Artificial intelligence and semiconductor stocks have been the story of 2026. But if you look at the best-performing U.S.-listed ETFs over the past month, you won't find a single AI fund at the top. Instead, you'll find two funds that made their money by betting against one of Wall Street's biggest momentum names: Strategy Inc. (MSTR).
The T-Rex 2X Inverse MSTR Daily Target ETF (MSTZ) and the Defiance Daily Target 2X Short MSTR ETF (SMST) both surged around 200% over the past month. That's right—roughly 200%. These funds are designed to deliver twice the inverse of Strategy's daily return, so when MSTR shares fall, they pop. And in June, MSTR fell hard after an extended rally, giving these inverse ETFs a massive boost.
Why Short Strategy ETFs Soared
Strategy has become one of the most closely watched stocks in the market because of its aggressive Bitcoin accumulation strategy. The company holds hundreds of thousands of bitcoins on its balance sheet, making its shares highly sensitive to moves in the cryptocurrency. For months, as Bitcoin rallied and institutional interest in digital assets grew, MSTR shares climbed steadily. But in June, the tide turned. Strategy stock reversed course, and the leveraged inverse ETFs that track it went along for the ride—in the opposite direction.
MSTZ and SMST each seek to deliver 200% of the inverse (-2x) of Strategy's daily share price performance. Because they reset daily, these funds are primarily designed for short-term tactical trading, not long-term buy-and-hold. If you hold them for more than a day, the math can get weird—compounding can amplify gains or losses, especially in volatile markets. But when the underlying stock drops sharply over a sustained period, these funds can produce eye-popping returns.
June's Biggest ETF Winners
The two funds significantly outpaced ETFs focused on AI, semiconductors, and technology—the sectors that have otherwise dominated ETF inflows and performance rankings throughout 2026. For context, consider funds like the Global X Artificial Intelligence & Technology ETF (AIQ), the Global X Robotics and Artificial Intelligence ETF (BOTZ), the VanEck Semiconductor ETF (SMH), and the iShares Semiconductor ETF (SOXX). All have had strong years, but none came close to the 200% gains of MSTZ and SMST in June.
This underscores how quickly sentiment can shift in single-stock leveraged ETFs. When a stock like MSTR—which has been a high-flying momentum name—suddenly reverses, the leveraged inverse funds can deliver outsized returns. It's a reminder that even in a year defined by AI enthusiasm, the market's biggest ETF winners can emerge from entirely different themes.
A Growing Corner of the ETF Market
The strong performance also highlights the rapid expansion of the single-stock ETF market. Asset managers have rolled out leveraged and inverse ETFs tied to high-profile companies like Nvidia Corp (NVDA), Tesla Inc (TSLA), Palantir Technologies Inc (PLTR), Oracle Corp (ORCL), and of course Strategy. These products allow traders to express bullish or bearish views without using margin or options, making them popular tools for active traders.
But they come with risks. Unlike diversified index ETFs, these products are intended for short-term trading. Their daily reset mechanism means returns over periods longer than one day can differ significantly from simply doubling the inverse of the stock's cumulative performance. In volatile markets, the compounding effect can work for you or against you—sometimes dramatically.
June's leaderboard is a perfect example. Rather than riding the semiconductor boom or mega-cap technology rally, investors who correctly anticipated a reversal in Strategy shares captured some of the strongest gains available in the ETF market. It's a reminder that in the world of leveraged ETFs, the biggest winners often come from the most unexpected places.
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