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REX price exposure is a critical aspect of investing in the REX Shares ETFs, particularly the T-REX 2X Inverse MSTR Daily Target ETF (MSTZ). This fund seeks daily inverse investment results, aiming to provide 200% of the inverse of the daily performance of MicroStrategy Inc. (MSTR) ¹. The REX price exposure is influenced by various factors, including the performance of MSTR, market volatility, and the use of leverage. As a 2X inverse ETF, MSTZ uses leverage to amplify the inverse performance of MSTR. This means that if MSTR's stock price decreases by 1%, MSTZ's net asset value (NAV) is expected to increase by 2%, and vice versa ². However, it's essential to note that the REX price exposure can be affected by various risks, including: - *Leverage Risk*: The use of leverage can amplify losses as well as gains, making the fund more volatile than MSTR. - *Inverse Correlation Risk*: The fund's inverse correlation with MSTR may not always be perfect, which can result in unexpected losses. - *Market Volatility Risk*: The fund's NAV can be affected by market volatility, which can result in significant losses. - *Liquidity Risk*: The fund's holdings may be difficult to buy or sell, particularly during times of market turmoil. As of December 20, 2024, the NAV of MSTZ was $19.28, with a medium bid-ask spread of 0.19% ¹. The fund's expense ratio is 1.05%, which is relatively high compared to other ETFs. In conclusion, REX price exposure is a critical aspect of investing in the REX Shares ETFs, particularly the T-REX 2X Inverse MSTR Daily Target ETF (MSTZ). While the fund offers the potential for amplified inverse returns, it also comes with significant risks, including leverage risk, inverse correlation risk, market volatility risk, and liquidity risk. As with any investment, it's essential to carefully consider these risks and evaluate your financial goals and risk tolerance before investing.