Defiance ETFs announced the first weekly distribution for its recently introduced fund, the Defiance Leveraged Long + Income MSTR ETF MST, which provides leveraged long exposure to MicroStrategy Inc. MSTR shares along with income through an options-based approach.
The ETF, which listed on May 1, is designed to provide a return of about 150% to 200% of the day-to-day performance of MicroStrategy shares. The investment approach of the fund involves credit call spreads, enabling it to distribute income weekly. An initial payout of $0.3350 per share will be made on May 22 to the record shareholders as of May 21.
Notably, the fund’s approximated return of capital portion for this distribution is 99.29%, which shows that almost the entire distribution will not be from net investment income but rather a return of the shareholder’s initial investment, a characteristic shared by…
