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Leveraged ETFs on Super Micro Computer show heavy losses despite opposite bets amid volatile trading.

Market News
16 Jun 2026
24/7 Wall Street
View Source
Bearish
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Defiance's 2x leveraged ETFs on Super Micro Computer, one betting on price rises (SMCX) and the other on declines (SMCZ), have both suffered severe losses over the past year. This is due to the daily reset feature of leveraged ETFs, which causes volatility drag during Super Micro's choppy price movements, especially after events like a $7 billion equity offering and legal risks. While short-term trades can benefit from news-driven moves, holding these ETFs long-term leads to significant capital erosion. Investors should treat these products as short-term trading tools rather than buy-and-hold investments.

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