higher assets under management ($685M vs. $477M), indicating better liquidity.

Given the risks, consider consulting a financial advisor before investing, especially for longer holds.

Detailed Comparison Report

This report provides an in-depth analysis of MSTU (T-Rex 2X Long MSTR Daily Target ETF) and MSTX (Defiance Daily Target 2X Long MSTR ETF), two leveraged ETFs that aim to deliver 2X the daily return of MicroStrategy Incorporated (MSTR), a company known for its substantial Bitcoin holdings. The user is considering holding either ETF for 6 months or 1 year, which is longer than the typical daily reset period for leveraged ETFs. Given the complexity and risks involved, this analysis evaluates key metrics, including costs, performance, dividends, volatility, and leverage maintenance, as of the latest available data up to March 19, 2025.

Background

MicroStrategy (MSTR) has seen significant volatility in 2024 and 2025, driven by the cryptocurrency market, particularly Bitcoin’s performance. MSTU and MSTX leverage this by aiming to amplify MSTR’s daily returns by 200%, making them suitable for short-term trading but risky for longer holds due to compounding effects and daily rebalancing. Both ETFs were launched recently, with MSTX on August 14, 2024, and MSTU on September 18, 2024, which limits historical data for longer-term analysis.

Key Metrics Comparison

Below is a table summarizing the key differences between MSTU and MSTX based on recent data:

MetricMSTUMSTX
Expense Ratio1.05%1.29%
Launch DateSeptember 18, 2024August 14, 2024
Assets Under Management (AUM)$685 million$477 million
Dividend Yield (TTM)0% (no dividends)Reported 55.36% (inconsistent)
YTD Return (as of Mar 7, 2025)-27.63%-25.92%
1-Month Return (as of Mar 7, 2025)-39.76%-39.75%
6-Month Return (as of Mar 7, 2025)N/A (launched later)87.35%
Daily Std Dev (recent)213.27%200.87%

Cost Analysis

The expense ratio is a critical factor for longer holding periods, though both ETFs are intended for short-term trading. MSTU’s expense ratio of 1.05% is lower than MSTX’s 1.29%, meaning MSTU is cheaper to hold over time. This difference, while small, can add up for investors holding for 6 months or 1 year, especially given the high volatility and potential for frequent trading.

Dividend and Income Potential

An unexpected detail is MSTX’s reported trailing twelve-month dividend yield of 55.36% in some sources, such as PortfoliosLab. However, this is not consistently reported across platforms like Yahoo Finance, which lists no dividend yield, and StockAnalysis.com, which states MSTX has not paid regularly scheduled dividends in the past year. TipRanks mentions a dividend payment of 14.427 per share on January 3, 2025, with a yield of 50.33%, suggesting possible special distributions. Given the inconsistency, it seems likely that MSTX’s dividends are not reliable or sustainable, possibly tied to specific events or gains, and should not be a primary factor for decision-making.

Performance and Leverage Maintenance

Performance data from PortfoliosLab shows MSTX with a slightly better YTD return (-25.92% vs. MSTU’s -27.63%) and a 6-month return of 87.35%, while MSTU’s 6-month data is unavailable due to its later launch date. Both ETFs have experienced significant negative returns over the past month (-39.75% for MSTX and -39.76% for MSTU), reflecting the high volatility of leveraged products tied to MSTR and Bitcoin.

A significant concern is MSTU’s leverage maintenance. Reports from online discussions, such as Reddit posts and articles like Dave Nadig’s Substack, indicate that MSTU has underperformed on certain days, leaving almost 6% on the table when MSTR was up, suggesting issues with tracking the 2X leverage. This is attributed to potential liquidity issues and the use of call options to achieve leverage, which may not be ideal. MSTX, in contrast, appears to track the 2X leverage more consistently, as evidenced by better performance on specific days, making it a potentially better choice for capturing intended returns over time.

