2x and -2x MSTR ETF investors are getting hammered with 65% losses. Here's why and what to know.

Core Insights - Leveraged single-stock ETFs have gained significant popularity in 2025, with 177 new launches by early November, and a total of approximately 300 when including synthetic and derivative income ETFs [1] - Many investors are drawn to these risky products for their potential high returns, but many are unaware of the structural risks involved, as evidenced by the performance of leveraged MicroStrategy ETFs [2][3] - The performance of leveraged ETFs does not equate to double the stock's return over time, as they are designed to deliver 200% of the daily performance, leading to significant discrepancies for longer holding periods [4][5][6] Performance Analysis - MicroStrategy's stock is down 12% year-to-date, while its 2x leveraged and inverse ETFs are down over 65%, highlighting the risks associated with these products [2][7] - The discrepancy in performance between MicroStrategy and its leveraged ETFs is attributed to the structure of the funds, which resets daily, complicating the expected returns for longer holding periods [6][7]