MSTZ’s investment objective is to seek daily investment results that endeavour to correspond, before fees, expenses, distributions, brokerage commissions, and other transaction costs, to two times inverse (-2X) the daily return (on a percentage basis) of the class A common stock of MicroStrategy Inc. (“Strategy”). MSTZ does not hedge its currency exposure to the U.S. dollar.
Trading on MSTZ was halted at 3:06 PM EST on Friday February 6, 2026 for the remainder of the trading day, following the extreme intraday volatility on Strategy. The unexpected level of volatility had increased the risk of the net asset value of MSTZ changing by more than 50% that day and potentially impacting the operations of the ETF. LongPoint is confirming there was no impact from that volatility on the ETF and MSTZ is expected to operate in the normal course when it begins trading on the TSX today.
As regular oversight, the Manager continues to monitor MSTZ and all other LongPoint ETFs for extreme volatility and the impact to its ETFs’ net asset values.
Investing in shares of MSTZ is speculative, can involve a high degree of risk and may only be suitable for persons who are able to assume the risk of losing their entire investment. Potential investors in MSTZ are reminded to read the prospectus, as amended from time to time, and all information available on http://www.sedar.com before investing. Investors should continue to monitor their investment daily.
MSTZ is an alternative mutual fund, and as such, is permitted to invest in asset classes or use investment strategies that are not permitted for other types of mutual funds. The ETF is highly speculative. The ETF uses a significant amount of leverage which magnifies gains and losses. They are intended for use in daily or short-term trading strategies by very knowledgeable, sophisticated investors. If you hold such an ETF for more than one day, your return could vary considerably from the ETF’s daily target return. The negative effect of compounding on returns is more pronounced when combined with leverage and daily rebalancing in volatile markets. The ETF is not suitable for investors who do not intend to actively monitor and manage their investments. In addition, the ETF is concentrated and non-diversified, meaning it is only exposed to a single common stock. As a result, the ETF’s assets are more susceptible to the impact of any specific company event, or single economic, technological, or regulatory event, compared to a diversified portfolio.
Read more on wallstreet:online