Risk and Volatility

Both ETFs are highly volatile, with MSTU showing a slightly higher daily standard deviation (213.27% vs. 200.87% for MSTX). This means MSTU might be riskier, especially for longer holds, as volatility can amplify losses during market downturns. The high correlation (1.00) between MSTU and MSTX, as noted in PortfoliosLab, indicates they move similarly, increasing risk during market swings.

Liquidity and Management

MSTU has higher AUM at $685 million compared to MSTX’s $477 million, suggesting better liquidity, which could make it easier to enter and exit positions without significant price impact. This is particularly important for leveraged ETFs, where large trades can affect prices. MSTU is managed by T-Rex (part of REX Shares with over $10 billion AUM), while MSTX is managed by Defiance (over $4 billion AUM), but management size does not directly correlate with performance for these products.

Use Case and Investor Considerations

For holding periods of 6 months or 1 year, both ETFs are not ideal due to their daily reset structure, which can lead to performance decay over time, especially in volatile markets. The evidence leans toward MSTX being slightly better, given its more consistent leverage tracking and slightly better YTD performance, despite the higher expense ratio. MSTU’s lower fees are a benefit, but the leverage maintenance issues could outweigh this advantage for longer holds.

Investors should consider:

  • Cost vs. Tracking: MSTU is cheaper, but MSTX tracks better, which might be more important for longer holds.
  • Risk Tolerance: Both are high-risk, with MSTU potentially riskier due to volatility and tracking issues.
  • Market Outlook: Since MSTR is tied to Bitcoin, a bullish Bitcoin market could benefit both, but volatility could amplify losses.

Conclusion

Given the user’s intention to hold for 6 months or 1 year, MSTX might be the better bet, as research suggests it maintains its 2X leverage more accurately and has slightly better recent performance metrics. However, both ETFs carry significant risks, and holding leveraged products for extended periods is generally not recommended due to potential performance decay. The high dividend yield for MSTX is an interesting but unreliable factor, and MSTU’s lower fees are offset by leverage maintenance concerns. Investors should consult current market data, such as PortfoliosLab Comparison, and consider professional advice before investing.

Key Citations

Can I buy and sell these daily

Key Points

  • Research suggests you can buy and sell MSTU and MSTX daily during regular trading hours.
  • It seems likely that both ETFs trade on major U.S. exchanges, with MSTU on Cboe BZX and MSTX on NASDAQ.
  • The evidence leans toward standard trading hours from 9:30 AM to 4:00 PM ET, Monday to Friday, excluding holidays.

Trading Availability

Yes, you can buy and sell MSTU (T-Rex 2X Long MSTR Daily Target ETF) and MSTX (Defiance Daily Target 2X Long MSTR ETF) daily during the regular trading hours of their respective exchanges. These ETFs are listed on major U.S. stock exchanges, making them available for trading on any trading day.

  • MSTU is traded on the Cboe BZX Exchange.
  • MSTX is traded on the NASDAQ.

Regular trading hours are typically from 9:30 AM to 4:00 PM Eastern Time (ET), Monday through Friday, excluding holidays. This aligns with standard market hours for U.S. exchanges.

After-Hours Trading

An unexpected detail is that after-hours trading may also be available through certain brokers, though liquidity during these times is generally lower, which could affect your ability to execute trades at desired prices.

For the latest trading information, check REX Shares MSTU or StockAnalysis MSTX.

Survey Note: Detailed Analysis of Daily Trading for MSTU and MSTX

This note provides a comprehensive analysis of whether MSTU (T-Rex 2X Long MSTR Daily Target ETF) and MSTX (Defiance Daily Target 2X Long MSTR ETF) can be bought and sold daily, including trading mechanics, exchange details, and additional considerations. The analysis is based on available data as of March 19, 2025, and aims to address the user’s query with depth and clarity.

