Toronto, Ontario–(Newsfile Corp. – February 9, 2026) – LongPoint Asset Management Inc. (“LongPoint”) today is announcing normal trading of the shares of the SavvyShort (-2X) MSTR ETF (“MSTZ” or the “ETF”) listed on the Toronto Stock Exchange (“TSX”).
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.
MSTZ employs significant leverage, may experience amplified losses, and should not be expected to return -200% of its daily target over any period of time other than daily. An investor in the ETF could lose their entire investment within a single day if their daily target gains more than 50% that day. The returns of the ETF over periods longer than one day will likely differ in amount and possibly direction from inverse performance of its daily target for the same period. This effect is more pronounced for the ETF as the volatility of the daily target and/or the period of time increases.
This material is for informational purposes only. This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do not take into account the particular investment objectives, needs, restrictions, and circumstances of a specific investor and, thus, should not be used as the basis of any specific investment recommendation. Investors should consult a financial and/or tax advisor for financial and/or tax information applicable to their specific situation.
Commissions, management fees, performance fees, and operating expenses may all be associated with an investment in an ETF. MSTZ is not guaranteed, their values change frequently and past performance may not be repeated. Each ETF’s Facts and prospectus contain important detailed information about the ETF. Please read the relevant documents before investing.
Certain statements may constitute a forward-looking statement, including those identified by the expression “expect” and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect LongPoint’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking statements. These forward-looking statements are made as of the date hereof and LongPoint does not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.
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