'Russian Nesting Doll' Of Problems: MSTX And DIPS Top Morningstar's Worst ETF List For 2024
Worst Performing ETFs: The Defiance Daily Target 2X Long MSTR ETF (MSTX) and YieldMax Short NVDA Option Income Strategy ETF (DIPS) have been identified as the worst performing leveraged ETFs of the year, with MSTX suffering from structural issues and DIPS facing high risks due to complex derivatives.
Top Performing ETFs: In contrast, Jensen's Quality Growth ETF (JGRW) and Neuberger Berman's Small-Mid Cap ETF (NBSM) were praised for their effective strategies, showing positive year-to-date returns of 3.96% and 0.90%, respectively.
Trade with 70% Backtested Accuracy
Analyst Views on MSTX
No data
About the author
Most Active Stocks in Pre-Market on December 19, 2025: FOLD, TQQQ, TSLL, NKE, IBIT, MSTX, NVDA, ORCL, INVH, SMR, VICI, BBAI
NASDAQ 100 Pre-Market Performance: The NASDAQ 100 Pre-Market Indicator is up 80.38 points, reaching 25,099.75, with a total volume of 89,657,766 shares traded.
Active Stocks Overview: Amicus Therapeutics (FOLD) leads with a significant increase of 3.26 to $14.15, while Nike, Inc. (NKE) shows a decline of 7.68 to $57.95, representing 68.18% of its target price.
Stock Recommendations: Several stocks, including NVIDIA (NVDA) and Oracle (ORCL), are in the "buy range" according to Zacks, with NVDA's earnings forecast showing positive revisions.
Market Highlights: Other notable stocks include ProShares UltraPro QQQ (TQQQ) and Direxion Daily TSLA Bull 2X Shares (TSLL), both showing significant increases from their 52-week lows.
Single-Stock ETFs Are Emerging Rapidly, but They Could Be Risky.
Emergence of Leveraged Funds: The article highlights the rise of leveraged single-stock exchange-traded funds (ETFs) in the U.S. market this year, indicating a trend towards more speculative investment strategies.
Casino-like Environment: It suggests that the proliferation of these financial products reflects a broader shift in America’s investment landscape, likening it to a casino where high-risk gambling is becoming the norm.
Crypto ETF Strategy Faces Major Setback: 2X Funds Plummet 80% — Are Tesla and Nvidia Investors at Risk?
Strategy Inc. and ETF Performance: Strategy Inc. is facing significant challenges as its stock has sharply declined, impacting the performance of leveraged ETFs tied to it, which have become some of the worst-performing in the US.
Recent Stock Movement: Despite a recent 6% increase in Strategy's shares due to its participation in the Open Semantic Interchange, the overall volatility in Bitcoin has created instability for leveraged ETFs associated with the company.
Concerns Over Valuation: The valuation premium of Strategy has diminished, raising concerns that the company may need to sell Bitcoin, with potential consequences including being dropped from major indices like MSCI USA or Nasdaq 100.
Wider Implications for Leveraged ETFs: The turmoil surrounding Strategy Inc. has prompted traders to reassess other leveraged single-stock ETFs, highlighting the risks associated with high leverage and volatility in the market.
Most Active Stocks in Pre-Market Trading on November 19, 2025: TSLL, SQQQ, NVDA, NOK, SEMR, TQQQ, MSTX, IBIT, TGT, JNJ, BX, KMI
NASDAQ 100 Pre-Market Performance: The NASDAQ 100 Pre-Market Indicator is up 101.25 points to 24,604.35, with a total volume of 321,403,216 shares traded.
Most Active Stocks: Direxion Daily TSLA Bull 2X Shares (TSLL) leads with a 165.48% increase from its 52-week low, while ProShares UltraPro Short QQQ (SQQQ) shows a 19.87% increase.
NVIDIA and Other Stocks: NVIDIA Corporation (NVDA) has seen positive earnings revisions, with a current price of $184.41, while Nokia Corporation (NOK) is trading below its target price.
Stock Recommendations: Johnson & Johnson (JNJ) and Kinder Morgan, Inc. (KMI) are both in the "buy range" according to current recommendations, while Blackstone Inc. (BX) is trading at 78.1% of its target price.
Widely Held Leveraged Funds Stun Investors with Significant Losses
Booming Popularity: Risky leveraged exchange-traded funds (ETFs) are experiencing significant growth, attracting investors through easy access via brokerage accounts.
Mechanism of Operation: These funds utilize derivative contracts or borrowed money to enhance the returns of an underlying asset, with leveraged funds tracking stock indexes existing for over a decade.
Recent Developments: The approval of leveraged single-stock ETFs by U.S. regulators in 2022 marks a notable expansion in the types of leveraged funds available to investors.
Performance Concerns: The performance of these leveraged funds over the past year underscores their inherent risks and potential pitfalls for investors.
Bitcoin Struggles Impact Strategy — These ETFs Suffered Twice the Loss
MSTR's Performance: Strategy Inc. (MSTR) experienced a significant decline of around 15% over five days, exacerbated by its decision to sell shares to fund Bitcoin purchases, leading to a drop in its leveraged ETFs, including MST and MSTX, which fell nearly 29% and 28% respectively.
