SMCX, a 2x leveraged ETF on Super Micro Computer, fell 67% over one year while the underlying stock rose 2%, due to volatility decay in a choppy market.

On June 5, 2026, SMCX closed at $23.22 after a 22% single-day drop, while the underlying Super Micro Computer (SMCI) fell 11% the same day to $41.64. A year earlier, SMCX traded at $69.42.

SMCX owns swaps on SMCI rather than shares, and is designed to deliver 2x the daily return of SMCI, then reset each day. In sustained downtrends or choppy price action, this daily reset mechanism compounds losses even when the underlying stock ends higher over longer periods.

The selloff followed Broadcom guidance on June 3 that Q3 AI semiconductor revenue would be $16.0 billion against consensus near $17.2 billion, and CEO commentary suggesting Google may use multiple chip suppliers. The broader PHLX Semiconductor Index dropped 10.26% on June 7, erasing about $1.2 trillion in market value.