BRZU vs. SMST

Last updated Jul 17, 2026

BRZU (Direxion Daily Brazil Bull 2X Shares) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - BRZU is a Leveraged Equities fund tracking the MSCI Brazil 25/50 Index, while SMST is a Inverse Equities fund actively managed by Defiance. BRZU is passively managed, while SMST is actively managed. Over the past year, BRZU returned 58.87% vs 257.89% for SMST. At a correlation of -0.26, they often move in opposite directions. Both charge a 1.29% expense ratio.

Performance

BRZU vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Brazil Bull 2X Shares (BRZU) 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, BRZU achieves a 17.10% return, which is significantly higher than SMST's -31.71% return.

BRZU

• 1D: -3.32%
• 1M: 4.62%
• 6M: 6.82%
• YTD: 17.10%
• 1Y: 58.87%
• 3Y*: 5.79%
• 5Y*: -1.29%
• 10Y*: -19.98%

SMST

• 1D: 7.64%
• 1M: 37.45%
• 6M: -8.12%
• YTD: -31.71%
• 1Y: 257.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BRZU vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BRZU Direxion Daily Brazil Bull 2X Shares	17.10%	97.99%	-43.48%
SMST Defiance Daily Target 2X Short MSTR ETF	-31.71%	-44.36%	-91.71%

Correlation

The correlation between BRZU and SMST is -0.30, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.30
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.26

Return for Risk

BRZU vs. SMST — Risk / Return Rank

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

BRZU

BRZU Risk / Return Rank: 38
BRZU Sharpe Ratio Rank: 41
BRZU Sortino Ratio Rank: 40
BRZU Omega Ratio Rank: 39
BRZU Calmar Ratio Rank: 39
BRZU Martin Ratio Rank: 34

SMST

SMST Risk / Return Rank: 63
SMST Sharpe Ratio Rank: 67
SMST Sortino Ratio Rank: 64
SMST Omega Ratio Rank: 64
SMST Calmar Ratio Rank: 75
SMST Martin Ratio Rank: 44

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.

BRZU vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Brazil Bull 2X Shares (BRZU) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	BRZU	SMST	Difference
Sharpe ratio: Return per unit of total volatility	1.19	1.74	-0.55
Sortino ratio: Return per unit of downside risk	1.71	2.38	-0.67
Omega ratio: Gain probability vs. loss probability	1.22	1.31	-0.09
Calmar ratio: Return relative to maximum drawdown	1.64	3.04	-1.40
Martin ratio: Return relative to average drawdown	4.07	5.82	-1.75

BRZU vs. SMST - Sharpe Ratio Comparison

The current BRZU Sharpe Ratio is 1.19, which is lower than the SMST Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of BRZU 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.

Drawdowns

BRZU vs. SMST - Drawdown Comparison

The maximum BRZU drawdown since its inception was -99.71%, roughly equal to the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for BRZU and SMST.

Drawdown Indicators

	BRZU	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-99.71%	-99.25%	-0.46%
Max Drawdown (1Y) Largest decline over 1 year	-35.97%	-85.39%	+49.42%
Max Drawdown (3Y) Largest decline over 3 years	-58.25%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-62.89%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-98.11%	—	—
Current Drawdown Current decline from peak	-99.16%	-97.32%	-1.84%
Average Drawdown Average peak-to-trough decline	-89.61%	-90.93%	+1.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.50%	44.56%	-30.06%

Volatility

BRZU vs. SMST - Volatility Comparison

The current volatility for Direxion Daily Brazil Bull 2X Shares (BRZU) is 11.73%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 55.38%. This indicates that BRZU 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

	BRZU	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.73%	55.38%	-43.65%
Volatility (6M) Calculated over the trailing 6-month period	39.91%	135.32%	-95.41%
Volatility (1Y) Calculated over the trailing 1-year period	49.90%	149.40%	-99.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	55.28%	167.53%	-112.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	82.28%	167.53%	-85.25%

BRZU vs. SMST - Expense Ratio Comparison

Both BRZU and SMST have an expense ratio of 1.29%.

Dividends

BRZU vs. SMST - Dividend Comparison

BRZU's dividend yield for the trailing twelve months is around 1.92%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
BRZU Direxion Daily Brazil Bull 2X Shares	1.92%	2.39%	8.73%	3.24%	4.70%	6.29%	0.78%	0.95%	1.04%	0.74%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BRZU and SMST in my portfolio?

BRZU and SMST have a correlation of -0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BRZU or SMST?

SMST has higher volatility (55.38%) compared to BRZU (11.73%). In terms of maximum drawdown, BRZU dropped -99.71% vs SMST's -99.25%.

Which ETF is better, BRZU or SMST?

On 1-year performance, SMST leads with 257.89% vs 58.87% for BRZU. Both ETFs have the same 1.29% expense ratio. On volatility, BRZU has been the lower-risk option at 11.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BRZU or SMST?

Over the 1-year period, SMST has performed better with a 257.89% return vs 58.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BRZU or SMST?

BRZU and SMST have the same expense ratio: 1.29% per year.

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

BRZU has the higher dividend yield at 1.92%, compared with 0.00% for SMST.

What is the main difference between BRZU and SMST?

BRZU is categorized as Leveraged Equities, while SMST is Inverse Equities. They also come from different issuers: Direxion and Defiance.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.74 vs 1.19), 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.