A method of forming a strained, semiconductor-on-insulator substrate includes forming a second semiconductor layer on a first semiconductor substrate. The second semiconductor is lattice matched to the first semiconductor substrate such that the second semiconductor layer is subjected to a first directional stress. An active device semiconductor layer is formed over the second semiconductor layer such that the active device semiconductor layer is initially in a relaxed state. One or more trench isolation structures are formed through the active device layer and through the second semiconductor layer so as to relax the second semiconductor layer below the active device layer and impart a second directional stress on the active device layer opposite the first directional stress.