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MIAMI - Defiance ETFs has announced the launch of the Defiance Daily Target 2X Short SMCI ETF (SMCZ), a new exchange-traded fund that offers 2X inverse exposure to Super Micro Computer, Inc. (NASDAQ:SMCI). This ETF is tailored for traders seeking to leverage bets against the performance of Supermicro, a company specializing in high-performance server and storage solutions for AI workloads. According to InvestingPro data, SMCI has seen significant market volatility, with the stock down nearly 16% in the past week and maintaining a beta of 1.2, indicating higher-than-market volatility.
SMCZ aims to deliver twice the inverse of Supermicro’s daily percentage change. "SMCZ offers investors a way to seek inverse leveraged exposure to Supermicro," said Sylvia Jablonski, CEO of Defiance ETFs. She emphasized that the ETF is a tactical tool for those anticipating a downturn in Supermicro’s market performance. With a market capitalization of $20.3 billion and an overall "GREAT" financial health score from InvestingPro, SMCI presents a complex investment case with 12+ additional exclusive ProTips available for subscribers.
The fund is designed for knowledgeable investors who understand the risks of daily leveraged inverse results and are prepared to actively manage their portfolios. The nature of leveraged ETFs means they carry higher risks, particularly as they magnify inverse performance, which can lead to significant losses even over short periods. SMCI’s current P/E ratio of 13.8 and revenue growth of 125% in the last twelve months showcase the company’s dynamic market position. InvestingPro’s comprehensive research report provides detailed analysis of these metrics and more, helping investors make informed decisions.
Defiance ETFs, founded in 2018, is known for thematic, income, and leveraged ETFs, including first-mover leveraged single-stock ETFs that allow amplified positions without a margin account. However, the firm advises that SMCZ is not suitable for all investors and is not intended for those not ready to monitor their investments closely.
Investing in SMCZ does not equate to investing directly in Super Micro Computer, Inc., and the fund’s performance can be affected by various risks, including leverage risk, derivatives risk, and market volatility. Additionally, as a non-diversified fund, it may invest more heavily in single issuers, increasing volatility.
The announcement of SMCZ’s launch is based on a press release statement from Defiance ETFs. Investors are encouraged to read the prospectus and consider the fund’s investment objectives, risks, charges, and expenses carefully before investing.
In other recent news, Super Micro Computer, Inc. has made significant strides with several key announcements. The company recently introduced a new lineup of single-socket servers, which are designed to rival traditional dual-socket servers in performance. These servers support the Intel Xeon 6 processors and aim to enhance high-speed networking, GPU capacity, and storage device connectivity. Additionally, Supermicro unveiled a high-density storage server, the Supermicro Petascale, featuring the NVIDIA Grace CPU Superchip, which is optimized for AI and machine learning workloads.
The company has also expanded its GPU server offerings to include support for NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs, enhancing performance for various AI applications. In leadership news, Supermicro appointed Scott Angel as a new independent director and promoted Yitai Hu to General Counsel & Senior Vice President, Corporate Development. These strategic appointments are expected to contribute to the company’s growth, according to CEO Charles Liang.
These developments highlight Supermicro’s ongoing commitment to innovation and providing high-performance, energy-efficient IT solutions.
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