Defiance Daily Target 2X Short MSTR ETF (SMST) Sharpe Ratio: 1.51

SMST's Sharpe Ratio of 1.51 indicates that for each unit of volatility, it generates 1.51 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jul 15, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

SMST Sharpe Ratio Rank

Average

SMST ranks above 55.1% of all investments in our database based on Sharpe Ratio over the past 12 months, showing balanced returns relative to total risk taken. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

Strong returns with low total volatility → Higher rank
High volatility (both upside and downside) → Lower rank
Consistent returns → Higher rank than volatile returns of same magnitude
Sharp drawdowns increase volatility → Lower rank

What you can do with this information

Returns are proportional to volatility—neither strong nor weak
Evaluate whether the volatility profile aligns with your risk tolerance
Review higher-ranked alternatives in the same category
Monitor rank direction to identify improving or deteriorating trends

SMST Sharpe Ratio Market Positioning

The chart shows SMST's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

Red zone (bottom 25%): 0.74 or lower
Yellow zone (middle 50%): 0.74 to 1.92
Green zone (top 25%): 1.92 or higher
Top 1%: 6.55+
Median: 1.40 — half of all investments score higher

How it compares to other similar ETFs

The table compares Defiance Daily Target 2X Short MSTR ETF's Sharpe Ratio with other ETFs in the Inverse Equities category across multiple time periods, showing how SMST's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jul 15, 2026.

Symbol	Name	1Y Sharpe Ratio
NFXS	Direxion Daily NFLX Bear 1X Shares	1.86
MSTZ	T-REX 2X Inverse MSTR Daily Target ETF	1.81
SMST	Defiance Daily Target 2X Short MSTR ETF	1.51
FIAT	YieldMax Short COIN Option Income Strategy ETF	1.07
MSFD	Direxion Daily MSFT Bear 1X Shares	1.02
SVIX	-1x Short VIX Futures ETF	0.92
YXI	ProShares Short FTSE China 50	0.44
EMTY	ProShares Decline of the Retail Store ETF	0.29
CONI	GraniteShares 2x Short COIN Daily ETF	0.27
BRKD	Direxion Daily BRKB Bear 1X Shares	0.21

Benchmark Against

Benchmark

S&P 500 Index

Lookback Period

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Historical Sharpe Ratio

The chart shows SMST's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when SMST consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does SMST fit in your portfolio?

Add your other holdings to see your portfolio's Sharpe Ratio and find out.

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