BERZ vs. SMST

Last updated Jun 4, 2026

BERZ (MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both Inverse Equities funds. BERZ is passively managed, while SMST is actively managed. Over the past year, BERZ returned -86.22% vs 73.40% for SMST. A 0.53 correlation means they provide meaningful diversification when combined. BERZ charges 0.95%/yr vs 1.29%/yr for SMST.

Performance

BERZ vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN (BERZ) and Defiance Daily Target 2X Short MSTR ETF (SMST). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BERZ achieves a -65.19% return, which is significantly lower than SMST's -49.49% return.

BERZ

• 1D: 3.73%
• 1M: -37.37%
• YTD: -65.19%
• 6M: -64.50%
• 1Y: -86.22%
• 3Y*: -77.59%
• 5Y*: —
• 10Y*: —

SMST

• 1D: 13.96%
• 1M: 85.04%
• YTD: -49.49%
• 6M: -27.60%
• 1Y: 73.40%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

BERZ vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BERZ MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN	-65.19%	-78.81%	-29.50%
SMST Defiance Daily Target 2X Short MSTR ETF	-49.49%	-44.36%	-90.90%

Correlation

The correlation between BERZ and SMST is 0.55, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.55
Correlation (All Time) Calculated using the full available price history since Aug 22, 2024	0.53

The correlation between BERZ and SMST has been stable across timeframes, ranging from 0.53 to 0.55 - a consistent structural relationship.

Return for Risk

BERZ vs. SMST — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BERZ

BERZ Risk / Return Rank: 0
BERZ Sharpe Ratio Rank: 1
BERZ Sortino Ratio Rank: 0
BERZ Omega Ratio Rank: 0
BERZ Calmar Ratio Rank: 0
BERZ Martin Ratio Rank: 1

SMST

SMST Risk / Return Rank: 24
SMST Sharpe Ratio Rank: 18
SMST Sortino Ratio Rank: 31
SMST Omega Ratio Rank: 32
SMST Calmar Ratio Rank: 21
SMST Martin Ratio Rank: 18

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BERZ vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN (BERZ) and Defiance Daily Target 2X Short MSTR ETF (SMST). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BERZ	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-1.14	0.52	-1.66
Sortino ratio: Return per unit of downside risk	-2.96	1.63	-4.59
Omega ratio: Gain probability vs. loss probability	0.69	1.21	-0.52
Calmar ratio: Return relative to maximum drawdown	-0.99	0.86	-1.85
Martin ratio: Return relative to average drawdown	-1.54	1.81	-3.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BERZ vs. SMST - Sharpe Ratio Comparison

The current BERZ Sharpe Ratio is -1.14, which is lower than the SMST Sharpe Ratio of 0.52. The chart below compares the historical Sharpe Ratios of BERZ and SMST, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BERZ	SMST	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.14	0.52	-1.66
Sharpe Ratio (All Time) Calculated using the full available price history	-0.75	-0.52	-0.22

Drawdowns

BERZ vs. SMST - Drawdown Comparison

The maximum BERZ drawdown since its inception was -99.80%, roughly equal to the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for BERZ and SMST.

Drawdown Indicators

	BERZ	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-99.80%	-99.25%	-0.55%
Max Drawdown (1Y) Largest decline over 1 year	-87.32%	-85.39%	-1.93%
Max Drawdown (3Y) Largest decline over 3 years	-98.97%	—	—
Current Drawdown Current decline from peak	-99.79%	-98.02%	-1.77%
Average Drawdown Average peak-to-trough decline	-71.57%	-90.67%	+19.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	56.07%	40.73%	+15.34%

Volatility

BERZ vs. SMST - Volatility Comparison

The current volatility for MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN (BERZ) is 23.63%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 37.33%. This indicates that BERZ experiences smaller price fluctuations and is considered to be less risky than SMST based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BERZ	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	23.63%	37.33%	-13.70%
Volatility (6M) Calculated over the trailing 6-month period	57.98%	126.48%	-68.50%
Volatility (1Y) Calculated over the trailing 1-year period	75.77%	140.93%	-65.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	92.20%	166.79%	-74.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	92.20%	166.79%	-74.59%

BERZ vs. SMST - Expense Ratio Comparison

BERZ has a 0.95% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

BERZ vs. SMST - Dividend Comparison

Neither BERZ nor SMST has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both BERZ and SMST in my portfolio?

BERZ and SMST have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BERZ or SMST?

SMST has higher volatility (37.33%) compared to BERZ (23.63%). In terms of maximum drawdown, BERZ dropped -99.80% vs SMST's -99.25%.

Which ETF is better, BERZ or SMST?

On 1-year performance, SMST leads with 73.40% vs -86.22% for BERZ. On fees, BERZ is cheaper at 0.95% per year. On volatility, BERZ has been the lower-risk option at 23.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BERZ or SMST?

Over the 1-year period, SMST has performed better with a 73.40% return vs -86.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BERZ or SMST?

BERZ is cheaper with a 0.95% expense ratio, compared with 1.29% for SMST.

Which ETF pays a higher dividend yield, BERZ or SMST?

BERZ and SMST have nearly identical dividend yields, around 0.00%.

What is the main difference between BERZ and SMST?

They also come from different issuers: BMO and Defiance. Their fees differ too: 0.95% for BERZ and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (0.52 vs -1.14), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.