Background and Context

MSTU and MSTX are leveraged ETFs designed to provide 2X the daily return of MicroStrategy (MSTR), a company known for its significant Bitcoin holdings. As exchange-traded funds (ETFs), they are typically tradable on stock exchanges during regular market hours, similar to stocks. The user’s query focuses on whether daily buying and selling is possible, which we interpret as trading on any given trading day during standard market hours.

Exchange and Trading Details

Research suggests that both ETFs are listed on major U.S. exchanges, enabling daily trading during regular hours. Specific details include:

  • MSTU Exchange: The ETF is traded on the Cboe BZX Exchange, as confirmed by the official REX Shares MSTU page, which lists “Cboe BZX Exchange, Inc.” as the trading venue. This is a standard exchange with regular trading hours.
  • MSTX Exchange: The ETF is traded on the NASDAQ, as noted on StockAnalysis MSTX, under the “Stock Exchange NASDAQ” section. NASDAQ also operates with standard U.S. market hours.

Both exchanges typically operate from 9:30 AM to 4:00 PM Eastern Time (ET), Monday through Friday, excluding holidays. This aligns with the standard trading schedule for U.S. stock markets, and there are no indications from the data of any restrictions on trading days for these ETFs.

Trading Hours and Frequency

It seems likely that, given their exchange listings, MSTU and MSTX can be bought and sold daily during these hours. The evidence leans toward no special restrictions, as they are standard ETFs with no mentions of limited trading days in the available information. For example, the Investing.com MSTU page confirms MSTU is listed on NYSE (noted as a possible typo for Cboe BZX, but still a major exchange), reinforcing the ability to trade daily.

After-Hours Trading Consideration

An unexpected detail is the availability of after-hours trading. The Yahoo Finance MSTU page shows “After Hours” prices, indicating that after-hours trading is possible through certain brokers. Similarly, while not explicitly mentioned for MSTX in the snippets, it is reasonable to assume after-hours trading is available, given it’s a standard feature for ETFs on NASDAQ. However, liquidity during after-hours is generally lower, which could impact execution prices and is something to consider for daily trading strategies.

Daily Trading Implications

The user’s focus on “daily” likely refers to trading on any trading day, not necessarily intraday frequency. Given the ETFs’ design for daily investment goals (due to their leveraged nature and daily reset), they are intended for short-term trading, which aligns with the ability to buy and sell daily. The TradingView MSTU page notes MSTU is “intended as a short-term tactical tool,” reinforcing its suitability for daily trading.

Risks and Additional Notes

While daily trading is possible, it’s worth noting that these are leveraged ETFs, which means they are high-risk and designed for daily performance, not long-term holding. The TradingView MSTX page mentions MSTX can “quadruple your gains… or losses,” highlighting the volatility. This doesn’t affect the ability to trade daily but is important for context.

Additionally, the thinking trace considered whether there might be any specific restrictions, but no such information was found in the search results. The analysis also checked for any controversy around trading, but given it’s a standard ETF feature, there doesn’t appear to be significant debate, just the need to ensure liquidity, especially after hours.

Summary Table: Trading Details

ETFExchangeRegular Trading Hours (ET)After-Hours Trading
MSTUCboe BZX9:30 AM – 4:00 PM, M-F, excl. holidaysPossible, lower liquidity
MSTXNASDAQ9:30 AM – 4:00 PM, M-F, excl. holidaysLikely possible, lower liquidity

This table summarizes the key trading information, ensuring clarity for the user.

Conclusion

Based on the analysis, you can indeed buy and sell MSTU and MSTX daily during regular trading hours on their respective exchanges, Cboe BZX for MSTU and NASDAQ for MSTX, typically from 9:30 AM to 4:00 PM ET, Monday through Friday, excluding holidays. After-hours trading may also be available through certain brokers, though with potentially lower liquidity. This aligns with their design as short-term trading tools, and there are no apparent restrictions on daily trading.

For the latest trading information, refer to REX Shares MSTU or StockAnalysis MSTX.

Key Citations

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