SMCZ Overview

Reverse Stock Splits Announcement: Tidal Financial Group and Defiance ETFs are implementing reverse stock splits for five leveraged ETFs, effective December 9, 2025, to reduce outstanding shares and increase share prices without affecting total investment value.

Details of the Splits: The reverse split ratios vary by fund, with reductions in outstanding shares ranging from 75% to 87.5%, and shareholders will automatically receive adjusted share balances without needing to take any action.

Fractional Shares and Tax Considerations: Shareholders may receive cash compensation for fractional shares resulting from the splits, which could have tax implications, prompting the need for consultation with tax advisors.

About Defiance ETFs and Tidal Financial Group: Defiance ETFs focuses on thematic and leveraged ETFs for innovative market exposure, while Tidal Financial Group offers comprehensive ETF solutions to help asset managers launch differentiated strategies.

Significant Outflows in ETFs: The Schwab U.S. Large-Cap Growth ETF experienced the largest outflow with a decrease of 27.1 million units, a 1.7% drop from the previous week, while Nvidia and Apple showed mixed performance in morning trading.

Percentage Decline in Units: The Defiance Daily Target 2X Short SMCI ETF saw the most significant percentage decline, losing 1.29 million units, which equates to a 39.9% decrease in outstanding units compared to the prior week.

ETF Outflow Details: The Defiance Daily Target 2X Short SMCI ETF experienced the largest outflow, losing 2,240,000 units, which is a 38.6% decrease in outstanding units compared to the previous week.

Market Commentary: The views expressed in the article are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.

Stock Market Performance: The S&P 500 and Dow Jones both recorded their fourth consecutive monthly gains in August, with the S&P 500 rising 1.5% and the Dow Jones increasing 3.2%. The Nasdaq also saw a 1.6% gain, marking its fifth straight month of growth, while small-cap stocks surged, particularly the Russell 2000, which rose about 7%.

Investor Sentiment and Inflation Concerns: Despite the stock market gains, investor sentiment fell to a three-month low due to inflation concerns, with core inflation at 2.9% in July. Additionally, there is strong speculation about a potential rate cut by the Federal Reserve, with an 86.4% chance of a quarter-point reduction being priced in by traders.

Political Feud Impacting Markets: A public dispute between President Trump and Tesla CEO Elon Musk has unsettled investors, leading to a 14.3% drop in Tesla shares on June 5, 2025, amidst concerns over potential revocation of federal subsidies and contracts for Musk's companies.

ETF Performance Amid Market Volatility: Despite the political drama, certain exchange-traded funds (ETFs) saw significant gains, with T-REX 2X Inverse Tesla Daily Target ETF rising by 30%, while silver prices surged due to increased industrial demand, particularly from the AI sector.

ETF Outflow Details: The SMCZ ETF experienced the largest outflow, losing 750,000 units, which equates to a 33.3% decline in outstanding units compared to the previous week.

Author's Perspective: The opinions expressed in the article are solely those of the author and do not necessarily represent the views of Nasdaq, Inc.