Market Conditions: The broader cryptocurrency market faced a downturn, with Bitcoin and Ethereum prices dropping, which negatively impacted crypto-related equities like MSTR and its leveraged ETFs, highlighting the volatility and risks associated with such investments during bear markets.
Most Active Stocks in Pre-Market on December 19, 2025: FOLD, TQQQ, TSLL, NKE, IBIT, MSTX, NVDA, ORCL, INVH, SMR, VICI, BBAI
NASDAQ 100 Pre-Market Performance: The NASDAQ 100 Pre-Market Indicator is up 80.38 points, reaching 25,099.75, with a total volume of 89,657,766 shares traded.
Active Stocks Overview: Amicus Therapeutics (FOLD) leads with a significant increase of 3.26 to $14.15, while Nike, Inc. (NKE) shows a decline of 7.68 to $57.95, representing 68.18% of its target price.
Stock Recommendations: Several stocks, including NVIDIA (NVDA) and Oracle (ORCL), are in the "buy range" according to Zacks, with NVDA's earnings forecast showing positive revisions.
Market Highlights: Other notable stocks include ProShares UltraPro QQQ (TQQQ) and Direxion Daily TSLA Bull 2X Shares (TSLL), both showing significant increases from their 52-week lows.
Single-Stock ETFs Are Emerging Rapidly, but They Could Be Risky.
Emergence of Leveraged Funds: The article highlights the rise of leveraged single-stock exchange-traded funds (ETFs) in the U.S. market this year, indicating a trend towards more speculative investment strategies.
Casino-like Environment: It suggests that the proliferation of these financial products reflects a broader shift in America’s investment landscape, likening it to a casino where high-risk gambling is becoming the norm.
Crypto ETF Strategy Faces Major Setback: 2X Funds Plummet 80% — Are Tesla and Nvidia Investors at Risk?
Strategy Inc. and ETF Performance: Strategy Inc. is facing significant challenges as its stock has sharply declined, impacting the performance of leveraged ETFs tied to it, which have become some of the worst-performing in the US.
Recent Stock Movement: Despite a recent 6% increase in Strategy's shares due to its participation in the Open Semantic Interchange, the overall volatility in Bitcoin has created instability for leveraged ETFs associated with the company.
Concerns Over Valuation: The valuation premium of Strategy has diminished, raising concerns that the company may need to sell Bitcoin, with potential consequences including being dropped from major indices like MSCI USA or Nasdaq 100.
Wider Implications for Leveraged ETFs: The turmoil surrounding Strategy Inc. has prompted traders to reassess other leveraged single-stock ETFs, highlighting the risks associated with high leverage and volatility in the market.
Most Active Stocks in Pre-Market Trading on November 19, 2025: TSLL, SQQQ, NVDA, NOK, SEMR, TQQQ, MSTX, IBIT, TGT, JNJ, BX, KMI
NASDAQ 100 Pre-Market Performance: The NASDAQ 100 Pre-Market Indicator is up 101.25 points to 24,604.35, with a total volume of 321,403,216 shares traded.
Most Active Stocks: Direxion Daily TSLA Bull 2X Shares (TSLL) leads with a 165.48% increase from its 52-week low, while ProShares UltraPro Short QQQ (SQQQ) shows a 19.87% increase.
NVIDIA and Other Stocks: NVIDIA Corporation (NVDA) has seen positive earnings revisions, with a current price of $184.41, while Nokia Corporation (NOK) is trading below its target price.
Stock Recommendations: Johnson & Johnson (JNJ) and Kinder Morgan, Inc. (KMI) are both in the "buy range" according to current recommendations, while Blackstone Inc. (BX) is trading at 78.1% of its target price.
Widely Held Leveraged Funds Stun Investors with Significant Losses
Booming Popularity: Risky leveraged exchange-traded funds (ETFs) are experiencing significant growth, attracting investors through easy access via brokerage accounts.
Mechanism of Operation: These funds utilize derivative contracts or borrowed money to enhance the returns of an underlying asset, with leveraged funds tracking stock indexes existing for over a decade.
Recent Developments: The approval of leveraged single-stock ETFs by U.S. regulators in 2022 marks a notable expansion in the types of leveraged funds available to investors.
Performance Concerns: The performance of these leveraged funds over the past year underscores their inherent risks and potential pitfalls for investors.
Bitcoin Struggles Impact Strategy — These ETFs Suffered Twice the Loss
MSTR's Performance: Strategy Inc. (MSTR) experienced a significant decline of around 15% over five days, exacerbated by its decision to sell shares to fund Bitcoin purchases, leading to a drop in its leveraged ETFs, including MST and MSTX, which fell nearly 29% and 28% respectively.
Market Conditions: The broader cryptocurrency market faced a downturn, with Bitcoin and Ethereum prices dropping, which negatively impacted crypto-related equities like MSTR and its leveraged ETFs, highlighting the volatility and risks associated with such investments during bear markets.
